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(CONDITIONS AND STIPULATIONS Continued and Concluded From Reverse Side of This Page)
<br />8. Reduction of Insurance; Termination of Liability
<br />All payments under this policy, except payment made for costs,
<br />attorneys' fees and expenses, shall reduce the amount of the insur-
<br />ance pro tanto; provided, however, if the owner of the indebtedness
<br />secured by the insured mortgage is an insured hereunder, then such
<br />payments, prior to the acquisition of title to said estate or interest
<br />as provided in paragraph 2(a) of these Conditions and Stipulations,
<br />shall not reduce pro tanto the amount of the insurance afforded
<br />hereunder as to any such insured, except to the extent that such
<br />payments reduce the amount of the indebtedness secured by such
<br />mortgage.
<br />Payment in full by any person or voluntary satisfaction or release of
<br />the insured mortgage shall terminate all liability of the Company to
<br />an insured owner of the indebtedness secured by the insured mort-
<br />gage, except as provided in paragraph 2(a) hereof.
<br />Liability Noncumulative
<br />It is expressly understood that the amount of insurance under this
<br />policy as to the insured owner of the estate or interest covered by
<br />this policy, shall be reduced by any amount the Company may pay
<br />under any policy insuring (a) a mortgage shown or referred to in
<br />Schedule B hereof which is a lien on the estate or interest covered
<br />by this policy, or (b) a mortgage hereafter executed by an insured
<br />which is a charge or lien on the estate or interest described or referred
<br />to in Schedule A, and the amount so paid shall be deemed a payment
<br />under this policy. The Company shall have the option to apply to
<br />the payment of any such mortgage any amount that otherwise would
<br />be payable hereunder to the insured owner of the estate or interest
<br />covered by this policy and the amount so paid shall be deemed a
<br />payment under this policy to said insured owner.
<br />The provisions of this paragraph 9 shall not apply to an owner of
<br />the indebtedness secured by the insured mortgage, unless such
<br />insured acquires title to said estate or interest in satisfaction of said
<br />indebtedness or any part thereof.
<br />10. Subrogation Upon Payment or Settlement
<br />Whenever the Company shall have paid or settled a claim under this
<br />policy, all right of subrogation shall vest in the Company unaffected
<br />by any act of the insured claimant, except that the owner of the
<br />indebtedness secured by the insured mortgage may release or substi-
<br />tute the personal liability of any debtor or guarantor, or extend or
<br />otherwise modify the terms of payment, or release a portion of the
<br />estate or interest from the lien of the insured mortgage, or release
<br />any collateral security for the indebtedness, provided such act
<br />occurs prior to receipt by such insured of notice of any claim of
<br />title or interest adverse to the title to the estate or interest or the
<br />priority of the lien of the insured mortgage and does not result in
<br />any loss of priority of the lien of the insured mortgage. The Company
<br />shall be subrogated to and be entitled to all rights and remedies
<br />which such insured claimant would have had against any person
<br />or property in respect to such claim had this policy not been issued,
<br />and the Company is hereby authorized and empowered to sue, com-
<br />promise or settle in its name or in the name of the insured to the
<br />full extent of the toss sustained by the Company. If requested by
<br />the Company, the insured shall execute any and all documents to
<br />evidence the within subrogation. If the payment does not cover the
<br />loss of such insured claimant, the Company shall be subrogated to
<br />such rights and remedies in the proportion which said payment
<br />bears to the amount of said loss, but such subrogation shall be in
<br />subordination to an insured mortgage. If loss should result from any
<br />act of such insured claimant, such act shall not void this policy, but
<br />the Company, in that event, shall as to such insured claimant be
<br />required to pay only that part of any losses insured against here-
<br />under which shall exceed the amount, if any, lost to the Company
<br />by reason of the impairment of the right of subrogation.
<br />11. Liability Limited to this Policy
<br />This instrument together with all endorsements and other instru-
<br />ments, if any, attached hereto by the Company is the entire policy
<br />and contract between the insured and the Company. Any claim of
<br />loss or damage, whether or not based on negligence, and which
<br />arises out of the status of the lien of the insured mortgage or of the
<br />title to the estate or interest covered hereby, or any action asserting
<br />such claim, shall be restricted to the provisions and Conditions and
<br />Stipulations of this policy.
<br />No amendment of or endorsement to this policy can be made except
<br />by writing endorsed hereon or attached hereto signed by either
<br />the President, a Vice President, the Secretary, an Assistant Secretary,
<br />or validating officer or authorized signatory of the Company.
<br />No payment shall be made without producing this policy for
<br />endorsement of such payment unless the policy be lost or destroyed,
<br />in which case proof of such loss or destruction shall be furnished
<br />to the satisfaction of the Company.
<br />12. Notices, Where Sent
<br />All notices required to be given the Company and any statement in
<br />writing required to be furnished the Company shall be addressed to
<br />it at the office which issued this policy or to its Home Office, 433
<br />South Spring Street, P.O. Box 2586, Los Angeles, California 90051.
<br />13. THE PREMIUM SPECIFIED IN SCHEDULE A IS THE ENTIRE
<br />CHARGE FOR TITLE SEARCH, TITLE EXAMINATION AND
<br />TITLE INSURANCE.
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