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CONDITIONS AND STIPULATIONS
<br />1. Definition of Terms.
<br />The following terms when used in this policy mean:
<br />(a) "insured": the insured named In Schedule A, and, subject to any rights or defenses
<br />the Company would have had against the named insured, these who succeed
<br />to the interest of the named Insured by operation of law as distinguished from
<br />purchase including, but not United to, heirs, distributions, devisees, survivors,
<br />personal representatives, oast of bin, or corporate or fiduciary successors.
<br />III) "Insured clehnant": an insured claiming foss or damage.
<br />(c) 'knowledge° or "known"; actual knowledge, nut constructive knowledge or notice
<br />which may be imputed to an Insured by reason of the public records as defined In this policy
<br />or any other records which impart constrocdva notice of matters affecting the land.
<br />Ill "land": the land described or referred to in Schedule A, and improvements affixed
<br />thereto which by law constitute real property. The tern "land" does not Include any property
<br />beyond the lines of the area described or referred to In Schedule A, not any right, this,
<br />Interest, estate ar easement In abutting streets, roads, avenues, alleys, lanes, ways or
<br />waterways, but nothing hermn shall modify or Omit the extent to which a right of access
<br />to and from the land Is insured by this policy.
<br />Is) "marlgogs": mortgage, deed of trust, trust deed, or other security instrument.
<br />(1) "public records": records established understate statutes at Veto of Policy for the
<br />purpose of Imparting constructive notice of matters relating to real properly to purchasers
<br />for value and without knowledge. Mth respect to Secdon I(a)IM of the Exclusions from
<br />Coverage, "public records" shag also Include enviranmantal protection guns filed In the
<br />records of the clerk of the United States district court for the district in which the land
<br />is located.
<br />(ill "unmarketebNty of the title": an alleged or apparent matter affecting the Vile to
<br />the land, not excluded or excepted from coverage, which would entitle a purchaser of the
<br />estate or interest described In Schedule A to he released from the obligation to purchase
<br />by virtum of a contractual contrition requiring the delivery of marketable title.
<br />2 Continuation of Insurance After Conveyance of Title.
<br />The fallowing coverage of this poficy shall continue in force as of Date of Policy in favor
<br />of an Insured Only so long as the insured retains an estate or Interest in the land, or holds an
<br />Indebtedness secured by a purchase money mortgage given by a purchaser from the Insured,
<br />or only se long as the Insured shall have liability by reason of covenants of warranty made
<br />by the insured In any transfer or conveyance of the estate or interest. This policy shall
<br />not continue In force In favor of any purchaser from the insured of either in an estate
<br />or Interest In the land, or oI an indebtedness secured by a purchase money mortgage given
<br />to the insured.
<br />3. Notice of Claim to be Given by Insured Claimant.
<br />The insured shall notify the Company promptly in writing Iii in case of any litigation
<br />as set forth In Section Mi f below, (fit in case knowledge shall come to an Insured hereunder
<br />of any Clain of tide or interest which is adverse to the title to the estate or interest, as
<br />insured, and which might cause loss or damage for which the Company may be Roble by virtue of
<br />of this policy, or nil if Vile to the estate or interest, as insured, is rejected as unmarketable.
<br />If prompt notice shall not be given to the Company, then as to the Insured all liability of
<br />the Company shall terminate with regard to the matter or matters for which prompt notice is
<br />required; provided, however, that failure to notify the Company shall In no case prejudice the
<br />rights of any insured under this policy unless the Company shall be prejudiced by the failure
<br />and then only to the ax tent of the prejudice.
<br />4. Defense and Prosecution of Actions; Duty of Insured Claimant to Cooperate.
<br />(a) Upon written request by the insured and subject to the options contained in Section 0 of
<br />these Conditions and Stipulations, the Company, at its own cost and without unreasonable
<br />delay, shall provide for the the defense of an insured in Otlgo0an In which any third party
<br />asserts a claim adverse to the title or Interest as insured, but only as to those staled causes
<br />of action alleging a defect, lien or encumbrance or other matter Insured against by this policy,
<br />The Company shag have the right to select counsel of its choice Isubject to the right of the
<br />Insured to ob act for reasonable cause) to represent the insured as to those stated causes of
<br />action cn shat 5o1Is liolile lei and will not pay the fees ofan"y atlieiinuns`el: Tha Company '"
<br />will not pay any fees, costs or expenses incurred by the insured in the defense of those
<br />causes of action which allege matters not insured against by this policy.
<br />Of The Company shall have the right, at Its own cost, to Institute and prosecute any
<br />actian or proceeding at to do any other act which in its opinion may be necessary or
<br />das'aable to establish the file to the estate or Interest, as insured, or to prevent or
<br />reduce loss or damage to the insured. The Company may take any appropriate action under
<br />the terms of this policy, whether or not it shall be gable hereunder, and shall not thereby
<br />concede liability or waive any provWon of this policy. If the Company shall exercise its
<br />rights under this paragraph, It shall do so diligently.
<br />Irl Whenever the Company shall have brought on action or interposed a defense as
<br />required or permitted by the provisions of this policy, the Company may pursue any
<br />litigation to final determination by a court of competent jurisdiction and expressly
<br />reserves the fight, in its sole discretion, to appeal from any adverse judgment or order.
<br />(d) In all cases where this policy permits or requires the Company to prosecute or
<br />provide for the defense of any action or proceeding, the insured shell secure to the
<br />Company the right to so prosecute orpravide defense in the action or proceeding, end all
<br />appeals therein, and permit the Company to use, at its option, the name of the insured for
<br />this purpose. Whenever requested by the Company, the insured, at the Company's expense
<br />shall give the Company all reasonable aid Of in any action a rproceeftil, securing
<br />evidence, obtaining witnesses, prosecuting ar defending the actian or proceeding, or
<br />affecting settlement, and UU In any other lawful act which in the opinion of the Company
<br />maybe necessary or dasheable to astabrnsh the tide to the estate or Interest as Insured.
<br />If the Company is prejudiced by the failure of the insured to famish the required
<br />conpai etion, the Company's obligations to the insured under the policy shall terminate,
<br />including any DabiVty or obligation to defend, prosecute, or continue any litigation,
<br />with regard to the matter or matters requiring such cooperation.
<br />5. Proof of Loss or Damao e.
<br />In addition to and after tho notices required under Section 3 of these Conditions
<br />and Stipulations have been provided the Company, a proof of loss or damagrt signed and
<br />swom to by the insured claimant shall be furnished to the Company within 90 days after the
<br />insured claimant shall ascortaln the facts giving rise to the loss at damage. The proof of
<br />lass or damage shop describe the defect in, or Dan or encumbrance an the tide, or other
<br />matter Insured against by this policy which constitutes the basis of loss or damage and
<br />shall state, to the extent possible, the basis of calculating the amount of the loss or
<br />damage. If the Company is prejudiced by the failure of the Insured claimant to provide
<br />the required proof of loss or damage, the Company's obligations to the insured under the
<br />policy shall terminate, including any liability or oblIgat(an to defend, prosecute, at
<br />continue any litigation, with regard to the matter at matters requiring such proof of
<br />loss or damage.
<br />In addition, the Insured claimant may reasonably be required to submit to examination
<br />under oath by any authorized representative of the Company and shall produce for examination
<br />inspection and copying, at such reasonable times and places as may be designated by any
<br />authorized representative of the Company, all records, books, ledgers, checks, correspondence
<br />and memoranda, whetherbearing a date before or after Data of Policy, which reasonably
<br />pertain to the lass or damage. Further, if requested by any authorized representative of
<br />the Company, the Insured claimant shall grant Its permission, in writing, for any
<br />authorred representative of the Company to examine, Inspect and copy all records, books,
<br />ledgers, checks, correspondence and memoranda in the custody or control of a third party,
<br />which reasonably pertain to the loss or damage. All information designated as confidential
<br />by the insured claimant provided to the Company pursuant to this Section shall not be
<br />disclosed to others unless, in the reasonable judgment of the Company, It is necessary in
<br />the administration of the calm Failure of the insured claimant to submit forexemination
<br />under oath, produce otherraosonably requested Infurmadan or grant permission to secure
<br />reasonably necessary information from third parties as required in this paragraph
<br />shall terminate any liability of the Company under this policy as to that claim
<br />fi. Options to Pay or Otherwise Settle Claims: Termination of Liability.
<br />In case of a claim under this policy, the Company shall have the following additional
<br />options:
<br />(a) To Pay or Tender Pavment of the Amount of Insurance.
<br />To pay or tender payment of the amount of Insurance under this policy together
<br />with any costs, attorneys' fees and expenses incurred by the insured claimant, which were
<br />authorized by the Company, up to the time Of payment or tender of payment and which the
<br />Company is obligated to pay.
<br />Upon the exercise by the Company of this option, oil liability and obligations to
<br />the Insured under this policy, other than to make payment inquired, shall terminate,
<br />including any pobility or ahfigoUon to defend, prosecute, or continue any litigation, and
<br />the policy shall be surrendered to the Company for cancellation.
<br />Insured claimant any claim Insured against under this policy, together with any costs,
<br />attorneys' fees and expenses Incurred by the Insured claimant which were authorized by the
<br />Company up to the time of payment and which the Company is obligated to pay; or
<br />(H) to pay or otherwise settle with the Insured claimant the loss or damage
<br />provided for under this policy, together with any casts, attorneys' fuss and expenses
<br />incurred by the insured claimant which were authorized by the Company up to the time of
<br />payment and which the Company is obligated to pay.
<br />Open the exercise by the Company of either of the options provided for in paragraphs
<br />MIR or U0, the Company's obligations to the insured under this policy for the claimed
<br />foss or damage, other than the payments required to be made, shall terminate, including
<br />any liability or obligolian to defend, prosecute, or cantinuo any litigation,
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