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<br />CONDmONS AND S'Il'llPlULATIONS
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<br />1. DEFINITION OF THRMS. mODe)' mortaqe given to the iJmued.
<br />The foDowiq lelma when used in this policy meaa: 3. NOTICE OF CLAIM TO BE GIVHN BY INSURHD CLAIMANT.
<br />(a) "iDJured": !be insured named in Schedule A. and , subject to any ripr. or TheinsuredshallDOtify!beCcrmpaoyprompdyinwriliD&(i)inc:aseofanyliliption
<br />clcfensel!beCompanywouJdhavehadapinsuhenameclinsured.tho8ewhosucc:eed as set fordl in Secti.cm 4(a) below, (ii) in case 1mow1eclae shall ccme to an inlURld
<br />to the interest of &be named insured by operation of lnw as clistin&uisbed from beI'elmcler of any c1aim of tide or interest that is advene to &be tide to the estale or
<br />purchase including, but DOl limited to, heirs, distributees, devisees, sumvon, inleJ'elt, as insullld,lllId that IJIiabt CGllse loss or damap for which the Company may
<br />~ mpR8llIlt8tives, next of kin. or c:orpomte, putnersbip, or fiduc:iaJy betiable by virtue of this policy. IfpromptnCltice shall not be given to the Company,
<br />lIUCCellOll and specific:a11y, wiIbout limitatim, the fa11owin&: then III to !be insured alllilbility of the Company shall tenninale with reaanl to the
<br />(i) the sucesson in interestto a COlpOI8tion resuIIina from mel'ler or CODIolidaticm mallerormatlen for which prompt notice is required; provided, however, thatfailla
<br />or the distribution of the assets of the COIpOr8Iion upan partial or c:omplete to notify the Company shall in no case prejudice the ri&bts of any insullld under this
<br />liquidation; policy uuless the Company shall be prejudiced by the failure and then only to the
<br />(ii) the partnenbip successors in interesno a lenB or limileclpartnenbip which atCDl of the prejudice.
<br />disolves but does not terminale; When, after &be elale of the policy, the insured notifies &be Companies as required
<br />(iii) the SUClClllson in interest to a general or limited padDenbip resulIiq flam !be herein of a lien, en~ce, adverse c1aim or other defect in tide to the eswe or
<br />distribution of &be assets of &be leneral or IimiIecI pannersbip upan padial or interest in the land insurecI by this policy that is IIOt a.c1uclecl or exceplecl from &be
<br />ccmplere liquidatim; coverap of this policy, the Campany shall pnmptly investiaale the clwp to
<br />(iv) the suc:c:esson in interest to ajoint venblre nlI11kinJ flam &be distribution of!be determine whether &be lien, encumbrance, adverse claim or cIefect is valid ancI DOl
<br />asletl of the joint ven1l1re upan padial CII' complete liquiclalion; barred by Jawor stabile. The Company shall notify the insured in writing, within a
<br />(v) the suc:c:es1Ol' or substiwle trustee(s) of a trustee named in a written lnIIl tuscmab1e time. of its cIelermination as to the Vllidity or invalidity of the insurecI's
<br />inllrumllnt; or claimordwueunder!bepolicy. JftheCampaayconc:ludes lbatthelien,enaunbnmce,
<br />(vi) the suc:c:esson in intezest to a trustee or trust resuhina from the distribution of adverse c1aim or defect is DOl covered by this policy, or was otherwise addressed in
<br />all or part of the asletl of &be lnIIl to &be beneficiaries thereof. the c:1osina of the lrlIIlIac:tion in COIlIICCIian with which this policy was issued, the
<br />(b) "insUllld claimant": an insured c1airniJIIloss or damage. Company shall spec:ific:a11y advise the i1isullld of the tulODl for its delenninaticm. If
<br />(c) "knowledge" cir "known": actuallmowJedae, not COIlIlIUctive knowledle or the Company concludes that the lien, encumbrance, aclvene c1aim or defect is valid,
<br />._~~__- :.' Doticetbat m~)' be implted 19. q iruunl!I:.by.~->.at'-the'pQb1ic,II!IlO~"as'''''~...t ~-~yabaJl-take-mlHf.:fbe.followiq!8Cdcms:-(i}ini"diuie-ihe'iIilcejsary'-' c
<br />-- """""iii this policy or any other records which impart llOIliuuctive nCltice of mallen proceecIinss to clear the lien, encumbrance, advene c1aim or defect from the tide to
<br />affectinJ the land. the estate.. insured; (ii) indemnify the insured as provided in this po1icy; (iii) lIpClII
<br />(d) "land": the land described or refened to in Schedule A, and impnwements payment of appropriate premium and cbarJes therefor, issue to &be insured claimant
<br />affixed thereto which by Jaw CClIlstitule real property. The lenD "land" does DOl or to II subsequent owner, mortaaaee or holder of the estale or interest in the JaDd
<br />include any property beymd &be lines of the area described or "'erred to in Sc:beclu1e insullld by this policy, a policy of title insurmce without exception for the lien,
<br />A, nor any ri&ht, tide, interest, estale or lllIICIIIent in abulliDa lIlreelS, roads, avenues, CDClIIIlImlnc:e. IId~ c1aim or clcfect, said policy to be in an amount equal to !be
<br />alleys, lanel, ways or waterways, but notbiDa heian sba1l modify or limit the a.tCDt c:umIlt value at'the praperty or, if a mOJt&lllee po1i.c:y, the amount of the loan; (iv)
<br />to wbic:b II riJbt of access to and from the land is insured by this policy. incIenmify lIIIOlber tide insunmce company in CClIlJleCIion wi&b its issuance of a
<br />(e) "mortaaae": mortgale, deed of trust, trust cIeecI. or other security instrument. poIicy(ies) <<title insurance without exception for &be lien, encumbrance, adwne
<br />(f) "pu~ records": rec:onIs established uacieI' stale statutes at Dale of Policy for claim or defect; (v) secure a release or other document disc:barainl the lien,
<br />the purpose of impartiq CODI1rUclive Dotice of mallen relatina to real property to encumbrance, adverse claim ordefec:t; or (vi)undeJtake a enIIlbiMlian of (i)lbraup
<br />pun:basen forva1ue and wilboutlmowledge. Wilh respect to Section 1 (a)(iv) of the (v)berein.
<br />Bxc1usiOlll From Coverap. "public records" also sba1I include environmental 4. DHFHNSE AND PROSEctmON OF ACIlONS: DUTY OF INSURED
<br />protecticln liens filed in the rec:onIs of !be clerk of the United Sl8lCl1 district court for CLAIMANT TO COOPRRA TH.
<br />the district in wbic:b the land is located. (a) Upon wriuen request by &be insured and subject to the optims CClIltained in
<br />(a) ..aeee....: lelal ript of access to the land and net the physical c:onditicm of Sectian 6 of these CClIlditicms and StipuJatians, the Company, at its own COlt and
<br />access. The coverale provided as to access does Dot assure the lIdequacy of access without umeasoaable dalay, sbaIl pnwide fortbe defense of an insured in Iitiptim
<br />for the use intended. in wbic:b any third party asserts a claim adverse to the tide or interest as insured, but
<br />2. CONTINUATION OF INSURANCE AFTHR. OONVHYANCE OF 1TlU!. cm1yastotbose statedCGIIICllat'actiana1leginsadefec:t,lienorencumbranceorotber
<br />The covenae <<this policy shall CODlinue in force as of Dale of Policy in favor of mailer insured against by this policy. The Company sbaJl have the ript to select
<br />aninsured cm1y 10 lenlas &be insullld retains an estate orinrerest in the land, or balds CClUIlIel at'its choice (subject to the riabtofthe insured to objectforlUlOliable cause)
<br />an indebtedne.. secured by a purdwe money mortaaaeaiven by a purchaser fram to rqnueilt the insured as to those stated causes of actiClIl and sba1I DOt be 1iable fOr
<br />the insured, or cm1y 10 lanJ as the insured shall baveliability by nl8IOD << c:ovenants and will Det pay the fees of lilY other CCIIIIlBel. The Canpaay will DOl pay any fees,
<br />of warranty made bytbe insured in any llIDsferorCClllveyance of&be estateorintcrest. CCl8tI ora.penses inc:urllld by theinsullld in the defense oftbose causes of actiClIl that
<br />'Ibis policy shall not llOIllinue in force in fa~y pun:baser from the insured of allele maaen not in.against by this policy.
<br />ciIher(i)an estate orinteresl in the land, or (ii)~s sFlllll by a purchase (b) The Compaay . ve the npt, at its own COlt, to institute and pmsec:lileany
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<br />EXCLUSl[ONS nOM COVJmAGIE
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<br />Thefo11owin&maaen llI8expresalyexc1udeclflam the coverale of this policy IIIld bulknown to the insured c:JainumtIlll.dDOldisc1oseclin wrilin&totheCampaaybythe
<br />the Compsny will not pay loss or clamqe, COllI, attomeys' fees or a.peIllCll which insurecJ c:1lIimant prior to the date the insured c:1aimanl became an insured undertbis
<br />arise by ...CIlI of: pcticy;
<br />1. (a) Any Jaw, onIinance or lovemmental replaticm (iDc:1udins but Dot limired to (e) I'llIUlIin& in DO lOllS or cIamnp to the inaullld c:1aimant;
<br />buiJcliqIlDdJJODiDaJaws,onIinances,orreplalioas)restricI:irI&reauJalina.probibilinl (d) attadlina or cieateclsubseql1elll to Dale of Policy;
<br />or relating to (i) the occupancy, use, or enjoyment of the lanel; ,(ii) the c:barac:ter, (e) lClIultina in loss ot damage that wau1d DOl have been sustainecl if the insured
<br />dimeusicms or1oca1ien of anyimprovementllOW orhereaftererected m !be land; (iii) claimant had paid value for the estate or inlerest insured by this policy.
<br />a sepanllion in ownenbip or a c:banp in the dimenaims or area at'the land or any 4. Tberefusdof anypenantopurdlase,J,ease orlendlDCllleymtheestateorinlaat
<br />parcelofwbic:bthe land is or was a pIII'l; or (iv)llIlvizomneDtalpmteclian,ortheeffect ccwered bmebyin tbeland clesaibadinScbecluleA because ofUlllll8lketabil <<!be
<br />of any violatiCID oftbese Jaws, ordinances or 10000000000tal repIatioas, except to die tide.
<br />atCDl that a notice of the enfon:ement thereof or a notice of Il clcfec:t, lien or 5. Any cIBim. wbic:b arises out of the lraD8ICliclD vestin8 in the perBOIl named in
<br />CDClIIIllmlnce I'llIUlIin& from a violation or aDepd violatiOn affec:tina the IancI blII panlIftlph 3 of Sc:becIuJe A the elItIlte or inIaut insured by this policy, by rea&ClIl of
<br />been rec:ordecI in the p1b1ic ftICOIds at Date of Policy. the oparlIlioa of fedenl banIauptcy, I1IIle inso1venc:y, or ather stale of federal
<br />(b) Any lIovemmental police poweI'Dotexcluded by (a) above, ex. to the exlCDt. creditolll' riabts Jaws that is lmecI m eitber (i) the lI8DIacliaa CIUIiq !be elllale or
<br />that a notice of the a.en:ise tbereaf or a notice of a cIcfect, lien or encumbnlnce inleRlll Insullld by this Policy beiq cIeemecI a fraudulent CClIlveyanClll orfraudu1ent
<br />IUUltinafranaviolationoraUeaeclvio1atiaaaffllCliqtbelandbasbeenrecclldeclin lrlmlIfer or Il vaidllb1e distributicm or vaiclable dividend. (ii) &be subonIinatim or
<br />the public reconfs at Date of Policy. ' redwaclerizalio of the estate ~ interest inlUnlCl by this Policy as a IaUlt << the
<br />2. Ri&bts of eminent domain uule8sllClCice at'the a.en:ise thereof bas been recorded applic:aticm of the doCtrine of equitsble subordination or (iii) &be traII8aC:licm c:reatina
<br />in the public reconfs at Date m Policy, but Dot a.c1udiD& &am COVeJap any taldnl theeslaleorinlerestinsuJedbythisPo1icyIleina cIeemecIapreferentialtnmsfera.cept
<br />that bas 0CCIIINd prior to Date of Policy which would be bincIina an the rights of a where &be pteferentia1ll1Dsfer resuhs fran the failure of the Company or its iuuina
<br />purdwer for value without knowledge. agent to timety file for record the insllWDCDt of llanlferto the insullld after delivery
<br />3. Defects, Hens, encumbrances, adverse claims or othermallen: or the failure at' such RCOrdatimi to i,mpan nCltice ~ a p-!n:has~dor",VAlue-or- .~,
<br />- :..- ----.:-=-(~) create4Lsuf!erecI, auumecI,or,qreeclJD'jJy'tbe'iniured-dBimant;':- -- .,,-~ -:"':::''judament'Orlieii-c:JiiIitbi~G::~ .: --'-"- . -- ... == =. -
<br />(b)nClC known to the Company, not rec:onIed in the public rec:onIs at Dale of Policy,
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