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i CONDITIONS 1 . DEFINITION OF TERMS without Knowledge. With respect to Covered Risk 5 (d), "Public The following terms when used in this policy mean : Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court (a) "Amount of Insurance" : The amount stated in Schedule A, as for the district where the Land is located, may be increased or decreased by endorsement to this policy, increased by Section 8(b), or decreased by Sections 10 and I 1 "Title" : The estate or interest described in Schedule A. of these Conditions. (k) "Unmarketable Title" : Title affected by an alleged or apparent (b) "Date of Policy" : The date designated as "Date of Policy" in matter that would permit a prospective purchaser or lessee of Schedule A. the Title or lender on the Title to be released from the obligation to purchase, lease, or lend if there is a contractual condition (c) -"Entity" : A corporation, partnership, trust, limited liability requiring delivery of marketable title. company, or other similar legal entity. (d) "Insured" : The Insured named in Schedule A . 2. CONTINUATION OF INSURANCE (i) The term "Insured" also includes The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only so long as the Insured retains (A) successors to the Title of the Insured by operation of an estate or interest in the Land, or holds an obligation secured by a law as distinguished from purchase, including heirs, purchase money Mortgage given by a purchaser from the Insured, devisees, survivors, personal representatives, or next or only so long as the Insured shall have liability by reason of warm of kin ; ranties in any transfer or conveyance of the Title. This policy shall (B) successors to an Insured by dissolution, merger, con- not continue in force in favor of any purchaser from the Insured solidation, distribution, or reorganization; of either (i) an estate or interest in the Land, or (ii) an obligation (C) successors to an Insured by its conversion to another secured by a purchase money Mortgage given to the Insured. kind of Entity; 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED (D) a grantee of an Insured under a deed delivered without CLAIMANT payment of actual valuable consideration conveying the The Insured shall notify the Company promptly in writing (i) in Title case of any litigation as set forth in Section 5(a) of these Condi- ( 1 ) if the stock, shares, memberships, or other equity tions, (ii) in case Knowledge shall come to an Insured hereunder of interests of the grantee are wholly-owned by the any claim of title or interest that is adverse to the Title, as insured, named Insured , and that might cause loss or damage for which the Company may (2) if the grantee wholly owns the named Insured, be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by (3 ) if the grantee is wholly-owned by an affiliated En- the failure of the Insured Claimant to provide prompt notice, the tity of the named Insured, provided the affiliated Company 's liability to the Insured Claimant under the policy shall Entity and the named Insured are both wholly- be reduced to the extent of the prejudice. owned by the same person or Entity, or 4. PROOF OF LOSS (4) if the grantee is a trustee or beneficiary of a trust created by a written instrument established by the In the event the Company is unable to determine the amount of loss Insured named in Schedule A for estate planning or damage, the Company may, at its option, require as a condition purposes . ofpayment that the Insured Claimant furnish a signed proof of loss . n With regard to A , (13), (C), and D reserving, all The proof of loss must describe the defect, lien, encumbrance, or O g ( ) ( ) g other matter insured against by this policy that constitutes the basis rights and defenses as to any successor that the Company of loss or damage and shall state, to the extent possible, the basis would have had against any predecessor Insured . of.calculating the amount of the loss or damage. (e) "Insured Claimant" : An Insured claiming loss or damage . 5. DEFENSE AND PROSECUTION OF ACTIONS (f) "Knowledge" or "Known" : Actual knowledge, not construc- tive knowledge or notice that may be imputed to an insured by (a) Upon written request by the Insured, and subject to the options reason of the Public Records or any other records that impart contained in Section 7 of these Conditions, the Company, at constructive notice of matters affecting the Title . its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party (g) "Land" : The land described in Schedule A, and affixed improve- asserts a claim covered by this policy adverse to the Insured. ments that by law constitute real property. The term "Land" This obligation is limited to only those stated causes of action does not include any property beyond the lines of the area alleging matters insured against by this policy. The Company described in Schedule A, nor any right, title, interest, estate; or shall have the right to select counsel of its choice (subject to the easement in abutting streets, roads, avenues, alleys, lanes, ways, right of the Insured to object for reasonable cause) to represent or waterways, but this does not modify or limit the extent that the Insured as to those stated causes of action . It shall not be 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 counsel . The (h) "Mortgage" : Mortgage, deed of trust, trust deed, or other secu- Company will not pay any fees, costs, or expenses incurred by rity instrument, including one evidenced by electronic means the Insured in the defense of those causes of action that allege authorized bylaw. matters not insured against by this policy. (i) "Public Records" : Records established under state statutes at (b) The Company shall have the right, in addition to the options Date of Policy for the purpose of imparting constructive notice contained in Section 7 of these Conditions, at its own cost, to of matters relating to real property to purchasers for value and institute and prosecute any action or proceeding or to do any OP-25 ALTA Owners Policy of Title Insurance 6- 17-06 (with FLORIDA Modifications) (WLTIC Edition 1 /26/ 11 ) Page 3 I