Klein Retreat special warranty deed & title policy, 5/25/2004

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CONDITIONS AND STIPULATIONS Continued S. PROOF OFLOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss ordamage signed and sworn to by the insured claimant shall be furnished to the Company within 91 days after the insured claimant shall ascertain the 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 title, or other matter insured against by this policy that constitutes the basis of loss or damage aid shall state, to the extent possible, the basis of calculating the amount of the loss or damage, If the Company is prejudiced by the failure of the insured claimant to provide the required proof of less or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably he required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date betbre or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative ofthe Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in to custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim, Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall Terminate any liability of the Company under this policy as to that claim, 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY, In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. (i ) to pay, or tender payment of the amount of insurance under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the company is obligated to, pay, Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall he surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. I ( ' i ' ) to pdy or otherwise settle with otber parties for or. in the name of an insored claimant 'any claim insured against under lbis policy, together %%ldi any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay;; or (ii) to pay or otherwise senle with the insured claimant the loss or damage provided for under this policy, together with any costs, atiOrneys' fees and expenses incurred by the insured claimant, which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 7. DETERAHNATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary less or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy, and only to the extent herein described, (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A, (ii) the difference between the value of the insured estate, or interest as insured and the value of the insured estate or interest subject to the defect, lien orencum- brance insured against by this policy at Vie date the insured claimant is required to funiish to Company a proof of loss or damage in accordance vvith Section 5 of these Conditions and Stipulations. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value ofthe insured estate or interest by at least 20 percent over the Amount of insurance started in Schedule A, then this Policy is subject to the, following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay die loss pro rata in the proportion that the amount of M it .surance at Date of Policy bears to the total value of the insured estate or interest at Date of Poliev; or (u) where a subsequent improvement has been made, as to any partial loss, die Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, alloryieys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorney's fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. S. APPORTIONNIEEN'T. If the land described in Schedule A consists of two or more parcels that are not used as a single site, and a loss is established affecting one or more of ate parcels, but not all, the loss shall he computed and senied on a pro rata basis as if the amount of insurance under this policywas divided pro rata as to the value on Date ofPcilicy of each separate parcel to the whole, exclusive of any improv,ements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by die Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION' OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, all as insured, or takes action in accordance with Section 3 or Section 6, in a reasonably diligent manner by any method, including litigation and die completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for hiss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the fide as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by die insured in wrifing any claim or suit without the prior written consent of the Company, 10. RF-OUCTION OF INSURANCE: REDUCTION OR TERMI]NATION OF LIABILITY. All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce die Amount of Insurance pro tanto., 11. IJABILITYNONCIUMULATiVE. It is eXpteSSIy understood that the amount Of insurance Linder this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is raken in Schedule B or to which The insured has agreed, assumed, or taken subject to, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner, 12. PAYMENT OF LOSS, (a) No payment shall be made without producing this policy for endorsement of die payment unless the policy has been lost or destroyed, in which case proof ofloss or deWticririn shall be furnished to the satisfaction of the Company, (continued and concluded on last page of this policy) (owner's Policy)