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<br />1. DEFlNmONS OF TERMS. .
<br />The foRewing terms when used in this p<!licy meen: '- . .
<br />(a) 'insured': the insured 'named'in'. Schedule A. and, Bubj8ct to eny rights or deferiseS ihe:i:oinpany would have had against Die' nainid.insunid; .those who sucaied,to the interest of. the.
<br />named insured by operaticin of law'as,distinguishedfiOin~puiChase including, but notlimited.to,~hairs, distribum.s. deviseeS. siiMvois.:pilrsonill:repr'eseIiIlitives;.nel!l of'~in; or ~iponite.
<br />partnershiporfiduciarysuci:eSsoiS;:andiipecific'aIIy,Wlthoufliniillition,th8fciIIOWing: ' :. ':~.- .,,' ..<. .~. ,"." .':: ',:'"., ;": -.
<br />(i) the sUcceS$Ors~in.i,;,ieni~t tP a coipoi,.t[on r8Sulti09 fro'!1 merger-or ~nsQlic!atio';'l!r~t\1~'~istrib~tion.oftheasse~:OtJii~ corPoration upcin Partial or~!nplate ii.q~it!~tion: ....:' ~:
<br />(ii) the partnership's(.ccessorsin interesiiO a general or limited partnership Which ~lissoives bui does '"oi terininatil: . . . . . '. . '.' '.',
<br />(Iii) the successors.in.intereslto II genarel,\lr,limiled partnership reSUlting from.the distribu.lion Of tj)e .assets of the gllneral'or Iimi~d ~r1nersNp'upon partial or complete liquidation;
<br />Ov) the successori in inlSrest to iI jointvenllirli resulting from the distributiori of the assets 'of the joint venlilre uponparlial or complel8liquidation: . .
<br />(v) the successor or substitute trusiee(s) of a' tiusiee. nl!flied in a Millen.trust inStiument; or .' .
<br />(vi) the successors in interesi to a trustee ,?r trust re~ulting from the distribution of all or part 01 the asselS of the tru~t to the beneficiaries thereol,
<br />(b) 'insured c1aimanr: an insured claiming loss or damage, ,
<br />(c) 'knowledge' or 'known': actual knoWledge, not constructive knowledge or notice that may be imputed to an insured by reason of the public records as defined in this policy or any other
<br />reoords which impart oonstructive notice of mailers affecting the land, .
<br />(d) 'land'; the land described or referred to in Schedule A, and improvements affixed thereto that by law'coll$tilute real properly, The tenn 'land' does not includa any properly beyond the
<br />lines of the area'described or .referred to in Schedule A, nor any right. tiUe, interest, estate or easement in abutting straets, roads, avenues, alleys, lanes, ways or waterways, but nothing
<br />herein shall modify or limit the extent to which a.right of access to and from the land is insured by this policy.
<br />(e) 'mortgage': mortgage, deed of trust, trust deed, or other security instrument.
<br />(f) 'public.records':.reoords.established,under.-state'6lalutes.as'Date of'PoIicy .for the purpose of imparling;oonstructive notice of mailers relating to real'propertylO purchasers' for value
<br />and without knowledge. With respect to Saction 1 (e)(iv) of the Exclusions From Coverage, 'public'records' also s~11 include environmental protection liens filed in the records of the
<br />clerk of tha United States district oourt for Iha district in which the land Is located,
<br />(g) 'access': legal right of access' to the !and and not the physicel oonditlon of access, The coverage providedes to access does not assure the adaquacy of access for the use intended,
<br />2. CONnNUAnON OF INSURANCE AFTER CONVEYANCE OF mLE.
<br />The coveraga of this policy shall oontinue In force as of Date of Policy in favor of an insured only so long as the in~ured retains an estate or interest in the land, or holds an indebtedness
<br />secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shill have liability by reason of covenants of warranty made by the insured in
<br />any transfer or oonveyance of the estate or interest. This 'pollcy shall'notC!lntinue in force in. fa,vor of any purchaser from tha insured of either (i) an estate or interest in the land, (ii) and
<br />Indebtedness sacured by a purchase monay mortgage given to the insured,
<br />3. NOnCE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT.
<br />The insured shall notify the Company prompUy In writing (i) in case of any litigation as set forth in Section 4 (a) balow, or (ii) in case knowledge shall oome to an insured hereunder of any claim
<br />of tiUe or Interest that is edverse to Iha tiUe 19 Iha estate or interest, es insured, and, that,l1'Iight ceuse loss or damage for which tha Company may be liable by virtue of this policy, If prompt
<br />notice shall not ba given to the Company, then as to the insured all liability of the Company shall tenninate with regard to the matter or mailers for which prompt notice is required; provided,
<br />, how!l"er, ,th~t fail,ure to notify Iha Company ~hall'in no case prejudice tharights of ~!lY insured,:undar this policy. unless theF~mpany .shal!;~~ prejudi~ Qy the failure and then only the exten~
<br />ofthe preJUdice, - '" '.. ' , '.. - '" .. . '.. , .. .' .
<br />Whan, after the date of the policy, Iha insured notifies the Company as required herei~of'a IIBn, encumbrance, adverse'cillim or other defect in UUe to tha estata or interest in the land
<br />insured by this policy that is not.excluded or excepted from tha covarage of this policy, thi Ciimpany shall prompUy investigatajtii.cha,gi Iii deiennine whether tha lien. encumbrance, 'adverse '. ,,- .
<br />claim or defect is valid andilbt barred by law or statute, The Company shall notify the insured'in writing, within a reasonable'tinie: of its detennination as to ilia validity 'or invalidity oi the'
<br />insured's claim or charga under the policy. If the Company ooncludes that the lien, encumbrance,.adverse claim or defeCt is not covered by this policy, or wes otherwisa eddressed in the
<br />closing of the transacUon in oonnection with which this policy was issued, the Company shall specifically advise' the insured of the reasons for its detannination,lf the Company ooncludes that
<br />ilia lien, encumbrance. adverse claim or defect is velid, the Company shall take one of the following actions: (i)"insUtute the nacessary proceedings to clear the lien, encumbrance, adverse
<br />claim or defect from the UUe to the astate as insured; (Ii) indemnify the Insured as provided in thIS Policy; (Iii) upon payment of appropriate premium and charges therefor, issua to the insured
<br />claiment or to a subsequent owner, mortgagae or holder of the estate or interest In the land insured by this policy, a policy of title insurance without exception for the lien, encumbrance,
<br />edverse claim or defect, said policy to be in an amount equal to the current value of the properly or, if a mortgagee policy, the amount of tha loan; (iv) indemnify another title insurance
<br />oompany in connection with its issuance of a policy(ias) of tiUe insurance without exception for the lian, encumbrance. edverse claim or defect; (v) secure a release or other document
<br />discharging the lien, encumbrance, adverse claim or defect; or (vi) undertake a combination of (i) through (v) herein.
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<br />CONDITIONS AND STIPULATIONS
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<br />The following mailers are expressly excludad from the coverege of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expensas that arise by reason of;
<br />1. (a) Any law, ordinance or governmental regulaUon (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the
<br />occupancy, use, or enjoyment of the land; (i1) the character, dimensions or iocaUon of any improvament now or hereafter erected on the land; Oii) a separation In ownership or a change in the
<br />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,
<br />excapt to Iha extent.thal a notice of the "nforcement thereof or a notice of a defac~ lien or encumbrance resulting from a vlolaUon or alleged vlola.tlon affecUng the,land.~es,beeQ.reco~ed.i~: the pUQlic.
<br />recordsafDate of Policy. , ~ . ,. . .., ..' '. ....., : .~.. ._.'.. :'.. ..:~Oo ...,.
<br />(b) Any governmental P;;lic8 poWer not excluded by (a) 'abOve, except'to the extl,it that a notice of tha eurdsa theraof or a notice of a deiect, lien or encuiilbfanc. resulting fro~.a viol~tion or
<br />alleged violaUon affecting the land hes been reoorded in the Public recordsat Date of Policy, ',- . ~ . . - : .... ~:' 7 ' .. .. ; ,~ " ' .-
<br />2, Rights of eminent domain unless nob of the exercise thereof has been recorded in tha Public reco,rdsat Date of Policy,but not exciuding frOm ooVlra'ge' any 'liking thi.- hes OCCUlrad' prior to"Date of
<br />Policy which would be binding on the rights of a purchaser for value without knowledge,
<br />3, Defecla, liens, encumbrances, adverse claims or other mailers:
<br />(a) created. suffered, assumed or agreed to by the insured c1aiman~
<br />(b) not known to the Company, not reoorded in the public records at Date of Policy, but known to the insured claimant an~ not disclosed in writing to the Company by the insured claimant prior to
<br />the date Iha insured claimant became an insured under this policy; . .
<br />(c) resulting in no loss or damage to the insured claimant;
<br />(d) alleching or created subsequent to Dateo.! Policy;
<br />(e) resulting in loss or damage that would nOl have been sustained if the insured claimant had paid value for the estate or in\8iBStlnsured by this Policy,
<br />4, The refusel of any person to purchase, lease or lend money on the estate or interest covered hereby In the landdescribad in SChedule A because of unmar1cetability of the tiUe,
<br />5. Any claim, which arises out of the transaction vasUng in Iha person named in paragraph 3 of Schedule A the estate or interest Insured by this policy,. by reason of the operaUon of fadaral benkruptcy,
<br />atate Insolvency, or other state or federal creditors' rights laws that Is besed'on either (i) the trarisactton creaUng the estate or interest Insured by this Policy being deemed a fraudulent oonveyance or
<br />fraudulent transfer or a voidable dlstrlbuUon or voidable dMdend or (Ii) the subordination or I8Characterlzation of the ellata or interest insured by this Policy es a result of the applicetion of the doctrine
<br />of 8quiiiibie subordinaiion qf (lDj th!..l!!r~_~~oii.;, Cr~.!.~~~.:.. 6ita~ 9i jij~ fnsui'6d by. th~ PollC";. ~:ng.daam;d ~ p.'fi~nU,.I~t","~f.r..a;capt.VJhar; t~; praf;r;nUal. transfer results ,frc.." tI'.8.f;ilure.
<br />of the Company or its issuing agent' to Uinely file for record the instrument of transfer to I!te Insured after delivery or the fellure of such recordation to impart notice to a purchaser for value or a
<br />judgment or lien Cl'8ditor,
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<br />EXCLUSIONS FROM COVERAGE
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