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CONDITIONS
<br /> I . DEFINITION OF TERMS without Knowledge . With respect to Covered Risk 5 (d ) , "Public
<br /> The following terms when used in this policy mean : Records" shall also include environmental protection liens filed
<br /> in the records of the clerk of the United States District Court
<br /> (a) "Amount of Insurance" : The amount stated in Schedule A , as for the district where the Land is located .
<br /> may be increased or decreased by endorsement to this policy, (j ) "Title" : The estate or interest described in Schedule A .
<br /> increased by Section 8( b ), or decreased by Sections 10 and 11
<br /> of these Conditions . (k) "Unmarketable Title" : Title affected by an alleged or apparent
<br /> matter that would permit a prospective purchaser or lessee of
<br /> (b) "Date of Policy" : The date designated as "Date of Policy " in the Title or lender on the Title to be released from the obligation
<br /> Schedule A . to purchase, lease, or lend if there is a contractual condition
<br /> ( c) "Entity " : A corporation , partnership , trust, limited liability requiring delivery of marketable title .
<br /> company, or other similar legal entity.
<br /> 2 . CONTINUATION OF INSURANCE
<br /> ( d) "Insured" : The Insured named in Schedule A .
<br /> ( i) The term " Insured" also includes The coverage of this policy shall continue in force as of Date of
<br /> Policy in favor of an Insured, but only so long as the Insured retains
<br /> (A) successors to the Title of the Insured by operation of an estate or interest in the Land, or holds an obligation secured by
<br /> a
<br /> law as distinguished from purchase, including heirs, purchase money Mortgage given by a purchaser from the Insured,
<br /> devisees, survivors, personal representatives , or next or only so long as the Insured shall have liability by reason of war.
<br /> of kin; ranties in any transfer or conveyance of the Title . This policy shall
<br /> (B ) successors to an Insured by dissolution, merger, con- not continue in force in favor of any purchaser from the
<br /> Insured
<br /> solidation , distribution , or reorganization; of either ( i ) an estate or interest in the Land , or (ii) an obligation
<br /> (C) successors to an Insured by its conversion to another secured by a purchase money Mortgage given to the Insured.
<br /> kind of Entity ; 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED
<br /> (D) a grantee of an Insured under a deed delivered without CLAIMANT
<br /> payment of actual valuable consideration conveying the The Insured shall notify the Company promptly in writing ( i) in
<br /> Title case of any litigation as set forth in Section 5 (a) of these Condi-
<br /> ( 1 ) if the stock, shares, memberships, or other equity tions, ( ii ) in case Knowledge shall come to an Insured hereunder of
<br /> interests of the grantee are wholly-owned by the any claim of title or interest that is adverse to the Title, as insured,
<br /> named Insured , and that might cause loss or damage for which the Company may
<br /> 2) if the grantee wholly owns the named Insured, be liable by virtue of this policy, or ( iii) if the Title, as insured
<br />, is
<br /> ( g Y rejected as Unmarketable Title . If the Company is prejudiced by
<br /> (3 ) if the grantee is wholly-owned by an affiliated En- the failure of the Insured Claimant to provide prompt notice, the
<br /> tity of the named Insured , provided the affiliated Company 's liability to the Insured Claimant under the policy shall
<br /> Entity and the named Insured are both wholly= be reduced to the extent of the prejudice .
<br /> owned by the same person or Entity, or 4. PROOF OF LOSS
<br /> (4 ) if the grantee is a trustee or beneficiary of a trust
<br /> In the event the Company is unable to determine the amount of loss
<br /> created by a written instrument established by the
<br /> Insured named in Schedule A for estate planning or damage, the Company may, at its option, require as a condition
<br /> purposes . of payment that the Insured Claimant furnish a signed proof of loss.
<br /> The proof of loss must describe the defect, lien, encumbrance, or
<br /> ( ii ) With regard to (A ), (B ) , (C ), and (D) reserving, however, all other matter insured against by this policy that constitutes the basis
<br /> rights and defenses as to any successor that the Company of loss or damage and shall state, to the extent possible, the
<br /> basis
<br /> would have had against any predecessor Insured. of calculating the amount of the loss or damage .
<br /> (e) "Insured Claimant" : An Insured claiming loss or damage . 5. DEFENSE AND PROSECUTION OF ACTIONS
<br /> ( f) "Knowledge" or "Known" : Actual knowledge, not construo- (a) Upon written request by the Insured, and subject to the options
<br /> tive knowledge or notice that may be imputed to an Insured by contained in Section 7 of these Conditions , the Company, at
<br /> reason of the Public Records or any other records that impart its own cost and without unreasonable delay, shall provide for
<br /> constructive notice of matters affecting the Title . the defense of an Insured in litigation in which any third party
<br /> (g) "Land" : The land described in Schedule A, and affixed improve- asserts a claim covered by this policy adverse to the Insured.
<br /> ments that by law constitute real property. The term "Land" This obligation is limited to only those stated causes of
<br /> action
<br /> does not include any property beyond the lines of the area alleging matters insured against by this policy. The Company
<br /> described in Schedule A, nor any right, title, interest, estate, or shall have the right to select counsel of its choice (subject to the
<br /> easement in abutting streets, roads, avenues, alleys, lanes, ways, right of the Insured to object for reasonable cause) to represent
<br /> or waterways, but this does not modify or limit the extent that the Insured as to those stated causes of action. It shall
<br /> not be
<br /> a right of access to and from the Land is insured by this policy. liable for and will not pay the fees of any other
<br /> counsel . The
<br /> ( h) "Mortgage" : Mortgage, deed of trust, trust deed, or other secu- Company will not pay any fees , costs, or expenses incurred by
<br /> rity instrument, including one evidenced by electronic means the Insured in the defense of those causes of action that allege
<br /> authorized bylaw. matters not insured against by this policy.
<br /> ( i) "Public Records" : Records established under state statutes at (b ) The Company shall have the right, in addition
<br /> to the options
<br /> Date of Policy for the purpose of imparting constructive notice contained in Section 7 of these Conditions, at its own cost, to
<br /> of matters relating to real property to purchasers for value and institute and prosecute any action or proceeding or to do
<br /> any
<br /> OP-25 ALTA Owners Policy of Title Insurance 647-06 (with FLORIDA Modifications) (WLTIC Edition 1 /26/ 11 ) Page 3
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