1998 Ernest H. Grabbe-three tracts of land, property for airport

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..... CONDITIONS AND STIPULATIONS - Continued 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon wrill8n request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the tille or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other mall8r insured against by this policy, The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel, The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action that allege mailers not insured against by this policy, (b) The Company shall have the righ~ at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the tille to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured, The Company may take any appropriate action under the terms of this policy. whether or not it shall be liable hereunder, and shall not thereby conceda liability or waive any proVision of this policy. If the Company ~hall exercise its rights under this paragraph, it shall do so dlligenlly, (c) Whenaver the Company shall hava brought an ectlon or Interposed a dafensa as raquirad or permlll8d by tha provisions of this policy, the Company may pursue any litigation to final determination by a court of competant Jurisdiction and axpressly resarvas tha right, In Its sole discretion, to appaal from any adverse judgmant or order. (d) In all cesas whare this policy parmlts or requlras tha Company to prosacute or provlda for the dalapsa of any action or proceading, the Insured shell sacure to tha Company tha right to so prosacute or provlda dafanse In tha action or procaadlng, and all appaalsthareln, and parmlt tha Company to usa, at Its opllon, tha nama of the Insurad for this purpose, Whanaver requasted by the Company, tha Insured, at the Company's axpensa, shall give tha Company all reasonabla aid (I) In any action or proceeding, securing evidence, obtaining witnesses, prosecuting or dafendlng the ecllon or proceeding, or effecting selllement, and (II) In any other law/uract thetln tha opinion of tha Company may be necessary or dasirable to establish the tille to the estate or Interest as Insured. If the Company Is prejUdiced by the lallure of the Insured to fumlsh the raqulred cooparation, the Company's obligations to the Insured undar the policy shall termlnata, Including eny liability or obllgetion to deland, prosecute, or continue any litigation, with ragard to the mall8r or mall8rs requiring such cooperation, 5, PROOF OF LOSS OR DAMAGE. In addition to and aftar tha notices required undar Section 3 of thasa Conditions and Stipulations have baan provided the Company, a proof of loss or damage signed and swom to by the insured claimant shall be fumished to the Company within 91 days after the insured claimant shall ascertain the facts giving rise to the loss or damage, Tha proof of loss or damage shall describe the defect in, or lien or encumbrance on the tilla, or other matter insured against by this policy that constitutes the besls of loss or damage and shall state, to the axtent possible, the basis of calculating the amount of the loss or damage, If the Company is prajudiced by the failure of the Insured claimant to provlda the requirad proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to deland, prosecute, or continue any litigation. with regard to the maller or mallers requiring such proof of loss or damage, In addition, the Insured claimant may reasonably ba 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 mamoranda, whether bearing a date before 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 of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the 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 es to that claim, &, 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 Payor Tandar Payment of the Amount of Insurance. To payor tender payment of the amount of insurance under this policy, together with any costs. attorneys' fees and expenses incurred by the insured cleimant, which were authorized by the Company, up to the tima 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 liabilily or obligetion to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cencellation, (b) To Payor Otherwise Saltle With Parties Other than the Insured or With the Insured Claimant. (i) to payor otherwise sellla with other parties for or in the name of an Insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses Incurred by tha insured claimant, which ware authorized by the Company up to the time or payment and which tha Company is obligated to pay: or (ii) to payor otherwise se\tle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant, which ware 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 (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage. other than tha payments required to be mada, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation, 7. DETERMINATION, EXTENT OF LIABILITY AND CONINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of mall8rs 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 astata Dr interest as insured and the value of the insured eslate or interest subject to the defect. Iian or encumbrance insured against by this policy at the date the insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations, (b) In the event the Amount of Insurance stated in Schadule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full cons/deration 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 of the insured estate or interest by atleasl 20 percent over the Amount of Insurance slated 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 the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the 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 amount expended for the i11lprovemenl. The provisions of this paragraph shall not apply to costs, attorneys' 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, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations, &. APPORTIONMENT 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 the parcels but not all, the loss shall be computed and se\tled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement allached to this policy, 9. LIMITATION OF UABILlTY, (a) If the Company establishes the tille. or removes the allaged 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 the completion of any appeals therefrom, it shall have full performed its obligations with respact to that maller and shall nol be liabla 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 loss or damage until there has been a final determination by a court of competent Jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured, (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in sellling any claim or suit without the prior wrill8n consent of the Company, 10. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY, All payments under this policy, except payments made for costs, attorneys' fees and expanses, shall reduce the amount of the insurance pro tanto, (Continued on Reverse Side of Page)'