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CONDITIONS AND STIPULATIONS
<br />I. nr_FINITION OF TERMS
<br />The following lernts when tisrrl in this
<br />r:unrnnlrp nr•:!n•
<br />(n) "Laid . flit, land dc:'crihed, spe.
<br />rlhrally nr h1' rel•eronee, in this (maran-
<br />I(•e ayt(l affixed thercln
<br />�:Itit h hw Lnr c onsfilolr• real property:
<br />ll,) `Imhlir rrrords": thnse ternrds
<br />Mitch tntltntl cunslrorlive tinlice or ntal-
<br />lers I-vInhnl; In S.-lid land:
<br />(c) "elate Ihr efferlive elat(-:
<br />(d) "Ihr A•:+tirerl•': Ihr pnrly or
<br />p:u•Lies nanv•rl ns Ihr Assurer) in this
<br />(7uaranfr•r, nr in n sup)denir•nlal writing
<br />excculed hY the (!ontpuny:
<br />(e) "nvtrlgago": mortgage, dead of
<br />Irust, frost dr-rrrl.orofhersertirily instru-
<br />menl.
<br />2. EXCLUSIONS FROM COVERAGE Or THIS
<br />GIIARANTGF.
<br />1'hr ('rnntltit ,, n5. attic•; no hohilil\ for
<br />loss orrltunalrr• IIY or
<br />(a) Toxe' ur «font nry
<br />nol shown as existing liens by Ihr records
<br />(if in laxing aulhorily fh:tl Ievie,; Ltxvs
<br />nr• assessments of real Iwoperly or by the
<br />public records.
<br />(h) Ilnpafenled mining claims: res-
<br />ervations or exceptions in patents or in
<br />Acts authorizing the issuancr thereof:
<br />water rights, claims or Lille in wnner.
<br />• (r.) Title to ttnv properly heyond
<br />I.he lilies of Ihr I:uul expressly rlesrrilwd
<br />in the description set forth in this (ivar-
<br />anfre, or title to streets, ronds, avenues,
<br />lanes, ways or waterwnvs on which such
<br />land abuts, or l.he right to maintstin there-
<br />in vaults, tunnels, ramps or anv other
<br />structure or improvrnient: or any rights
<br />o• casements Ilterein unless such prnp-
<br />erl.y, rights or easements are expressly
<br />nod specifirolly srl. forth in said rdescrip-
<br />I ion.
<br />(d) I)cfects, liens, encumbrances,
<br />adverse clnims against the title as gunr-
<br />anteed or other matters (1) created,
<br />suffered, assumed or agreed to by one. or
<br />Ilion! of I.he Assured; or (2) reselling in
<br />no loss to the Assured.
<br />a. PROSECUTION 01: ACTIONS
<br />(a) The Company shall have the
<br />right ill its awn cost to institute and
<br />prosecute any action or proceeding or do
<br />any other act which in its opinion may be
<br />necessary or desirable to establish or
<br />confirm the matters herein guaranteed;
<br />and Clio Company may take any appro-
<br />priale nel.inn under tile. terms of this
<br />Gmiranfee whel.her or not it shall be
<br />liable thereunder and shall not thereby
<br />coitrerlp linhilik, or waive nnv provision
<br />hereof.
<br />(h) I null rases when, I.he Company
<br />rinr•sso insliluleand prnserntennynrliot
<br />or proceeding. the Assured ,hall perntil
<br />Lhr Company In use, at its option, the
<br />name of file Asstired for stich purpose.
<br />Whenever requester) by the Company,
<br />the Assured shnll give the Company all
<br />reasonable aid in prosrculing such action
<br />or proceeding, and the Company shall
<br />reimburse the Assurpri for any expense
<br />so incurred.
<br />4. NOTICE OF LOSS -LIMITATION OF
<br />ACTION
<br />A stalement in wrilin!; or any loss or
<br />damage for which it i. cloimrd the Com-
<br />pany is linhle tinder this Guaranten shall
<br />hp fur•nishecl In file ('nntlr,►nv within sixty
<br />(Ines after such loss or rhimage shall have
<br />tter•n delermined, noel tic rightof action
<br />shall accrue In flip Assured tinder this
<br />(ttutranlee until thirfy clays after such
<br />s(alrmettl shall hove Repo furnishecl, and
<br />no recovers shall hp had by the Assured
<br />under this Guarantee unless action shall
<br />he enmmeneed thercnn within Iwo years
<br />after cxpiralion of said thirty day period.
<br />Failure In furnish such stalpmrnl of loss
<br />or damage or In commence such action
<br />within the time hervinbefore specified.
<br />shall he a conrlusivc bar against nutinfp-
<br />ntncp by Lit(- Assured orally anion tinder
<br />this Guaranter,
<br />S. OPTION TO PAY, SETTLE OR
<br />COMPROMISE CLAIMS
<br />The Company shall have the option to
<br />pay or settle or romprontisp for or in the
<br />name of file Assurer] anv claim which
<br />could result in loss In the Assttrvd within
<br />the coverage of this (.unrantee, or to pay
<br />the full aninunl of this Guarantee or, if
<br />this Guarantee is issued for .the benefit
<br />of a holder of it nutrll;agr••, the Company
<br />shall have the option to purchase the
<br />indehfedness secured by said mortgage.
<br />Such purchase, tinvment or Icnder of
<br />payment of f.he full amount of the Guar-
<br />anlee sh.sll lerntinate all liahilily of the
<br />Company hereunder. in the event after
<br />notice of claim lists heen given In file
<br />Company by the Assured the Company
<br />offers to purchase said indrhfcriness, the
<br />owner of such indehflciness shall transfer
<br />and assign said indpbledness and the
<br />mortgage securing the same to the Com-
<br />pany upon payment of the purchase
<br />price.
<br />6. LIMITATION OF LIABILITY -PAYMENT
<br />OF LOSS
<br />(a) The liability of the Company
<br />under this Guarantee shall be limited to
<br />the amount of actual loss sustained by
<br />the Assured because of reliance upon the
<br />assurances herein set forth, but in no
<br />event shall such liability exceed the
<br />amount of the liability stated on the face
<br />page herof.
<br />(b) The Company will pay all costs
<br />imposer] upon the Assured in litigation
<br />carried on by the Company for the
<br />Assurer], and all rode! and atlorney's fees
<br />in litigation carried on by the Assured
<br />with the written authorization of the
<br />Company.
<br />(r) No elailit for datnagesshalI arise
<br />or he maintainable under this Guarantee
<br />(1) if the Company after having received
<br />notice or an alleged defect, lien or encum-
<br />brance not shown as an Exception or ex -
<br />eluded herein removes such duller, lint,
<br />or encumbrance within a reasonable Lime
<br />after receipt of such notice, or (2) for
<br />liability voluntarily assumed by I he
<br />Assured in settling anv !lain, or soli
<br />without written consent. of the Company.
<br />(d) All payments under Ihis Gvw—
<br />antee. except for attorneys, rcr:: us Iqn.
<br />vided for in paragraph li(h) hereof, shall
<br />rrdure the amounl rr Ihr linhilily 1-1-
<br />tinder pro tanfe, and tin pnyrtu•nl sh;ct!
<br />he marle without pmriucing Ibis (dentin
<br />tre for indorsrnv•nl of such Ic:cv!nrnl un
<br />less the Cuaruniee he lost or destroyed,
<br />in which case proof of such loss or de.
<br />st.ruclion shall he famished Ice Ill— satinsafi
<br />faction of the Company.
<br />(c) When liability has been deli
<br />nilely fixed in accordance with Lhe ran
<br />ditions of this Guarantee, the Ins-, or
<br />damage shall be payable within thirty
<br />clays thereafter.
<br />7. SUBROGATION UPON PAYMENT Oil
<br />SETTLEMENT
<br />Wilvilever I.11e (!untlrnnv :;hall lwv
<br />settled a claim tinder this Guarantee. all
<br />right of subrogation slial! volt in the
<br />Company unafT(xlpd by :utv act of fill -
<br />Assured,
<br />and it . shall he suhrugated it)
<br />and be entitled to all rights and remedies
<br />which the Assured would lt.wv had
<br />against any person or property in respect.
<br />to such claim hnd this Guarantee not
<br />been issued. If the payment does not.
<br />(-over the loss of Ihr. Assured, flit, Com
<br />pany shall be suhrogaled to such rights
<br />and remedies in the proportion which
<br />said payment hears Lu the amutntl of :inid
<br />I... . The Assured if requester! by the
<br />Company, shall transfer to the Conilwn'-
<br />all rights and remedies against tiny per-
<br />son or properly necessary in order to
<br />perfect such right or subrogation, and
<br />shall permit the C,ompanv to lisp file
<br />nano of the Assurer) in :illy Iraosut•liun
<br />or litigation involving such rights or
<br />remedies.
<br />8. GUARANTEE ENTIRE r.OUTRACT
<br />Any action or actions or righls of acl.ion
<br />that the Assured may have or may bring
<br />against the Company arising out. of the
<br />subject matter hereof mush he haled tin
<br />the provisions of this Guarantee.
<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, tut Assislccnt
<br />Secretary or other validating officer of
<br />the Company.
<br />9. NOTICES, WHERE SENT
<br />All notices required In he given 1.111, (:one
<br />pany and any statement in writing rr
<br />quired to be furnished the Company shall
<br />he arldre..vwd to it at its Main Office, 350
<br />Bosh Street, San P r:utrisc•n, (:alifornin
<br />10. The fee specified un the face of I,his
<br />Guarantee is the told rot for title search
<br />and examination an i for this Guarantee.
<br />11-je.
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