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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. <br />