Maher Muhtaseb - Alamo Title Company

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f. .: .,: 5. discharging the lien, encumbrance, adverse claim or defect; or (vi)-,undertake'-a combinalion of (i) lhrough (v) herein, 'DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSUREb CLAIMANT TO COOPERATE. (a) Upon wrilten req!lesl by the Insured and subject to the oplions conlained in Sei:lion 6 of lhese Condilions and Slipulalions, the Company, at its own cost and without reasonable delay, shall provide for lhe defense of an Insured in litigation in which any lhird party asserts a claim adverse to the litle or inleresl as insured, but only as to those slated causes of action alleging a'defect, lien or encumbrance or olher malter insured againsl by this Policy, The Company shall have lhe righllo select counsel of its choice (SUbject 10 lhe right of lhe Insured to object for reasonable cause) 10 represenllhe Insured as to those slaled causes of action and shall nol be liable for and will not pay for fees of any olher counsel. The Company will nol pay any fees, costs or expenses incurred by the Insured in the defense of lhose causes of action lhat allege malters nol insured against by this Policy, (b) The Company shall have lhe right, al its own cost, to inslitule and prosecul~ any action or proceeding or 10 do any other act that in its opinion may be necessary or desirable 10 eslablish the title 10 lhe estale or interesl as insured, or to prevent or reduce loss or damage 10 lhe Insured, The Company may take any appropriale action under lhe terms of lhis Policy, whelher or nol it shall be liable hereunder, and shall not thereby concede liability or waive any provision of lhis Policy, If lhe Company shall exercise ils rights under lhis paragraph, it shall do so diligenlly, (c) Whenever lhe Company shall have broughl an action or interposed a defense as required or pennilted by the provisions of lhis Policy, lhe Company may pursue any litigalion 10 final delermination by a court of compelent jurisdiction and expressly reserves lhe righi, in ils sole discrelion, 10 appeal from any adverse judgmenl or order, (d) In all cases where this Policy permils or requires lhe Company 10 prosecute or provide for lhe defense of any action or proceeding, the Insured shall secure to the Company the righttQ so prosecule or provide defense in lhe action or proceeding, and all appeals lherein, and permillhe Company to use, al its option, the name of..lhe Insured for lhis purpose, Whenever requested by the Company, the Insured, atlhe Company's expense, shall give lhe Company all reasonable aid: (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending lhe action or proceeding, 9r effecting selllemenl, and (ii) in any olher lawful act lhat in lhe opinion of lhe Company may be necessary or desirable 10 eslablish lhe litle to the eslale or interest as insured, If the Company is prejudiced by the failure of lhe Insured to furnish the required cooperation, the Company's obligalions 10 lhe Insured under the Policy shall terminate, including a-ny liability or obligalion 10 defend, prosecute, or continue any liligation, with regard to the mailer or mailers requiri,ng such cooperalion. PROOF OF lOSS OR DAMAGE, " , In addition 10 and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by lhe Insured Claimant shall be furnished 10 the Company within 91 days after the Insured Claimant shall ascertain lhe facts giving rise to the loss or damage, The proof of loss or damage shall describe the defect in..or lien or encumbrance on the litle, or other mailer insured againsl by this,Policy thai conslitules the basis of loss or damage and shall stale, to the extent possible, lhe basis of calculaling lhe amount of lhe loss or damage, If lhe Company is prejudiced by lhe failure of the Insured Claimant to provide the required proof of loss or damage, lhe Company's obligalions 10 lhe Insured under the' Policy shalllerminale, including any liability or oQligation to defend, prosecute, or conlinue any liligation, wilh regard 10 lhe mailer or mailers requiring such proof of loss or damage, In addition, lhe Insured Claimant may reasonably be required 10 submil to examinalion under oalh by any aulhorized representative of the Company and shall produce for examination, inspection and copying, al such reasonable limes and places as may be designaled by any aulhorized represelative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whelher bearing a date before or after Dale of Policy, which reasonably pertain 10 lhe loss or damage, Further, if requesled by any aulhorized representative of lhe Company, the Insured Claimanl shall granl its permission, in writing, for any authorized representative of lhe Company to examine, inspect and copy all reCOrds, books, ledgers, checks correspondence and memoranda in the custody or control of a lhird party, which reasonably pertain 10 lhe loss or damage, All informalion designated as confidenlial by the Insured Claimant provided 10 lhe Company pursuant to this Section shljlll not be disclosed to others unless, in lhe reasonable judgment of lhe Company, it is necessary in lhe adminislralion of lhe claim, Failure of the Insured Claimanl to submil for examinalion under oath, produce olher reasonably requested information or grant permission to secure reasonably necessary informalion from third parties as required in lhis paragraph shalllenninate any liability of the Company under lhis Policy as 10 lhal claim,' , OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS' TERMINATION OF liABilITY, In case of a claim under this Policy, lhe Company shall have lhe following addilional options: (a) To payor Tender Payment of lhe Amounl of Insurance, To payor lender payment of the Amount of Insurance under lhis Policy, logether wilh any costs, allorneys' fees and expenses incurred by the Insured Claimant, which were authorized by lhe Company, up 10 lhe time of payment or tender of payment and which lhe Company is obligaled 10 pay, Upon lhe exercise by lhe Company of this option, all liability and obligalions 10 lhe Insured under lhis Policy, other than 10 make lhe payment required, shalllerminate, including any liability or obligation 10 defend, prosecute, or continue any litigation, and lhe Policy shall be surrendered 10 lhe Company for cancellalion, (b) To Payor Olherwise Sellle With Parties Other lhan lhe Insured or With the Insured Claimant. (i) 10 payor olherwise sellle with olher parties for or in the name of an Insured Claimanl any claim insured against under this Policy, logelher wilh any costs, allorneys' fees and expenses incurred by the Insured Claimant, which were authorized by lhe Company up 10 lhe time of payment and which lhe Company is obligated 10 pay; or , (iI) 10 payor olherwise sellle with lhe Insured Claimanllhe loss or damage provided for under lhis Policy, togelher with any cosls, allorneys' fees and expenses incurred by lhe Insured Claimanl, which were authorized by the Company up to lhe time of paymenl and which lhe Company is obligaled to~ _ _ Upon the exercise by lhe Company of either of lhe oplions provided for in paragraphs (b)(i) or (iI), the Company's obligalions to lhe Insured under lhis Policy for the claimed loss or damage, other lhan the payments required 10 be made, shalllerminate, including any liability or obligalion 10 defend, prosecule or continue any Iitigalion, DETERMINATION. EXTENT OF LIABILITY AND COINSURANCE. This Policy is a contract of indemnity againsl actual monetary loss or damage sustained or incurred by lhe Insured Claimanl who has suffered loss or damage by reason of mailers insured against by lhis Policy and only 10 lhe extenl herein described, (a) The liability oflhe Company under lhis POlicy shall nol exceed lhe reasl of: (i) lhe Amount of Insurance staled in Schedule A; (iI) the difference between the value of the insured eslale or interest as insured and the value of lhe insured estate or interesl subject to lhe defect, lien or encumbrance insured against by this Policy allhe dale lhe Insured Claimanl is required 10 furnish to Company a proof of loss or damage in accordance with Section 5 of lhese Conditions and Slipulalions, (b) In lhe evenllhe Amount of Insurance slaled in Schedule A allhe Dale of Policy is less than 80 percenl of lhe value of the insured eslate or inleresl or the full consideralion paid for lhe land, whichever is less, or if subsequenl to lhe Date of Policy an improvement is erecled on the land which increases the value of lhe insured estale or inlerest by alleast 20 percent over the Amounl of Insurance stated in Schedule A, then lhis Policy is subject to the following: (i) where no SUbsequent improvement has been made, as to any partial loss, lhe Company shall only pay lhe loss pro rata in the proportion that lhe Amount of Insurance al Dale of Policy bears to the lolal value of lhe insured eslate or interesl al Dale of POlicy,or , (iI) where a subsequent improvemenl has been made, as to any patlialloss, lhe Company shall only pay the loss pro rala in the Proportion thai 120 percent of the Amount of Insurance staled in Schedule A bears to the sum of lhe Amount of Insurance staled in Schedule A and lhe arnounl expended for the improvement. The provisions of lhis paragraph shall not apply to costs, allorneys' fees and expenses for which the Company is liable under this Policy, and shall only apply 10 lhat portion of any loss which exceeds, in the aggregale, 10 percenl of lhe Amount of Insurance staled in Schedule A. (c) The Company will pay only those coSls, allorneys' fees and expenses incurred in accordance wilh Seclion 4 of these Conditions and Stipulations. APPORTIONMENT, , If lhe land described in Schedule A consists of two or more parcels lhal are not used as a single sile, and a loss is eSlablished affecting one or more of the parcels bul not !ill, the loss shall be computed and sellled on a pro rata basis as if the Amounl of Insurance under this Policy was divided pro rala as to the value on Dale of Policy of each separate parcel 10 lhe whole, exclusive of any improvements made subsequent 10 Date of Policy, unless a liability or value has otherwise been agreed upon as 10 each parcel by the Company and lhe Insured at lhe time of the issuance of lhis Policy and shown by an express slatemenl or by an endorsement allached 10 lhis Policy, LIMITATION OF lIABllTY. (a) -If lhe Company eSlablishes the title, or removes lhe alleged defect, lien or encumbrance, or cures lhe lack of a rig hi of access 10 or from ,the land, all as insured, or lakes action in accordance wilh Section 3 or Section 6, in a reasonably diligenl manner by any melhod, including Iiligalion and lhe complelion of any appeals therefrom, it shall have fully perfonned ils obligalions with respect 10 that malter and shall not be liable for any loss or damage caused lhereby, (b) In the event of any litigation, including litigation by lhe Company or wilh lhe Company's consent, lhe Company shall have no Iiabilily for loss or damage untillhere has been a final delermination by a court of competent jurisdiclion, and disposition of all appeals lherefrom, adverse to the lille as insured, (c) The Company shall not be liable for loss or damage 10 any Insured for liability volunlarily assumed by lhe Insured in selting any claim or suit wilhoul 4. 6. 7, 8. 9.