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CONDITIONS AND STIPULATIONS
<br />I. nt:FINITION OF TERMS
<br />'I'llo followi►l" Iernts when rlserl in Ihis
<br />(,onranlrr nu•an•
<br />in) "land": Ihr• Land described, spe-
<br />vilirnllt• fir I,t ref,•renre, in Ihis (;naran-
<br />Irr and intprrnernenis nfftxrd Ihe(rlo
<br />%ehirh I,v Inw c•nnaitul,% real property;
<br />(i,) "iuthlir reenrrly'": Ihnsr recnr(Is
<br />tvhu•h intpacl cnnslru(•Itve ►tnlirr of nisi-
<br />Irrs relalint! In -•nid kneel;
<br />(e) -dale": Ihr vffvctive rinfp:
<br />(d) •'Ihr Assured": flip pnrly or
<br />parlivs mined as Ihr Assnrrd in Ihis
<br />(;n:uanler, or in a ::npplrna•nlal writing
<br />evertlfed by Chi, ('nmpanv:
<br />w) "ntnrft_a:.,r mnrlragc, dri-d of
<br />+errs r!r...� ,,+ r,11t.•r,:r.r•r;ri1, in�lrr .
<br />). L'Y,(:I-IISIONS Fnnr.4 COVERAGE Or THIS
<br />GUAnA.NTr!'
<br />1'hr ('nntpan> assunms no linhilily for
<br />in>:c fir flanl;lVf. lit• renNon of Ill,, following:
<br />gal 'I'av••: or w."'....nt ill•, which :ur
<br />nog r.hny:n a • r xi�linl; li, n : h}, Ihr records
<br />of ant laving authority iltal levies faxes
<br />or :tss, senu ills on rent I,rnperiv fir hY the
<br />pnhliv rer•ords.
<br />(h) I healer;left minim; vlaints: rvs-
<br />pr%-;llintts no- pxepplions in patents or in
<br />Arts nuthnrizing flit issuance thereof;
<br />scaler rights, c•Inints or title In water.
<br />((.) 'rifle to ;n v properly beyond
<br />flit• lines of Ihr Innd mprr••sly dosrrihrd
<br />in I.hr, desrriplion srf fnrlh in Ihis Guar-
<br />anter, or filly to slrprlti. roads, nvrntles,
<br />hinny. ways or on which surh
<br />land abuts, or flip right In maintain Iho-rp-
<br />in vaulls, lunnrls, ramps or auto other
<br />slrnrfurr or intprm•etttenl; or sill\ rights
<br />or ensentr•nls Iherrin unless such prnp-
<br />erly, ►•itchy no- rasrmrnls sire exprrssly
<br />Mid tilu riflrally gel fnrlh in said descrip-
<br />Jinn.
<br />(d) I)rfprls, liras, enr.umbrances,
<br />advrrsr, rlaints ngninsi file fiUe as guar-
<br />anteed no- olhpr ntaltrrs (1) vrPnIed,
<br />s,I(lrrrrl• assnntrrl nr agrved In by one or
<br />,tore r,f the Asrcurerl; no- (2) reselling; in
<br />nn Ins; In Ihr Asvnred.
<br />3. PROSFSctITIMI OF ACTIONS
<br />(a) The Company shall have the
<br />rit;ill ill its men post to institute and
<br />prnsrcutr nil v ar.linn fir proceeding or do
<br />any other net which in its opinion may be
<br />npepssnry or do sirah1v to rstahlish or
<br />ronfirm Ihr matters herein guaranteed-,
<br />and flip ('otnpanv may inke any appm-
<br />priale netion tinder Ihr terms of this
<br />(lunrnnler whether or nnl it shrill he
<br />linhlr, Iherrt►nder :in(] shall not fherehy
<br />r(inredv linhilily or waive anv provision
<br />hereof
<br />(b) in nil cases where Ihp Company
<br />(Ines so inslitutr and prosprttte nnv notion
<br />or prnevo(ling, Ihr Assorrd shall prrntil
<br />Ihr ('nntpany In use, at its option, the
<br />nnnir of flip Assured for such purpose.
<br />Whenever requested by the Company,
<br />the Assurer) shall give the Cnm—nu All
<br />reasonable aid in prosrcuLing such action
<br />or proceeding, and flip Cotnpan,v shall
<br />reimburse Clio- Assured for any expense
<br />so incurrvrl.
<br />NOTICE OF LOSS -LIMITATION OF
<br />ACTION
<br />A statement in writing; of any loss or
<br />damage for which it is claimed the Com-
<br />pany is lialtlp ondvi, ilit. (;nnrnttr,r shall
<br />by furnished In Ihr ('ontpanywithin sixty
<br />(lily, after such loss fir damage shall have
<br />liven determined, and no right of action
<br />shall arcrue to ilie Assnt•ed under this
<br />(ivarnnlrp until lhirly flays after such
<br />slalrntvnl. s;hall have liven fnrnishcrrl, and
<br />It() recovery S11c111 by had by the Assured
<br />under Ihis Guar:utfev unless action shall
<br />hr• rontmrnrr•rI thereon within Iwo Yvan;
<br />after vxpirahoii of said lhirly filly period.
<br />I�ailtlre In furnish such stalvnipnl of loss
<br />or dnntagv or fit ronlnlr•nce sucll action
<br />within the time hervinl,efot•e specified.
<br />shrill he a har against Inainly-
<br />nance by Clio,Assur+ d of any aclinn under
<br />Ihis (ht;tranlr•v.
<br />5. OPTION TO PAY, SETTLE OR
<br />COMPROMISE CLAIMS
<br />'i'hfr ('otnpanv shall have Ilie opliott In
<br />pay or sviliv or contprnnlise for or in the
<br />mane of the Assurrrl :iny claim which
<br />could result. in loss In thv Assured within
<br />the coverage of this Guarantee, or to pay
<br />the full amount of this Guarantee or, if
<br />this Guarantee is issued for the hvnefit
<br />of a holrh•r of it ntorIgngp, the Company
<br />shall have Ihr option to purchnsp the
<br />indebtedness secured by said mortgage.
<br />Such purchase, Inw:nvnt or tender of
<br />paymr.nl of flit fill anun►nf of flip Guar-
<br />anfee sh,.11 lrrminale all liability of the
<br />Company I►errunrler. in Cho event after
<br />nnticv for claim has liven given to the
<br />(lompnny by thfr Assured the Company
<br />offers In purchase swirl indehipdness, the
<br />owner of such intirhfedness shall transfer
<br />and assign said indebtedness and the
<br />mortgage securing the same to the Com-
<br />pany upon pnYntenl of the purchase
<br />price.
<br />S. LIMITATION OF LIABILITY -PAYMENT
<br />OF LOSS
<br />(11) The linhilily of Ihr Company
<br />under this Guarantee shall be limited to
<br />the nmount of nclunl 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 tile linhility stated on the face
<br />page herof.
<br />(b) The Company will pay all costs
<br />imposed upon the Assured in litigation
<br />carried on by the Company for the
<br />Assured, and all cosmic and attorney's fees
<br />in litigation carrier) on by the Assured
<br />with Cho written authorization of the
<br />Company.
<br />(c) No claim fordantngvs shall arise
<br />or he. mninlninahle under this Guarantee
<br />(1) if Cho Company after having received
<br />notice of an alleged defect, lien or encum-
<br />brance not shown as an Exception or ex -
<br />eluded herein removes such defect, lien
<br />or encumbrance within a reasonable lirov
<br />after receipt of such notice, or (2) for
<br />liability voluntarily assumed by the
<br />Assured in settling any cinim or sail
<br />without written consent of Ili(• 0)lnI)an`V
<br />(d) All payments undpr tl,i- GlIar.
<br />antee, except for ntlorneys' fir ,; as Ism
<br />virlyd for in paragraph 6(h) 1wr,,nf, shall
<br />reduce the amnurt! of Ill( 1;:01ilik' her+
<br />under pro Canto, and on g,n,•nt+,ul shall
<br />be made without prodtivini, !his (ku:uan-
<br />f.ee. for indorsement of such gmvrrtcnt Un-
<br />less the Guarantee he Inst or deslrnvrd,
<br />in which case proof of !i11f.11 In or cit•
<br />slruc, i shall he fnrnisherl It, Ill,- sn!i
<br />faction of the Company
<br />((•) When iinhilit•. r, ci,
<br />ttilek fixed in accord:,,:
<br />dilinns of this Gminviic
<br />rl:uuage shall he
<br />flays t,ho-renfirr.
<br />7. SUBROGATION UPON PAYMENT Oil
<br />SETTLEMENT
<br />WIwil,-vur I.hv (:olltp;t,r) shall hay.,
<br />sclllrri a claim under Ihis (:uar:mlrr, all
<br />right, of subrogation shall Ve81 in Ihr
<br />Company unctffer wl Iw inv art of Ilw
<br />Assured, and it shall he sohrogaloo in
<br />and he entitled In all rights and rrmrrlio-s
<br />which the Assured would hove had
<br />against any person or property in respect
<br />to such claim had this Gunranler nr)I
<br />been issued. If the payment. floes not
<br />cover the less of the Assurrrl, Ihr. Ctllo-
<br />pany shall be suhrogalcd Ir, such rights
<br />and remedies in the proportion which
<br />said payment. hears Co the amuunl of ,:lid
<br />loss. The Assured if requested by Ihp
<br />Company, shall transfer to the ('tirripany
<br />all rights and remedies againstany per-
<br />son or property wxxtssary in order to
<br />perfect such right of subrogation, and
<br />shall permit Ihr Cumpnnv In uso- Ihr
<br />name of the Assured in any Irans;ictiml
<br />or litigation involving such rights no-
<br />remedies.
<br />B. GUARANTEE ENTIRE CONTRACT
<br />Any action or notions or rights of notion
<br />that Clio Assurer) may have or nta,v bring
<br />against the Company arising out of Ihp
<br />subject matter hervof nuts). he haspd rill
<br />the provisions of this Guarantee.
<br />No provision or condition of Ihis
<br />Guarantee can he waived or changed
<br />except by a writing endorsed or attached
<br />hereto signer) by Lhe President, a Vier
<br />President, the Secretary, an Assistant
<br />Secretary or other validating off►co-r of
<br />the Company.
<br />9. NOTICES, WHERE SENT
<br />All notices required to be given the Com-
<br />pany and any statement in writing re-
<br />quired to be furnished the Company shall
<br />he addressed to it at its- Main Office, :150
<br />(lush Slrerl., San Pranvisvo, California.
<br />10. The fee specified on the face of this
<br />Guarantee is the total fee for title search
<br />and examination and for this Guarantee.
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