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<br />GENERAL CONDITIONS AND STIPULATIONS
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<br />I. Definitions
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<br />The following terms when used in this policy mean:
<br />(a) "land": The land described, specifically or by reference, in Schedule A, and improvements affIXed thereto which by law
<br />constitute real property. .
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<br />(b) "publiC"lecords": Those records which impart constructive notice of matters relating to la~d,
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<br />(c) "knowledge": Actual knowledge, not constructive knowledge, or notice which may be imputed to the Insured by reason
<br />of a.ny public records,
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<br />(d) "date": The effective date, including hour if specified,
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<br />2. Exclusions from the Coverage of this Policy
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<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,
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<br />(b) Governmental rights of police power or eminent domain unless notice of the exercise of such rights appears in the pub-
<br />lic records at the date hereof; and the consequences of any law, ordinance or governmental regulation including, but not
<br />limited to, building and zoning ordinances,
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<br />(c) Any titles or rights asserted by anyone including, but not limited to, persons, corporations, governments or other enti-
<br />ties to tidelands, or lands comprising the shores of beds of navigable or perennial rivers and streams, lakes, bays, gulfs,
<br />or oceans, or to any land ex tending from the line of mean low tide to the line of vegetation, or to lands beyond the line
<br />of the harbor or bulkhead lines as established or changed by any government, or to be fIlled,in lands or artificial islands,
<br />or to riparian rights, or the rights or interests of the State of Texas or the public generally in the area extending from the
<br />line of mean low tide to the line of vegetation or their right of a,ccess thereto, or right of easement along and across
<br />the same, '
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<br />(d) Defects, liens, encumbrances, adverse claims against the title as insured or other matters (1) created, suffered, assumed,
<br />or agreed to by the Insured at the date of this policy, or (2) known to the Insured at the date of this policy unless dis-
<br />closure thereof in writing by the Insured shall have been made to the Company prior to the date of this policy; or loss
<br />or damage which would not have been sustained if the Insured were a purchaser for value without knowledge; or the
<br />homestead or community property or survivorship rights, if any, of any spouse of any Insured,
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<br />3. Defense of Actions
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<br />(a) In all cases where this policy provides for the defense of any action or proceeding, the Insured shall secure to the Com-
<br />pany the right to so provide defense in such action or proceeding, and all appeals therein, and permit it to use, at its
<br />option, the name of the insured for such purpose, Whenever requested by the Company, the Insured shall give the Com,
<br />pany all reasonable aid in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses,
<br />or defending such action or proceeding.
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<br />(b) The Company shall have the right to select counsel of its own choice whenever it is required to defend any suit or pro-
<br />ceeding, and such counsel shall have full control of said defense,
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<br />(c) Any action taken by the Company for the defense of the Insured or to establish the title as insured, or both, shall not be
<br />construed as an admission of liability, and the Company shall not thereby be held to concede liability or waive any pro'
<br />. vision of this policy,
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<br />4. Payment of Loss
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<br />(a) No claim shall arise or be maintainable under this policy for liability voluntarily assumed by the Insured in settling any
<br />claim or suit without written consent of the Company,
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<br />(b) All payments under this policy, except payments made for costs, attorney fees and expenses, shall reduce the amount of
<br />the insurance pro tanto; and the amount of this policy shall be reduced by any amount the Company may pay under any
<br />policy insuring the validity 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 policy,
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<br />(c) The Company shall have the option to payor settle or compromise for or in the' name of the Insured any claim insured
<br />against by this policy, and such payment or tender of payment, together with all costs, attorney fees and expenses which
<br />the Company is obligated hereunder to pay, shall terminate all liability 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 />of the Company under this policy, .
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<br />(d) Whenever the Company shall have settled a claim, under this policy, all right of subrogation shall vest in the Company
<br />unaffected by any act of the Insured, and it shall be subrogated to and be entitled to all rights and remedies of the In,
<br />sured against any person or property in respect to such claim, The Insured, if requested by the Company, shall transfer
<br />to the Company all rights and remedies against any person or property necessary in order to perfect such right of subro-
<br />gation, and shall permit the Company to use the name of the Insured in any transaction or litigation involving such
<br />rights or remedies,
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<br />s. Policy Entire Contract,
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<br />Any action, actions or rights of action that the Insured may have, or may bring, against the Company, arising out of the sta-
<br />tus of the title insured hereunder, must be based on the provisions of this polic)', and all notices required to be given 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 tlie office which issued this policy.
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<br />6. This policy is not transfer~ble.
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