09-16-04 Northside Park land acquisition/lots 21-24,block 89,Town of La Porte, grantor Clayton Keeling

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1. pEFINITION 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 defenses the Company would have had against the named Insured, those who succeed to the interest of the named Insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate, partnership or fiduciary successors, and specifically, without limitation, the following: (i) the successors in interest to a corporation, limited liability company or limited liability partnership resulting from merger or consolidation or conversion or the distribution of the assets of the corporation, limited liability company or limited liability partnership upon partial or complete liquidation; Qi) the successors in interest to a general or limited partnership or limited liability company or limited liability partnership which dissolves but does not terminate; (iii) the successors in interest to a general or limited partnership resulting from the distribution of the assets of the general or limited partnership upon partial or complete liquidation; (iv) the successors in interest to a joint venture resulting from the distribution of the assets of the joint venture upon partial or complete liquidation; (v) the successor or substitute trustee(s) of a trustee named in a written trust instrument; or (vi) the successors in interest to a trustee or trust resulling from the distribution of all or part of the assets of the trust to the beneficiaries thereof. (b) "insured claimant": an Insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice that may be imputed to an Insured by reason of the public records as defined in this Policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto that by law constitute real property. The term "land" does not include any prQperty beyond the lines of the..area described or referred 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 Iimit'tlle eXteiirtowliich a right of access to and from the land is insured by this Policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. (I) "public records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" also shall include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "access": legal right of access to the land and not the physical condition of access. The coverage provided as to access does not assure the adequacy of access for the use intended. 2. ~ONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this Policy shall continue in force 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 from the Insured, or only so long as the Insured shall have liability by reason of covenants of warranty made by the Insured in any transfer or conveyance of the estate or interest. This Policy shall not continue in force in favor of any purchaser from the Insured of 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 forth in Section 4(a) below, or (ii) in case knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the title to the estate or interest, as insured, and that might cause loss or damage for which Ihe Company may be liable by virtue of this Policy. K 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 for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any Insured under this Policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. When, after the date of the Policy, the Insured notifies the Company as required herein of a lien, encumbrance, adverse claim or other defect in title to the estate or interest in the land insured by this Policy that is not excluded or excepted from the coverage of this Policy, the Company shall promptly investigate the charge to determine whether the lien, encumbrance, adverse claim or defect is valid and not barred by law or statute. The Company shall notify the Insured in writing, within a reasonable time, of its determination as to the validity or invalidity of the Insured's claim or charge under the Policy. If the Company concludes that the lien, encumbrance, adverse claim or defect is not covered by this Policy, or was otherwise addressed in the closing of the transaction in connection with which this Policy was issued, the Company shall specifically advise the Insured of the reasons of its determination. If the Company concludes that the lien, encumbrance, adverse claim or defect is valid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim, or defect from the title to the estate as insured; (ii) indemnify Ihe Insured as provided in this PoliCY; (iii) upon payment of appropriate premium and charges therefor, issue to the Insured Claimant or to a subsequent owner, mortgagee or holder of the estate or interest in the land insured by this Policy, a Policy of Title Insurance without exception fl!r the'lien, encumbrance, adverse claim or defect, said Policy to be in an amount equal to the current value of the property or, if a Mortgagee PoI,iCY, 'the amoun\ of the I,oan; (iv) indemnify another title insurance company in connection with CONDITIONS AND STIPULATIONS The following matters are expressly excluded from the coverage of this Policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to: (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or the change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that ,a notice of the enforcemf!nt thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at.Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this Policy; (c) resulting in no loss or damage to the Insured Claimant; , (d) attaching or created subsequent to Date of Policy; , (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the estate or interest insured by this Policy. 4. The .refusal of any person to purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of un marketability of the title. 5. Any claim which arises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or other state or federal creditors' rights laws that is based on either: (i) the transaction creating the estate or interest insured by this Policy being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend; (ii) the subordination or recharacterization of the .estate or inte!est insur~ by this Polic;y as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the estate or interest insured by this Policy being deemed a preferential transfer except where the preferential transfer results from the failure of the Company or its issuing agent to timely file for record the instrument of transfer to the Insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. EXCLUSIONS FROM COVERAGE