ONDITIONS AND' STIPULATION
<br />(Continued from inside front cover)
<br />the Company for such insured, and all costs,
<br />attorneys' fees and expenses in Litigation carried
<br />on by such insured with the written authorization
<br />of the Company.
<br />(c) When the amount of loss or damage has
<br />been definitely fixed in accordance with the con-
<br />ditions of this policy, the loss or damage shall be
<br />payable within 30 days thereafter.
<br />7. LIMITATION OF LIABILITY
<br />No claim shall arise or be maintainable under
<br />this policy (a) if the Company, after having received
<br />notice of an alleged defect, lien or encumbrance in-
<br />sured against hereunder, by litigation or other-
<br />wise, removes such defect, lien or encumbrance or
<br />establishes the title, or the lien of the insured mort-
<br />gage, as insured, within a reasonable time after
<br />receipt of such notice; (b) in the event of litigation
<br />until there has been a final determination by a
<br />court of competent jurisdiction, and disposition of
<br />all appeals therefrom, adverse to the title or to the
<br />lien of the insured mortgage, as insured, as pro-
<br />vided in paragraph 3 hereof; or (c) for liability
<br />voluntarily admitted or assumed by an insured
<br />without prior written consent of the Company.
<br />8. REDUCTION OF INSURANCE; TERMINA—
<br />TION OF LIABILITY
<br />All payments under this policy, except pay-
<br />ment made for costs, attorneys' fees and expenses,
<br />shall reduce the amount of the insurance pro tanto;
<br />provided, however, if the owner of the indebtedness
<br />secured by the insured mortgage is an insured here-
<br />under, then such payments, prior to the acquisition
<br />of title to said estate or interest as provided in
<br />paragraph 2 (a) of these Conditions and Stipula-
<br />tions, shall not reduce pro tanto the amount of the
<br />insurance afforded hereunder as to any such in-
<br />sured, except to the extent that such payments
<br />reduce the amount of the indebtedness secured
<br />by such mortgage.
<br />Payment in full by any person or voluntary
<br />satisfaction or release of the insured mortgage shall
<br />terminate all liability of the Company to an insured
<br />owner of the indebtedness secured by the insured
<br />mortgage, except as provided in paragraph 2 (a)
<br />hereof.
<br />9. LIABILITY NONCUMULATIVE
<br />It is expressly understood that the amount of
<br />insurance under this policy, as to the insured owner
<br />of the estate or interest covered by this policy, shall
<br />be reduced by any amount the Company may pay
<br />under any policy insuring (a) a mortgage shown or
<br />referred to in Schedule 8 hereof which is a lien
<br />on the estate or interest covered by this policy,
<br />or (b) a mortgage hereafter executed by an insured
<br />which is a charge or lien on the estate or interest
<br />described or referred to in Schedule A, and the
<br />amount so paid shall be deemed a payment under
<br />this policy. The Company shall have the option to
<br />apply to the payment of any such mortgage any
<br />amount that otherwise would be payable hereunder
<br />to the insured owner of the estate or interest cov-
<br />ered by this policy and the amount so paid shall be
<br />deemed a payment under this policy to said insured
<br />owner.
<br />The provisions of this paragraph 9 shall not
<br />apply to an owner of the indebtedness secured by
<br />the insured mortgage, unless such insured acquires
<br />title to said estate or interest in satisfaction of said
<br />indebtedness or any part thereof.
<br />10. SUBROGATION UPON PAYMENT OR
<br />SETTLEMENT
<br />Whenever the Company shall have paid or
<br />settled a claim under this policy, all right of sub-
<br />rogation shall vest in the Company unaffected by
<br />any act of the insured claimant, except that the
<br />owner of the indebtedness secured by the insured
<br />mortgage may release or substitute the personal
<br />liability of any debtor or guarantor, or extend or
<br />otherwise modify the terms of payment, or re-
<br />lease a portion of the estate or interest from the
<br />lien of the insured mortgage, or release any
<br />collateral security for the indebtedness, provided
<br />such act occurs prior to receipt by such insured
<br />of notice of any claim of title or interest adverse
<br />to the title to the estate or interest or the priority
<br />of the lien of the insured mortgage and does not
<br />result in any loss of priority of the lien of the in-
<br />sured mortgage. The Company shall be subrogated
<br />to and be entitled to all rights and remedies which
<br />such insured claimant would have had against any
<br />person or property in respect to such claim had this
<br />policy not been issued, and the Company is here-
<br />by authorized and empowered to sue, compromise
<br />or settle in its name or in the name of the insured
<br />to the full extent of the loss sustained by the Com-
<br />pany. If requested by the Company, the insured
<br />shall execute any and all documents to evidence
<br />the within subrogation. If the payment does not
<br />cover the loss of such insured claimant, the Com-
<br />pany shall be subrogated to such rights and reme-
<br />dies in the proportion which said payment bears to
<br />the amount of said loss, but such subrogation shall
<br />be in subordination to an insured mortgage. If loss
<br />should result from any act of such insured claimant,
<br />such act shall not void this policy, but the Com-
<br />pany, in that event, shall as to such insured
<br />claimant be required to pay only that part of any
<br />losses insured against hereunder which shall exceed
<br />the amount, if any, lost to the Company by reason
<br />of the impairment of the right of subrogation.
<br />11. LIABILITY LIMITED TO THIS POLICY
<br />This instrument together with all endorse-
<br />ments and other instruments, if any, attached here-
<br />to by the Company is the entire policy and con-
<br />tract between the insured and the Company.
<br />Any claim of loss or damage, whether or not
<br />based on negligence, and which arises out of the
<br />status of the lien of the insured mortgage or of the
<br />title to the estate or interest covered hereby, or
<br />any action asserting such claim, shall be restricted
<br />to the provisions and conditions and stipulations of
<br />this policy.
<br />No amendment of or endorsement to this
<br />policy can be made except by writing endorsed
<br />hereon or attached hereto signed by either the
<br />President, a Vice President, the Secretary, an
<br />Assistant Secretary, or validating officer or author-
<br />ized signatory of the Company.
<br />No payment shall be made without producing
<br />this policy for endorsement of such payment un-
<br />less the policy be lost or destroyed, in which case
<br />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
<br />and any statement in writing required to be fur-
<br />nished the Company shall be addressed to it at its
<br />home office at 421 North Main Street, Santa Ana,
<br />California, 92701, or to the office which issued
<br />this policy.
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