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<br />.
<br />
<br />4. PAYMENT OF LOSS
<br />(a) No claim shall arise or be maintainable under this policy
<br />for liability voluntarily assumed by the Insured in settling any claim
<br />or suit without written consent of the Company,
<br />(b) All payments under this policy, except payments made
<br />for costs, attorney fees and expenses, shall reduce the amount of
<br />the insurance pro tanto; and the amount of this policy shall be
<br />reduced by any amount the Company may pay under any policy
<br />insuring the validity or priority of any lien excepted to herein or any
<br />instrument hereafter executed by the Insured which is a charge or
<br />lien on the land, and the amount so paid shall be deemed a
<br />payment to the Insured under this policy,
<br />(c) The Company shall have the option to payor settle or
<br />compromise for or in the name of the Insured any claim insured
<br />against by this policy, and such payment or tender of payment,
<br />together with all costs, attorney fees and expenses which the
<br />Company is obligated hereunder to pay, shall terminate all liability
<br />of the Company hereunder as to such claim, Further, the payment
<br />
<br />3, DEFENSE AND PROSECUTIONS OF ACTIONS
<br />
<br />(a) In all cases where this policy provides for the defense
<br />of any action or proceeding, the Insured shall secure to the
<br />Company the right to so provide defense in such action or pro-
<br />ceeding, and all appeals therein, and permit it to use, at its
<br />option, the name of the Insured for such purpose.
<br />(b) The Company shall have the right to select counsel
<br />of its own choice whenever it is required to defend any action
<br />or proceeding, and such counsel shall have complete control of
<br />said defense.
<br />(c) The Company shall have the right at its own cost to
<br />institute and without undue delay prosecute any action or pro-
<br />ceeding or to do any other act which in its opinion may be
<br />necessary or desirable to establish the title to the estate or
<br />interest as insured, and the Company may take any appropriate
<br />action under the terms of the policy, whether or not it shall be
<br />liable thereunder, and shall not thereby concede liability or waive
<br />any provision of this policy.
<br />(d) Whenever the Company shall have brought any action
<br />or interposed a defense as required or permitted by the provi-
<br />sions of this policy, the Company may pursue any such litigation
<br />to fihal determination by a court of competent jurisdiction and
<br />expressly reserves the right, in its sole discretion, to appeal from
<br />any adverse judgment or order,
<br />(e) Whenever requested by the Company, such insured
<br />shall give the Company all reasonable aid in any such action
<br />or proceeding, in effecting settlement, securing evidence, ob-
<br />taining witnesses, or prosecuting or defending such action or
<br />proceeding, and the Company shall reimburse such insured for
<br />any expense so incurred.
<br />(f) Any action taken by the Company for the defense of
<br />the Insured or to establish the title as insured, or both, shall not
<br />be construed as an admission of liability, and the Company shall
<br />not thereby be held to concede liability or waive any provision
<br />of this policy. .
<br />
<br />to the Company prior to the date such Insured became an In-
<br />sured hereunder; (3) resulting in no loss or damage to the In-
<br />sured; (4) attaching or created subsequent to the date of this
<br />policy; (5) resulting in loss or damage which would not have
<br />been sustained if the Insured had paid value for the estate or
<br />interest insured by this policy; or (6) the homestead or com-
<br />munity property or survivorship rights, if any, of any spouse of
<br />any Insured, .
<br />
<br />Conditions and Stipulations
<br />
<br />.
<br />
<br />2. EXCLUSIONS FROM THE COVERAGE OF THIS POLICY
<br />
<br />This policy does not insure against loss or damage by reason of
<br />the following:
<br />(a) The refusal of any person to purchase, lease or lend
<br />money on the land. '
<br />(b) Governmental rights of police power or eminent domain
<br />unless notice of the exercise of such rights apPears in the public
<br />records at the date hereof; and the consequences of any la,w,
<br />ordinance or governmental regulation including, but not limited to,
<br />building and zoning ordinances.
<br />(c) Any titles or rights asserted by anyone including, but not
<br />limited to, persons, corporations, governments or other entities to
<br />tidelands, or lands comprising the shores or beds of navigable or
<br />perennial rivers and streams, lakes, bays, gulfs or oceans, or to
<br />any land extending from the line of mean low tide to the line of
<br />vegetation, or to lands beyond the line of the harbor or bulkhead
<br />lines as established or changed by any government, or to filled-in
<br />lands, or artificial islands, or to riparian rights, or the rights or
<br />interests of the State" of Texas or the public generally in the area
<br />extending from the line of mean low tide to the line of vegetation
<br />or their right of access thereto, or right of easement along and
<br />across the same.
<br />(d) Defects, liens, encumbrances, adverse claims, or other
<br />matters (1) created, suffered, assumed or agreed to by the In-
<br />sured; (2) not known to the Company and not shown by the
<br />public records but known to the Insured either at the date of this
<br />policy or at the date the Insured acquired an estate or interest
<br />insured by this policy and not disclosed in writing by the Insured
<br />
<br />1. DEFINITIONS
<br />The following terms when used in this policy mean:
<br />(a) "land": The land described, specifically or by reference,
<br />in Schedule A, and improvements affixed thereto which by law
<br />constitute real property,
<br />(b) "public records": Those records which impart construc-
<br />tive notice of matters relating to the land.
<br />(c) "knowledge": Actual knowledge, not constructive
<br />knowledge. or notice which may be imputed ~o the Insured by
<br />reason of any public records.
<br />(d) "date": The effective date, including hour if specified.
<br />(e) Insured: the Insured named in Schedule A and, subject
<br />to any rights or defenses the Company may ha~e had against the
<br />named Insured or any person or entity who succeeds to the
<br />interest of such nam~ Insured by operation of law as distin-
<br />guished from purchase, any person or entity who succeeds to the
<br />interest of such named Insured by operation of law as distin-
<br />guished from purchase including but not limited to the following:
<br />(i) heirs, devisees, distributees, executors and adminis-
<br />trators;
<br />(ii) the successors in interest to a corporation resulting from
<br />merger or consolidation or the distribution of the assets of
<br />such corporation upon partial or complete liquidation; .
<br />(iii) the partnership successors in interest tb a general or lim:
<br />ited partnership which dissolves but dOes not terminate;
<br />(iv) the successors in interest to a general or limited partner':-
<br />ship resulting from the distribution of the assets of such
<br />general or limited partnership upon partial or complete
<br />liquidation;
<br />(v) the successors in interest to a joint venture resulting from
<br />the distribution of the assets of such joint venture upon
<br />partial or complete liquidation; ,
<br />(vi) the successor or substitute trustee of a trustee named in a
<br />written trust instrument; or
<br />(vii) the successors in interest to a trustee or trust resulting from
<br />the distribution of all or part of the assets of such trust to the
<br />beneficiaries thereof.
<br />
<br />""
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