Law360, New York (March 24, 2015, 3:40 PM EDT) -- On March 12, 2015, the United States Court of Appeals for the Seventh Circuit entered an opinion interpreting "the most litigated provision in the standard-form title insurance policy purchased by real estate lenders to protect their security interests in ongoing construction projects."[1] Exclusion 3(a) in the standard-form construction lender's title policy provides that liens that are "created, suffered, assumed or agreed to" by the insured lender will not be covered under the title policy. In BB Syndication Services Inc. v. First American Title Insurance Co., the Seventh Circuit held, in the context of a failed construction project, that this exclusion applies to mechanics' liens arising as a result of a construction lender's decision to declare a default and stop funding additional loans.[2]...