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CONDITIONS AND STIPULATIONS , •r �
<br /> 1. DEFINITION OF TERMS. and expressly reserves the right,in its sole discretion,to appeal from any adverse
<br /> The following terms when used in this policy mean: judgment or order.
<br /> (a) "insured":the insured named in Schedule A, and,subject to any rights (d) In all cases where this policy pertnits or requires the Company to
<br /> or defenses the Company would have had against the named insured,those who prosecute or provide for the defense of any action or proceeding,the insured shall
<br /> succeed to the interest of the named insured by operation of law as distinguished secure to the Company the right to so prosecute or provide defense in the action
<br /> from purchase including,but not limited to,heirs,distributees,devisees,survivors, or proceeding, and all appeals therein, and permit the Company to use, at its
<br /> personal representatives,next of kin,or corporate or fiduciary successors. option, the name of the insured for this purpose. Whenever requested by the
<br /> (b) "insured claimanY':an insured claiming loss or damage. Company, the insured, at the Company's expense, shall give the Company all
<br /> (c) "knowledge"or"known":actual knowledge,not constructive knowledge reasonable aid (i) in any action or proceeding, securing evidence, obtaining
<br /> or notice which may be imputed to an insured by reason of the public records as witnesses, prosecuting or defending the action or proceeding, or effecting
<br /> defined in this policy or any other records which impart constructive notice of settlement, and (ii) in any other lawful act which in the opinion of the Company
<br /> matters affecting the land. may be necessary or desirable to establish the title to the estate or interest as
<br /> (d) "land": the land described or referred to in Schedule A, and insured. If the Company is prejudiced by the failure of the insured to furnish the
<br /> improvements affixed thereto which by law constitute real property. The term required cooperation, the Company's obligations to the insured under the policy
<br /> "land" does not include any property beyond the lines of the area described or shall terminate, including any liability or obligation to defend, prosecute, or
<br /> referred to in Schedule A, nor any right, title, interest, estate or easement in continue any litigation, with regard to the matter or matters requiring such
<br /> abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing cooperation.
<br /> herein shall modify or limit the extent to which a right of access to and from the
<br /> land is insured by this policy. 5. PROOF OF LOSS OR DAMAGE.
<br /> (e) "moRgage": mortgage, deed of trust, trust deed, or other security In addition to and after the notices required under Section 3 of these
<br /> instrument. Conditions and Stipulations have been provided the Company, a proof of loss or
<br /> (� "public records": records established under state statutes at Date of damage signed and sworn to by the insured claimant shall be furnished to the
<br /> Policy for the purpose of imparting constructive notice of matters relating to real Company within 90 days after the insured claimant shall ascertain the facts giving
<br /> property to purchasers for value and without knowledge. With respect to Section rise to the loss or damage. The proof of loss or damage shall describe the defect
<br /> 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include in, or lien or encumbrance on the title, or other matter insured against by this
<br /> environmental protection liens filed in the records of the clerk of the United States policy which constitutes the basis of loss or damage and shall state,to the extent
<br /> district court for the district in which the land is located. possible, the basis of calculating the amount of the loss or damage. If the
<br /> (g) "unmarketability of the title":an alleged or apparent matter affecting the Company is prejudiced by the failure of the insured claimant to provide the
<br /> title to the land, not excluded or excepted from coverage, which would entitle a required proof of loss or damage,the Company's obligations to the insured under
<br /> purchaser of the estate or interest described in Schedule A to be released from the policy shall terminate,including any liability or obligation to defend,prosecute,
<br /> the obligation to purchase by virtue of a contractual condition requiring the delivery or continue any litigation,with regard to the matter or matters requiring such proof
<br /> of marketable title. of loss or damage.
<br /> In addition, the insured claimant may reasonably be required to submit to
<br /> 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. examination under oath by any authorized representative of the Company and
<br /> The coverage of this policy shall continue in force as of Date of Policy in shall produce for examination, inspection and copying, at such reasonable times
<br /> favor of an insured only so long as the insured retains an estate or interest in the and places as may be designated by any authorized representative of the
<br /> land,or holds an indebtedness secured by a purchase money mortgage given by Company, all records, books, ledgers, checks, correspondence and memoranda,
<br /> a purchaser from the insured, or only so long as the insured shall have liability by whether bearing a date before or after Date of Policy,which reasonably pertain to
<br /> reason of covenants of warranty made by the insured in any transfer or the loss or damage. Further, if requested by any authorized representative of the
<br /> conveyance of the estate or interest. This policy shall not continue in force in Company, the insured claimant shall grant its permission, in writing, for any
<br /> favor of any purchaser from the insured of either (i) an estate or interest in the authorized representative of the Company to examine, inspect and copy all
<br /> land,or(ii)an indebtedness secured by a purchase money mortgage given to the records, books, ledgers, checks,correspondence and memoranda in the custody
<br /> insured. or control of a third party, which reasonably peRain to the loss or damage. All
<br /> information designated as confidential by the insured claimant provided to the
<br /> 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. Company pursuant to this Section shall not be disclosed to others unless, in the
<br /> The insured shall notify the Company promptly in writing (i) in case of any reasonable judgment of the Company, it is necessary in the administration of the
<br /> litigation as set forth in Section 4(a)below,(ii)in case knowledge shall come to an claim. Failure of the insured Gaimant to submit for examination under oath,
<br /> insured hereunder of any claim of title or interest which is adverse to the title to the produce other reasonably requested information or grant pertnission to secure
<br /> estate or interest,as insured,and which might cause loss or damage for which the reasonably necessary information from third parties as required in this paragraph
<br /> Company may be liable by virtue of this policy, or (iii) if title to the estate or shall terminate any liability of the Company under this policy as to that claim.
<br /> interest, as insured, is rejected as unmarketable. If prompt notice shall not be
<br /> given to the Company, then as to the insured all liability of the Company shall 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;TERMINATION OF
<br /> terminate with regard to the matter or matters for which prompt notice is required; LIABILITY.
<br /> provided, however, that failure to notify the Company shall in no case prejudice In case of a claim under this policy, the Company shall have the following
<br /> the rights of any insured under this policy unless the Company shall be prejudiced additional options:
<br /> by the failure and then only to the extent of the prejudice. (a) To Pay or Tender Payment of the Amount of Insurance.
<br /> To pay or tender payment of the amount of insurance under this policy
<br /> 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED together with any costs, attomeys' fees and expenses incurred by the insured
<br /> CLAIMANT TO COOPERATE. claimant, which were authorized by the Company, up to the time of payment or
<br /> (a) Upon written request by the insured and subject to the options tender of payment and which the Company is obligated to pay.
<br /> contained in Section 6 of these Conditions and Stipulations, the Company, at its Upon the exercise by the Company of this option, all liability and
<br /> own cost and without unreasonable delay, shall provide for the defense of an obligations to the insured under this policy, other than to make the payment
<br /> insured in litigation in which any third party asserts a claim adverse to the title or required,shall terminate, including any liability or obligation to defend, prosecute,
<br /> interest as insured, but only as to those stated causes of action alleging a defect, or continue any litigation, and the policy shall be surrendered to the Company for
<br /> lien or encumbrance or other matter insured against by this policy. The Company cancellation.
<br /> shall have the right to select counsel of its choice (subject to the right of the (b) To Pay or Otherwise Settle With Parties Other than the Insured or With
<br /> insured to object for reasonable cause)to represent the insured as to those stated the Insured Claimant.
<br /> causes of action and shall not be liable for and will not pay the fees of any other (i) to pay or otherwise settle with other parties for or in the name of
<br /> counsel. The Company will not pay any fees, cosis or expenses incurred by the an insured claimant any claim insured against under this policy,together with any
<br /> insured in the defense of those causes of action which allege matters not insured costs, attorneys'fees and expenses incurred by the insured claimant which were
<br /> by this policy. authorized by the Company up to the time of payment and which the Company is
<br /> (b) The Company shall have the right, at its own cost, to institute and obligated to pay;or
<br /> prosecute any action or proceeding or to do any other act which in its opinion may (ii) to pay or otherwise settle with the insured claimant the loss or
<br /> be necessary or desirable to establish the title to the estate or interest,as insured, damage provided for under this policy,together with any costs,attorneys'fees and
<br /> or to prevent or reduce loss or damage to the insured. The Company may take expenses incurred by the insured claimant which were authorized by the
<br /> any appropriate action under the terms of this policy, whether or not it shall be Company up to the time of payment and which the Company is obligated to pay.
<br /> liable hereunder, and shall not thereby concede liability or waive any provision of Upon the exercise by the Company of either of the options provided for in
<br /> this policy. If the Company shall exercise its rights under this paragraph, it shall paragraphs(b)(i)or(ii),the Company's obligations to the insured under this policy
<br /> do so diligently. for the claimed loss or damage, other than the payments required to be made,
<br /> (c) Whenever the Company shall have brought an action or interposed a shall terminate, including any liability or obligation to defend, prosecute or
<br /> defense as required or permitted by the provisions of this policy, the Company continue any litigation.
<br /> may pursue any litigation to final determination by a couR of competent jurisdiction
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