_ENFORCEMENT - C1981017 (14) - Laserfiche WebLink

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CONDITIONS AND STIPULATION. 1. Definition of Terms reason of covenants of warranty made by such insured in any transfer or conveyance of such estate or interest; provided,how- The following terms when used in this policy mean. (al "insured": the insured named in Schedule A. The ever, this policy shall not continue in force in favor of any pur- chaser from such insured of either said estate or interest or the to-m "insured" also includes (i) the owner of the indebtedness indebtedness secured by a purchase money mortgage given to secured by the insured mortgage and each successor in ownership such insured. of such indebtedness(reserving,however,all rights and defenses as to any such successor who acquires the indebtedness by operation 3. Defense and Prosecution of Actions — Notice of Claim of law as distinguished from purchase including,but not limited to, to be given by an Insured Claimant heirs, distributees, devisees, survivors, personal representatives, (a) The Company, at its own cost and without undue next of kin or corporate or fiduciary successors that the Company delay, shall provide for the defense of an insured in all litigation would have had against the successor's transferor),and further in- consisting of actions or proceedings commenced against such cludes(ii)any governmental agency or instrumentality which is an insured, or defenses, restraining orders or injunctions interposed A nsurer or guarantor under an insurance contract or guaranty against a foreclosure of the insured mortgage or a defense inter- insuring or guaranteeing said indebtedness, or any part thereof, posed against an insured in an action to enforce a contract for a whether named as an insured herein or not, and (iii) the parties sale of the indebtedness secured by the insured mortgage, or a designated in paragraph 2(a)of these Conditions and Stipulations. sale of the estate or interest in said land, to the extent that such (b) "insured claimant": an insured claiming loss or litigation is founded upon an alleged defect, lien, encumbrance, damage hereunder. or other matter insured against by this policy. (c) "knowledge": actual knowledge, not constructive (b) The insured shall notify the Company promptly in knowledge or notice which may be imputed to an insured by writing (i) in case any action or proceeding is begun or defense or reason of any public records. restraining order or injunction is interposed as set forth in (a) (d) "land": the land described, specifically or by above, (ii) in case knowledge shall come to an insured hereunder reference in Schedule A,and improvements affixed thereto which of any claim of title or interest which is adverse to the title to the by law constitute real property; provided. however, the term estate or interest or the lien of the insured mortgage, as insured, "land" does not include any property beyond the lines of the area and which might cause loss or damage for which the Company specifically described or referred to in Schedule A,nor any right, may be liable by virtue of this policy,or(iii)if title to the estate title, interest, estate or easement in abutting streets, roads, or interest or the lien of the insured mortgage, as insured, is re- avenues, alleys, lanes, ways or waterways, but nothing herein jetted as unmarketable. If such prompt notice shall not be given shall modify or limit the extent to which a right of access to and to the Company, then as to such insured all liability of the Com- from the land is insured by this policy. pany shall cease and terminate in regard to the matter or matters (e) "mortgage": mortgage, deed of trust, trust deed,or for which such prompt notice is required;provided,however, that other security instrument. failure to notify shall in no case prejuduce the rights of any such (f) "public records": those records which by law impart insured under this policy unless the Company shall be prejudiced constructive notice of matters relating to said land. by such failure and then only to the extent of such prejudice. (c) The Company shall have the right at its own cost to 2. (a) Continuation of Insurance after Acquisition of Title institute and without undue delay prosecute any action or pro- This policy shall continue in force as of Date of Policy in ceeding or to do any other act which in its opinion may be neces- favor of an insured who acquires all or any part of the estate or sary or desirable to establish the title to the estate or interest or interest in the land described in Schedule A by foreclosure,trus- the lien of the insured mortgage, as insured, and the Company tees sale,conveyance in lieu of foreclosure,or other legal manner may take any appropriate action under the terms of this policy, which discharges the lien of the insured mortgage, and if the whether or not it shall be liable thereunder,and shall not thereby insured is a corporation, its transferee of the estate or interest so concede liability or waive any provision of this policy. acquired, provided the transferee is the parent or wholly owned (d) Whenever the Company shall have brought any s,ibsidiary of the insured; and in favor of any governmental agency action or interposed a defense as required or permitted by the pro- or instrumentality which acquires all or any part of the estate or visions of this policy, the Company may pursue any such litiga- interest pursuant to a contract of insurance or guaranty insuring tion to final determination by a court of competent jurisdiction or guaranteeing the indebtedness secured by the insured mortgage; and expressly reserves the right, in its sole discretion, to appeal provided that the amount of insurance hereunder after such ac- from any adverse judgment or order. quisition, exclusive of costs, attorneys' fees and expenses which a In all cases where this policy permits or requires the Cumpaiiy may become obligated to pay,shall not exceed the the Company to prosecute or provide for the defense of any least of: (i) the amount of insurance stated in Schedule A; action or proceeding, the insured hereunder shall secure to the Company the right to so prosecute or provide defense in such (ii) the amount of the unpaid principal of the indebted- action or proceeding,and all appeals therein,and permit the Com- ness as defined in paragraph 8 hereof, plus interest thereon, pany to use, at its option, the name of such insured for such expenses of foreclosure and amounts advanced to protect the lien purpose. Whenever requested by the Company,such insured shall of the insured mortgage and secured by said insured mortgage at give the Company all reasonable aid in any such action or pro- the time of acquisition of such estate or interest in the land;or ceeding, in effecting settlement, securing evidence, obtaining (iii) the amount paid by any governmental agency or witnesses,or prosecuting or defending such action or proceeding, instrumentality, if such agency or instrumentality is the insured and the Company shall reimburse such•insured for any expense so claimant, in the acquisition of such estate or interest in satisfac- incurred. tion of its insurance contract or guaranty. 4. Notice of Loss—Limitation of Action (b) Continuation of Insurance after Conveyance of Title In addition to the notices required tinder paragraph 3(b) of The coverage of this policy shall continue in force as of these Conditions and Stipulations, a statement in writing of any Date of Policy in favor of an insured so long as such insured re- loss or damage for which it is claimed the Company is liable under tams an estate or interest in the land, or holds an indebtedness this policy shall be furnished to the Company within 90 days after secured by a purchase money mortgage given by a purchaser from such loss or damage shall have been determined and no right of such insured, or so long as such insured shall have liability by action shall accrue to an insured claimant until 30 days after such (Continued on inside back flap)