Deed - Callan Ave, extension - File 148, 1936

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EXCEPTIONS The Company does not, by this Policy, insure against: 1. Any facts which a correct survey and inspection of said land would show; rights or claims of parties in possession of any part of said land; easements, liens or encumbrances which are not shown by the official records of (a) any County in which said land is located; (b) the Federal Offices of the Federal District in which said land is located; (e) any City in which, or adjacent to which, said land is located. 2. Assessments, taxes or obligations levied or created for any public or district improvement or purpose, unless at the date hereof the amount of such assessment, tax or obligation has been fixed, is payable and is shown as a lien by the official records of (a) any County in which said land is located; or (b) any City in which said land is located. 3. Proceedings for municipal improvement, which, at the date hereof, are shown by the official records of any such city, but have not resulted in imposition of a lien upon, or establishment of an easement over, or adjudication of the right to a pub- lic use of, said land or any part thereof. 4. Action by any governmental agency for the purpose of regulating occupancy or use of said land or any building or structure thereon. CONDITIONS 1. The term "the Insured" includes all named as insured on the first page of this Policy and as to each insured owner of an indebtedness secured by mortgage or deed of trust shown in Schedule B, each successor in ownership of such indebtedness and any owner thereof, who acquires said land, or any part thereof, by foreclosure, trustee's sale, or other legal manner in satis- faction of said indebtedness, or any part thereof; and as to each other named Insured, if a person, any person or corporation de- riving an estate or interest in said land as heir or devisee of such person, or if a corporation, any person or corporation deriving an estate or interest in said land by dissolution, merger or consolidation. Any rights or defenses of the Company against any of those specifically named as insured on the first page of this Policy shall be equally available against any person or corporation suc- ceeding to the rights of such named insured. 2. The Company at its own cost shall defend the Insured in all actions or proceedings commenced against the Insured founded upon a defect, lien or encumbrance insured against by this Policy and may pursue such litigation to final determination in the court of last resort. In case any such action or proceeding shall be begun, or in case knowledge shall come to any Insured of any claim of title or interest adverse to the title as insured, or which might cause loss or damage for which the Company shall or may be liable by virtue of this Policy, such Insured shall at once notify the Company thereof in writing. If such notice shall not be given to the Company at least five days before the appearance day in any such action or proceeding, or if such Insured shall not, in writing, promptly notify the Company of any defect, lien or encumbrance insured against or any such adverse claim which shall come to the knowledge of such Insured, in respect to which loss or damage is apprehended, then all liability of the Company as to each Insured having such notice in regard to the subject of such action, proceeding or claim shall cease and termi- nate, provided, however, that failure to so notify shall in no case prejudice the claim of any Insured unless the Company shall be actually prejudiced by such failure. The Company shall have the right to institute and prosecute any action or proceeding or do any other act which, in its opinion, may be necessary or desirable to establish the title, or any insured lien or charge, as insured. In all cases where this Policy permits or requires the Company to prosecute or defend any action or proceeding, the Insured shall secure to it the right to so prosecute or defend such action or proceeding, and all appeals therein, and permit it to use, at its option, the name of the Insured for such purpose. Whenever requested by the Company the Insured shall assist the Company in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses and/or in prosecuting or defendinf eueh action or proceeding to such extent and in such manner as is deemed desirable by the Company. The word "knowledge' in this paragraph means actual knowledge and does not refer to constructive knowledge or notice which may be imputed to the In- sured by reason of any public record or otherwise. 3. The Company reserves the option to pay, settle or compromise for or in the name of the Insured, any claim insured against or to pay this Policy in full, and payment or tender of payment of the full amount of this Policy together with all costs which the Company is obligated hereunder to pay shall terminate all liability of the Company hereunder. 4. Whenever the Company shall have settled a claim under this Policy, it shall be subrogated to and be entitled to all rights, securities and remedies which the Insured would have had against any person or property in respect to such clam, had this Policy not been issued, and the Insured shall transfer or cause to be transferred to the Company such rights, securities and remedies. and permit it to use the name of the Insured for the recovery, retention or defense thereof. If the payment does not cover the loan of the Insured, the Company shall be subrogated to such rights, securities and remedies in the proportion which said payment bears to the amount of said loss. 5. The Company has the right and option, in case any loss is claimed under this Policy by an Insured owner of an indebted- ness secured by mortgage or deed of trust, to pay such Insured the entire indebtedness of the mortgagor or trustor under said mortgage or deed of trust, together with all costs which the Company is obligated hereunder to pay, in which case the Company shall become the owner of, and such Insured shall at once assign and transfer to the Company said mortgage or deed of trust and the indebtedness thereby secured and such payment shall terminate all liability under this Policy to such Insured. 6. A statement in writing of any loss or damage for which it is claimed the Company is liable under this Policy shall be furnished to the Company within sixty days after such lose or damage shall have been ascertained. No action or proceeding for the recovery of any such loss or damage shall be instituted or maintained until after full compliance by the Insured with all the conditions imposed on the Insured by this Policy nor unless commenced within twelve months after receipt by the Company of such written statement. 7. The Company will pay, in addition to any loss insured against by this Policy, all costs imposed upon the Insured in liti- gation carried on by the Company for the Insured, and in litigation carried on by the Insured with the written authorization of the Company but not otherwise. The Company will not be liable for loss or damage by reason of defects, claims or encumbrances created subsequent to the date hereof or resulting in no pecuniary loss to the Insured, or for defects, claims or encumbrances created or suffered by the Insured claiming such loss or damage, or by reason of defects, claims or encumbrances existing at the date of this Policy which were then known to the Insured claiming such lose or damage, or to any agent of such Insured, but were not at that date shown by the official records referred to in the "Exceptions" of this Policy, unless such defects, claims or encum- brances were prior to the date of this Policy brought to the actual notice of the Company by an instrument in writing signed by the Insured and were not shown in ' `Schedule B." The liability of the Company under this Policy shall in no case exceed in all the actual lose of the Insured resulting from a condition of title contrary to that as hereby insured or from a defect in the lien or charge upon the insured land of any insured mortgage or deed of trust and costs which the Company is obligated hereunder to pay and in no case shall such total liability exceed the amount of this Policy and said costs. All payments under this Policy shall reduce the amount of the insurance pro tanto and payment of loss or damage to an Insured owner of indebtedness shall reduce to that extent the liability of the Company to the Insured owner of said land. No payment can be demanded by any Inbred with- out producing this Policy for indorsement of such payment. 8. Loss under this Policy shall be payable, first, to any Insured owner of indebtedness secured by mortgage or deed of trust shown in Schedule B, in the order of priority therein shown, and if such ownership vests in more than one, payment shall be made ratably as their respective interests may appear, and thereafter, or if there be no such Insured owner of indebtedness, any loss shall be payable to the other Insured, ratably as their respective interests may appear. 9. No provision or condition of this Policy can be waived or changed except by writing indorsed hereon or attached hereto signed by the President, a Vice -President, the Secretary or an Assistant Secretary of the Company. I NVWNESS WhouF/)ra, Oakland Title Insurance and Guaranty Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers the day and hour set forth in Schedule A hereof. rD Lum Tffw I sung. cE A®q) ,,U1A - C0 By Its Vice -President. And by Its Agtrt t�ecretary.