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SCHEDULE D
<br />The Company does not, by this policy, insure against loss by reason of:
<br />1. Easements or liens which are not shown by the public records (a) of the District Court of the Federal District, (b)
<br />of the county., or (c) of the city, in which said land or any part thereof is situated.
<br />2. Rights or claims of persons in possession of said land which are not shown by those public records which impart
<br />constructive notice.
<br />3. Any facts, rights, interests, or claims which are not shown by those public records which impart constructive notice,
<br />but which could be ascertained by an inspection of said land, or by making' inquiry of persons in possession thereof,
<br />or by a correct survey.
<br />4. Mining claims, reservations in patents, water rights, claims or title to water.
<br />S. Any governmental acts or regulations restricting, regulating or prohibiting the occupancy or use of said land or any
<br />building or structure thereon.
<br />STIPULATIONS
<br />SCOPE OF 1. This policy does not insure against, and the Company will not
<br />COVERAGE be liable for loss or damage created by or arising out of any of
<br />the following: (a) defects, liens, claims, encumbrances, or other matters which
<br />result in no pecuniary loss to the insured; (b) defects, liens, encumbrances, or
<br />other matters created or occurring subsequent to the date hereof; (c) defects,
<br />liens, encumbrances, or other matters created or suffered by the insured claiming
<br />such loss or damage; or (d) defects, liens, encumbrances, or other matters
<br />existing at the date of this policy and known to the insured claiming such loss
<br />or damage, either at the date of this policy or at the date such insured claimant
<br />acquired an estate or interest insured by this policy, unless such defect, lien,
<br />claim, encumbrance, or other matter shall have been disclosed to the Company
<br />in writing prior to the issuance of this policy. Any rights or defenses of the
<br />Company against a named insured shall be equally available against any person
<br />or corporation who shall become an insured hereunder as successor of such
<br />named insured.
<br />DEFENSE OF 2. The Company at its own cost shall defend the insured in all
<br />ACTIONS actions or proceedings against the insured founded upon a
<br />defect, lien, encumbrance, or other matter insured against by this policy, and
<br />may pursue such litigation to final determination in the court of last resort.
<br />In case any such action or proceeding shall be begun, or in case knowledge shall
<br />come to any insured of any claim of title or interest adverse to the title as
<br />insured, or which might cause loss or damage for which the Company shall or
<br />NOTICE OF may be liable by virtue of this policy, such insured shall at
<br />ACTIONS once notify the Company thereof in writing. If such notice
<br />OR CLAIMS shall not be given to the Company at least five days before
<br />TO BE the appearance day in any such action or proceeding, or if
<br />GIVEN BY such insured shall not, in writing, promptly notify the
<br />THE INSURED Company of any defect, lien, encumbrance, or other matter
<br />insured against, or of any such adverse claim which shall
<br />come to the knowledge of such insured, in respect to which loss or damage is
<br />apprehended, then all liability of the Company as to each insured having such
<br />notice in regard to the subject of such action, proceeding, or claim shall cease
<br />and terminate; provided, however, that failure to so notify shall in no case
<br />prejudice the claim of any insured unless the Company shall be actually
<br />prejudiced by such failure. The Company shall have the right to institute and
<br />prosecute any action or proceeding or do any other act which, in its opinion,
<br />may be necessary or desirable to establish the title, or any insured lien or
<br />charge, as insured. In all cases where this policy permits or requires the Com-
<br />pany to prosecute or defend any action or proceeding, the insured shall secure
<br />to it in writing the right to so prosecute or defend such action or proceeding,
<br />and all appeals therein, and permit it to use, at its option, the name of the
<br />insured for such purpose. Whenever requested by the Company the insured shall
<br />assist the Company in any such action or proceeding, in effecting settlement,
<br />securing evidence, obtaining witnesses, prosecuting or defending such action or
<br />proceeding to such extent and in such manner as is deemed desirable by the
<br />Company, and the Company shall reimburse the insured for any expense so
<br />incurred. The Company shall be subrogated to and be entitled to all costs and
<br />attorney's fees incurred or expended by the Company, which may be recoverable
<br />by the insured in any litigation carried on by the Company on behalf of the
<br />insured. The word "knowledge" in this paragraph means actual knowledge, and
<br />does not refer to constructive knowledge or notice which may be imputed to the
<br />insured by reason of any public record or otherwise.
<br />OPTION TO PAY, 3. The Company reserves the option to pay, settle, or
<br />SETTLE.OR compromise for, or in the name of, the insured, any
<br />COMPROMISE claim insured against or to pay this policy in full at
<br />CLAIMS any time, and payment or tender of payment of the full
<br />amount of this policy, together with all accrued costa which the Company is
<br />obligated hereunder to pay, shall terminate all liability of the Company here•
<br />under, including all obligations of the Company with respect to any litigation
<br />pending and subsequent costs thereof.
<br />SUBROGATION 4. Whenever. the Company shall have settled a claim
<br />UPON PAYMENT under this policy, it shall be subrogated to and be en,
<br />OR SETTLEMENT titled to all rights, securities, and remedies which the
<br />insured would have had against any person or property in respect to such claim,
<br />had this policy not been issued. If the payment does not cover the loss of the
<br />insured, the Company shall be subrogated to such rights, securities, and remedies
<br />in the proportion which said payment bears to the amount of said loss. In either
<br />event the insured shall transfer, or cause to be transferred, to the Company such
<br />rights, securities, and remedies, and shall permit the Company to use the name
<br />of the insured in any transaction or litigation involving such rights, securities,
<br />or remedies.
<br />OPTION TO PAY S. The Company has the right and option, in case
<br />INSUREDOWNER any loss is claimed under this policy by an insured
<br />OF INDEBTEDNESS owner of an indebtedness secured by mortgage or
<br />AND BECOME dyed of trust, to pay such insured the indebtedness
<br />OWNER OF of the mortgagor or trustor under said mortgage or
<br />SECURITY deed of trust, together with all costs which the
<br />Company is obligated hereunder to pay, in which case the Company shall become
<br />the owner of, and such insured shall at once assign and transfer to the Company
<br />said mortgage or deed of trust and the indebtedness thereby secured, and such
<br />payment shall terminate all liability under this policy to such insured.
<br />NOTICE OF 6. A statement in writing of any loss or damage for which it
<br />LOSS is claimed the Company is liable under this policy shall be
<br />furnished to the Company within sixty days after such loss or damage shall have
<br />been ascertained. No action or proceeding for the recovery of any such loss or
<br />LIMITATION damage shall be instituted or maintained against the Company
<br />OF ACTION until after full compliance by the insured with all the con-
<br />ditions imposed on the insured by this policy, nor unless
<br />commenced within twelve months after receipt by the Company of such written
<br />statement.
<br />PAYMENT OF 7. The Company will pay, in addition to any loss in•
<br />LOSS AND sured against by this policy, all costs imposed upon the
<br />COSTS OF insured in litigation carried on by the Company for the
<br />LITIGATION, insured, and in litigation carried on by the insured with
<br />ENDORSEMENT the written authorization of the Company, but not other•
<br />OF PAYMENT wise. The liability of the Company under this policy shall
<br />ON POLICY in no case exceed, in all, the actual loss of the insured
<br />and costs which the Company is obligated hereunder to pay, and in no case
<br />shall such total liability exceed the lace amount of this policy and said costs.
<br />All payments under this policy shall reduce the face amount of the insurance
<br />pro tanto, and payment of loss or damage to an insured owner of indebtedness
<br />shall reduce, to that extent, the liability of the Company to the insured owner
<br />of said land. No payment can be demanded by any insured without producing
<br />this policy for endorsement of such payment.
<br />MANNER OF 8. Loss under this policy shall be payable, first, to any
<br />PAYMENT OF insured owner of indebtedness secured by mortgage or deed
<br />LOSS TO of trust shown in Schedule C, in order of priority therein
<br />INSURED shown, and if such ownership vests in more than one, pay,
<br />ment shall be made ratably as their respective interests may appear, and there-
<br />after, any loss shall be payable to the other insured, and if more than one,
<br />then to such insured ratably as their respective interests may appear. If there be
<br />no such insured owner of indebtedness, any loss shall be payable to the insured,
<br />and if more than one, to such insured ratably as their respective interests may
<br />appear.
<br />WRITTEN 9. No provision or condition of this policy can be waived
<br />ENDORSEMENT or changed except by writing endorsed hereon or attached
<br />REQUIRED TO hereto signed by the President, a Vice -President, the
<br />CHANGE POLICY Secretary, or an Assistant Secretary of the Company.
<br />Form 74 A 12.43
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