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EXCLUSIONS FROM COVERAGE
<br /> The following matters are expressly excluded from the coverage of this policy and the Company wili not pay loss or damage,costs, attorneys'fees or
<br /> expenses which arise by reason of:
<br /> 1. (a) Any law, ordinance or governmental regulation(including but not limited to building and zoning laws, ordinances, or regulations) restricting,
<br /> regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment of the land;(ii)the character,dimensions or location of any improvement
<br /> now or hereafter erected on the land;(iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land
<br /> is or was a part;or(iv)environmental protection,or ths effect of any violation of these laws,ordinances or governmental regulations,except to the
<br /> extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting
<br /> the land has been recorded in the public records at Date of Policy.
<br /> (b) Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or
<br /> encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the pubtic records at Date of Policy.
<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
<br /> coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without
<br /> knowledge.
<br /> 3. Defects, liens, encumbrances, adverse claims or other matters:
<br /> (a) created, suffered, assumed or agreed to by the insured claimant;
<br /> (b) not known to the Company,not recorded in the public records at Date of Policy,but known to the insured claimant and not disclosed in writing to
<br /> the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
<br /> (c) resulting in no loss or damage to the insured claimant;
<br /> (d) attaching or created subsequent to Date of Policy; or
<br /> (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured
<br /> by this policy.
<br /> 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insuretl by this poticy, by reason of the operation of
<br /> fetleral bankruptcy, state insolvency, or similar creditors' rights laws.
<br /> CONDITIONS AND STIPULATIONS
<br /> 1. OEFINITION OF TERMS. the basis of loss or damage and shall state,to the extent possi- (b) In the event of any litigation,including litigation by
<br /> fie following terms when used in this policy mean: ble,the basis of calculating the amount of the loss or damage. the Company or with the Company's consent,the Company
<br /> (a) "insured":the insured named in Schedule A,and, If the Company is prejudiced by the failure of the insured shall have no liability for loss or damage until there has been
<br /> subjecttoanyrightsordefensesthe Companywouldhave had claimant to provide the required proof of loss or damage,the a final determination by a court of competent jurisdiction,
<br /> against the named insured,those who succeed to the interest Companys obligations to the insured under the policy shall and disposition oi all appeals therefrom,adverse to the title
<br /> oithe named insured by operation of law as distinguished from terminate,including any liability or obligation to defend,pros- as insured.
<br /> purchase including, but not limited to, heirs, distributees, ecute,or continue any litigation,with regard to the matter or (c) The Company_shallnotbeliableforlossordamageto
<br /> devisees,survivors,personal representatives,next of kin,or matters requiring such proof ot loss or damage. any insured for liability voluntarily assumed by the insured
<br /> corporate or fiduciary successors. In addition, the insured claimant may reasonably be re- in settling any claim or suit without the prior written consent
<br /> (b) "insured claimant": an insured claiming loss or quired to submit to examination under oath by any authorized of the Company.
<br /> damage. representative of the Company and shall produce for examina-
<br /> (c) "knowledge" or "known": actual knowledge, not tion, inspection and copying,at such reasonable times and 10. REDUCTION OF INSURANCE;REDUCTION OR
<br /> constructive knowledge or notice which may be imputed to an Places as may be designated by any authorized representative TERMINATION OF LIABILITY.
<br /> insured by reason of the public records as defined in this policy of the Company, all records, books, ledgers,checks, corre- All payments under this policy,except payments made
<br /> or any other records which impart constructive notice of mat- spondence and memoranda,whether bearing a date before or for costs, attorneys' fees and expenses, shall reduce the
<br /> ters affecting the land. after Date of Policy,which reasonab�y pertain to the loss or amount of the insurance pro tanto.
<br /> (d) "land":the land described or referred to in Schedule damage.Further,if requested by any authorized representa-
<br /> (A),and improvements affixed thereto which by law constitute tive of the Company,the insured claimant shall grant its per- ��, �IABILITY NONCUMULATIVE.
<br /> real property.The term"land"does not include any property mission,in writing,for any authorized representative of the �t is expressly understood that the amount of insurance
<br /> beyond the lines of the area described or referred to in Company to examine, inspect and copy all records, books, under this policy shall be reduced by any amount the Com-
<br /> Schedule(A),nor any right,title,interest,estate or easement ledgers,checks,correspondence and memoranda in the cus-
<br /> in abutting streets, roads, avenues, alleys, lanes, ways or tody or control of a third party,which reasonably pertain to the Pany may pay under any policy insuring a mortgage to which
<br /> watervvays,but nothing herein shall modify or limit the extent loss or damage.All information designated as confidential by exception is taken in Schedule B or to which the insured has
<br /> to which a right of access to and from the land is insured by the insured claimant provided to the Company pursuant to this agreed, assumed, or taken subject,or which is hereafter
<br /> this policy. Section shall not be disclosed to others unless,in the reason- executed by an insured and which is a charge or lien on the
<br /> (e) "mortgage":mortgage,deed of trust,trust deed,or able judgment of the Company,it is necessary in the adminis- estate or interest described or referred to in Schedule A,and
<br /> other security instrument. tration of the claim.Failure of the insured claimant to submit the amount so paid shall be deemed a payment under this
<br /> (� "public records": records established under state forexaminationunderoath,produceotherreasonablyrequest- Policy to the insured owner.
<br /> statutes at Date of Policy for the purpose of imparting con- ed information or grant permission to secure reasonably 12. PAYMENT OF LOSS.
<br /> structive notice of matters relating to real property to pur- necessary information from third parties as required in this
<br /> chasers for value and without knowledge. With respect to Paragraph,unless prohibited by law or governmental regula- (a) No payment shall be made without producing this
<br /> Section 1(a)(iv) of the Exclusions From Coverage, "public tion,shall terminate any liability of the Company under this Policy for endorsement of the payment unless the policy has
<br /> records"shall also include environmental protection liens filed Policy as to that claim. been lostordestroyed,in which case proof of loss or destruc-
<br /> in the records of the clerk of the United States district court for tion shall be furnished to the satisfaction of the Company.
<br /> the district in which the land is located. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; (b) When liability and the extent of loss or damage
<br /> TERMINATION OF LIABILITY. has been definitely fixed in accordance with these Conditions
<br /> (g) "unmarketability of the title":an alleged or apparent and Stipulations,the loss or damage shall be payable within
<br /> matter affecting the title to the land,not excluded or excepted In case of a claim under this poticy,the Company shall have 30 days thereafter.
<br /> from coverage,which would entitle a purchaser of the estate or the following additional options:
<br /> interest described in Schedule A to be released from the (a) To Pay or Tender Payment of the Amount of �3. SUBROGATION UPON PA1fMENT
<br /> obligation to purchase by virtue of a contractual condition Insurance. OR SEITLEMENT.
<br /> requiring the delivery of marketable title. To pay or tender payment of the amount ot insurance a The Cam an g og
<br /> under this policy together with any costs,attorneys'fees and ( ) P y's Rf ht of Subr ation.
<br /> 2. CON7INUATION OF INSURANCE AFTER expenses incurred by the insured claimant, which were Whenever the Company shall have settled and paid a
<br /> CONVEYANCE OF TITLE. authorized by the Company,up to the time of payment or ten- claim under this policy,all right of subrogation shall vest in
<br /> The coversge of this policy shall continue in force as of Date der of payment and which the Company is obligated to pay. the Company unaffected by any act of the insured claimant
<br /> of Policy�n favor of an insured only sa long as the insured Upon the exercise by the Company of this option,all►iability The Company shall be subrogated to and be entitled to,all
<br /> retains an e:'ate�r interest in the land,or holds an indebted- and obligations to the insured under this policy,other than to �ights and�emedies which the insured claimxnt would�rave
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