09-03-03 Lomax Firestation Site deed/correspondence

Browse Search

------ 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE., (a) Upon written request by the insured and subject to the options contained in Section 6 01 these Conditions and Stipulations, the Company. at its own cost and without unreasonable delay, shall provide lor the delense 01 an insured in litigation in which any third party asserts a claim adverse to the title or interest as insured, but only as to those slated causes 01 action alleging a delect. lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel 01 its choice (subject to the right 01 the insured to object lor reasonable cause) to represent the insured as to those stated causes 01 action and shall not be liable lor and will not pay the lees 01 any other counsel. The Company will not pay any lees, costs or expenses incurred by the insured in the delense 01 those causes 01 action that allege matters not insured against by this policy. (b) The Company shall have the right. at its own cost. to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the title to the estate or interest. as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appro- priate action under the terms 01 this policy. whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision 01 this policy. II the Company shall exercise its rights under this paragraph, it shall do so diligently. - (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions 01 this policy, the Company may pursue any litigation to linal determination by a court 01 competent jurisdiction and expressly reserves the right. in its sole discretion, to appeallrom any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide lor the delense 01 any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide delense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option. the name 01 the insured lor this purpose. Whenever requested by the Company. the insured. at the Company's expense. shall give the Company all reasonable aid (i) in any action or proceeding. securing evidence. obtaining witnesses. prosecuting or delending the action or proceeding, or effecting settlement. and (ii) in any other lawlul act that in the opinion 01 ttie Company may be necessary or desirable to establish the title to the estate or interest as insured. II the Company is prejudiced by the lailure 01 the insured to lurnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to delend, prQsecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a prool 01 loss or damage signed and sworn to by the insured claimant shall be lurni!lhed to the Company within 91 days after the insured claimant shall ascertain the lacts giving rise to the loss or damage, The prool of loss or damage shall describe the delect in, or lien or encumbrance on the title. or other matter insured against by this policy that constitutes the basis 01 loss or damage and shall state. to the extent possible, the basis of calculating the amount 01 the loss or damage, II the Company is prejudiced by the lailure 01 the insured claimant to provide the required prool 01 loss or damage. the Company's obligations to the insured under the policy shall terminate. including any liability or obligation to delend. prosecute, or continue any litigation. with regard to the matter or matters requiring such prool 01 loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative 01 the Company and shall produce lor examination, inspection and copying. at such reasonable times and places as may be designated by any authorized representative 01 the Company, all records. books. ledgers, checks, correspondence and memoranda, whether bearing a date belore or alter Date 01 Policy. which reasonably pertain to the loss or damage. Further, il requested by any authorized representative 01 the Company, the insured claimant shall grant its permission, in writing. lor any authorized representative of the Company to examine. inspect and copy all records, books, ledgers, checks. correspondence and memoranda in the custody or control 01 a third party. which reasonably pertain to the loss or damage, All inlormation designated as conlidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless. in the reasonable judgment of the Company, it is necessary in the administration 01 the claim. Failure olthe insured claimantto submit lor examination under oath, produce other reasonably requested inlormation or grant permission to secure reasonably necessary inlormation from third parties as required in this paragraph shall terminate any liability 01 the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY. In case 01 a claim under this policy, the Company shall have the lollowing additional options: (a) To Payor Tender Payment 01 the Amount of Insurance, To payor tender payment of the amount 01 insurance under this policy. together with any costs. attorneys' fees and expenses incurred by the insured claimant. which were authorized by the Company, up to the time 01 payment or tender 01 payment and whic/1 the Company is obligated to pay, Upon the exerc. the Company 01 this option. all liability and obligations to the insured un's policy, other than to make the payment required, shall terminate, inclu any liability or obligation to delend. prosecute, or continue any litigation. and the policy shall be surrendered to the Company lor cancellation, 1. DEFINITION OF TERMS. The following terms when used in this pOlicy mean: (a) "insured": the insured named in Schedule A, and. subject to any rights or delenses the Company would have had against the named insured. those who succeed to the interest 01 the named insured by operation 01 law as distinguished Irom purchase including. but not limited to. heirs. distributees, devisees. survivors. personal representatives, next 01 kin. or corporate. partnership or liduciary successors. and specilically. without limitation. the lollowing: (i) the successors in interest to a corporation resulting Irom merger or consolidation or the distribution of the assets 01 the corporation upon partial or complete liquidation: (ii) the partnership successors in interest to a general or limited partnership which dissolves but does not terminate: (iii) the successors in interest to a general or limited partnership resulting Irom the distribution 01 the assets 01 the general or limited partnership upon partial or complete liquidation: (iv) the successors in interest to a joint venture resulting Irom the distribution 01 the assets 01 the joint venture upon partial or complete liquidation; (v) the successor or substitute trustee(s) 01 a trustee named in a written trust instrument; or (vi) the successors in interest to a trustee or trust resulting Irom the distribution 01 all or part 01 the assets 01 the trust to the beneliciaries thereof. (b) "insured claimant": an insured claiming loss or damage. (c) "knowle<jge" or "known": actual knowledge. not constructive knowledge or notice that may be imputed to an insured by reason 01 the public records as delined in this policy or any other records which impart constructive notice 01 matters affecting the land, (d) "land": the land described or relerred to in Schedule A, and improvements affixed thereto that by law constitute real property, The term "land" does not include any property beyond the lines 01 the area described or relerred to in Schedule A. nor any right, title, interest. estate or easement in abutting streets. roads, avenues. alleys, lanes, ways or waterways. but nothing herein shall modify or limit the extent to which a right 01 access to and Irom the land is insured by this policy. (e) "mortgage": mortgage. deed 01 trust. trust deed. or other security instrument. (I) "public records": records established under state statutes at Date 01 Policy lor the purpose 01 imparting constructive notice 01 matters relating to real property to purchasers lor value and without knowledge. With respect to Section 1 (a)(iv) 01 the Exclusions From Coverage, "public records" also shall include environmental protection liens Iiled in the records 01 the clerk 01 the United States district court lor the district in which the land is located, (g) "access": legal right 01 access to the land and not the physical conditio!:, 01 access. The coverage provided as to access does not assure the adequacy 01 access lor the use intended. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this policy shall continue in lorce as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser Irom the insured. or only so long as the insured shall have liability by reason 01 covenants 01 warranty made by the insured in any transler or conveyance 01 the estate or interest. This policy shall not continue in lorce in lavor 01 any purchaser Irom the insured 01 either (i) an estate or interest in the land. or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set lorth in Section 4(a) below, or (ii) in case knowledge shall come to an insured hereunder 01 any claim 01 title or interest that is adverse to the title to the estate or interest, as insured, and that might cause loss or damage lor which the Company may be liable by virtue 01 this .policy. II prompt notice shall not, be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters lor which prompt notice is required: provided. however, that lailure to notify the Company shall in no case prejudice the rights 01 any insured under this policy unless the Company shall be prejudiced by the lailure and then only to the extent 01 the prejudice. When, alter the date 01 the policy, the insured notilies the Company as required herein 01 a lien, encumbrance, adverse claim or other delect in title to the estate or interest in the land insured by this policy that is not excluded or excepted Irom the coverage 01 this policy, the Company shall promptly investigate the charge to determine whether the lien. encumbrance, adverse claim or delect is valid and not barred by law or statute, The Company shall notify the insured in writing, within a reasonable time. 01 its determination as to the validity or invalidity 01 the insured's claim or charge under the policy. II the Company concludes that the lien. encumbrance, adverse claim or delect is not covered by this policy, or was otherwise addressed in the closing 01 the transaction in connection with which this policy was issued, the Company shall specilically advise the insured 01 the reasons lor its determination. lithe Company concludes that Ihe lien, encumbrance, adverse claim or delect is valid, the Company shall take one 01 the lollowing actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim or delect Irom the title to the estate as insured: (ii) indemnify the insured as provided in this policy: (iii) upon payment 01 appropriate premium a!1d charges therelor. issue to the insured claimant or to a subsequent owner, mortgagee or holder 01 the estate or interest in the land insured by this policy, a policy of title insurance without exception lor the lien, encumbrance, adverse claim or delect. said policy to be in an amount equal to the, current value 01 the property or. il a mortgagee policy, the amount 01 the loan: (iv) indemnify' another title insurance company in connection with its issuance 01 a , pOlicy(ies) 01 title insurance without exception lor th.encumbrance, adverse . claim or defect: (v) secure a release or other documen arging the Iien:llncum- branc~ver9l! claim or delect or (vi) undertake a c ination 01 (i) through (vY herein.. ' CONDITIONS AND STIPULATIONS