_ENFORCEMENT - C1981017 ‎(14)‎

• Permit No: C1981017
• IBM Index Class Name: Enforcement
• Doc Name: Bid Documents ‎(IMP)‎ Violation
• Media Type: D
• Archive: No

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statement shall have been furnished.Fa- .e to furnish such state- by additional prii. ,al indebtedness created subsequent to Date
ment of loss or damage shall terminate any liability of the of Policy, except as to amounts advanced to protect the lien of
CI mpany under this policy as to such loss or damage. the insured mortgage and secured thereby.
5. Options to Pay or Otherwise Settle Claims No payment shall be made without producing this policy
The Company shall have the option to pay or otherwise for endorsement of such payment unless the policy be lost or
settle for or in the name of an insured claimant any claim insured destroyed, in which case proof of loss or destruction shall be fur
against or to terminate all liability acid obligations of the Company nished to the satisfaction of the Company.
hereunder by paying or tendering payment of the amount of 9. Liability Noncumulative.
insurance under this policy together with any costs, attorneys' If the insured acquires title to the estate or interest in satis-
fees and expenses incurred up to the time of such payment or faction of the indebtedness secured by the insured mortgage, or
tender of payment by the insured claimant and authorized by the any part thereof, it is expressly understood that the amount of
Company In case loss or damage is claimed under this policy by insurance under this policy shall be reduced by any amount the
an insured, the Company shall have the further option to purchase Company may a under an policy insuring a mortgage here
such indebtedness for the amount owing thereon together with all p y y pay y p y g
costs.attorneys'fees and expenses which the Company is obligated after executed by an insured which is a charge or lien on the
hereunder to pay. If the Company offers to purchase said indebt- estate or interest described or referred to in Schedule A, and the
edness as herein provided, the owner of such indebtedness shall amount so paid shall be deemed a payment under this policy.
transfer and assign said indebtedness and the mortgage and any 10. Subrogation Upon Payment or Settlement
collateral securing the same to the Company upon payment there• Whenever the Company shall have settled a claim under this
for as herein provided. policy, all right of subrogation shall vest in the Company unaf-
6. Determination and Payment of Loss fected by any act of the insured claimant,except that the owner
(a) The liability of the Company under this policy shall of the indebtedness secured by the insured mortgage may release
in no case exceed the least of: or substitute the personal liability of any debtor or guarantor,
(i) the actual loss of the insured claimant;or or extend or otherwise modify the terms of payment, or release
(ii) the amount of insurance stated in Schedule A, a portion of the estate or interest from the lien of the insured
or. if applicable, the amount of insurance as defined in paragraph mortgage, or release any collateral security for the indebtedness,
'(a)hereof;or provided such act occurs prior to receipt by the insured of
notice of any claim of title or interest adverse to the title to the
(iii) the amount of the indebtedness secured by the estate or interest or the priority of the lien of the insured mortgage
insured mortgage as determined under paragraph 8 hereof,at the and does not result in any loss of priority of the lien of the insured
time the loss or damage insured against hereunder occurs,together mortgage. The Company shall be subrogated to and be entitled to
with interest thereon;or all rights and remedies which such insured claimant would have
(b) The Company will pay, in addition to any loss had against any person or property in respect to such claim had
insured against by this policy, all costs imposed upon an insured this policy not been issued, and if requested by the Company,
in litigation carried on by the Company for such insured,and all such insured claimant shall transfer to the Company all rights and
costs, attorneys'fees and expenses in litigation carried on by such remedies against any person or property necessary in order to
insured with the written authorization of the Company. perfect such right of subrogation and shall permit the Company
(c) When liability has been definitely fixed in accordance to use the name of such insured claimant in any transaction or
with the conditions of this policy, the loss or damage shall be litigation involving such rights or remedies. If the payment does
payable within 30 days thereafter. not cover the loss of such insured claimant,the Company shall be
7. Limitation of Liability subrogated to such rights and remedies in the proportion which
No claim shall arise or be maintainable under this policy(a) said payment bears to the amount of said loss,but such subroga-
tion shall be in subordination to the insured mortgage. If loss of
if the Company, after having received notice of an alleged defect, priority should result from any act of such insured claimant,such
lien or encumbrance insured against hereunder, by litigation or act shall not void this policy, but the Company, in that event,
otherwise, removes such defect,lien or encumbrance or establishes shall be required to pay only that part of any losses insured
the title, or the lien of the insured mortgage,as insured,within a against hereunder which shall exceed the amount, if any, lost to
reasonable time after receipt of such notice; (b) in the event of the Company by reason of the impairment of the right of subro-
litigation until there has been a final determination by a court of gation.
competent jurisdiction, and disposition of all appeals therefrom, 11. Liability Limited to this Policy
adverse to the title or to the lien of the insured mortgage, as This instrument together with all endorsements and other
insured. as provided in paragraph 3 hereof; or (c) for liability instruments, if any,attached hereto by the Company is the entire
voluntarily assumed by an insured in settling any claim or suit policy and contract between the insured and the Company.
without prior written consent of the Company.
8. Reduction of Liability Any claim of loss or damage, whether or not based on negli-
gence, and which arises out of the status of the lien of the insured
(a) All payments under this policy, except payments mortgage or of the title to the estate or interest covered hereby
made for costs, attorneys' fees and expenses, shall reduce the or any action asserting such claim, shall be restricted to the pro-
amount of the insurance pro canto;provided,however,such pay- visions and conditions and stipulations of this policy.
inents, prior to the acquisition of title to said estate or interest No amendment of or endorsement to this policy can be made
as provided in paragraph 2(a) of these Conditions and Stipula- except by writing endorsed hereon or attached hereto signed by
tions. shall not reduce pro tanto the amount of the insurance either the President, a Vice President, the Secretary,an Assistant
afforded hereunder except to the extent that such payments Secretary, or validating officer or authorized signatory of the
reduce the amount of the indebtedness secured by the insured Company.
mortgage.
Payment in full by any person or voluntary satisfaction or 12. Notices,Where Sent
release of the insured mortgage shall terminate all liability of the All notice required to be given the Company and any state-
Company except as provided in paragraph 2(a)hereof. ment in writing required to be furnished the Company shall be
(b) The liability of the Company shall not be increased addressed to its Home Office. Minneapolis. Minnesota 55401.
Note: This policy valid only if Schedules A and B are attached.