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(iii) the subdivision of land; or
<br />(iv) environmental protection;
<br />or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or
<br />limit the coverage provided under Covered Risk 5.
<br />(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered
<br />Risk 6.
<br />2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
<br />3. Defects, liens, encumbrances, adverse claims, or other matters
<br />(a) created, suffered, assumed, or agreed to by the Insured Claimant;
<br />(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant
<br />and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an
<br />Insured under this policy;
<br />(c) resulting in no loss or damage to the Insured Claimant;
<br />(d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under
<br />Covered Risk 11, 13, or 14); or
<br />(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured
<br />Mortgage.
<br />4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with
<br />applicable doing-business laws of the state where the Land is situated.
<br />5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction
<br />evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.
<br />6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the
<br />transaction creating the lien of the Insured Mortgage, is
<br />(a) a fraudulent conveyance or fraudulent transfer, or
<br />(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.
<br />7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between
<br />Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or
<br />limit the coverage provided under Covered Risk 11(b).
<br />The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above
<br />Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions
<br />from Coverage:
<br />EXCEPTIONS FROM COVERAGE
<br />This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by
<br />reason of:
<br />1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or
<br />assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or
<br />assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.
<br />2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection
<br />of the Land or that may be asserted by persons in possession of the Land.
<br />3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.
<br />4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
<br />accurate and complete land survey of the Land and not shown by the Public Records.
<br />5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water
<br />rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.
<br />The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,
<br />costs, attorneys' fees or expenses which arise by reason of:
<br />AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10/17/92)
<br />EXCLUSIONS FROM COVERAGE
<br />1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances,
<br />or regulations) restricting, regulafing, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land;
<br />(ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation
<br />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
<br />(iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations,
<br />except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting
<br />PAELIM.95.06
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