_ENFORCEMENT - C1981017 ‎(14)‎

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

(continued from reverse side of Policy Face)
4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED of the claim. Failure of the insured claimant to submit for examination under
CLAIMANT TO COOPERATE. oath, produce other reasonably requested information or grant permission to
(a) Upon written request by the insured and subject to the options con- secure reasonably necessary information from third parties as required in this
tained in Section 6 of these Conditions and Stipulations, the Company, at its paragraph, unless prohibited by law or governmental regulation, shall termi-
own cost and without unreasonable delay, shall provide for the defense of an nate any liability of the Company under this polity as to that claim.
insured in litigation in which any third party asserts a claim adverse to the title 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF
or interest as insured, but only as to those stated causes of action alleging a LIABILITY.
defect, lien or encumbrance or other matter insured against by this policy. The In case of a claim under this policy, the Company shall have the following
Company shall have the right to select counsel of its choice (subject to the right additional options:
of the insured to object for reasonable cause) to represent the insured as to (a) To Pay or Tender Payment of the Amount of Insurance or to Pur-
those stated causes of action and shall not be liable for and will not pay the chase the Indebtedness.
fees of any other counsel.The Company will not pay any fees,costs or expenses (i) to pay or tender payment of the amount of insurance under this
incurred by the insured in the defense of those causes of action which allege policy together with any costs, attorneys' fees and expenses incurred by the
matters not insured against by this policy. insured claimant, which were authorized by the Company, up to the time of
(b) The Company shall have the right, at its own cost, to institute and payment or tender of payment and which the Company is obligated to pay;or
prosecute any action or proceeding or to do any other act which in its opinion (ii) to purchase the indebtedness secured by the insured mortgage for
may be necessary or desirable to establish the title to the estate or interest or the amount owing thereon together with any costs,attorneys'fees and expenses
the lien of the insured mortgage, as insured, or to prevent or reduce loss or incurred by the insured claimant which were authorized by the Company up to
damage to the insured. The Company may take any appropriate action under the time of purchase and which the Company is obligated to pcv.
the terms of this policy,whether or not it shall be Fable hereunder,and shall not If the Company offers to purchase the indebtedness as herein provided,
thereby concede liability or waive any provision of this policy. If the Company the owner of the indebtedness shall transfer,assign, and convey the indebted-
shall exercise its rights under this paragraph, it shall do so diligently. ness and the insured mortgage, together with any collateral security, to the
(c) Whenever the Company shoii have brought an action or interposed a Company upon payment therefor.
defense as required or permitted by the provisions of this policy, the Company Upon the exercise by the Company of either of the options orovided for in
may pursue any litigation to final determination by a court of competent juris- paragraphs a(i) or (ii), all liability and obligations to the insured under this
diction and expressly reserves the right, in its sole discretion,to appeal from any policy, other than to make the payment required in those paragraphs, shall
adverse judgment or order. terminate, including any liability or obligation to defend,prosecute,or continue
(d) In all cases where this policy permits or requires the Company to prose- any litigation, and the policy shall be surrendered to the Company for
cute or provide for the defense of any action or proceeding, the insured shall cancellation.
secure to the Company the right to so crosecute or provide defense in the action Ibl To Pay or Otherwise Settle With Parties Other than the Insured or
or proceeding, and oil appeals therein, and permit the Company to use, at its With the Insured Claimant.
option, the name of the insured for this purpose. Whenever requested by the (i) to pay or otherwise settle with other parties for or n the name of
Company, the insured, at the Company s expense, shall give the Company all an insured claimant any claim insured against under this policy, together with
reasonable aid (i) in any action or proceeding, securing evidence, obtaining any costs, attorneys fees and expenses incurred by the insured c:aimant which
witnesses, prosecuting or defending the action or proceeding, or effecting set- were authorized by the Company up to the time of payment and which the
tlement, and (ii) in any other lawful act which in the opinion of the Company Company is obligated to pay; or
may be necessary or desirable to establish the title to the estate or interest or (ii) to pay or otherwise settle with the insured claimant the loss or
the lien of the insured mortgage, as insured. If the Company is prejudiced by damage provided for under this policy, together with any costs, attorneys'fees
the failure of the insured to furnish the required cooperation, the Company's and expenses incurred by the insured claimant which were autnorzed by the
obligations to the insured under the policy shall terminate,including any liability Company up to the time of payment and which the Company s obligated to
or obligation to defend, prosecute,or continue any litigation,with regard to the pay
matter or matters requiring such cooperation. Upon the exercise by the Company of either of the options provided for in
5. PROOF OF LOSS OR DAMAGE. paragraphs bli)or(ii),the Company's obligations to the insured under this pol-
In addition to and after the notices required under Section 3 of these Con- icy for the claimed loss or damage, other than the payments required to be
ditions and Stipulations have been provided the Company, a proof of loss or made, shall terminate, including any liability or obligation to defend, prosecute
damage signed and sworn to by the insured claimant shall be furnished to the or continue any litigation.
Company within 90 days after the insured claimant shall ascertain the facts 7. DETERMINATION AND EXTENT OF LIABILITY,
giving rise to the loss or damage.The proof of loss or damage shall describe the This policy is a contract of indemnity against actual monetary loss or dam-
defect in,or lien or encumbrance on the title,or other matter insured against by age sustained or incurred by the insured claimant who has suffered loss or
this policy which constitutes the basis of loss or damage and shall state, to the damage by reason of matters insured against by this policy and only to the
extent possible,the basis of calculating the amount of the loss or damage. If the extent herein described.
Company is prejudiced by the failure of the insured claimant to provide the (a) The liability of the Company under this policy shall not exceed the least
required proof of loss or damage, the Company's obligations to the insured of:
under the policy shall terminate, including any liability or obligation to defend, (i) the Amount of Insurance stated in Schedule A,or,if applicable,the
prosecute, or continue any litigation, with regard to the matter or matters amount of insurance as defined in Section 2 (c) of these Conditions and
requiring such proof of loss or damage. Stipulations;
In addition, the insured claimant may reasonably be required to submit to (ii) the amount of the unpaid principal indebtedness secured by the
examination under oath by any authorized representative of the Company and insured mortgage as limited or provided under Section 8 of these Conditions
shall produce for examination,inspection and copying,at such reasonable times and Stipulations or as reduced under Section 9 of these Conditions and Stipula-
and places as may be designated by any authorized representative of the tions, at the time the loss or damage insured against by this policy occurs,
Company, all records,books, ledgers,checks,correspondence and memoranda, together with interest thereon; or
whether bearing a date before or after Date of Policy, which reasonably per- (iii) the difference between the value of the insured estate or interest
tarn to the loss or damage. Further, if requested by any authorized representa- as insured and the value of the insured estate or interest subject to the defect,
tive of the Company, the insured claimant shall grant its permission, in writing, lien or encumbrance insured against by this policy.
for any authorized representative of the Company to examine,inspect and copy ,b) In the event the insured has acquired the estate or :merest in the
all records, books, ledgers,checks, correspondence and memoranda in the cus- manner described in Section 2(a) of these Conditions and Stipu at;ons or has
tody or control of a third party,which reasonably pertain to the joss or damage. conveyed the title,then the liability of the Company shall continue as set forth in
All information designated as confidential by the insured claimant provided to Section 71,o) of these Conditions and Stipulations.
the Company pursuant to this Section shall not be disclosed to others,unless, in cl The Company will pay only those costs, attorneys' fees and expenses
the reasonable judgment of the Company, it is necessary in the administration incurred in accordance with Section 4 of these Conditions and St cuio-,ons.
(continued and concluded on reverse side)