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<br />coverage 01 this policy, the Company shall promptly investi,
<br />.gate such charge to determine whether the lien, encum-
<br />brance, adverse claim or defect is valid and not barred by law
<br />or statute. The Company shall notily the Insured in writing,
<br />within a reasonable time, 01 its determination as to the validity
<br />or invalidity 01 the Insured's claim or charge under the policy,
<br />II the Company concludes that the lien, encumbrance, ad-
<br />verse claim or delect is not covered by this policy, or was
<br />otherwise addressed in the closing 01 the transaction in
<br />connection with which this policy was issued, the Company
<br />shall specifically advise the Insured 01 the reasons for its
<br />determination. lIthe Company concludes that the lien, encum-
<br />brance, adverse claim or defect is valid, the Company shall
<br />take one 01 the lollowing actions: (1) institute the necessary
<br />proceedings to clear the lien, encumbrance, adverse claim or
<br />defect from the title to the estate as insured; (2) indemnify the
<br />Insured as provided in this policy; (3) upon payment of ap-
<br />propriate premium and charges therefor, issue to the current
<br />Insured or to a subsequent owner, mortgagee or holder of the
<br />':~iiL'"", estate or interest in the land insured by this pOlicy. a pOlicy of
<br />",:,~;;';,~;;~ title insurance without exception lor the lien, encumbrance,
<br />",,+.~t"" adverse claim or defect, said policy to be in an amount equal
<br />to the current value of the property or, if a mortgagee policy.
<br />the amount of the loan: (4) indemnify another title insurance
<br />company in connection with its issuance of a pOlicy(ies) of
<br />title insurance without exception for the lien, encumbrance,
<br />adverse claim or defect: (5) secure a release or other docu-
<br />ment discharging the lien, encumbrance, adverse claim or
<br />defect; or (6) undertake a combination of 1. through 5, herein.
<br />
<br />(d) Whenever the Company shall have brought any ac-
<br />tion or interposed a defense as required or permilled by the
<br />provisions of this policy, the Company may pursue any such
<br />litigation to final determination by a court of competent juris-
<br />diction and expressly reserves the right, in its sole discretion,
<br />to appeal from any adverse judgment or order.
<br />
<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 selllemer'lt, securing evidence,
<br />obtaining witnesses, or prosecuting or del ending such action
<br />or proceeding, and the Company shall reimburse such insured
<br />, for any expense so incurred.
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<br />(f) Any action taken by the Company for the defense 01
<br />the Insured or to establish the title as insured, or both, shall
<br />not be construed as an admission of liability, and the Com-
<br />pany shall not Ihereby be held to concede liability or waive
<br />any provision 01 this pOlicy.
<br />
<br />.4. PAYMENT OF LOSS
<br />
<br />(a) No claim shall arise or be maintainable under this
<br />policy for liability voluntarily assumetj 'by the Insured in sellling
<br />any claim or suit without wrillen consent 01 the Company.
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<br />(b) All payments under this policy, except payments
<br />made for costs, allorney fees and expenses, shall reduce the
<br />amount of the insurance pro tanto: and the amount of this
<br />pOlicy shall be reduced by any amount the Company may pay
<br />under any policy insuring the validity or priority of any lien
<br />excepted to herein or any instrument hereafter executed by
<br />the Insured which is a charge or lien on the land, and the
<br />amount so paid shall' b'e deemed a payment to the Insured
<br />under this policy. '
<br />
<br />(c) The Company shall have the, option to payor sellle
<br />or compromise for or in the name of the Insured any claim
<br />insured against by this pOlicy, and such payment or tender of
<br />payment, together with all costs, allorney lees and expenses
<br />which the Company is obligated hereunder to pay. shall
<br />terminate all liability of the Company hereunder as to such
<br />claim. Further, the payment or tender 01 payment 01 the lull
<br />amount of this policy by the Company shalt terminate all
<br />liability of the Company under this policy,
<br />
<br />(d) Whenever ~h~' Company shall have settled a claim
<br />under this pOlicy. all right of subrogation shall vest in the
<br />Company unaffected by any act of the Insured, and it shall be
<br />subrogated to and be entitled to all rights and remedies 01 the
<br />Insured against any person or property in respect to such
<br />claim, The Insured, if requested by the Company, shall trans-
<br />fer to the Company ,a!1 rights and remedies against any
<br />person or property necessary in order to perfect such right of
<br />subrogation, and shall permit the Company to use the name
<br />of the Insured in any transaction or litigation involving such
<br />rights or remedies.
<br />
<br />5. POLICY ENTIRE CONTRACT
<br />
<br />Any action, actions or rights of action that the Insured may
<br />have, or may bring. against the Company, arising out of the
<br />status 01 the title insured hereunder, must be b~s~d on the
<br />provisions of this policy, and all notices required to be given
<br />the Company, and any statement in writing required to be
<br />furnished the Company, shall be addressed to it at its
<br />Principal Office, Claims Department, 6300 Wilshire Boulevard.
<br />P,O, Box 92792, Los Angeles, California 90009.
<br />
<br />6. THIS POLICY IS NOT 'TRANSFERABLE
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<br />7. COMPLAINT NOTICE
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<br />Should any dispute arise about your premium or about a
<br />claim that you have filed, contact the agent or write to the
<br />company that issued the pOlicy. If the prOblem is not resolved.
<br />you may also write the State Board of Insurance, Department
<br />C, 1110 San Jacinto Blvd" Austin, Texas 78786. This notice
<br />of complaint procedure is lor information only and does not
<br />become a part or condition of this policy.
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