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GUARANTEE CONDITIONS AND STIPULATIONS
<br />1. DEFINITION OF TERMS
<br />The following terms when used in
<br />this Guarantee mean:
<br />(a) "land": the land described, speci-
<br />fically or by reference, in this Guarantee
<br />and improvements affixed thereto which
<br />by law constitute real property;
<br />(b) "public records": those records
<br />which impart constructive notice of mat-
<br />ters relating to said land;
<br />(c) "date": the effective date;
<br />(d) "the Assured": the party or
<br />parties named as the Assured in this
<br />Guarantee, or in a supplemental writ-
<br />ing executed by the Company;
<br />(e) "mortgage": mortgage, deed of
<br />trust, trust deed, or other security instru-
<br />ment.
<br />2. EXCLUSIONS FROM COVERAGE OF
<br />THIS GUARANTEE
<br />The Company assumes no liability for
<br />loss or damage by reason of the follow-
<br />ing:
<br />(a) Taxes or assessments which are
<br />not shown as existing liens by the re-
<br />cords of any taxing authority that levies
<br />taxes or assessments on real property
<br />or by the public records.
<br />(b) Unpatented mining claims; res-
<br />ervations or exceptions in patents or in
<br />Acts authorizing the issuance thereof;
<br />water rights, claims or title to water.
<br />(c) Title to any property beyond the
<br />lines of the land expressly described in
<br />the description set forth in this Guaran-
<br />tee, or title to streets, roads, avenues,
<br />lanes, ways or waterways on which such
<br />land abuts, or the right to maintain
<br />therein vaults, tunnels, ramps or any
<br />other structure or improvement; or any
<br />rights or easements therein unless such
<br />property, rights or easements are ex-
<br />pressly and specifically set forth in said
<br />description.
<br />(d) Defects, liens, encumbrances,
<br />adverse claims against the title as guar-
<br />anteed or other matters (1) created,
<br />suffered, assumed or agreed to by one or
<br />more of the Assured; or (2) resulting
<br />in no loss to the Assured.
<br />3. PROSECUTION OF ACTIONS
<br />(a) The Company shall have the
<br />right at its own cost to institute and
<br />prosecute any action or proceeding or
<br />do any other act which in its opinion
<br />may be necessary or desirable to establish
<br />or confirm the matters herein guaran-
<br />teed; and the Company may take any
<br />appropriate action under the terms of
<br />this Guarantee whether or not it shall
<br />be liable thereunder and shall not there-
<br />by concede liability or waive any pro-
<br />vision hereof.
<br />(b) In all cases where the Company
<br />does so institute and prosecute any ac-
<br />tion or proceeding, the Assured shall
<br />permit the Company to use, at its option,
<br />the name of the Assured for such pur-
<br />pose. Whenever requested by the Com-
<br />pany, the Assured shall give the Company
<br />all reasonable aid in prosecuting such
<br />action or proceeding, and the Company
<br />shall reimburse the Assured for any ex-
<br />pense so incurred.
<br />4. NOTICE OF LOSS —LIMITATION
<br />OF ACTION
<br />A statement in writing of any loss or
<br />damage for which it is claimed the Com-
<br />pany is liable under this Guarantee shall
<br />be furnished to the Company within sixty
<br />days after such loss or damage shall
<br />have been determined, and no right of
<br />action shall accrue to the Assured under
<br />this Guarantee until thirty days after
<br />such statement shall have been furnished,
<br />and no recovery shall be had by the As-
<br />sured under this Guarantee unless action
<br />shall be commenced thereon within two
<br />years after expiration of said thirty day
<br />period. Failure to furnish such state-
<br />ment of loss or damage or to commence
<br />such action within the time hereinbefore
<br />specified, shall be a conclusive bar against
<br />maintenance by the Assured of any ac-
<br />tion under this Guarantee.
<br />5. OPTION TO PAY, SETTLE OR
<br />COMPROMISE CLAIMS
<br />The Company shall have the option
<br />to pay or settle or compromise for or in
<br />the name of the Assured any claim
<br />which could result in loss to the Assured
<br />within the coverage of this Guarantee, or
<br />to pay the full amount of this Guaran-
<br />tee or, if this Guarantee is issued for
<br />the benefit of a holder of a mortgage,
<br />the Company shall have the option to
<br />purchase the indebtedness secured by
<br />said mortgage. Such purchase, payment
<br />or tender of payment of the full amount
<br />of the Guarantee shall terminate all
<br />liability of the Company hereunder. In
<br />the event after notice of claim has been
<br />given to the Company by the Assured
<br />the Company offers to purchase said
<br />indebtedness, the owner of such indebt-
<br />edness shall transfer and assign said in-
<br />debtedness and the mortgage securing
<br />the same to the Company upon payment
<br />of the purchase price.
<br />6. LIMITATION OF LIABILITY —
<br />PAYMENT OF LOSS
<br />(a) The liability of the Company
<br />under this Guarantee shall be limited
<br />to the amount of actual loss sustained
<br />by the Assured because of reliance upon
<br />the assurances herein set forth, but in
<br />no event shall such liability exceed the
<br />amount of the liability stated within this
<br />Guarantee.
<br />(b) The Company will pay all costs
<br />imposed upon the Assured in litigation
<br />carried on by the Company for the As-
<br />sured, and all costs and attorney's fees
<br />in litigation carried on by the Assured
<br />with the written authorization of the
<br />Company.
<br />(c) No claim for damages shall arise
<br />or be maintainable under this Guarantee
<br />(1) if the Company after having received
<br />notice of an alleged defect, lien or en-
<br />cumbrance not shown as an Exception
<br />or excluded herein removes such defect,
<br />lien or encumbrance within a reasonable
<br />time after receipt of such notice, or (2)
<br />for liability voluntarily assumed by the
<br />Assured in settling any claim or suit
<br />without written consent of the Company.
<br />(d) All payments under this Guaran-
<br />tee, except for attorney's fees as provided
<br />for in paragraph 6(b) hereof, shall re-
<br />duce the amount of the liability here-
<br />under pro tanto, and no payment shall
<br />be made without producing this Guaran-
<br />tee for indorsement of such payment
<br />unless the Guarantee be lost or destroy-
<br />ed, in which case proof of such loss or
<br />destruction shall be furnished to the
<br />satisfaction of the Company.
<br />(e) When liability has been definitely
<br />fixed in accordance with the conditions
<br />of this Guarantee, the loss or damage
<br />shall be payable within thirty days there-
<br />after.
<br />7. SUBROGATION UPON PAYMENT
<br />OR SETTLEMENT
<br />Whenever the Company shall have
<br />settled a claim under this Guarantee, all
<br />right of subrogation shall vest in the
<br />Company unaffected by any act of the
<br />Assured, and it shall be subrogated to
<br />and be entitled to all rights and rem-
<br />edies which the Assured would have had
<br />against any person or property in respect
<br />to such claim had this Guarantee not
<br />been issued. If the payment does not
<br />cover the loss of the Assured, the Com-
<br />pany shall be subrogated to such rights
<br />and remedies in the proportion which
<br />said payment bears to the amount of said
<br />loss. The Assured if requested by the
<br />Company, shall transfer to the Company
<br />all rights and remedies against any per-
<br />son or property necessary in order to
<br />perfect such right of subrogation, and
<br />shall permit the Company to use the
<br />name of the Assured in any transaction
<br />or litigation involving such rights or
<br />remedies.
<br />8. GUARANTEE ENTIRE CONTRACT
<br />Any action or actions or rights of
<br />action that the Assured may have or
<br />may bring against the Company arising
<br />out of the subject matter hereof must be
<br />based on the provisions of this Guaran-
<br />tee.
<br />No provision or condition of this
<br />Guarantee can be waived or changed
<br />except by a writing endorsed or attached
<br />hereto signed by the President, a Vice
<br />President, the Secretary, an Assistant
<br />Secretary or other validating officer of
<br />the Company.
<br />9. NOTICES, WHERE SENT
<br />All notices required to be given the
<br />Company and any statement in writing
<br />required to be furnished the Company
<br />shall be addressed to it at the office
<br />which issued this Guarantee or to its
<br />Home Office, 433 South Spring Street,
<br />Los Angeles, California 90054.
<br />10. The fee specified within this Guarantee
<br />is the total fee for title search and exam-
<br />ination and for this Guarantee.
<br />Insurance and Trust Cor.
<br />VA
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