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Continued from Back of Front Cover
<br />5. OPTIONS,1'O PAY OR OTHERWISE SETTLE CLAIMS
<br />The Company shall have the option to pay or otherwise
<br />settle for or in the name of an insured claimant any claim in-
<br />sured against or to terminate all liability and obligations of
<br />the Company hereunder by paying or tendering payment of
<br />the amount of insurance under this policy together with any
<br />costs, attorneys' fees and expenses incurred up [o the time
<br />of such payment or tender of payment, by the insured claim-
<br />ant and authorized by the Company.
<br />6. DETERMINATION AND PAYMENT OF LOSS
<br />(a) The liability of the Company under this policy shall
<br />in no case exceed the least of:
<br />(i) the actual loss of the insured claimant; or
<br />(ii) [he amount of insurance in Schedule A.
<br />(b) The Company will pay, in addition [o any loss insured
<br />against by this policy, all costs imposed upon an insured in liti-
<br />gation carried on by the Company for such insured, and all
<br />costs, attorne}~s' fees and expenses in litigation carried on by
<br />such insured with the written authorization of the Company.
<br />(c) When liability has been definitely fixed in accordance
<br />with the conditions of this policy, the loss or damage shall be
<br />payable within 30 days thereafter.
<br />7. LIMITATION OF LIABILITY
<br />No claim shall arise or be maintained under this policy
<br />(a) if the Company, after having received notice of an alleged
<br />defect, lien or encumbrance insured against hereunder, by
<br />litigation or otherwise, removes such defect, lien or encum-
<br />brance or establishes the title, as insured, within a reasonable
<br />time after receipt of such notice; (b) in the event of litigation
<br />until there has been a final determination by a court of com-
<br />petent jurisdiction, and disposition of all appeals therefrom,
<br />adverse to the title, as insured, as provided in paragraph 3
<br />hereof; or (c) for liability voluntarily assumed by an insured
<br />in settling any claim or suit without prior written consent of
<br />the Company.
<br />interest covered by this policy and the amount so paid shall
<br />be deemed a payment under this policy to said insured owner.
<br />10. APPORTIONMENT
<br />If the land described in Schedule A consists of two or more
<br />parcels which are not used as a single site, and a loss is estab-
<br />lished affecting one or more of said parcels but not all, the
<br />loss shall be computed and settled on a pro rata basis as iF
<br />the amount of insurance under this policy was divided pro
<br />rata as to the value on Date of Policy of each separate parcel
<br />[o [he whole, exclusive of any improvements made subsequent
<br />to Date of Policy, unless a liability or value has otherwise
<br />been agreed upon as to each such parcel by the Company and
<br />the insured at the time of the issuance of this policy and
<br />shown by an express statement herein or by an endorsement
<br />attached hereto.
<br />11. SUBROGATION UPON PAYMENT OR SETTLEMENT
<br />Whenever the Company shall have settled a claim under
<br />this policy, all right of subrogation shall vest in the Company
<br />unaffected by any act of the insured claimant. The Company
<br />shall be subrogated to and be entitled to all rights and reme-
<br />dies which such insured claimant would have had against any
<br />person or property in respect to such claim had this policy not
<br />been issued, and it requested by the Company, such insured
<br />claimant shall transfer to the Company all rights and remedies
<br />against any person or property necessary in order to perfect
<br />such right of subrogation and shall permit the Company to
<br />use the name of such insured claimant in any transaction or
<br />litigation involving such rights or remedies. If the payment
<br />does not cover the loss of such insured claimant, the Company
<br />shall be subrogated to such rights and remedies in the pro-
<br />portion which said payment bears to the amount of said loss.
<br />If loss should result from any act of such insured claimant,
<br />such ac[ shall not void this policy, but the Company, in that
<br />event, shall be required to pay only that part of any losses
<br />insured against hereunder which shall exceed the amount, if
<br />any. lost to the Company by reason of the impairment of the
<br />right of subrogation.
<br />8. REDUCTION OF LIABILITY
<br />All payments under [his policy, except payments made for
<br />costs, attorneys' fees and expenses, shall reduce the amount
<br />of the insurance pro canto. No payment shall be made without
<br />producing this policy for endorsement of such payment unless
<br />the policy be lost or destroyed, in which case proof of such
<br />loss or destruction shall be furnished to the satisfaction of
<br />the Company.
<br />9. LIABILITY NONCUMULATIVE
<br />It is expressly understood [ha[ the amount of insurance
<br />under this policy shall be reduced by any amount the Com-
<br />pany may pay under policy insuring either (a) a mortgage
<br />shown or referred to in Schedule B hereof which is a lien on
<br />the estate or interest covered by this policy, or (b) a mortgage
<br />hereafter executed by an insured which is a charge or Tien on
<br />the estate or interest described or referred to in Schedule A,
<br />and the amount so paid shall he deemed a payment under this
<br />policy. The Company shall have the option to apply to the pay-
<br />ment of any such mortgages any amount that otherwise would
<br />be payable hereunder to the insured owner of the estate or
<br />12. LIABILITY LIMITED TO THIS POLICY
<br />This instrument together with all endorsements and other
<br />instruments, if any, attached hereto by the Company is the
<br />entire policy and contract between [he insured and the
<br />Company.
<br />Any claim of loss or damage, whether or not based on
<br />negligence, and which arises out of the status of the title to
<br />the estate or interest covered hereby or any action asserting
<br />such claim, shall be restricted to the provisions and conditions
<br />and stipulations of this policy.
<br />No amendment of or endorsement to this policy can be
<br />made except by writing endorsed hereon or attached hereto
<br />signed by either the President, a Vice President. the Secretary.
<br />an Assistant Secretary, or validating officer or authorized
<br />signatory of the Company.
<br />13. NOTICES, WHERE SENT
<br />All notices required to be given the Company and any
<br />statement in wri(~ng required to 6e furnished the Company
<br />shall he addressed to Transamerica Title Insurance Company.
<br />P. O. Box 605, Denver, Colorado 80201.
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