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(Continued from inside /rtMr Mrerl
<br />mey be necessary er desirable to establish then a to the estate or interest•or
<br />the lien of the insured mortgage, a; insured. If the Company is prejudiced 6y the
<br />ttilure o(the insured to famish the required meperation, the Company's
<br />obligation to the insured under the polity shall terminate. including arty liability
<br />or obligation to defend, prosecute, or continue arty litigation, with regard to the
<br />matter or matters requiring such cooperation.
<br />5 Roo/ol(ossor Damage.
<br />In addition to and aher the notices required under Section 3 of these
<br />Conditions and Stipulations have been provided the Company, a proof of loss or
<br />d;image signed and swum to by the insured claimant shall be furnished to the
<br />Company within 90 days aher the insured claimant shall ascertain the facts
<br />giving rise to the loss m damage. The proof of loss or damage shall describe the
<br />defect in, or lien or encumbrance on the title, or other matter insured against by
<br />fh~s polity which constitutes the basis of loss or damage and shall state. to the
<br />extent possible. the basis of calculating the amount of the loss or damage. If
<br />the Company is preludiced by the failure of the insured claimant to provide the
<br />required proof of loss or damage. the Cam ~ ~ nhligatim~ ~.~ the insured
<br />under the policy shall terminate, including any habJar w uWiyalibn to defend.
<br />prosecute, or continue any litigation, with regard to the matter or matters
<br />requiring such proof of loss or damage
<br />In addition. the insured claimant may reasonably be required to submit to
<br />examination under oath by any authorized representative of the Company and
<br />shall produce for examination, inspection and copying at such Ieasonable times
<br />and places as may 6e designated by any authorized representative of the
<br />Company, all records. books, ledgers, checks. correspondence and memoranda,
<br />whether bearing a date before or aher Date of Policy. which reasonably pertain
<br />to the loss or damage. Further, it requested M any auttronzed reptesemauve of
<br />the Company, the insured claimant shall grant its permission, in writing, for any
<br />authorized representative of the Company to examine. inspect and copy all
<br />records. books, ledgers, checks, correspondence and memoranda in the custody
<br />or control of a third party, which reasonably pertain to the loss or damage. All
<br />information destgnated as confidential by the insured claimant provided to the
<br />Company pursuant to this Section shall not be disclosed to others unless. In the
<br />reasonable judgment of the Company, it is necessary ~n the adminislrabon of
<br />the clam Failure of the insured claimant to submit for examination under oath,
<br />prarluce other reasonably requested information or grant permission to secure
<br />reasonably necessary information tram third parties as regmred In this
<br />paragraph, unless prohibited by law or governmental regulation, shall terminate
<br />any tiabiliry of the Company under this policy as to that claim.
<br />6 OpbonsmPayor Otherwise Sett/e Claims: Termination of trabibry.
<br />In case of a claim under this policy, the Company shall have the following
<br />addwonal options.
<br />lal 7o Pay or lender Payment of the Amount of Insurance or to Purchase
<br />thel~debtedness.
<br />lrl to pay or tender payment of the amount of Insurance under this
<br />policy together with any costs, attorneys' fees and expenses incurred by the
<br />Insured claimant, which were authorized by the Company, up to the time of
<br />payment or tender of payment and which the Company a obligated to pay: or
<br />liil to purchase the indebtedness secured by the insured mortgage
<br />for the amount owing thereon together with any costs, attorneys' lees and
<br />expenses incurred by the insured claimant which were authorized by the
<br />Company up to the time of purchase and which the Company is obligated to pay
<br />N the Company offers to purchase the indebtedness as herein provided,
<br />the oiNner of the indebtedness shall transfer. assign. and convey the
<br />Indebtedness and the insured mortgage. together with any collateral security, to
<br />the Company upon payment therefor
<br />Jpon the exercise by the Company bl either of the options provided for m
<br />paragraphs IaNil or (ill. all liability and obhgabons to the insured under this
<br />policy. other than to make the payment regmred in those paragraphs, shall
<br />terminate, including any tiabiliry or obligation to defend. prosecute. or continue
<br />any litigation, and the policy shall be sir«endered to the Company for
<br />cancellation.
<br />Gil To Pay or O[herwlse Settle Wdh Parties Other Than the Insured or
<br />W nh the Insured Claimam
<br />(il to pay or otherwise settle with other parries for or In the name
<br />of an Ilrsured claimant any claim insured against under this policy, together with
<br />
<br />any costs, attomeys' fees and expenses incurred W the insured claimant whidr
<br />were authorized M the Company up to the time of payment and which the
<br />Company is obligated to pay: or
<br />liil to pay or otherwise settle with the insured claimant the lass or
<br />damage provided for under this policy. together with any casts, attorneys' fees
<br />and expenses incurred by the insured claimant which were authorized by the
<br />Company up to the time of payment and which die Company is obligated to pay.
<br />Upon the exercise by the Company of either of the options provided for in
<br />paragraphs (bNtl m liq, the Company's obligation:, to the insured under this
<br />policy lui the claimed loss or damage, other than the payments required to be
<br />made. shall terminate, including any liability or obligation to defend, prosecute.
<br />or continue any litigation.
<br />7 Determination and Extent of tiabiliry
<br />This policy is a contract of indemnity against actual monetary loss or
<br />damage sustained or incurred by the insured claimant who has suffered loss,;.
<br />damage by reason of matters insured against by this pbllty and only to the
<br />extent herein described
<br />lal The liability of the Company under Ilia policy shall not exceed lire
<br />least ot.
<br />III the Amount of Insurance stated in Schedule A, or, if applicable,
<br />the amount of insurance as defined in Section 21c1 of these Conditions and
<br />$ttpulations;
<br />liij the amount of the unpaid pnnctpal indebtedness secured 6y the
<br />insured mortgage as limited or provided under Section 8 of these Conditions
<br />and Stipulations or as reduced under Section 9 of these Conditions and
<br />Stipulations, at the time the loss or damage insured against by this policy
<br />occurs, together with interest thereon, or
<br />flirt the difference between the value of the insured estate or
<br />Interest as insured and the value of the insured estate or Interest subject to the
<br />detect. lien or encumbrance insured against by this policy.
<br />Ibj In the event the insured has acgwred the estate or interest rn the
<br />manner described in Section 21a1 of these Conditions and Shpulattons or has
<br />conveyed she title. then the liability of the Company shall continue as set forth
<br />in Section 11a1 of these Conditions and Stipulation;:
<br />Icj The Company will pay only those costs, attorneys' lees and expenses
<br />Incurred in accordance with Section A of these Conditions and Stipulations.
<br />8. Limitation of Liability.
<br />lal If the Company establishes the title. or removes the alleged detect,
<br />Ilen or encumbrance. or cures the lack of a right of access to or from the land. or
<br />cures the claim of unmarketabdiry of bile. or otherwise establishes the hen of
<br />the insured mortgage. all as insured..n a reasonably diligent manner by any
<br />method, including litigation and the completion of any appeals therefrom. It
<br />shall have fully performed its obligations wuh respect to that matter and shall
<br />not be Ilable for any loss or damage caused thereby
<br />Ibl In the event of any litigation, including litigation by the Company or
<br />with the Company's consent, the Company shall have no Ilabiliry for loss or
<br />damage until there has been a final tlelermination by a court of competent
<br />lurtsdiction. and disposition of all appeals therefrom, adverse to the title or to
<br />the lien of the insured mortgage. as insured
<br />Icl The Company shall not be I~able IoI loss or damage to any insured
<br />for liability voluntarily assumed by the insured in settling any claim or suit
<br />without the prior written consent of the Company
<br />Id) The Company shall not be liable tor. lit airy indebtedness created
<br />subsequent to Date of Policy except for advances made to protect the lien of the
<br />insured mortgage and secured thereby and reasonable amounts expended to
<br />prevent deterioration of improvements. or Ill) construction loan advances made
<br />subsequent to Date of Policy. except construction lo;rn advances made
<br />subsequent to Date of Policy for the pmobse ,,i imancmg in whole or in pan the
<br />construction of an improvement to the land which at Date of Policy were
<br />secured by the Insured mortgage and which the insured was and continued to
<br />be obligated to advance at and after Date of Policy
<br />9. Reduction ollnsurance: Reduction or Termination o/Liability
<br />lal All payments under this policy, except payment made for costs.
<br />(Continued on back cover l
<br />
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