C150083 PIF

• Contract/PO #: C150083
• Contractor Name: John Peroulis and Sons Partnership
• Contract Type: Loan
• Loan Projects - Doc Type: Contract Documents

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy insurance is afforded herein as to assessments for street improve-
and the Company will not pay loss or damage, costs, attorneys' fees or ments under construction or completed at Date of Policy); or
expenses which arise by reason of: (e) resulting in loss or damage which would not have been sustained if the
1. (a) Any law,ordinance or governmental regulation(including but not limited insured claimant had paid value for the insured mortgage.
to building and zoning laws, ordinances, or regulations) restricting, 4. Unenforceability of the lien of the insured mortgage because of the inability
regulating,prohibiting or relating to(i)the occupancy,use,or enjoyment or failure of the insured at Date of Policy, or the inability or failure of any
of the land; (ii) the character, dimensions or location of any subsequent owner of the indebtedness, to comply with applicable doing
improvement now or hereafter erected on the land; (iii) a separation in business laws of the state in which the land is situated.
ownership or a change in the dimensions or area of the land or any 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim
parcel of which the land is or was a part; or (iv) environmental thereof, which arises out of the transaction evidenced by the insured
protection, or the effect of any violation of these laws, ordinances or mortgage and is based upon usury or any consumer credit protection or
governmental regulations, except to the extent that a notice of the truth in lending law.
enforcement thereof or a notice of a defect, lien or encumbrance 6. Any statutory lien for services, labor or materials (or the claim of priority
resulting from a violation or alleged violation affecting the land has been of any statutory lien for services, labor or materials over the lien of the
recorded in the public records at Date of Policy. insured mortgage)arising from an improvement or work related to the land
(b) Any governmental police power not excluded by (a) above, except to which is contracted for and commenced subsequent to Date of Policy and
the extent that a notice of the exercise thereof or a notice of a defect, is not financed in whole or in part by proceeds of the indebtedness secured
lien or encumbrance resulting from a violation or alleged violation by the insured mortgage which at Date of Policy the insured has advanced
affecting the land has been recorded in the public records at Date of or is obligated to advance.
Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been 7. Any claim, which arises out of the transaction creating the interest of the
mortgagee insured by this policy, by reason of the operation of federal
recorded in the public records at Date of Policy, but not excluding from
coverage any taking which has occurred prior to Date of Policy which would bankruptcy,state insolvency,or similar creditors'rights laws,that is based
be binding on the rights of a purchaser for value without knowledge. on:
3. Defects, liens, encumbrances, adverse claims or other matters: (i) the transaction creating the interest of the insured mortgagee being
deemed a fraudulent conveyance or fraudulent transfer; or
(a) created, suffered, assumed or agreed to by the insured claimant;
(ii) the subordination of the interest of the insured mortgagee as a result
(b) not known to the Company, not recorded in the public records at Date
of the application of the doctrine of equitable subordination; or
of Policy,but known to the insured claimant and not disclosed in writing
to the Company by the insured claimant prior to the date the insured (iii) the transaction creating the interest of the insured mortgagee being
to the t became an insured ins under thin policy;rdeemed a preferential transfer except where the preferential transfer
cl(c) resulting in no loss or damage to the insured claimant; resultstotifromely
the o failure:
(d) attaching or created subsequent to Date of Policy (except to the extent (a) of suchurely rcorda the instrument imimpart
noticeorto a purchaser
or
(b) of recordation to impart to a purchaser for value or a
that this policy insures the priority of the lien of the insured mortgage judgment or lien creditor.
over any statutory lien for services, labor or material or the extent
CONDITIONS AND STIPULATIONS
1. DEFINITIONS OF TERMS. or desirable to establish the title to the estate or interest or the lien of the
The following terms when used in this policy mean: insured mortgage,as insured.If the Company is prejudiced by the failure 9. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION
(a) "insured": the insured named in Schedule A. The term of the insured to furnish the required cooperation, the Company's OF LIABILITY.
"insured"also includes: obligations to the insured under the policy shall terminate,including any (a) All payments under this policy, except payments made for
(i) the owner of the indebtedness secured by the insured liability or obligation to defend,prosecute,or continue any litigation,with costs, attorneys'fees and expenses, shall reduce the amount of the
mortgage and each successor in ownership of the indebtedness except regard to the matter or matters requiring such cooperation. insurance pro tanto.However,any payments made prior to the acquisition
a successor who is an obligor under the provisions of Section 12(c)of of title to the estate or interest as provided in Section 2(a) of these
these Conditions and Stipulations (reserving, however, all rights and 5. PROOF OF LOSS OR DAMAGE. Conditions and Stipulations shall not reduce pro tanto the amount of the
defenses as to any successor that the Company would have had against In addition to and atter the notices required under Section 3 of these insurance afforded under this policy except to the extent that the payments
any predecessor insured,unless the successor acquired the indebtedness Conditions and Stipulations have been provided the Company,a proof of reduce the amount of the indebtedness secured by the insured mortgage.
as a purchaser for value without knowledge of the asserted detect,lien, loss or damage signed and sworn to by the insured claimant shall be (b) Payment in part by any person of the principal of the
encumbrance,adverse claim or other matter insured against by this policy furnished to the Company within 90 days after the insured claimant shall indebtedness,or any other obligation secured by the insured mortgage,
as affecting title to the estate or interest in the land); ascertain the facts giving rise to the loss or damage.The proof of loss or or any voluntary partial satisfaction or release of the insured mortgage,
(ii) any governmental agency or governmental instrumentality damage shall describe the defect in,or lien or encumbrance on the title, to the extent of the payment,satisfaction or release, shall reduce the
which is an insurer or guarantor under an insurance contract or guaranty or other matter insured against by this policy which constitutes the basis amount of insurance pro tanto.The amount of insurance may thereafter
insuring or guaranteeing the indebtedness secured by the insured of loss or damage and shall state,to the extent possible,the basis of be increased by accruing interest and advances made to protect the lien
mortgage,or any part thereof,whether named as an insured herein or not; calculating the amount of the loss or damage.If the Company is prejudiced of the insured mortgage and secured thereby, with interest thereon,
(iii) the parties designated in Section 2(a)of these Conditions and by the failure of the insured claimant to provide the required proof of loss provided in no event shall the amount of insurance be greater than the
Stipulations. or damage,the Company's obligations to the insured under the policy shall amount of insurance stated in Schedule A.
(b) "insured claimant":an insured claiming or damage. terminate, including any liability or obligation to defend,prosecute,or (c) Payment in full by any person or the voluntary satisfaction or
(c) iurlor claimant":
insured
claiming
loss,not constructivemacontinue any litigation,with regard to the matter or matters requiring such release of the insured mortgage shall terminate all liability of the Company
knowledge "knowledge"notice mayn" actualkno l insured no by reason of proof of loss or damage. except as provided in Section 2(a)of these Conditions and Stipulations.
the
knowledge
reocords as whichhed in bethis policyimputed tor any othersurrecords which In addition,the insured claimant may reasonably be required to
imparthepublic constructive noticedof mattersiaffectingythe land. submit to examination under oath by any authorized representative of the 10. LIABILITY NONCUMULATIVE.
Company and shall produce for examination,inspection and copying,at If the insured acquires title to the estate or interest in satisfaction
(d) "land":the land described or referred to in Schedule A,and such reasonable times and places as may be designated by any authorized
improvements affixed thereto which by law constitute real property.The representative of the Company, all records, books, ledgers, checks, of the indebtednessydsecureddthatby thethn insured mortgage,sor naay part thereof,y
term"land"does not include anyproperty beyond the lines of the area it is expressly understood amount of insurance under this policy
P P Y Y correspondence and memoranda,whether bearing a date before or after shall be reduced by any amount the Company may pay under any policy
described or referred to in Schedule A,nor any right,title,interest,estate Date of Policy,which reasonably pertain to the loss or damage.Further, insuring a mortgage to which exception is taken in Schedule B or to which
or easement in abutting streets,roads,avenues,alleys,lanes,ways or if requested by any authorized representative of the Company,the insured the insured has agreed,assumed,or taken subject,or which is hereafter
waterways,but nothing herein shall modify or limit the extent to which a claimant shall grant its permission, in writing, for any authorized executed by an insured and which is a charge or lien on the estate or
right of access to and from the land is insured by this policy. representative of the Company to examine,inspect and copy all records, interest described or referred to in Schedule A,and the amount so paid
(e) "mortgage": mortgage, deed of trust, trust deed, or other books,ledgers,checks,correspondence and memoranda in the custody shall be deemed a payment under this policy.
security instrument. or control of a third party,which reasonably pertain to the loss or damage.
(f) "public records":records established under state statutes at All information designated as confidential by the insured claimant provided 11. PAYMENT OF LOSS.
Date of Policy for the purpose of imparting constructive notice of matters to the Company pursuant to this Section shall not be disclosed to others (a) No payment shall be made without producing this policy for
relating to real properly to purchasers for value and without knowledge. unless,in the reasonable judgment of the Company,it is necessary in the endorsement of the payment unless the policy has been lost or destroyed,
With respect to Section 1(a)(iv)of the Exclusions From Coverage,"public administration of the claim.Failure of the insured claimant to submit for in which case proof of loss or destruction shall be furnished to the
records"shall also include environmental protection liens filed in the examination under oath,produce other reasonably requested information satisfaction of the Company.
records of the clerk of the United States district court for the district in or grant permission to secure reasonably necessary information from third
which the land,is located. . parties as required in this paragraph, unless prohibited by law or (b) When liability and the extent of loss or damage has been
(g) "unmarketability of the title":an alleged or apparent matter governmental regulation,shall terminate any liability of the Company under definitely fixed in accordance with these Conditions and Stipulations,the
efoacting the,title to the land,not excluded or excepted from coverage, this policy as to that claim. loss or damage shall be payable within 30 days thereafter.
which would entitle a purchaser of the estate or interest described in 12. SUBROGATION UPON PAYMENT OR SETTLEMENT.
Schedule A or the insured mortgage to be released from the obligation 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; The Company's Right of Subrogation.
to purchase by virtue of a contractual condition requiring the delivery of TERMINATION OF LIABILITY. (a) g
markotahlo title In taco of a rloim,,nrio,thlc unlit,, $ha!`mmnomi chole Myo tho Whenever the.Company shall have settled and nate a claim under