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Q, _ ,
<br />CONDITIONS AND STIPULATIONS (Continued and Concluded From Reverse Side of Policy Face)
<br />the Company in regard to the subject matter
<br />of such action, proceeding or matter shall
<br />cease and terminate; provided, however,
<br />that failure to notify shall in no case
<br />prejudice the claim of any Insured unless
<br />the Company shall be actually prejudiced
<br />by such failure and then only to the extent
<br />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
<br />or desirable to establish the title of the
<br />estate or interest or the lien of the mort-
<br />gage as insured; and the Company may
<br />take any appropriate action under the terms
<br />of this policy whether or not it. shall be
<br />liable thereunder and shall not thereby
<br />concede liability or waive any provision of
<br />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
<br />or proceeding, the Insured shall secure to
<br />it the right to so prosecute or provide de-
<br />fense in such action or proceeding, and all
<br />appeals therein, and permit it to use, at its
<br />option, the name of the Insured for such
<br />purpose. Whenever requested by the Com-
<br />pany the Insured shall give the Company
<br />all reasonable aid in any such action or
<br />proceeding, in effecting settlement, securing
<br />evidence, obtaining witnesses, or prosecu-
<br />ting or defending such action or proceed-
<br />ing, and the Company shall reimburse the
<br />Insured for any 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
<br />action shall accrue to the Insured under
<br />this policy until thirty days after such
<br />statement shall have been furnished, and
<br />no recovery shall be had by the Insured
<br />under this polity unless action shall be
<br />commenced thereon within five years after
<br />expiration of said thirty day period. Failure
<br />to furnish such statement of loss or damage,
<br />or to commence such action within the
<br />time hereinbefore specified, shall be a con-
<br />clusive bar against maintenance by the In-
<br />sured of any action under this policy.
<br />6. OPTION TO PAY, SETTLE OR COMPRO-
<br />MISE CLAIMS
<br />The Company shall have the option to
<br />pay or settle or compromise for or in the
<br />name of the Insured any claim insured
<br />against or to pay the full amount of this
<br />policy, or, in case loss is claimed under this
<br />policy by the owner of the indebtedness
<br />secured by a mortgage covered by this
<br />policy, the Company shall have the option
<br />to purchase said indebtedness; such pur-
<br />chase, payment or tender of payment of
<br />the full amount of this policy, together
<br />with all costs, attorneys' fees and expenses
<br />which the Company is obligated hereunder
<br />to pay, shall termmat all liability of the
<br />Company hereunder. In the event, after
<br />notice of claim has been given to the Com-
<br />pany by the Insured, the Company offers
<br />to purchase said indebtedness, the owner of
<br />such indebtedness shall transfer and assign
<br />said indebtedness and the mortgage securing
<br />the same to the Company upon payment of
<br />the purchase price.
<br />7. PAYMENT OF LOSS
<br />(a) The liability of the Company under
<br />this polity shall in no case exceed, in all;
<br />the actual loss of the Insured and costs and
<br />attorneys' fees which the Company may be
<br />obligated hereunder to pay.
<br />(b) The Company will pay, in addition
<br />to any loss insured against by this policy,
<br />all costs imposed upon the Insured in liti-
<br />gation carried on by the Company for the
<br />Insured, and all costs and attorneys' fees in
<br />litigation carried on by the Insured with
<br />the written authorization of the Company.
<br />(c) No claim for damages shall arise or
<br />be maintainable under this policy (1) if
<br />the Company, after having received notice
<br />of an alleged defect, lien or encumbrance
<br />not excepted or excluded herein removes
<br />such defect, lien or encumbrance within a
<br />reasonable time after receipt of such notice,
<br />or (2) for liability voluntarily assumed by
<br />the Insured in settling any claim or suit
<br />without written consent of the Company,
<br />or (3) in the event the title is rejected as
<br />unmarketable because of a defect, lien or
<br />encumbrance not excepted or excluded in
<br />this polity, until there has been a final
<br />determination by a court of competent juris-
<br />diction sustaining such rejection.
<br />(d) All payments under this policy, ex-
<br />cept payments made for costs, attorneys'
<br />fees and expenses, shall reduce the amount
<br />of the insurance pro canto and no payment
<br />shall be made without producing this policy
<br />for endorsement of such payment unless
<br />the policy be lost or destroyed, in which
<br />case proof of such loss or destruction shall
<br />be furnished to the satisfaction of the Com-
<br />pany; provided, however, if the owner of
<br />an indebtedness secured by a mortgage
<br />shown in Schedule B is an Insured herein
<br />then such payments shall not reduce pro
<br />tanto the amount of the insurance afforded
<br />hereunder as to such Insured, except to the
<br />extent that such payments reduce the amount
<br />of the indebtedness secured by such mort-
<br />gage. Payment in full by any person or
<br />voluntary satisfaction or release by the In-
<br />sured of a mortgage covered by this policy
<br />shall terminate all liability of the Company
<br />to the insured owner of the indebtedness
<br />secured by such mortgage, except as pro-
<br />vided in paragraph 2 hereof.
<br />(e) When liability has been definitely
<br />fixed in accordance with the conditions of
<br />this polity the loss or damage shall be pay-
<br />able within thirty days thereafter.
<br />B. LIABILITY NONCUMULATIVE
<br />It is expressly understood that the
<br />amount of this policy is reduced by any
<br />amount the Company may pay under any
<br />polity insuring the validity or priority of
<br />any mortgage shown or referred to in
<br />Schedule B hereof or any mortgage here-
<br />after executed by the Insured which is a
<br />charge or lien on the estate or interest
<br />described or referred to in Schedule A, and
<br />the amount so paid shall be deemed a pay-
<br />ment to the Insured under this policy. The
<br />provisions of this paragraph numbered 8
<br />shall not apply to an Insured owner of an
<br />indebtedness secured by a mortgage shown
<br />in Schedule B unless such Insured acquires
<br />title to said estate or interest in satisfaction
<br />of said indebtedness or any part thereof.
<br />9. SUBROGATION UPON PAYMENT OR
<br />SETTLEMENT
<br />Whenever the Company shall have settled
<br />a claim under this policy, all right of sub-
<br />rogation shall vest in the Company un-
<br />affected by any act of the Insured, and it
<br />shall be subrogated to and be entitled to
<br />all rights and remedies which the Insured
<br />would have had against any person or prop-
<br />erty in respect to such claim had this policy
<br />not been issued. If the payment does not
<br />cover the loss of the Insured, the Company
<br />shall be subrogated to such rights and
<br />remedies in the proportion which said pay-
<br />ment bears to the amount of said loss. If
<br />loss should result from any act of the In-
<br />sured, such act shall not void this policy,
<br />but the Company, in that event, shall be
<br />required to pay only that part of any losses
<br />insured against hereunder which shall ex-
<br />ceed the amount, if any, lost to the Com-
<br />pany by reason of the impairment of the
<br />right of subrogation. The Insured, if re-
<br />quested by the Company, shall transfer to
<br />the Company all rights and remedies
<br />against any person or property necessary in
<br />order to perfect such right of subrogation,
<br />and shall permit the Company to use the
<br />name of the Insured in any transaction or
<br />litigation involving such rights or remedies.
<br />If the Insured is the owner of the in-
<br />debtedness secured by a mortgage covered
<br />by this policy, such Insured may release or
<br />substitute the personal liability of any
<br />debtor or guarantor, or extend or otherwise
<br />modify the terms of payment, or release
<br />a portion of the estate or interest from the
<br />lien of the mortgage, or release any col-
<br />lateral security for the indebtedness, pro-
<br />vided such act does not result in any loss
<br />of priority of the lien of the mortgage.
<br />10. POLICY ENTIRE CONTRACT
<br />Any anion or actions or rights of action
<br />that the Insured may have or may bring
<br />against the Company arising out of the
<br />status of the lien of the mortgage covered
<br />by this policy or the title of the estate or
<br />interest insured herein must be based on
<br />the provisions of this polity.
<br />No provision or condition of this policy
<br />can be waived or changed except by writing
<br />endorsed hereon or attached hereto signed
<br />by the President, a Vice President, the
<br />Secretary, an Assistant Secretary or other
<br />validating officer of the Company.
<br />11. NOTICES, WHERE SENT
<br />All notices required to be given the Com-
<br />pany and any statement in writing required
<br />to be furnished the Company shall be ad-
<br />dressed to it at the office which issued this
<br />polity or to its Home Office, 433 South
<br />Spring Street, Los Angeles 54, California.
<br />12. THE PREMIUM SPECIFIED IN SCHEDULE
<br />A IS THE ENTIRE CHARGE FOR TITLE SEARCH,
<br />TITLE EXAMINATION AND TITLE INSURANCE.
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