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Schedule B Part <br />1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes <br />or assessments on real property or by the public records. <br />Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or <br />not shown by the records of such agency or by the public records. <br />2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by <br />an inspection of the land or by making inquiry of persons in possession thereof. <br />3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. <br />4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct <br />survey would disclose, and which are not shown by the public records. <br />5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; <br />(c)'water rights, claims or title to water. <br />6. Any right, title, interest, estate or easement in land beyond the lines of the area specifically described or referred to <br />in Schedule C, or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph <br />shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically open street or <br />highway is Insured by this policy. <br />7. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) <br />restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, <br />dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in <br />ownership or a reduction in the dimensions or area of the land, orthe effect of any violation of any such law, ordinance <br />or governmental regulation. <br />8. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights <br />appears in the public records. <br />9. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the <br />insured claimant; (b) not shown by the public records and not otherwise excluded from coverage but known to the <br />insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this <br />policy or acquired the insured mortgage and not disclosed in writingg by the insured claimant to the Company prior to <br />the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured <br />claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not <br />have been sustained if the insured claimant had been a purchaser or encumbrancer forvalue without knowledge. <br />10. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by <br />making Inquiry of the lessors in the lease or leases described or referred to in Schedule A. <br />11. The effect of any failure to comply with the terms, covenants and conditions of the lease or leases described or <br />referred to in Schedule A. <br />1. Definition of Terms <br />The following terms when used in this policy mean: <br />(a.) "insured": the insured named in Schedule A, and, subject to any rights <br />or defenses the Company may have had against the named insured, those <br />who succeed to the interest of such insured by operation of law as distin- <br />guished from purchase including, but not limited to, heirs, distributees, <br />devisees, survivors, personal representatives, next of kin, or corporate or <br />fiduciary successors. The term "insured" also includes (i) the owner of the <br />indebtedness secured by the insured mortgage and each successor in <br />ownership of such indebtedness (reserving, however, all rights and de- <br />fenses as to any such successor who acquires the indebtedness by opera- <br />tion of law as described in the first sentence of this subparagraph (a) that <br />the Company would have had against the successor's transferor), and <br />further includes (ii) any governmental agency or instrumentality which is an <br />insurer or guarantor under an insurance contract or guaranty insuring or <br />guaranteeing said indebtedness, or any part thereof, whether named as an <br />insured herein or not, and (iii) the parties designated in paragraph 2(a) of <br />Conditions and Stipulations <br />these Conditions and Stipulations. <br />(b.) "insured claimant": an insured claiming loss or damage hereunder. <br />(c.) "insured lender": the owner of an insured mortgage. <br />(d.) "insured mortgage": a mortgage shown in Schedule B, the owner of <br />which is named as an insured in Schedule A. <br />(e.) "knowledge": actual knowledge, not constructive knowledge or notice <br />which may be imputed to an insured by reason of any public records. <br />(f.) "land": the land described specifically or by reference in Schedule C, <br />and improvements affixed thereto which by law constitute real property; <br />provided, however, the term "land" does not include any area excluded by <br />Paragraph No. 6 of Part I of Schedule B of this Policy. <br />(g.) "mortgage": mortgage, deed of trust, trust deed, or other security <br />instrument. <br />(h.) "public records": those records which by law impart constructive <br />notice of matters relating to the land. <br />(CONDITIONS AND STIPULATIONS Continued on the Inside of the Last Page of This Policy) <br />