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CONDITIONS AND STIPULATIONS
<br />(Includes those in the American Title Association -Owner's Policy -Standard Form B-1960)
<br />1. DEFINITION OF TERMS
<br />The following terms when used in this
<br />policy mean:
<br />(a) "land": the land described, specific-
<br />ally or by reference, in Schedule C and
<br />improvements affixed thereto which by law
<br />constitute real property;
<br />(b) "public records": those records
<br />which impart constructive notice of matters
<br />relating to said land;
<br />(c) "knowledge": actual knowledge,
<br />not constructive knowledge or notice which
<br />may be imputed to the Insured by reason of
<br />any public records;
<br />(d) "date": the effective date;
<br />(e) "mortgage": mortgage, deed of
<br />trust, trust deed, or other security instru-
<br />ment; and
<br />(f) "insured": the party or parties
<br />herein designated as Insured, and if the
<br />owner of the indebtedness secured by a
<br />mortgage shown in Schedule B is named as
<br />an Insured in Schedule A, the Insured shall
<br />include (1) each successor in interest in
<br />ownership of such indebtedness, (2) any
<br />such owner who acquires the estate or in-
<br />terest referred to in this policy by fore-
<br />closure, trustee's sale, or other legal man-
<br />ner in satisfaction of said indebtedness, and
<br />(3) any federal agency or instrumentality
<br />wluch is an insurer or guarantor under an
<br />insurance contract or guaranty insuring or
<br />guaranteeing said indebtedness, or any part
<br />thereof, whether named as an insured herein
<br />or not.
<br />2. BENEFITS AFTER ACQUISITION OF TITLE
<br />If an insured owner of the indebtedness
<br />secured by a mortgage described in Sched-
<br />ule B acquires said estate or interest, or any
<br />part thereof, by foreclosure, trustee's sale,
<br />or other legal manner in satisfaction of said
<br />indebtedness, or any part thereof, or if a
<br />federal agency or instrumentality acquires
<br />said estate or interest, or any part thereof,
<br />as a consequence of an insurance contract or
<br />guaranty insuring or guaranteeing the in-
<br />debtedness secured by a mortgage covered
<br />by this policy, or any part thereof, this
<br />policy shall continue in force in favor of
<br />such Insured, agency or instrumentality,
<br />subject to all of the conditions and stipula-
<br />tions hereof.
<br />3. EXCLUSIONS FROM THE COVERAGE OF
<br />THIS POLICY
<br />This policy does not insure against loss
<br />or damage by reason of the following:
<br />(a) Any law, ordinance or governmental
<br />regulation (including but not limited to
<br />building and zoning ordinances) restricting
<br />or regulating or prohibiting the occupancy,
<br />use or enjoyment of the land, of regulating
<br />the character, dimensions, or location of any
<br />improvement now or hereafter erected on
<br />said land, or prohibiting a separation in
<br />ownership or a reduction in the dimensions
<br />or area of any lot or parcel of land.
<br />(b) Governmental rights of police
<br />power or eminent domain unless notice of
<br />judicial action to exercise such rights ap-
<br />pears in the public records at the date
<br />hereof.
<br />(c) Title to any property beyond the
<br />lines of the land expressly described in
<br />Schedule C, or title to streets, roads, ave-
<br />nues, lanes, ways or waterways on which
<br />such land abuts, or the right to maintain
<br />therein vaults, tunnels, ramps or any other
<br />structure or improvement; or any rights or
<br />easements therein unless this policy spe-
<br />cifically provides that such property, rights
<br />or easements are insured, except that if the
<br />land abuts upon one or more physically open
<br />streets or highways this policy insures the
<br />ordinary rights of abutting owners for access
<br />to one of such streets or highways, unless
<br />otherwise excepted or excluded herein.
<br />(d) Defects, liens, encumbrances, ad-
<br />verse claims against the title as insured or
<br />other matters (1) created, suffered, assumed
<br />or agreed to by the Insured; or (2) known
<br />to the Insured either at the date of this
<br />policy or at the date such Insured acquired
<br />an estate or interest insured by this policy
<br />and not shown by the public records, unless
<br />disclosure thereof in writing by the Insured
<br />shall have been made to the Company prior
<br />to the date of this policy; or (3) resulting
<br />in no loss to the Insured; or (4) attaching
<br />or created subsequent to the date hereof.
<br />(e) Loss or damage which would not
<br />have been sustained if the Insured were a
<br />purchaser or encumbrancer for value with-
<br />out knowledge.
<br />4. DEFENSE AND PROSECUTION OF ACTIONS
<br />—NOTICE OF CLAIM TO BE GIVEN BY
<br />THE INSURED
<br />(a) The Company, at its own cost and
<br />without undue delay shall provide (1) for
<br />the defense of the Insured in all litigation
<br />consisting of actions or proceedings com-
<br />menced against the Insured, or defenses,
<br />restraining orders, or injunctions interposed
<br />against a foreclosure or sale of the indebted-
<br />ness secured by a mortgage covered by this
<br />policy or a sale of the estate or interest in
<br />said land; or (2) for such action as may
<br />be appropriate to establish the title of the
<br />estate or interest or the lien of the mort-
<br />gage as insured, which litigation or action
<br />in any of such events is founded upon an
<br />alleged defect, lien or encumbrance insured
<br />against by this policy, and may pursue any
<br />litigation to final determination in the court
<br />of last resort.
<br />(b) In case any such action or proceed-
<br />ing shall be begun, or defense interposed,
<br />or in case knowledge shall come to the In-
<br />sured of any claim of title or interest which
<br />is adverse to the title of the estate or interest
<br />or lien of the mortgage as insured, or which
<br />might cause loss or damage for which the
<br />Company shall or may be liable by virtue of
<br />this policy, or if the Insured shall in good
<br />faith contract to sell the indebtedness se-
<br />cured by a mortgage covered by this policy,
<br />or, if an Insured in good faith leases or
<br />contracts to sell, lease or mortgage the same,
<br />or if the successful bidder at a foreclosure
<br />sale under a mortgage covered by this policy
<br />refuses to purchase and in any such event
<br />the title to said estate or interest is rejected
<br />as unmarketable, the Insured shall notify the
<br />Company thereof in writing. If such notice
<br />shall not be given to the Company within
<br />ten days of the receipt of process or plead-
<br />ings or if the Insured shall not, in writing,
<br />promptly notify the Company of any defect,
<br />lien or encumbrance insured against which
<br />shall come to the knowledge of the Insured,
<br />or if the Insured shall not, in writing,
<br />promptly notify the Company of any such
<br />rejection by reason of claimed unmarket-
<br />ability of title, then all liability of the Com-
<br />pany in regard to the subject matter of such
<br />action, proceeding or matter shall cease and
<br />terminate; provided, however, that failure to
<br />notify shall in no case prejudice the claim,
<br />of any Insured unless the Company shall be
<br />actually prejudiced by such failure and then
<br />only to the extent of such prejudice.
<br />(c) The Company shall have the right
<br />at its own cost to institute and prosecute
<br />any action or proceeding or do any other
<br />act which in its opinion may be necessary or
<br />desirable to establish the title of the estate
<br />or interest or the lien of the mortgage as
<br />insured; and the Company may take any
<br />appropriate action under the terms of this
<br />policy whether or not it shall be liable there-
<br />under and shall not thereby concede liability
<br />or waive any provision of this policy.
<br />(d) In all cases where this policy per-
<br />mits or requires the Company to prosecute
<br />or provide for the defense of any action or
<br />proceeding, the Insured shall secure to it the
<br />right to so prosecute or provide defense in
<br />such action or proceeding, and all appeals
<br />therein, and permit it to use, at its option,
<br />the name of the Insured for such purpose.
<br />Whenever requested by the Company the
<br />Insured shall give the Company all assist-
<br />ance in any such action or proceeding, in
<br />effecting settlement, securing evidence, ob-
<br />taining witnesses, or prosecuting or defend-
<br />ing such action or proceeding, and the Com-
<br />pany shall reimburse the Insured for any
<br />expense so incurred.
<br />5. NOTICE OF LOSS — LIMITATION OF
<br />ACTION
<br />In addition to the notices required under
<br />paragraph 4(b), a statement in writing of
<br />any loss or damage for which it is claimed
<br />the Company is liable under this policy
<br />shall be furnished to the Company within
<br />sixty days after such loss or damage shall
<br />have been determined and no right of action
<br />shall accrue to the Insured under this policy
<br />until thirty days after such statement shall
<br />have been furnished, and no recovery shall
<br />be had by the Insured under this policy
<br />unless action shall be commenced thereon
<br />within five years after expiration of said
<br />thirty day period. Failure to furnish such
<br />statement of loss or damage, or to com-
<br />mence such action within the time herein -
<br />before specified, shall be a conclusive bat
<br />against maintenance by the Insured of any
<br />action under this policy.
<br />(Conditions and Stipulations Continued and Concluded on Last Page of This Policy)
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