_ENFORCEMENT - C1981017 (14) - Laserfiche WebLink

Home Browse Search

GAL�U�IV1V� rKVM LVYCKhVC The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorneys'fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to(i)the occupancy, use,or enjoyment of the land;(ii)the character,dimensions or location of any improvement now or hereafter erected on the land;(iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or(iv)environmental protection, or the effect of any violation of these laws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters. (a) created, suffered, assumed or agreed to by the insured claimant, (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant, (d) attaching or created subsequent to Date of Policy(except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material), or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy,or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. b. Any statutory lien for services, labor or materials for the claim of priority of any statutory lien for services,labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: lieu of foreclosure, or other legal manner which discharges the lien of the (a) "insured": the insured named in Schedule A. The term "insured" also insured mortgage;(ii)a transferee of the estate or interest so acquired from an includes insured corporation,provided the transferee is the parent or wholly-owned sub- (i) the owner of the indebtedness secured by the insured mortgage sidiary of the insured corporation, and their corporate successors by operation and each successor in ownership of the indebtedness except a successor who is of law and not by purchase,subject to any rights or defenses the Company may an obligor under the provisions of Section 12(c)of these Conditions and Stipula- have against any predecessor insureds; and (iii) any governmental agency or tions (reserving, however, all rights and defenses as to any successor that the governmental instrumentality which acquires all or any part of the estate or Company would have had against any predecessor insured, unless the successor interest pursuant to a contract of insurance or guaranty insuring or guarantee- acquired the indebtedness as a purchaser for value without knowledge of the ing the indebtedness secured by the insured mortgage. asserted defect, lien, encumbrance, adverse claim or other matter insured (b) After Conveyance of Title.The coverage of this policy shall continue in against by this policy as affecting title to the estate or interest in the land); force as of Date of Policy in favor of an insured only so long as the insured (ii) any governmental agency or governmental instrumentality which is retains an estate or interest in the land, or holds an indebtedness secured by a an insurer or guorontor under an insurance contract or guaranty insuring or purchase money mortgage given by a purchaser from the insured, or only so guaranteeing the indebtedness secured by the insured mortgage, or any part long as the insured shall have liability by reason of covenants of warranty made thereof, whether named as an insured herein or not; by the insured in any transfer or conveyance of the estate or interest.This policy (iii) the parties designated in Section 2(a) of these Conditions and shall not continue in force in favor of any purchaser from the insured of either(i) Stipulations. an estate or interest in the land, or(ii)an indebtedness secured by a purchase (b) "insured claimant": on insured claiming loss or damage. money mortgage given to the insured. (c) "knowledge" or "known": actual knowledge, not constructive knowl- (c) Amount of Insurance:The amount of insurance after the acquisition or edge or notice which may be imputed to an insured by reason of the public after the conveyance shall in neither event exceed the least of: records as defined in this policy or any other records which impart constructive (i) the Amount of Insurance stated in Schedule A; notice of matters affecting the land. (ii) the amount of the principal of the indebtedness secured by the (d) "land":the land described or referred to in Schedule A,and improve- insured mortgage as of Date of Policy,interest thereon,expenses of foreclosure, ments affixed thereto which by law constitute real property. The term "land" amounts advanced pursuant to the insured mortgage to assure compliance with does not include any property beyond the lines of the area described or laws or to protect the lien of the insured mortgage prior to the time of acquisi- referred to in Schedule A, nor any right, title, interest, estate or easement in tion of the estate or interest in the land and secured thereby and reasonable abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing amounts expended to prevent deterioration of improvements, but reduced by herein shall modify or limit the extent to which a right of access to and from the the amount of all payments made;or land is insured by this policy. (iii) the amount paid by any governmental agency or governmental (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrumentality, if the agency or instrumentality is the insured claimant, in the instrument. acquisition of the estate or interest in satisfaction of its insurance contract or (f) "public records": records established under state statutes at Date of guaranty. Policy for the purpose of imparting constructive notice of matters relating to real 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. property to purchasers for value and without knowledge. With respect to Sec- The insured shall notify the Company promptly in writing (i)in case of any tion 1(a) (iv) of the Exclusions From Coverage, "public records" shall also litigation as set forth in Section 4(a)below, (ii)in case knowledge shall come to include environmental protection liens filed in the records of the clerk of the on insured hereunder of any claim of title or interest which is adverse to the title United States district court for the district in which the land is located. to the estate or interest or the lien of the insured mortgage, as insured, and (g) "unmarketability of the title":an alleged or apparent matter affecting which might cause loss or damage for which the Company may be liable by the title to the land, not excluded or excepted from coverage, which would virtue of this policy, or (iii) if title to the estate or interest or the lien of the entitle a purchaser of the estate or interest described in Schedule A or the insured mortgage, as insured, is rejected as unmarketable. If prompt notice insured mortgage to be released from the obligation to purchase by virtue of a shall not be given to the Company, then as to the insured all liability of the contractual condition requiring the delivery of marketable title. Company shall terminate with regard to the matter or matters for which prompt 2. CONTINUATION OF INSURANCE. notice is required; provided, however,that failure to notify the Company shall (a) After Acquisition of Title.The coverage of this policy shall continue in in no case prejudice the rights of any insured under this policy unless the Com- force as of Date of Policy in favor of-(i)an insured who acquires all or any part pany shall be prejudiced by the failure and then only to the extent of the of the estate or interest in the land by foreclosure,trustee's sale,conveyance in prejudice.