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<br />GENERAL q>N,DJTlONS AND STIPUeIONS
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<br />1. 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 />constitu te real property.
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<br />(b) "public records": Those records which impart constructive notice of matters relating to land. ,
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<br />(c) "knowledge": Actual knowledge, not constructive knowledge, o{ notice which may be imputed to the Insured by reason
<br />of any public records.
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<br />(d) "date": The effective date, including hour if specified,
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<br />(e) lrisured: the Insured named in Schedule A. and, subject to any rights or defenses the Company may have had against
<br />the named Insured or any person or entity who succeeds to the interest of such named Insured by operation of law as
<br />distinguished from purchase, any person or entity who succeeds to the interest of such named Insured by operation of
<br />law as distinguished from purchase including but not limited to the following:
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<br />(i) heirs, devisees, distributees, executors and administrators;
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<br />(ii) the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of
<br />such corporation upon partial or complete liquidation;
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<br />(lii) the partnership successors in interest to a general or limited partnership which dissolves but does not terminate;
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<br />(iv) the successors in interest to a general or limited partnership resulting from the distribution of the assets of such
<br />general or limited partnership upon,partial or complete liquidation;
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<br />(v) the successors in interest to a joint venture resulting from the distribution of the assets of such joint venture upon
<br />partial or complete liquidation;
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<br />(vi) the successor or substitute trustee of a trustee named in a written trust instrument; or
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<br />(vii) the successors in interest to a trustee or trust resulting from the distribution of all or part of the assets of such trust
<br />to the beneficiaries thereof."
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<br />2. Exclusions from the Coverage of this Poiicy
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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 of 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 extending 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 form the
<br />line of mean low tide to the line of vegetation or their right of access 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 tIle Insured were a purchaser for value without knowledge; or the
<br />homestead of community property or survivorship rights, if any, or any spouse of any Insured.
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<br />3. Defense of A,ctions
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<br />(a) In all cases where this policy provides of 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 the 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 reduc~d by any amount the Company may pay under any
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<br />CONDITIONS AND STIPULATIONS CONTINUED ON BACK PAGE
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