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<br />1. DEFINITION OF TERMS. .. " _..,
<br />The following terms when used' in this policy mean: '.
<br />(a) ilnsured': the insured named .In Sc;:hedule A, and, subject to any,righls 9r. detenses the company would have had against the named insured, those who succeed to the
<br />'" interest of the nam811 insured by' operation of law 'as disiinguished fiOri;':purehase including, but not limited to, heirs, distributees, devisees, survivors, personal
<br />,- representatives, next of kin, or, corpol'l!te; partnership or iiduciary SuccessOrs, and $:pecifically, without limitation, the following: '.
<br />. '/, (I) the successorS in interest'to a cO!'POration resulting from merger or. consolidation or the distributio'l. of the .assets of the col'P.oration upon partial or complell!
<br />liquidation; , . : '. .'.. _.' . , '.'. ~ ,J . _. . _
<br />. .Oil the partnersnip 'suc~~ors 'in 'interestto a ge!'eraf or linjited partnership .which dissolves but does not,tenn!nat!!; , . .. '.
<br />(iii) the successors in inierest to a general or limited partnership ~sulting from the distrib.uti.o'ii of t~e a~ oi 1f1e gerJeral or limited partnership upori partial or complete
<br />liquidation; , .... _, ." ':.' ", _ ., '. ~. .,.. . . ". ".
<br />(iv) th!l !lucce~sorS iri i(1terest tc;l a jpint vent\!1e resulting fromth!l !listripution Qf !he assets .~f !he joint venture UPO(l partial.or COmplete liquidation; ,
<br />(~) 'hesuccessor.o(s,Ubs~!!.ltetrui;tile(S)Ofatrusteen~medin,!lw~~en.tru~tinStrul'T)ent:'or... .: '.. :"~ ,,,', . '," .. . .'...,..
<br />(Y') t~e successors I,n Interest to a trustee or trust resulting from the dlstnbut!on QI all o/,Ilar! pl,the asselS of the tru!lt to the beneflCI!lnes thereof.
<br />(b) 'insuredclaimant':anif)Su~:claimingIOssprdam~g!l" , -. - ," .o.'.~' . ,".' '....... _
<br />(c) 'knowledge' Qr 'known': actual knOwledge, not constructive "nowfedge or'notice that may be imputed to an irisured by reason of the public rec;ords as defined In this IlQlicy
<br />~.: or any other records wtiich imp!!rt. constructive notice of matters affecting the IlII1d, . .... . _:. :'. .' . : ." , ' .
<br />(d) 'land'; the land described or referred tei in Schedule A, and improvements affixed thereto that by law constitute real property. The tenn 'land' does not include any property
<br />7. ,~ .. i 'beyond the lines of the area d,escribed or referred to ,in Schedule A, nor any right, title, interest, 'estate or easement in abutting streets, roads, avenues, alleys, lanes, ways
<br />'f., . ,or w~terways, .but nothing. here.in s~all.modify or limit ttle extent to which a right of access to.and!fromthe land is insured by this policy.
<br />(e) ; .'!I'1ortgage': mortgage,dee!! o',trust, trust dee,d, or other security inStrument. ,
<br />' (0 lpublic records'; records established u'nder Slate statute~ as Date of Policy for the. purpose of imparting constructil/e n!)tice of matters relating to real property to purchasers
<br />for value and without knowledge, -With .respect to Section 1 (a)(iv) of t,e Exclusions' From Coverage, 'public r~rds' also shall include environmental protection liens filed in
<br />the records of the clerk of the United States district court for the district in whicMhe land is located, _ ~, ,
<br />(g) 'access'; legal right .of access to. the land and not the physical condition of a::cess, 1I1e coverage provided as to access does not assure the adequacy of access for the use
<br />intended. : 0 " .
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<br />2, CONTINUAnONOFINSURANCEAFTERCONVEYANCEOFMLE. '.\ '."~",,'. .. ..'.. . ..; .,',
<br />The coverage ot'this policY ~hall co~tin!le in force as of Date of PoliCy in faVor of. an in~u-red:only soiong.as'th~insuredrefai,;siin estateoririteresi In the' land, or holds an
<br />indebtedness secured by a' purchase money mortgage gi~en by a purchaser from ihe insured, Or only'so long as the Insured shall have liability by reason of covenan.ts of
<br />warranty made by the insu~ in' any transfer or conveyance of the estat~ or inielest: This' poli~' shall'not continue in force in favOr of anY-purchaser irom the insured of either (i)
<br />an estate or intereslin \!Ie I~n~, or (ii) and !ndebtedness ,secUred b~ a ~urchese ~oney l!1?rtg~Qe given to the. i~sured. " . . , , .~. . .
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<br />3. NOnCE OF CLAIM TO BE GIVEN BY INSUREi'-CLAIMANT. . : . _ . . . .' . ,0., .., , ,
<br />'The insured shall notify the Company pl'Qmptly in writing (i) in case of any litigation as setforll1'in,Section 4(a) beloW: or (ii) in case knowledge shall come to an insured hereunder
<br />~ any c;laim of title or interest that i!ladverse to the title to .the estate or,interest, as insured, .and that might cause loss or damage for which the Company may be liable by virtue
<br />of this policy, If prompt notice shall not be given to the Company, then as to the insured all hability of the Company,shall. tenninate with regard .to the matter or matters for which
<br />prompt noti~ is required; provided, hoy'ever, that .failure to notify the Company shall.in no case prejudice the rights of any insured under this policy unless the Company shall be
<br />prejudiced by the failure and then only the extent of the prejudice, '.
<br />.; : Wilen, afterthe date of the policy, the'insured notWies the Company as required herein of a lien'; encUinbrilnce, adveise claim or Other. defect in title to the estate or interest in
<br />iIle land insured by this policy that is not excluded or excepted from .the coverage 'of f~is pOlicy, the ~inpany shall promptly in~~siigatethe ,ct!aige to detennine whet~er 'the lien,
<br />enCumbrance, adverse claim or defeCt is valid and not barred by law or StatUte. The Company sh!ill notify the insured in writing; within a reasonable time, of its determination as
<br />to~the validity or invalidity of the insured's claim or charge under the policy, If the Company conclildestilat the lien, encumbrance, adverse 'claim or defect is not covered by this
<br />" po!!Cy, or was otherwise addressed in the closing of the transaction in connection with which this policy was issued, the Company shall specWically advise the insured of the
<br />f!t!isons for its determination. If the Company concludes that the lien, encumbrance, adverse clailT) or defect is valid,the..CO!I1pany shall take. one of the following actions: (i)
<br />institute the necessary proceedings to clear the.lien, encumbrance, adverse claim or defect. from the title to the estate as insured; (ii)dndemnify the insured as proviped in. this
<br />policy; ,(iii) upon payment of appropria~ premium and charges tt,erefor, issue to the~insurea, claimant, or 'IO-a subsequent owner, mortgagee or holder of the estate or in.terest in
<br />t~e land insured by this policy, a policy of title. i.neurance without exception for the' lien; enCUmbrance, adve~e. claim ~or defect, said policy to be In an amount equal to the current
<br />value of the property or; if a mortgagee policy; the amount of the' loan; (iv) indemnify .another title insurance Company. in connection with its issuance of a policy(ies) of title
<br />insurance,without exception for the lien, encumbr!ince, adverse claim or defect; (v) secure a,release.or other'document discharging the. lien, encumbrance,-adverse claim or
<br />defec;t; or (vt)undertake a combination of (i) through (v) herein. ' .
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<br />. .CONDr:i10NS A.ND STIPULATIONS
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<br />The following matters are expressly excluded. from the coverage of this.policy and the' Company will not'pay.loss,or damage, costs, attorneys' fees or exPenses th;lt a~se'by reason of:
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<br />1, (a) Any law: ord.inance or governmental regulation (including but not limiied to bui/ding arid zoning'laws; oidin!lnc~s, or regulations) reslril;ling, regulating, prohibiting or relating
<br />til(i) the Qccupancy, use, or enjoyment 'of the land: (iil'the character, dil'T)ensions' or I~tion of any improvement now or. hereafter erected on the land;. (iii) a separation in
<br />ownership or a ctlange in the. dimensions or ~r~a of the land or any parCel of which th!llar]d is ,oJ, W;l~ a pa.~~ or (iv) environmental protection, or the effeCt of. any violation 01
<br />iliese lawS, ordinances or governmental nigulations, except'to' the extent that a notice 'of the enforcement ihereof or a notice of a defeei, lien or 'encumbrance resulting from
<br />I. .aviOlationorallegedviclatiq~affectiligthelandhas.beenre~or9ed.inthepublic;recor~atPate.ofPol.icy,. ,', " '. , . _ .,
<br />(b) Any governmental police power n~t excluded by (a) above, ex~pt to the ext~~t tl1al'l! nolice .9f thll exercise thereof, ora notice of a defect, lien or encumbral)ce resulting
<br />'froJT1 a. viOlatiOn, or alieged violation affecting the land has been record!ld in the. pubUc recol'l!s at D~te of folicy. , '. "
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<br />2, Rights of eminent domain unless notice of the .exercise thereof has been recorded in the publiC records at Date of Policy, but not excluding from coverage any taking that has
<br />occurred prior to. Date of PQlicy,which would be binding on the rights of a p\lrchaser for value without knowledge, . < o.
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<br />3, Defects,hens, encumbrances, adverse claims or otlier matters: 0.. ..., .. .
<br />(al created, suffered, assumed or agreed to by the insure:! claiman'l; '" .. . ~ .'. , ,..... , ',' '. , ' .' , .
<br />(b) not known to the COrTIpany;iioi recQrded in llie public records at Daie 'of' POlipy, bui kriown io .tl)e insure(j'claim.ant and'not disclose,d iii wiiting: to hie cOmPany by the insured
<br />cJaima!ltpriortothedatet~einsur!ldClalmant~~melininsur~dun(ferthisp'?li~:': '.. .," '~. .....'~ _ '.' , " , 0,:' .. , ' , ,
<br />(c) resuhing in .no loss or damage to the' insured claimant;., .. .~,' ....,.. .'... . . . ,
<br />(d) attaching or created'subsequentto Date of PoliCy:' . _, :' '. " , . ",
<br />(e) resulting in loss or' damage t~al w?ul~ not h~ve' been su~ta~nild if the i~s~r~ C!aiina?thad paid value for the estate or interest Insured by this Policy:'
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<br />~ 4. -The refuSilI.of any personio purchase, lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title.
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<br />5, 'Any claim, which arises out of. the' transaction vesting in the person name~:in paragraph.3 of'Schedule A the estate or interest insured'by this policy, by reason of the operation of
<br />fed,ral bankruptcy, state inSolvency, or other state or federal creditors' rights laws that is based on either'(i) the transaction creating the estate or interest Insured by this Policy
<br />being deemed a fraudulent conveyance or 'fraudulent transfer or a voidable' distribution 'or VOidable dividend or (ii) 'the subordination or recharacterlzatiOn of the,estate or interest
<br />insured by this Policy as a result of the application-of the doctrine. of equitable subordination or (iii). the' transaction creating .the estate or interest insured by this Policy being
<br />deemed a preferential'transfer except~here:tl!e preferential transfer'resullS from the:failure.ofJhe.CompaDy.orJISJssuing.agenuo;timeIyJiI!lJor .record the,lnstrument.of.transfer, _.
<br />.to the insured after delivery. or the.failure of such reCQrdation to impart notice to 'apiJrchaser for value or a judgment orlien creditor,
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<br />EXCLUSIONS FROM COVERAGE
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