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SCHEDULE B PART ONE
<br />1. Taxes or assessments which 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.
<br />2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an
<br />inspection of said land or by making inquiry of persons in possession thereof.
<br />3. Easements, claims of easement or encumbrances which are not shown by the public records.
<br />4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey
<br />would disclose, and which are not shown by the public records.
<br />5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights,
<br />claims or title to water.
<br />CONDITIONS AND STIPULATIONS
<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, not
<br />constructive knowledge or notice which
<br />may be imputed to the Insured by reason
<br />of any public records;
<br />(d) "date": the effective date;
<br />(e) "mortgage": mortgage, deed of trust,
<br />trust deed, or other security instrument; and
<br />(f) "insured": the party or parties named
<br />as Insured, and if the owner of the in-
<br />debtedness secured by a mortgage shown in
<br />Schedule B is named as an Insured in
<br />Schedule A, the Insured shall include (1)
<br />each successor in interest in ownership of
<br />such indebtedness, (2) any such owner who
<br />acquires the estate or interest referred to
<br />in this policy by foreclosure, trustee's sale,
<br />or other legal manner in satisfaction of
<br />said indebtedness, and (3) any federal
<br />agency or instrumentality which is an in-
<br />surer or guarantor under an insurance con-
<br />tract or guaranty insuring or guaranteeing
<br />said indebtedness, or any part thereof,
<br />whether named as an insured herein or not,
<br />subject otherwise to the provisions hereof.
<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
<br />any part thereof, by foreclosure, trustee's
<br />sale, or other legal manner in satisfaction
<br />of said indebtedness, or any part thereof,
<br />or if a federal agency or instrumentality
<br />acquires said estate or interest, or any part
<br />thereof, as a consequence of an insurance
<br />contract or guaranty insuring or guarantee-
<br />ing the indebtedness secured by a mortgage
<br />covered by this policy, or any part thereof,
<br />this policy shall continue in force in favor
<br />of 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 reasons 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, or regulating
<br />the character, dimensions, or location of
<br />any improvement now or hereafter erected
<br />on 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 power
<br />or eminent domain unless notice of the
<br />exercise of such rights appears in the public
<br />records at the date 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 specific-
<br />ally provides that such property, rights or
<br />easements are insured, except that if the
<br />land abuts upon one or more physically
<br />open streets or highways this policy insures
<br />the ordinary rights of abutting owners for
<br />access to one of such streets or highways,
<br />unless otherwise excepted or excluded
<br />herein.
<br />(d) Defects, liens, encumbrances, adverse
<br />claims against the title as insured or other
<br />matters (1) created, suffered, assumed or
<br />agreed to by the Insured claiming loss or
<br />damage; or (2) known to the Insured
<br />Claimant either at the date of this policy
<br />or at the date such Insured Claimant ac-
<br />quired an estate or interest insured by this
<br />policy and not shown by the public records,
<br />unless disclosure thereof in writing by the
<br />Insured shall have been made to the Com-
<br />pany prior to the date of this policy; or (3 )
<br />resulting in no loss to the Insured Claim-
<br />ant; or (4) attaching or created subsequent
<br />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 mort-
<br />gage and indebtedness covered by this policy
<br />or a sale of the estate or interest in said
<br />land; or (2) for such action as may be
<br />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 />to any of such events is founded upon an
<br />alleged defect, lien or encumbrance in-
<br />sured against by this policy, and may pur-
<br />sue any litigation to final determination in
<br />the court 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 in-
<br />terest or lien of the mortgage as insured,
<br />or which might cause loss or damage for
<br />which the Company shall or may be liable
<br />by virtue of this policy, or if the Insured
<br />shall in good faith contract to sell the in-
<br />debtedness secured by a mortgage covered
<br />by this policy, or, if an Insured in good
<br />faith leases or contracts to sell, lease or
<br />mortgage the same, or if the successful
<br />bidder at a foreclosure sale under a mort-
<br />gage covered by this policy refuses to pur.
<br />chase and in any such event the title to
<br />said estate or interest is rejected as un-
<br />marketable, 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 />ppromptly notify the Company of any de-
<br />1. lien lien or encumbrance insured against
<br />which shall come to the knowledge of the
<br />Insured, or if the Insured shall not, in
<br />writing, promptly notify the Company of
<br />any such rejection by reason of claimed un-
<br />marketability of title, then all liability of
<br />(Conditions and Stipulations Continued and Concluded on Lost Page of This Policy)
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