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<br />1. DEFINITIONS OF TERMS.
<br />The following tenns when used in this policy mean:
<br />(a) 'insured': the insured named in Schedule A, and, subject to any rights or defenses the company would have had against the named insured, those who succeed to the interest of the
<br />named insured by operation of law as distinguished from purchase Including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin. or corporate.
<br />partnership or fiduciary successors, and specifically, without limitation, the following:
<br />(i) the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of the corporation upon partial or completa liquidation:
<br />(ii) the partnership successors in interest to a general or limited partnership which dissolves but does not tarminate:
<br />(iii) the successors in interest to a genaral or limited partnership resulting from the distribution of the assets ofthe general or limited partnership upon partial or complete liquidation:
<br />(Iv) the successors in interest to a joint venture resulting from the distribution of the assets of the joint venture upon partial or complete liquidation:
<br />(v) the successor or substitute trustee(s) of a trustee named in a written trust instrument: or
<br />(vi) the successors In Interest to a trustee or trust resulting from the distribution of all or part of the assets of the trust to the beneficiaries thereof.
<br />(b) 'insured c1aimanr: an insured claiming loss or damage,
<br />(c) 'knowledge' or 'known': actual knowledge, not constructive ,knowledge or notice that may be Imputed to an insured by ,reason of the publiC records as defined in this policy or any other
<br />records which impart constructive notice of matters affecting the land, ,
<br />(d) 'land': the land described or referred to in Schedule A, and improvements affixed thereto that by law constitute real properly, The term 'land' does not include any properly beyond the
<br />lines of the area'described or referred to in Schedule A, nor any right, lltie, interest, estate or eesement in abutting straets, roads. avenues, alleys, lanes, ways orwaterways, but nothing
<br />herein shall modify or limit the,extent to which a right of access to and from the land is insured by this policy,
<br />(e) 'mortgage': mortgage, deed of trust, trust deed, or other security instrument.
<br />(l)'publicreciirds': r8C0i'dii iSiSblistiifundiiFSiite statlitesas Diitii ofpollCy fofthe purpose Of,impilrting constructiWiiollce of matters relating to real properly to purchasers for value
<br />and without knowledge. With respact to Section 1(a)(iv) of the Exclusions From Coverage, 'public records' also shall include environmental protaction liens filed in the records of the
<br />clerk of the United States district court for the district in which the land is located, '
<br />(g) 'access': legal right of access to the land and not the physicel condition of access. The coverage provided as to access does not assure the adequacy of access for the use intended,
<br />2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE,
<br />The coverage of this policy shall continue in force es of Date of Policy in favor of an insured only so long as the insurad ratalns en estate or Interest in ,the land, or holds an, indebtedness
<br />secured by a purchese money mortgage given bye purchaser from the insured, or only so long es the insured shall heve liability by reason of covenents of werranty mede by the insured in
<br />eny transfer or conveyance of the estate or Interest. 'This pOlicy shall not continue in force In fevor of eny purchaser from the Insured of either (i) en estate or interest in the land, (i1) and
<br />Indebtedness secured by e purchese money mortgage given to the Insured,
<br />3, NOTICE OF CLAIM TO BE GIVEN, BY INSURED CLAIMANT,
<br />The Insured shall notify the Company promptly in writing (i) In case of any litigation es set forth in Section 4 (a) below, or (II) In case knowledge shall come to an Insured hereunder of any claim
<br />of titie or interest that is adverse to the titie to the estate or interest, as insured, end thet mlghl.ceuse loss or damage for which the Company may be liable by virtue of this policy, If prompt
<br />notice shall not be given to the Company, then as to the Insured ell liability of the Company shall terminate with regerd to the matter or metters for which prompt notice is required: provided,
<br />,however, that failure to notify lI1e.Company shall in no case prejudice the rights of any insured under this policy unless the Company shell be preJ~d[ced bY Ih.e fellure end the~ only the extent
<br />ofille prejudice. . ,..>., " ,.. " ~:.. '. . '.-, .' 1 ':, '_, ,,i
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<br />When, after the dete of the policy, the insured notifies the Company as required herein of e',liiln, encumbrance, adverse clelm or'ol!Ier defect In tiUs to the estate or interest in the land
<br />insured by thls;pollcy tha,t I~:not:excluded or excepted from the coverage of this policy,the Compinyshall promptiy Investigalli lhS:-cheige to d~termlne whether the lien, encumbrance, ed~rse
<br />claim or defect is valid and not barrad by law or statute, The Company shall notify the Insured in' writing, within e reasonable tiine, of Its determinetion es to the velldlty of invelidlty of the '
<br />insurad's claim or charge under the policy, If the Compeny concludes lhat,the lien, encumbrance. edverse,clalm or defect is not covered by this policy, or was otherwise eddressed in the
<br />closing of the transaction In connection with which this policy was Issued, the Company shell spe~ficelly advise the insured of the reasons for its determination, If the Company concludes thet
<br />the lien, encumbrance, adverse cleim or defect Is velid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse
<br />claim or dafect from the tille to the estate as insured: (ii) indemnify the insured es provided In this policy: (Iii) upon payment of eppropriate pramium and charges therefor, issue to the insured
<br />c1aiment or to a subsequent owner, mortgagee or holder of the estate or interest in the land Insured by this policy, a policy of titie insurance without exception for the lien, encumbrance,
<br />adV81S8 clelm or defect, said policy'to be in an amount equel to the currant velue of the properly or, if a mortgagee policy, the amount of the loan: (iv) indemnify another tille insurence
<br />company in connection with its issuance of a policy(ies) of tille insurance without exception for the lien, encumbrance. adverse claim or defect: (v) secure a release or other document
<br />discharging the lien, encumbrance, adverse claim or defect; or (vi) undertake e combination of (I) through (v) herein,
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<br />CONDITIONS AND STIPULATIONS
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<br />The following metters era expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses that arise by reason of:
<br />1. (e) My law, ordinance or governmental ragulallon (including but not limited to building end zoning laws, ordlnences, or ragulations) restricting, ragulating, prohibiting or ralating to (i) the
<br />occupancy, use, or enjoyment of the land; (i1) the character, dimensions or location of any improvement now or heraefter ereclad on the land: (ill) a separation in ownership or e change in the
<br />dimensions or erea of the land or any percel of which the land is or was e part: or (iv) environmental protection. or the effect of any violation of these laws, ordinances or governmental reguletions,
<br />except to the ~Xtent thit i' ~ti~ ~ the .enfo~~~t thareof ~ a notice of a defect,lien ~ encu~brance resulting from a violation or alleged'viplatLon affecting ~ lanll'hes'l!een reCQ.rded In,the public:
<br />recordsat Dati of Policy:.. '. " " . :' '." ..... .' '~.: ',~:" :''-: ::.-:...', :--, :.. ,.: ,,<, ,"~' .:;
<br />(b) My govemmental police power not excluded by (e) ebove, except to the extent that e notice of the exercise theraof or a notice of a defect, lien or encumbrance resulting from e violation or
<br />allaged violation alfecting the lend has been recorded In the Public racordsat Date of Policy, .. ,'.. " '.' ,.,' ",,' .
<br />2, Rights of eminent domain unless notice of the exercise thereof hes been recorded In the Public records at Date of Policy, b,ut'not excluding 'from coverage eny taking thet has occurred prior to Date of
<br />Policy which would be binding on the rights of e purchaser for value without knowledge,
<br />3, Defecla. liens, encumbrances, adverse clelms or other matters:
<br />(a) created, suffered, assumad or egreed to by the Insured c1eimen~
<br />(b) not known to the Company, not recorded In the public records et Date of Policy, but known to the Insured claimant an~ not disclosed in writing to the Compeny by the insured claimant prior to
<br />the data the insured clalment became an Insured under this policy;
<br />(c) resulting In no loss or demage to the insured claimant:
<br />(d) attaching or creeted subsequent to Date of Policy:
<br />(e) resulting in loss or demage that would not have been sustained ff the insured claimant had paid value for the estate or interest Insured by this Policy,
<br />4, The refusal of any person to purchese, lease or lend money on the estate or interest covered hereby in the lend described in Schedule A because of unmarketability of the titie,
<br />5, My claim, which erises out of the transaction vesting in the person named in paragraph 3 of Schedule A the estate or interest Insured by this policy, by reason of the operation of federal bankruptcy,
<br />state insolvency, or othet s!!!B or.l!dBl!I cred!Ors'rig~ts.laws that Is basecton either (i)Jhe,transa!;!!Qn.C!!!!tLngJll!.estate..otlQ!J!(8stl/)Su~by,thisgolicy baing,deemed.aJraudulent conveyance or
<br />fraudulent transfer or a voidable distribution or voidable dlvidand or Oil the subordlnetion or recharacterizalion of the estate or interest Insured by this Policy as a result of the applicetion of the doctrine
<br />of equitable subordinetion or Oii) the transaction creating the estate or inlerest insured by this Policy being deemad e preferential transfer except where the preferential transfer results from the failure
<br />of the Company or its issuing agent to timely file for record the instrumant of transfer to the insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a
<br />judgment or lien creditor,
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<br />EXCLUSIONS FROM COVERAGE
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