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<br />CONDITIONS AND STIPULATIONS
<br />
<br />1. Definitions
<br />The following terms when used in this policy mean:
<br />(a) "land": The land described, specifically or by reference, in
<br />Schedule A, and improvements affixed thereto which by law
<br />constitute real property.
<br />(b) "public records": Those records which impart constructive
<br />notice of matters relating to the land.
<br />(c) "knowledge": Actual knowledge, not constructive knowl.
<br />edge, or notice which may be imputed to the Insured by
<br />reason of any public records.
<br />(d) "date": The effective date, including hour if specified.
<br />
<br />2. Exclusions from the Coverage of this Policy
<br />
<br />This policy does not insure against loss or damage by reason
<br />of the following:
<br />
<br />(a) The refusal of any person to purchase, lease or lend money
<br />on the land.
<br />
<br />(b) Governmental rights of police power or eminent domain
<br />unless notice of the exercise of such rights appears in the
<br />public records at the date hereof; and the consequences of
<br />any law, ordinance or governmental regulation including,
<br />but not limited to, building and zoning ordinances.
<br />
<br />(c) Any titles or rights asserted by anyone including, but not
<br />limited to, persons, corporations, governments or other
<br />entities to tidelands, or lands comprising the shores or
<br />beds of navigable or perennial rivers and streams, lakes,
<br />bays, gulfs or oceans, or to any land extending from the
<br />line of mean low tide to the line of vegetation, or to lands
<br />beyond the line of the harbor or bulkhead lines as estab-
<br />lished or changed by any government, or to filled-in lands,
<br />or artificial islands, or to riparian rights, or the rights or
<br />interests of the State of Texas or the public generally in
<br />the area extending from the line of mean low tide to the
<br />line of vegetation or their right of access thereto, or right
<br />of easement along and across the same.
<br />(d) Defects, liens, encumbrances, adverse claims against the
<br />title as insured or other matters (I) created, suffered,
<br />assumed or agreed to by the Insured at the date of this
<br />policy, or (2) known to the Insured at the date of this
<br />policy unless disclosure thereof in writing by the Insured
<br />shall have been made to the Company prior to the date of
<br />this policy; or loss or damage which would not have been
<br />sustained if the Insured were a purchaser for value without
<br />knowledge; or the homestead or community property or
<br />survivorship rights, if any. of any spouse of any Insured.
<br />
<br />3. Defense of Actions
<br />
<br />(a) In all cases where this policy provides for the defense of
<br />any action or proceeding. the Insured shall secure to the
<br />Company the right to so provide defense in such action or
<br />proceeding, and all appeals therein, and permit it to use,
<br />at its option, the name of the Insured for such purpose.
<br />Whenever requested by the Company, the Insured shall
<br />give the Company all reasonable aid in any such action or
<br />
<br />LTIC Form 609.1
<br />Texas Owner Policy - 1970
<br />
<br />pr~~eedin.g, in effecting set.tIement, securing evidence, ob-
<br />tammg Witnesses, or defendmg such action or proceeding.
<br />
<br />(b) The Company shall have the right to select counsel of its
<br />own ch?ice whenever it is required to defend any action or
<br />proceedmg, and such counsel shall have full control of said
<br />defense.
<br />
<br />(c) Any action taken by the Company for the defense of the
<br />Insured or to establish the title as insured, or both, shall
<br />not be construed as an admission of liability, and the
<br />Company shall not thereby be held to concede liability or
<br />waive any provision of this policy.
<br />
<br />4. Payment of Loss
<br />
<br />(a) No ~lai!1~ shall arise. or be maintainable under this policy
<br />for lIabilIty voluntarIly assumed by the Insured in settling
<br />any claim or suit without written consent of the Company.
<br />
<br />(b) All payments under this policy, except payments made for
<br />costs, attor,ney fees and expenses, shall reduce the amount
<br />of the insurance pro tanto; and the amount of this policy
<br />shall be reduced by any amount the Company may pay
<br />under any policy insuring the validity or priority of any
<br />lien excepted to herein or any instrument hereafter executed
<br />by the Insured which is a charge or lien on the land, and the
<br />amount so paid shall be deemed a payment to the Insured
<br />under this policy.
<br />
<br />(c) The Company shall have the option to payor settle or
<br />compromise for or in the name of the Insured any claim
<br />insured against by this policy, and such payment or tender
<br />of payment. together with all costs, attorney fees and ex-
<br />penses which the Company is obligated hereunder to pay,
<br />shall terminate all liability of the Company hereunder as 10
<br />such claim. Further, the payment or tender of payment of
<br />the full amount of this policy by the Company shall
<br />terminate all liability of the Company under this policy.
<br />
<br />(d) Whenever the Company shall have settled a claim under
<br />this policy, all right of subrogation shall vest in the Com-
<br />pany unaffected by any act of the Insured, and it shall be
<br />subrogated to and be entitled to all rights and remedies of
<br />the Insured against any person or property in respect to
<br />such claim. The Insured, if requested by the Company,
<br />shall transfer to the Company all rights and remedies
<br />against any person or property necessary in order to perfect
<br />sllch right of subrogation, and shall permit the Company
<br />to use the name of the Insured in any transaction or litiga-
<br />tion involving such rights or remedies.
<br />
<br />5. Policy Entire Contract
<br />
<br />Any action, actions or rights of action that the Insured may
<br />have, or may bring, against the Company, arising Ollt of the
<br />status of the title insured hereunder, must be based on the
<br />provisions of this policy, and all notices required to be given
<br />the Company, and any statement in writing required to be fur-
<br />nished the Company, shall be addressed to its home office,
<br />P. O. Box 1865, Louisville, Kentucky 40201.
<br />
<br />6. This policy is not transferable.
<br />
<br />Valid Only If Schedules A and B Are Attached
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