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e . e . e flood loss. you are still eligible. during the term of the policy. [0 collect for a subsequent loss due to another flood. Of course, all loss arISing out of a single, continuous flood of long duration shall be adjusted as one flood loss. O. Mortgage Clause: (Applicable to building coverage only and effec- tive only when policy is made payable to a mortgagee (or trustee) named in the application and declaration form attached to this policy or of whom the Insurer has actual notice prior to the paymem of loss proceeds under this policy). Loss, if any. under this policy. shall be payable to the aforesaid as mort- gagee (or trustee) as interest may appear under all present or future mon- gages upon the property described in which the aforesaid may have an in- terest as mortgagee (or trustee), in order of precedence of said mortgages, and this insurance. as 10 the interest of the mortgagee (or trustee) only therein, shall not be invalidated by any act or neglecl of the mortgagor or owner of the described property, nor by any foreclosure or other proceedings or notice of sale relating to the property, nor by any change in the title orowner- ship of the property, nor by the occupation of the premises for purposes more hazardous than are pennitted by this policy; provided, that in case the mortgagor or owner shall neglect to pay any premium due under this policy, the mongagee (or trustee) shall, on demand, pay the same. Provided, also, that the mongagee (or trustee) shall notify the Insurer of any change of ownership or occupancy or increase of hazard which shall come to the knowledge of said mortgagee (or trustee) and, unless permit- ted by this policy, it shall be noted thereon and the mortgagee (or trustee) shall, on demand, pay the premium for such increased hazard for the tenn of the use thereof; otherwise this policy shall be null and void. If this policy is cancelled by the Insurer, it shall continue in force for the benetit only of the mortgagee (ortrustee) for JOdays after written notice to the mortgagee (or trustee) of such cancellation and shall then cease, and the Insurer shall have the right, on like notice, to cancel this agreement. Whenever the Insurer shall pay the mortgagee (or trustee) any sum for loss under this policy and shall claim that, as to the mortgagor or owner, no liability therefor existed, the Insurer shall, 10 the extenl of such pay- ment, be thereupon legally subrogated to all the rights of the party to whom such payment shall be made, under all securities held as collateral to the mortgage debt:, or may, as its option, pay to the mortgagee (or trustee) the whole principal due or to grow due on the mortgage with interest, and shall thereupon receive a full assignment and lransfer of the mortgage and of all such other securities; but no subrogation shall impair the right of the mortgagee (or trustee) to recover the full amount of said mortgagee's (or truSIee's) claim. P. Mortga&ee Obllp.tkms: If the insured fails to render proof of loss, the named mortgagee (or trustee) upon notice, shall render proof of loss in the fonn herein specified within 60 days thereafter and shall be subject to the provisions of this policy relating to appraisal and time of payment and of bringing suit. Q. Conditions for Filing a Lawsuit: You may not sue us to recover money under this policy unless you have complied with all the requirements of the policy. If you do sue, you must start the suit within twelve (12) months from the date we mailed you notice that we have denied your claim. or pan of your claim. and you must file the suit in the United States District Coun for the district in which the insured propel1y was located at the time of loss. R. Subrogation: Whenever we make a payment for a loss under this policy. we are subrogated to your right to recover for that loss from any other person. That means that your right to recover for a loss that was part_ ly or totally caused by someone else is automatically transferred to us, to the extent that we have paid you for the loss. We may require you to acknowledge this transfer in writing. After the loss, you may not give up our right to recover this money or do anything which would prevent us from recovering it. If you make auy claim against any person who caused your loss and recover any money, you must pay us back tirst before you may keep any of that money. S. Continuous Lake Flooding: Where the insured building has been in- undated by rising lake waters conlinuously for 90 days or more and it ap- pears reasonably cenain thai a continuation of this flooding will result in damage, reimbursable under this policy, to the insured building equal 10 or greater than the building policy limits plus the deductible or the max- imum payable under the policy for anyone building loss, we will pay you the lesser of these Iwo amounts without waiting for the further damage to occur if you sign a release agreeing (i) to make no further claim under this policy, (ii) not to seek renewal of this policy, and (iii) not to apply for any flood insurance undertbe National flood Insurance Act of 1968, as amended, for property at the property location of the insured building. If the policy term ends before the insured building has been flooded continuously for 90 days, the provisions of this paragraph S still apply so long as the first building damage reimbursable under this policy from !he continuous flooding occurred before the end of the policy term. T. DupUcate PolIcies Not Allowed: Property may not be insured under more than one policy issued under the Act. When we tind Ibat duplicate policies are in effect, we shall by written notice give you the: option of choos- ing which policy is to remain in effect. If you choose to keep in effect the policy with the earlier effective date, we shall by the same wrinen notice give you an opportunilY to add the coverage limits of the later policy to those of the earlier policy, as of the effective date of the later policy. If you choose to keep in effect the policy with the later effective date, we shall by the same wrinen notice give you the opportunity to add the coverage limits of the earlier policy 10 those of the later policy, as of the effective date of the later policy. In either case, you must pay the pro rata premium for the increased coverage limits within 30 days of the wrinen notice. In 00 event shall the resulting coverage limits exceed the statutorily permissi- ble limits of coverage under the Act or your insurable interest, whichever is less. We shall make a refund 10 you, according to applicable NFIP rules, of the premium for the policy not being kept in effect. For purposes of this paragraph T, the tenn "effecu".e date" means the date coverage that has been in effect withoul any lapse was first placed in effect. In addition to the provisions of this paragraph T for increasing policy limits, the usual procedures for increasing policy limits by mid-term endorsement or at renewal time, with the appropriate waiting period. are applicable to the policy you choose to keep in effect. ARTICLE IX-LIBERALIZATION CLAUSE While this policy is in force, should we have adopted any forms, en- dorsements, rules or regulations by which this policy could be broadened or extended for your benetit by endorsement or substitution of policy fonn, then, such matters shall be considered to be incorporated in this policy without additional premium charge and shall jnure to your benefit as though such endorsement or SubSulution of policy form had been made. ARTICLE X-WHAT LAW GOVERNS This policy is governed by the flood insurance regulations issued by FEMA. the National Flood Insurance Act of 1968, as amended (42 U.S.C.f4001, et seq.) and Federal common law. IN WITNESS WHEREOF, we have signed this policy below and hereby enter into this Insurance Agreement.. October 1992 D?fh.-4J~~ c, M, "BUD" SCHAUERTE Administrator, Federal Insurance Administration POL 21