Robert S. Carpenter - Steward Title Guaranty Company

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CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. or defect is valid, the Company sholl take one of the following actions: (i) institute The following terms when used in this polity mean: the necessary proceedings 10 clear the lien, encumbrance, adverse claim or defect (0) "insured": the insured named in Schedule A, and, subject to any rights or from the ti~e to the estate os insured; (ii) indemnify the insured os ~rovided in this defenses the Company would hove hod against the named insured, those who polity; (iii) upon payment of appropriate premium and chorges therefor, issue to the succeed 10 the interest of the named insured by operation of low os distinguished insured claimant or 10 0 subsequent owner, mortgagee or holder of the estate or from purchase including, but not limited to, heirs, distributees, devisees, survivors, interest in the land insured by this polity, 0 policy of ti~e insurance without exception personal representatives, next of kin, or corporate, partnership or fiduciary for the lien,. encumbrance, adverse claim or defect, said polity to be in on amount successors, and spedficolly, withoutlimilotions, the following: equal to the current value of the pro~erly or, if 0 mortgagee polity, the amount of (i) the successors in interest to 0 corporation resulting from merger or the loan;liv) indemnify another title insurance .company in connection with its consolidation or the distribution of the assets of the corporation upon partial orissuanceol 0 policy(ies) of title insurance without exception for the lien, complete liquidation; encumbrance, adverse claim or defect; (v) secure 0 release or other document (ii) the partnership successors in interest to 0 general or limited . discharging the lien, encumbrance; advers.e claim or defect; or (vi) undertake 0 partnership which dissolves but does not terminate; combination of (i) through (v) herein. . (iii) the successars in interest to 0 general or limited partnership resulting 4 DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO from the distribution of the assets of the general or limited partnership upon partial COOPERATE. or complete liquidation; . (0) Upon wrillen request by the insured and subject to the options contained in (iv) the successors in interest to 0 joint venture. resulting from the Section 6. of these Conditions and Stipulations, the Company, 01 its own cost and distribution of the assets of the joint venture upon rartial or complete liquidation; without unreasonable delay, sholl provide for the defense of on insured in litigation (v) the successor or substitute trustee(s of 0 trustee named in.a wrillen in which any third party asserts 0 claim adverse to the title or interest os insured, but trust instrument; or only os to those stated couses of action alleging 0 defect, lien or encumbrance or (vi) the successors in interest 10 0 trustee or trust resulting from the other moiler insured against by this policy. The Company sholl hove the right to distribution of 011 or port of the assets of the trust to the benefidaries thereot - select counsel of its choice (subject to the right of the insured to object for reasonable ! (b) "insured c1aimanr': on insured claiming loss or damage. - couse) to represennhe insured os 10 those stated couses of action and sholl not be (cJ "knowledge" or "known": actual knowledge, not constructive knowledge or liable for arid will not pay the fees of any other counsel. The Company will not pay notice that may be imputed to on insured by reason of the public records os defined any fees, costs or expenses incurred by the insured in the defense of those couses of in this policy or any other records which import constructive notice of moilers action that allege moilers not insured against by this policy. .' . affecting the land. (b). The Company sholl hove the right, at its own cost, Io.institute and prosecute (d) "Iond": the land described or referred 10 in Schedule A, and improvements any action or proceeding or to do any other oct that in its opinion may be necessory affixed therelo that by low constitute real property. The term "land" does not include or desirable 10 establish the title to the estate or interest, os insured, or to.prevent or any property beyond the lines of the area described or referred to in Schedule A, nor reduce loss or damage to the insured. -The Company may toke any appropriate any right, title, interest, estate or easement in abulling streets, roods, avenues, action under the terms of this policy, whether or not it sholl be liable hereunder, and alleys, lones, ways or waterways, but nothing herein sholl modify or limit the extent sholl not thereby concede liability or waive any provision of this policy. If the to which 0 right of access to and from the land is insured by this policy. Com~any sholl exercise it rights under this paragraph, it sholl do so diligently.. (e) "mortgage": mortgage, deed of trust, trust deed, or other security (c) Whenever the. Company sholl hove brought on action or interposed 0 instrument. defense os required or permilled by the provisions of this policy, the Company may (Q "public records": records established under state statutes at Dote of Policy pursue (lny litigation to final determination by 0 court of competent jurisdiction and for the purpose of importing constructive notice of moilers relating to real property to expressly reserves the right; in its sole discretion, to appeal from any adverse purchasers for value and without knowledge. With respect to Section 1 (a)(iv) of the judgment or order. ": Exclusions From Coverage, "public records" also sholl include environmental (d) In 011 coses where this policy permits or requires the Companr 10 prosecute protection liens flied in the records of the clerk of the United Stoles district court for or provide for the defense of any action or proceeding, the insured shal secure to the the district in which the lond is locoted. Company the right to so prosecute or provide defense in the action or proceeding, (g) "access" : legal right of access to the land and not the physical condition of and 011 appeals therein, and permit the Company to use, at its option, the nome of access. The coverage provided os to occess does not assure the odequacy of access for the insured for. this purpose. Whenever requested by the Compo ny, the insured, ot the use intended. the Compony's expense, sholl give the Company 011 reasonable aid (i) in any action 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TIRE. . or proceeding, securing evidence, obtaining witnesses, prosecuting or defending thil The coverage of this policy sholl continue in force os of Dote of Policy in fovar of action or proceeding, or effecting selllement, and (ii) in any other lawful oct that in on insured only so long os the insured retains on estate or interest in the land, or the opinion of the Company may be necessory or desirable 10 establish the title 10 the holds on indebtedness secured by 0 purchase money mortgage given by 0 purchaser estote or interest os insured. If the Company is prejudiced by the failure of the from the insured, or only so long os the insured sholl hove liability by reason of insured to furnish the required cooperation, the Company's obligations to the insured _~v~nants, of warran~ ma~e by the ins~re~ in ~ny tran~er or co~eyonce of the _ under the Plllicy .shallter~i~a~, incl~di~g any liability or obligation to def~~d, estate or mterest. ThIs pohcy sholl not continue m force m favor of any purchaser prosecute, ofcontmue any htlgatlon; With 'regard to the moiler or moilers requiring - from the insured of either (i) on estate or interest in the land, or (ii) on indebtedness such cooperation. secured by 0 purchase money mortgage given to the insured, 5. PROOF OF LOSS OR DAMAGE. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. In addition 10 and after the notices required under Section 3 of these Conditions The insured sholl notify the Company promftlY in writing (j) in cose of any and Stipulations hove been provided the Company, 0 proof of loss or damage signed litigation os set forth in Section 4(0) below or, (ii incase knowledge sholl come to and sworn to by the insured claimant sholl be furnished to the Company within 91 .an insured hereunder of any claim of title or interest that is adverse to the title 10 the days after the insured claimant sholl ascertain the facts giving rise to the loss or estate or .interest, os insured, and that might couse loss or damage for which the damage; The proof of loss or damage sholl describe the defect in, or lien or Company may be liable by virtue of this policy. If frompt notice sholl not be given to encumbrance on the title, or other moiler insured against by this policy that the Company, then os to the insured 011 liability 0 the Company sholl terminate with constitutes .the basis of loss or damage and sholl state, 10 the extent possible, the regard to the moiler or moilers for which prompt nolice is- required; provided, basis of colculating the amount of the loss or damage. If the Company is pre,'udiced however, that failure to notify the Company sholl in no cose preiu~ice the rights of by the failure of the insured claimant 10 provide the required proof of oss or any insured under this policy unless the Company sholl be prejudiced by the failure damage, the Company's obligations to the insured under the policy sholl terminate, and then only to the extent of the prejudice. including any liability or obligation to defend, prosecute, or continue any litigation, When, after the Dote for the Policy, the insured notifies the Company os with regard to the moiler or moilers requiring such proof of loss or damage; required herein of 0 lien, encumbrance, adverse claim or other defect in title to the In addition, the insured claimant may reasonably be required to submit to estole or interest in the land insured by this policy that is nol excluded or excepted examinolion under oath by any authorized representative of the Company and sholl from the coverage of this policy, the Company sholl promptly investigate the charge produce far examination, inspection and copying, at such reasonable times and to determine whether the lien, encumbrance, adverse claim or defect is valid and not places os may be designated by any authorizetf representative of the Company, 011 barred by low or statute. The Company sholl notify the insured in writing, within 0 records, books, ledgers, checks, correspondence and memoranda, whether bearing 0 reasonable time, of its determination os 10 the validity or invalidity of the insured's dote before or after Dote of Policy, which reasonably pertain 10 the loss or damage. claim or charge under the policy. If the Company condudes that the lien, Further, if l'8CJuested by any authorized representative of the Company, the insured . encumbrance, adverse claim or defect is not covered by this policy, or was otherwise . claimant sholl grant its permission, in writing, far any authorized representative of addressed in the dosing of the transaction in connection with which this. poliq was the Company 10 examine, inspect and copy 011 records, books, ledgers, checks, issued, the Company sholl specificolly advise the insured of the reasons for its correspondence and memoranda in the custody or control of 0 third party, which . .determinatian. If the Company concludes that the lien, encumbrance, adverse daim .. reasonably pertain to the loss or damage. All information designated os confidential (continued and concluded on lost page of this polity}