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<br />1. Uefinltlon of Tarots
<br />GUAR~'EE CONDITIONS AND STIP~ATIONS
<br />The following terms when used in this Guarantee mean:
<br />(a) "[and": The land described, specifically or by reference, in this
<br />Guarantee and unprovmenrs affixed thereto which by law constitute
<br />real property.
<br />(b) "Public Records": records established under state sratu[es at Date
<br />of Guarantee for the purpose of imparting conswetive notice of mar
<br />ten relating to real property to purchasers for talue and widtout know-
<br />ledge;
<br />(c) "Date": the effective date;
<br />(d) "fie Assured'-: the patty or ponies named as the Assured in tltis
<br />Guarantee, or in a supplemental writing executed by the Company;
<br />(e) "Mortgage": mortgage, deed of trtuC [rust deed, or other security
<br />instmment.
<br />2- Exclusions from Coverage of this Guarantee
<br />The Company assumes no liability for loss or damage by reason of the
<br />following:
<br />(a) Taxes or assessmenu which are not shown as existing liens by the
<br />records of any taxing authority that levies taxes or assessments on real
<br />property or by the public remrds.
<br />(b) Unpatented mining claims; reservations or exceptions in patents
<br />or N Acts authorizing the issuance thereof; water rights, claims or title
<br />to water.
<br />(c) Title to any property beyond the lines of the land expressly de-
<br />scribed in the description set forth N this Guarantee, or title to sweets,
<br />roads, avenues, lanes, ways or waterway's on which such land abuts, or
<br />the right to maintain therein vaults, tunnels, ramps or any other stmc-
<br />mre or improvement, or any rights or easements therein artless such
<br />property, rights or easemenu are expressly and specifically set forth in
<br />said description.
<br />(d) Defects, liens, encumbrances, adverse clowns against the tide as
<br />guaranteed or other matters (1) aeated, suffered, assumed or agreed
<br />to by one or more of the Assured; or (2) resulting N no loss to the As-
<br />sured.
<br />(e) My ficrs, rights, interests or claims a1tich are not shown by the
<br />public records.
<br />3. Prosecution of Actions
<br />(a) The Company shall have the right at its own cost to institute and
<br />prosecute any action or proceeding or do an}• other act which in its
<br />opinion may be necessary or desirable to establish or confimt the mat-
<br />ters herein guaranteed; and the Company may take any appropriate ac-
<br />tion under the terms of this Gtrarancee witehter or not it shall be liable
<br />thereunder and shall not thereby concede liability or waive any provi-
<br />sion hereof.
<br />(b) In all cases where the Company does so instimte and prosecute
<br />any action or proceeding, the Assured shall pertttit the Company to use,
<br />at its option, the name of the Assured for such purpose. Whenever re-
<br />quested by the Company, the Assured shall give the Company all reas-
<br />onableaid in prosecuting such action or proceeding, and the Company
<br />shall reimburse the Assured for any expertse so incurted.
<br />4. Nodce of Loss - Limitatloa of Action
<br />A statement in avriting of any loss or damage for which it is claimed the
<br />Company is liable under this Guarantee shall be famished to the Com-
<br />pany within sLxry days after such loss or damage shag have been deter-
<br />mined, and no right of action shall aceme to the Assured under this
<br />Guarantee until thirty days after such statement shall have been fur-
<br />nished, and no recovery shall be had by the Assured under this Guaran-
<br />tee unless action shall be commenced thereon within two years after
<br />expiration of said thvry day period. Failure to furnish such statement of
<br />loss or damage or ro cororrtence such action within the time
<br />hereirrbefore specified shall be a conclusive baz against mainterrance
<br />by the Assured of any action under this Guarantee.
<br />5. Optlon to Pay, Settle or Compromise Claims
<br />The Company shall have the option to pay or settle or compromise
<br />for or in the name of the Assured any claim which could result in loss to
<br />the Assured within the coverage of this Guarantee, or to pay the full
<br />amount of this Guarantee or, if this Guarantee is issued for the benefit
<br />of a holder of a mortgage, the Company shall have the option [o par
<br />chase the indebtedness secured by said mortgage. Such purchase, pay-
<br />ment or tender of payment of the (uR amount of the Guarantee shall
<br />temtinate all liability of the Company hereunder. In the went after no-
<br />tice of claim has been given to the Company by the Assured the Compa-
<br />ny offers to purchase said indebtedness, the owner of such indebted-
<br />ness shall transfer and assign said indebtedness and the mortgage secur-
<br />ing the same to the Company upon payment of the purchase price.
<br />6. Limltatlon of Liabllity -Payment of Coss
<br />(a) The liability of the Company under this Guarantee shall be limited
<br />[o the amount of actual loss sustained by the Assured because of reli-
<br />ance upon the assurances herein set forth, but N no event shag such li-
<br />ability exceed the amount of the liability stated on the face page hereof.
<br />(b) The Company will pay all costs imposed upon the Assured in lid-
<br />gation cubed on by the Company for the Assured, and all costs and at
<br />torney's fees in litigation carried on by the Assured with the writren au-
<br />dtorization of the Company.
<br />(c) No claim for damages shall arise or be maintainable under this
<br />Guarantee (l) if the Company after haling received notice of an alleged
<br />defect, lien or encumbrance not shown as an Exception or excluded
<br />herein removes such defect lien or encumbrance widin a reasonable
<br />time after receipt of such notice, or (2) for liability voluntarily assumed
<br />by the Assured in settling any claim or suit without written consent of
<br />the Company.
<br />(d) All payments under this Guarantee, except for artomevs fees as
<br />prodded for in paragraph 6(b) hereof, shag reduce the amount of dte
<br />liability hereunder pro Canto, and no payment shau be made without
<br />producing this Guarantee !or endorsement of such payment unless the
<br />Guarantee be lost or desvoyed, in which case proof of such loss or de-
<br />swction shall be furnished to the satisfaction of the Company.
<br />(e) When liability has been definitely faced in accordance with the
<br />conditions of this Guarantee, the loss or damage shall be payable within
<br />thirt}• days thereafter.
<br />7. Subrogation Upon Payment or Settlbment
<br />Whenever the Company shall have settled a claim under this Guarani
<br />tee, all tight of subrogation shall vest in the Company unaffected by any
<br />act of the Assured, and it shall be subrogated to and be entitled to all
<br />tights and remedies which the Assured would have had against any per
<br />son or property in respect to such claim had this Guarantee not been
<br />issued. If the payment does not cover the loss of the Assured, the Com-
<br />panyshall besubrogated to such rights and remedies N the proportion
<br />which said payment bears to the amount of said loss. The Assured if re-
<br />quested by the Company, shall transfer [o the Company all rights and
<br />remedies agairu[ any person or property necessary' in order to perfect
<br />such right of subrogation, and shall permit the Company to rue the
<br />name of the Assured in any transaction or litigation invoking such
<br />rights or remedies.
<br />8. Guarantee Entire Contract
<br />M}' action or actions or rights of action that the Assured may hate or
<br />may bring against the Company arising out of the subject matter hereof
<br />must be based on the prmisions of this Guarantee. No protision or
<br />condition of this Guarantee can be waited or changed except by a writ
<br />ing endorsed or attached hereto signed by the Resident, a Vice Presi-
<br />dent. the Secretary, an Assistant Secretary or other validating officer of
<br />the Company.
<br />9. Notices, Where Sent
<br />All notices requved to be given the Company and am statement in
<br />writing requved to be furnished the Company shall be addressed m it
<br />at 114 East Fihh Sweet, Santa Ma California y2701, or to the office
<br />which issued this Guarantee.
<br />10. Fee
<br />The fee specified on the face of this Guarantee is the total fee for title
<br />search and examination and for this Guarantee.
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