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<br />GENERAL CONDITIONS AND STIPULATIONS
<br />
<br />1, Deflnltlons
<br />The following terms when used In this policy mean:
<br />(a) "land": The land described, specifically or by reference, In Schedule A, and Improl"ements affixed thereto which by law
<br />constitute real property.
<br />
<br />(b) "public records": Those records which Impart ~onstructlve notice of mutters relating to land.
<br />
<br />(c) "knowledge": Actual knowledge, not constructive knowledge, or notice which may be Imputed to the Insured by reason
<br />of any public records.
<br />
<br />(d) "date": The effective date, Including hour If specified.
<br />
<br />3, EJ:clusions from the Coverage of this Polie,
<br />
<br />This policy does not Insure against loss or damage by reason of the following:
<br />(a) The refusal of any person to purchase, lease or lend money on the land.
<br />
<br />(b) Go\'ernmental rights of police power or eminent domain unless notice of the exercise of such rights appears In the pub-
<br />lic records at the dote hereof; and the consequences of any law, ordinance or go\'ernmentI11 regulation including, but not
<br />limited to, building and zoning ordinances.
<br />
<br />(c) Any titles or rights asserted by anyone including, but not limited to, pllrsons, corporations, go\-ernments or other enti-
<br />ties to tidelands, or lands comprising the shores of beels of na\'lgable or perennial I'h-ers and streams, lakes, bays, gulfs,
<br />or oceons. or to any lond extendinl!; from the line of mean low tide to the line of \'egetntion, or to lands be;)'ond the line
<br />of the harbor or bulkhead lines as established or changed by ony go\'ernment, or to be filled-In lands or artificial islands, or
<br />to riparian rights, or the rights or interests of the State of 'l'exos or the publiC genera II;)' In the area extending from the
<br />line of Illean low tide to the line of vegetation or their right of access thereto, or right of easement along and across
<br />the same.
<br />
<br />Defects, liens, encumbrances, odverse claims against the title os Insurcd or other matters (1) created, suffered, assumed,
<br />or agreed to by the Insured at the date of this pollc;)', or (2) known to the Insured at the date of this poliCy unless dis-
<br />closure thereof In \vriting by the Insured sholl ha\'e been made to the Company prior to the dote of this poliCJ'; or loss
<br />or dnmage which would not hnve been sustained if the Insured were a purchaser for \-alue without knowledge; or the
<br />homestead or community property or sUr\"h'orship rights, if any, of any spouse of any Insured.
<br />
<br />(d)
<br />
<br />3, Defense of Actions
<br />(a) In all cases where this policy proddes for the defense of any action or proceeding, the Insured shall secure to the Com-
<br />pany the right to so pro\'ide defense ill such action or proceeding, and 011 appeals therein, and permit it to use,at its
<br />option, the nome of the Insured for such purpose. Whene\'er requested by the Company, the Insured sholl gh'e the Com-
<br />puny nil reasonnble old In I1ny such action or proceeding, in effecting settlement, securing e\"idence, obtaining witnesses,
<br />or defending such action or proceeding.
<br />
<br />(b) The Compan)' shnll ho\'e the right to select counsel of its own choice whenever It Is required to defend ony suit or pro-
<br />ceeding, and such counsel shall ha\'e full control of sl1id defense.
<br />
<br />(c) Any oction taken by the Company for the defense of the Insured or to estllbllsh the title os insured, or both, shnll not be
<br />construed as an ndmlsslon of liabilitY" and the Compnny shall not thereby be held to concede liability or wah'e any pro-
<br />\'Islon of this policy.
<br />
<br />4, Pl1JII1ent of Loss
<br />
<br />(a) No clolm sholl nrise or be maintainable under this pOlicy for liability \'oluntarily assumed by the Insured in settling any
<br />claim or suit without written consent of the Company.
<br />
<br />(b) All payments under this policy, eJ:cept payments made for costs, attorney fees and expenses, sholl reduce the amount of the
<br />insurance pro tanto; and the amount of this polley shall be reduced by UIl)' amount tile Compnny Il1I1Y pay under any
<br />polley insuring the ,-aUdity or priority of any lien excepted to herein or any instrument hereafter executed by the In-
<br />sured which is a charge or lien on the land, and the amount so paid shall be deemed a payment to the Insured under
<br />this polley.
<br />
<br />(c) The Comoony shall have the option to payor settle or compromise for or In the name of the Insured any claim insured
<br />against by t:J1s policy, and such pa;)'ment or tender of payment, together with all costs, attorney fees and expenses which
<br />the Company is obligated hereunder to pay, shall terminute all llablllty of the Company hereunder as to such claim. Fur-
<br />ther, the payment or tender of payment of the full amount of this policy by the Company shall terminate all liability
<br />at the Company under this policy.
<br />
<br />(d) Whenever the Company shall have settled n claim under this policy, all rig'ht of subrogntlon shall vest in the Company
<br />unnffected by any act of the Insured, and it shall be subrogated to and be entitled to all rights ond remedies of the In-
<br />sured against any person or property in respect to such claim. The Insuretl, if requested by the Compnny, shall trnnsfer
<br />l:o the COmllany all rights and remedies against any person or property necessary in order to perfect such ril!;ht of subro-
<br />gation, and shall permIt the uompany to use the nome of the Insured in any transaction or Iltlgntlon im'oh'lng such
<br />rights or remedies.
<br />
<br />5, PoUc, Entire Contract
<br />
<br />Any action, actions or rights of actton that the Insured may hnve, or may bring, against the Compan)', arising out of the sta-
<br />tus of the title insured hereunder, must be based on the provisions of this policy, and all notices required to be gh'en the Company,
<br />and any statement In writing required to be furnished the Company, shall be addressed to it at Its home office at 421 North Main St.,
<br />Santa Ana, California, or to the office which Issued this policy.
<br />
<br />8 This poUcy 18 not transferable,
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