_ENFORCEMENT - C1981017 (14) - Laserfiche WebLink

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Conampns onu $; lIMGTA'ION OF LIABLUTY. o'the insured ciajmont otter me insured cia!mant sno nave recovered its prin- (a) If the Company establishes fine title,or femoves the alleged defect,lien opal, interest, and costs of collection or encumbrance, or cures the lack of a right of access to or from the land, or (b The Insured's Rights and limitations. es the the standing the foregoing, the ness secured by • cures the claim ofg u all as tmsu insured,ility f title,a or reasonably diligent manner by anythe insuuredhmortgage,provided the priority ofr of the the lien of he insured mortgage insured mortgage, y g y y method, including litigation and the completion of any appeals therefrom, it or its enforceability is not affected, may release or substitute the personal liabil- shall have fully performed its obligations with respect to that matter and shall ity of any debtor or guarantor, or extend or otherwise modify the terms of not be liable for any loss or damage caused thereby. payment, or release a portion of the estate or interest from the lien of the (b) In the event of any litigation, including litigation by the Company or insured mortgage, or release any collateral security for the indebtedness with the Company's consent, the Company shall have no liability for loss or When the permitted acts of the insured claimant occur and the insured has damage until there has been a final determination by a court of competent knowledge of any claim of title or interest adverse to the title to the estate or jurisdiction, and disposition of all appeals therefrom, adverse to the title or to interest or the priority or enforceability of the lien of the insured mortgage, as the lien of the insured mortgage, as insured insured, the Company shall be required to pay only that part of any losses (c) The Company shall not be liable for loss or damage to any insured for insured against by this policy which shall exceed the amount, if any, lost to the liability voluntarily assumed by the insured in settling any claim or suit without Company by reason of the impairment by the insured claimant of the Com- the prior written consent of the Company. pany's right of subrogation. (d) The Company shall not be Fable for-(i)any indebtedness created sub- (c) The Company's Rights Against Non-insured Obligors. sequent to Date of Policy except for advances made to protect the lien of the The Company's right of subrogation against non-insured obligors shall exist insured mortgage and secured thereby and reasonable amounts expended to and shall include, without limitation, the rights of the insured to indemnities, prevent deterioration of improvements, or (ii)construction loon advances made guaranties, other policies of insurance or bonds, notwithstanding any terms or subsequent to Date of Policy, except construction loan advances made subse- conditions contained in those instruments which provide for subrogation rights by quent to Date of Policy for the purpose of financing in whole or in part the reason of this policy. construction of an improvement to the land which at Date of Policy were secured The Company's right of subrogation shall not be avoided by acquisition of by the insured mortgage and which the insured was and continued to be obli- the insured mortgage by on obligor(except an obligor described in Section 1(a) gated to advance at and after Date of Policy. (ii) of these Conditions and Stipulations)who acquires the insured mortgage as 9. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF a result of an indemnity, guarantee,other policy of insurance,or bond and the LIABILITY. obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) (a) All payments under this policy, except payments made for costs, attor- of these Conditions and Stipulations. neys' fees and expenses, shall reduce the amount of the insurance pro tanto. 13. ARBITRATION However, any payments made prior to the acquisition of title to the estate or Unless prohibited by applicable law, either the Company or the insured interest as provided in Section 2(o)of these Conditions and Stipulations shall not may demand arbitration pursuant to the Title Insurance Arbitration Rules of the reduce pro tonto the amount of the insurance afforded under this policy except American Arbitration Association. Arbitrable matters may include, but are not to the extent that the payments reduce the amount of the indebtedness secured limited to,any controversy or claim between the Company and the insured aris- by the insured mortgage. ing out of or relating to this policy, any service of the Company in connection (b) Payment in part by any person of the principal of the indebtedness,or with its issuance or the breach of a policy provision or other obligation. All any other obligation secured by the insured mortgage,or any voluntary partial arbitrable matters when the Amount of Insurance is S1,000,000 or less shall be satisfaction or release of the insured mortgage, to the extent of the payment, arbitrated at the option of either the Company or the insured. All arbitrable satisfaction or release, shall reduce the amount of insurance pro tonto. The matters when the Amount of Insurance is in excess of S1,000,000 shall be arbi- amount of insurance may thereafter be increased by accruing interest and trated only when agreed to by both the Company and the insured. Arbitration advances made to protect the lien of the insured mortgage and secured ther- pursuant to this policy and under the Rules in effect on the date the demand for eby, with interest thereon, provided in no event shall the amount of insurance arbitration is made or, at the option of the insured, the Rules in effect at Date be greater than the Amount of Insurance stated in Schedule A. of Policy shall be binding upon the parties. The award may include attorneys' (c) Payment in full by any person or the voluntary satisfaction or release of fees only if the lows of the state in which the land is located permit a court to the insured mortgage shall terminate all liability of the Company except as award attorneys' fees to a prevailing party. Judgment upon the award ren- provided in Section 2(o)of these Conditions and Stipulations. dered by the Arbitrator(s) may be entered in any court having jurisdiction 10. LIABILITY NONCUMULATIVE. thereof. If the insured acquires title to the estate or interest in satisfaction of the The low of the situs of the land shall apply to an arbitration under the Title indebtedness secured by the insured mortgage, or any part thereof, it is Insurance Arbitration Rules. expressly understood that the amount of insurance under this policy shall be A copy of the Rules may be obtained from the Company upon request. reduced by any amount the Company may pay under any policy insuring a 14. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT. mortgage hereafter executed by the insured or assumed or agreed to by the 1a) This policy together with all endorsements, if any, attached hereto by insured and which is a charge or lien on the estate or interest described or the Company is the entire policy and contract between the insured and the referred to in Schedule A,and the amount so paid shall be deemed a payment Company. In interpreting any provision of this policy, this polity shall be under this policy. construed as a whole. 11. PAYMENT OF LOSS. (b) Any claim of loss or damage,whether or not based on negligence,and (a) No payment shall be made without producing this policy for endorse- which arises out of the status of the lien of the insured mortgage or of the title ment of the payment unless the policy has been lost or destroyed,in which case to the estate or interest covered hereby or by any action asserting such claim, proof of loss or destruction shall be furnished to the satisfaction of the shall be restricted to this policy. Company. (c) No amendment of or endorsement to this policy can be made except by (b) When liability and the extent of loss or damage has been definitely a writing endorsed hereon or attached hereto signed by either the President,a fixed in accordance with these Conditions and Stipulations, the loss or damage Vice President, the Secretary, an Assistant Secretary, or validating officer or shall be payable within 30 days thereafter. authorized signatory of the Company. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT. 15. SEVERABILITY. (a) The Company's Right of Subrogation. In the event any provision of this policy is held invalid or unenforceable Whenever the Company shall have settled and paid a claim under this under applicable low, the policy shall be deemed not to include that provision policy,all right of subrogation shall vest in the Company unaffected by any act and all other provisions shall remain in full force and effect. of the insured claimant. 16. The amount specified in Schedule A is the entire charge for acceptance of The Company shall be subrogoted to and be entitled to all rights and risk. It includes charges for title search, examination and gross premium for title remedies which the insured claimant would have had against any person or insurance if some is customary or required to be shown in the state in which the property in respect to the claim had this policy not been issued If requested by policy is issued. the Company,the insured claimant shall transfer to the Company all rights and 17. NOTICES, WHERE SENT. remedies against any person or property necessary in order to perfect this right All notices required to be given the Company and any statement in writing of subrogation. The insured claimant shall permit the Company to sue, com- required to be furnished the Company shall include the number of this policy promise or settle in the name of the insured claimant and to use the name of the and shall be addressed to the Company 'at P.O. Box 2029, Houston, Texas insured claimant in any transaction or litigation involving these rights or 77252. If you will send a copy of the policy,it will expedite and aid the prompt AmP liA handling of claims hereunder