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STIPULATIONS
<br />Scope of 1. This policy does not insure against, and the Company will not be liable
<br />Coverage for loss or damage created by or arising out of any of the following: (a) de-
<br />fects, liens, claims. encumbrances, or other matters which result in no pecu-
<br />niary loss to the insured; (b) defects, liens, encumbrances, or other matters created or
<br />occurring subsequent to the date hereof; (c) defects, liens, encumbrances, or other matters
<br />created or suffered by the insured claiming such loss or damage; or (d) defects, liens,
<br />claims, encumbrances. or other matters existing at the date of this policy and known to
<br />the insured claiming such loss or damage, either at the date of this policy or at the date
<br />such insured claimant acquired an estate or interest insured by this policy, unless such
<br />defect, lien, claim, encumbrance or other matter shall have been disclosed to the Com-
<br />pany in writing prior to the issuance of this policy or appeared at the date of this policy
<br />on the public records. Any rights or defenses of the Company against a named insured
<br />shall be equally available against any person or corporation who shall become an insured
<br />hereunder as successor of such named insured.
<br />Defense of Actions. 2. The Company at its own cost shall defend the insured in all
<br />Notice of Actions litigation consisting of actions or proceedings against the insured.
<br />or Claims to be or defenses. restraining orders, or injunctions interposed against a
<br />Given by the foreclosure or sale of said land in satisfaction of any indebtedness.
<br />Insured the owner of which is insured by this policy, which litigation is
<br />founded upon a defect, lien, encumbrance, or other matter insured
<br />against by this policy, and may pursue such litigation to final determination in the court
<br />of last resort. In case any such litigation shall become known to any insured, or in case
<br />knowledge shall come to any insured of any claim of title or interest which is adverse to
<br />the title as insured or which might cause loss or damage for which the Company shall or
<br />may be liable by virtue of this policy, such insured shall notify the Company thereof in
<br />writing. If such notice shall not be given to the Company at least two days before the
<br />appearance day in any such litigation, or if such insured shall not, in writing, promptly
<br />notify the Company of any defect, lien, encumbrance, or other matter insured against.
<br />or of any such adverse claim which shall come to the knowledge of such insured, in respect
<br />to which loss or damage is apprehended, then all liability of the Company as to each in-
<br />sured having such knowledge shall cease and terminate; provided, however, that failure
<br />to so notify the Company shall in no case prejudice the claim of any insured unless the
<br />Company shall be actually prejudiced by such failure. The Company shall have the right
<br />to institute and prosecute any action or proceeding or do any other act which, in its
<br />opinion, may be necessary or desirable to establish the title, or any insured lien or charge,
<br />as insured. In all cases where this policy permits or requires the Company to prosecute
<br />or defend any action or proceeding, the insured shall secure to it in writing the right to so
<br />prosecute or defend such action or proceeding. and all appeals therein, and permit it to
<br />use, at its option, the name of the insured for such purpose. Whenever requested by the
<br />Company the insured shall assist the Company in any such action or proceeding, in
<br />effecting settlement, securing evidence, obtaining witnesses, prosecuting or defending
<br />such action or proceeding, to such extent and in such manner as is deemed desirable by
<br />the Company, and the Company shall reimburse the insured for any expense so incurred.
<br />The Company shall be subrogated to and be entitled to all costs and attorneys' fees in-
<br />curred or expended by the Company, which may be recoverable by the insured in any
<br />litigation carried on by the Company on behalf of the insured. The word "knowledge'
<br />in this paragraph means actual knowledge, and does not refer to constructive knowledge
<br />or notice which may be imputed by the public records.
<br />Notice of Loss. 3. A statement in writing of any loss or damage for which it is
<br />Limitation of Action claimed the Company is liable under this policy shall be fur-
<br />nished to the Company within sixty days after such loss or
<br />damage shall have been ascertained. No action or proceeding for the recovery of any
<br />such loss or damage shall be instituted or maintained against the Company until after
<br />full compliance by the insured with all the conditions imposed on the insured by this
<br />policy, nor unless commenced within twelve months after receipt by the Company of
<br />such written statement.
<br />Option to Pay, 4. The Company reserves the option to pay, settle, or com-
<br />Settle; or promise for, or in the name of, the insured, any claim insured
<br />Compromise Claims against or to pay this policy in full at any time, and payment
<br />or tender of payment of the full amount of this policy, together
<br />with all accrued costs which the Company is obligated hereunder to pay, shall terminate
<br />all liability of the Company hereunder, including all obligations of the Company with
<br />respect to any litigation pending and subsequent costs thereof.
<br />Subrogation Upon 5. Whenever the Company shall have settled a claim under
<br />Payment or Settlement this policy, it shall be subrogated to and be entitled to all
<br />rights, securities, and remedies which the insured would have
<br />had against any person or property in respect to such claim, had this policy not been
<br />issued. If the payment does not cover the loss of the insured, the Company shall be sub-
<br />rogated to such rights. securities, and remedies in the proportion which said payment
<br />bears to the amount of said loss. In either event the insured shall transfer, or cause to be
<br />transferred, to the Company such rights, securities, and remedies, and shall permit the
<br />Company to use the name of the insured in any transaction or litigation involving such
<br />rights, securities. or remedies.
<br />Option to Pay 6. The Company has the right and option, in case any loss is
<br />Insured Owner claimed under this policy by an insured owner of an indebtedness
<br />of Indebtedness secured by mortgage or deed of trust, to pay such insured the in -
<br />and Become debtedness of the mortgagor or trustor under said mortgage or
<br />Owner of Security deed of trust, together with all costs which the Company is obli-
<br />gated 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, said
<br />mortgage or deed of trust and the indebtedness thereby secured, and such payment shall
<br />terminate all liability under this policy to such insured.
<br />Payment of Loss and 7. The Company will pay, in addition to any loss insured
<br />Costs of Litigation. against by this policy, all costs imposed upon the insured in
<br />Indorsement of litigation carried on by the Company for the insured, and in
<br />Payment on Policy litigation carried on by the insured with the written authoriza-
<br />tion of the Company, but not otherwise. The liability of the
<br />Company under this policy shall in no case exceed, in all, the actual loss to the insured
<br />and costs which the Company is obligated hereunder to pay, and in no case shall such
<br />total liability exceed the amount of this policy and said costs. All payments under this
<br />policy shall reduce the amount of the insurance pro tanto, and payment of loss or damage
<br />to an insured owner of indebtedness shall reduce, to that extent, the liability of the Com-
<br />pany to the insured owner of said land. No payment may be demanded by any insured
<br />without producing this policy for indorsement of such payment.
<br />Manner of Payment 8. Loss under this policy shall be payable, first, to any insured
<br />of Loss to Insured owner of indebtedness secured by mortgage or deed of trust
<br />shown in Schedule B, in order of priorty therein shown, and if
<br />such ownership vests in more than one, payment shall be made ratably as their respective
<br />interests may appear, and thereafter any loss shall he payable to the other insured, and
<br />if more than one, then to such insured ratably as their respective interests may appear.
<br />If there be 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 appear.
<br />Definition 9. The following terms when used in this policy mean:
<br />of Terms (a) "named insured": the persons and corporations named as insured on
<br />the first page of this policy;
<br />(b) "the insured": such named insured together with (1) each successor in ownership
<br />of any indebtedness secured by any mortgage or deed of trust shown in Schedule B. the
<br />owner of which indebtedness is named herein as an insured, (2) any such owner or suc-
<br />cessor in ownership of any such indebtedness who acquires the land described in Schedule
<br />C or any part thereof, by lawful means in satisfaction of said indebtedness or any part
<br />thereof, (3) any governmental agency or instrumentality acquiring said land under an
<br />insurance contract or guarantee insuring or guaranteeing said indebtedness or any part
<br />thereof, and (4) any person or corporation deriving an estate or interest in said land as
<br />an heir or devisee of a named insured or by reason of the dissolution, merger, or con-
<br />solidation of a corporate named insured;
<br />(c) "land": the land described specifically or by reference in Schedule C and improve-
<br />ments affixed thereto which by law constitute real property;
<br />(d) "date": the exact day, hour and minute specified in the fret line of Schedule A
<br />(unless the context clearly requires a different meaning);
<br />(e) 'taxing agency": the State and each county, city and county, city and district in
<br />which said land or some part thereof is situated that levies taxes or assessments on real
<br />property;
<br />M "public records": those public records which, under the recording laws, impart
<br />constructive notice of matters relating to said land.
<br />Written Indorsement 10. No provision or condition of this policy can be waived
<br />Required to Change Policy or changed except by writing indorsed hereon or attached
<br />hereto signed by the President, a Vice President, the
<br />Secretary, or an Assistant Secretary of the Company.
<br />Notices: Where Sent 11. All notices required to be given the Company and any state-
<br />ment in writing required to be furnished the Company shall be
<br />addressed to it at its home office at Oakland, California.
<br />In Witness Whereof, Alameda County -East Bay Title Insurance Company has caused its corporate name and seal to be
<br />hereunto affixed by its duly authorized officers as of the day and hour set forth in SCHEDULE A hereof.
<br />ALAMEBA COUNTY -EAST RAY TITLE INSURANCE COMPANY
<br />Attest: By
<br />Assistant Secretary President
<br />FORM 74A
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