Schedule B Part I
<br />1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies
<br />taxes or assessments on real property or by the public records.
<br />Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether
<br />or not shown by the records of such agency 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
<br />ascertained by an inspection of the land or by making inquiry of persons in possession thereof.
<br />3. Easements, liens or encumbrances, or claims thereof, 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
<br />survey would disclose, and which are not shown by the public records.
<br />5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance
<br />thereof; (c) water rights, claims or title to water.
<br />6. Any right, title, interest, estate or easement in land beyond the lines of the area specifically described or referred
<br />to in Schedule C, or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this
<br />paragraph shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically
<br />open street or highway is insured by this policy.
<br />7. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances)
<br />restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character,
<br />dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in
<br />ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law,
<br />ordinance or governmental regulation.
<br />8. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights
<br />appears in the public records.
<br />9. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by
<br />the insured claimant; (b) not shown by the public records and not otherwise excluded from coverage but known to
<br />the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by
<br />this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company
<br />prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the
<br />insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which
<br />would not have been sustained if the insured claimant had been a purchaser or encumbrancer for value without
<br />knowledge.
<br />10. Any facts, rights, interests or claims which are not shown by the public records but which could be
<br />ascertained by making inquiry of the lessors in the lease or leases described or referred to in Schedule A.
<br />11. The effect of any failure to comply with the terms, covenants and conditions of the lease or leases described or
<br />referred to in Schedule A.
<br />1. Definition of Terms
<br />The following terms when used in this policy mean:
<br />(a) "insured": the insured named in Schedule A, and, subject to
<br />any rights or defenses the Company may have had against the
<br />named insured, those who succeed to the interest of such insured by
<br />operation of law as distinguished from purchase including, but not
<br />limited to, heirs, distributees, devisees, survivors, personal repre-
<br />sentatives, next of kin, or corporate or fiduciary successors. The
<br />term "insured" also includes (i) the owner of the indebtedness
<br />secured by the insured mortgage and each successor in ownership of
<br />such indebtedness (reserving, however, all rights and defenses as to
<br />any such successor who acquires the indebtedness by operation of
<br />law as described in the first sentence of this subparagraph (a) that
<br />the Company would have had against the successor's transferor),
<br />and further includes (ii) any governmental agency or instrumentality
<br />which is an insurer or guarantor under an insurance contract or guar-
<br />anty insuring or guaranteeing said indebtedness, or any part thereof,
<br />whether named as an insured herein or not, and (iii) the parties des-
<br />Conditions and Stipulations
<br />ignated in paragraph 2(a) of these Conditions and Stipulations.
<br />(b.) "insured claimant": an insured claiming loss or damage
<br />hereunder.
<br />(c.) "insured lender": the owner of an insured mortgage.
<br />(d.) "insured mortgage": a mortgage shown in Schedule B, the
<br />owner of which is named as an insured in Schedule A.
<br />(e.) "knowledge'': actual knowledge, not constructive knowledge
<br />or notice which may be imputed to an insured by reason of any
<br />public records.
<br />(f.) "land": the land described specifically or by reference in
<br />Schedule C, and improvements affixed thereto which by law con-
<br />stitute real property; provided, however, the term ''land" does not
<br />include any area excluded by Paragraph No. 6 of Part I of Schedule
<br />B of this Policy.
<br />(g.) ''mortgage": mortgage, deed of trust, trust deed, or other
<br />security instrument.
<br />(h.) "public records'': those records which by law impart con-
<br />structive notice of matters relating to the land.
<br />(CONDITIONS AND STIPULATIONS Continued on the inside of the Last Page of This Poilcy)
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