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CONDITIONS
<br /> 1 . DEFINITION OF TERMS purchase, lease, or lend if there is a contractual condition requiring
<br /> The following terms when used in this policy mean : the delivery of marketable title.
<br /> (a) "Amount of Insurance " : The amount stated in Schedule A, as may
<br /> be increased or decreased by endorsement to this policy, increased 2 . CONTINUATION OF INSURANCE
<br /> by Section 8(b), or decreased by Sections 10 and 11 of these Conditions. The coverage of this policy shall continue in force as
<br />of Date of
<br /> (b) " Date of Policy" : The date designated as " Date of Policy" in Policy in favor of an Insured, but only so long as the Insured
<br /> retains
<br /> Schedule A. an estate or interest in the Land, or holds an obligation secured by
<br /> (c) " Entity" : A corporation, partnership, trust, limited liability a purchase money Mortgage given by a purchaser from the In
<br /> company, or other similar legal entity, or only so long as the Insured shall have liability by reason of
<br /> (d) "Insured " : The Insured named in Schedule A. warranties in any transfer or conveyance of the Title. This policy
<br /> ( i) The term "Insured " also includes shall not continue in force in favor of any purchaser from the
<br /> Insured of either ( i ) an estate or interest in the Land, or ( ii ) an
<br /> (A) successors to the Title of the Insured by operation of law as obligation secured by a purchase money Mortgage given to the
<br /> distinguished from purchase, including heirs, devisees, survivors, Insured.
<br /> personal representatives, or next of kin;
<br /> (B) successors to an Insured by dissolution, merger, consolidation, 3 . NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
<br /> distribution, or reorganization ; The Insured shall notify the Company promptly in writing ( i) in case
<br /> ( C) successors to an Insured by its conversion to another kind of of any litigation as set forth in Section 5(a) of these
<br />Conditions, (ii)
<br /> Entity; in case Knowledge shall come to an Insured hereunder of any claim
<br /> ( D ) a grantee of an Insured under a deed delivered without of title or interest that is adverse to the Title, as insured, and
<br /> that
<br /> payment of actual valuable consideration conveying the Title might cause loss or damage for which the Company may be liable
<br /> ( 1 ) if the stock, shares, memberships, or other equity by virtue of this policy, or ( iii ) if the Title, as insured, is
<br /> rejected as
<br /> interests of the grantee are wholly-owned by the Unmarketable Title . If the Company is prejudiced by the failure of
<br /> named Insured, the Insured Claimant to provide prompt notice, the Company's
<br /> ( 2) if the grantee wholly owns the named Insured ,
<br /> liability to the Insured Claimant under the policy shall be reduced(3) if the grantee is wholly-owned by
<br />an affiliated to the extent of the prejudice.
<br /> Entity of the named Insured, provided the affiliated 4. PROOF OF LOSS
<br /> Entity and the named Insured are both wholly-owned In the event the Company is unable to determine the amount of
<br /> by the same person or Entity, or loss or damage, the Company may, at its option, require as a condition
<br /> (4) if the grantee is a trustee or beneficiary of a trust of payment that the Insured Claimant furnish a signed proof of loss
<br />.
<br /> created by a written instrument established by the The proof of loss must describe the defect, lien, encumbrance, or
<br /> Insured named in Schedule A for estate planning other matter insured against by this policy that constitutes the
<br /> purposes. basis of loss or damage and shall state, to the extent possible, the
<br /> ( ii) With regard to (A), ( B), ( C), and ( D ) reserving, however, all rights basis of calculating the amount of the loss or
<br /> damage,
<br /> and defenses as to any successor that the . Company would have had
<br /> against any predecessor Insured . 5. DEFENSE AND PROSECUTION OF ACTIONS
<br /> (e) " Insured Claimant": An Insured claiming loss or damage. (a) Upon written request by the Insured , and subject to the
<br /> options
<br /> (f) " Knowledge " or " Known " : Actual knowledge, not constructive contained in Section 7 of these Conditions, the Company,
<br />at its
<br /> knowledge or notice that may be imputed to an Insured by reason of own cost and without unreasonable delay, shall provide for
<br /> the
<br /> the Public Records or any other records that impart constructive defense of an Insured in litigation in which any third party asserts
<br /> a claim covered by this policy adverse to the Insured. This obligation
<br /> notice of matters affecting the Title , is limited to only those stated causes of action alleging matters
<br /> (g) "Land": The land described in Schedule A, and affixed improvements insured against by this policy. The Company shall have
<br /> the right to
<br /> that by law constitute real property. The term " Land" does not select counsel of its choice (subject to the right of the
<br />Insured to
<br /> include any property beyond the lines of the area described in object for reasonable cause ) to represent the Insured as to those
<br /> Schedule A, nor any right, title, interest, estate, or easement in stated causes of action. It shall not be liable for and
<br /> will not pay
<br /> abutting streets, roads, avenues, alleys, lanes , ways, or waterways, the fees of any other counsel . The Company will not pay
<br /> any fees,
<br /> but this does not modify or limit the extent that a right of access to costs, or expenses. incurred by the Insured in the defense
<br /> of those
<br /> and from the Land is insured by this policy. causes of action that allege matters not insured against by this policy.
<br /> ( h) " Mortgage " : Mortgage, deed of trust, trust deed, or other security ( b) The Company shall have the right, in addition to
<br /> the options
<br /> instrument, including one evidenced by electronic means authorized contained in Section 7 of these Conditions, at its own cost, to
<br /> by law institute and prosecute any action or proceeding or to do any
<br /> ( i ) "Public Records": Records established under state statutes at other act that in its opinion may be necessary or desirable
<br /> to
<br /> Date of Policy for the purpose of imparting constructive notice of establish the Title, as insured, or to prevent or reduce loss
<br /> or
<br /> matters relating to real property to purchasers for value and without damage to the Insured . The Company may take any appropriate
<br /> action under the terms of this policy, whether or not it shall be
<br /> Knowledge. With respect to Covered Risk 5(d ), " Public Records" liable to the Insured . The exercise of these rights shall
<br /> not be an
<br /> shall also include environmental protection liens filed in the records admission of liability or waiver of any provision of this
<br /> policy.
<br /> of the clerk of the United States District Court for the district where If the Company exercises its rights under this subsection,
<br /> it must
<br /> the Land is located . do so diligently.
<br /> (j) "Title " : The estate or interest described in Schedule A. (c) Whenever the Company brings an action or asserts a defense
<br /> (k) "Unmarketable Title" : Title affected by an alleged or apparent as required or permitted by this policy, the Company may pursue
<br /> matter that would permit a prospective purchaser or lessee of the the litigation to a final determination by a court of competent
<br /> Title or lender on the Title to be released from the obligation to jurisdiction, and it expressly reserves the right, in its
<br /> sole
<br /> ORT Form 4309 FI. discretion , to appeal any adverse judgment or order.
<br /> ALTA Owners Policy of Tole Insurance 6. 17-06 (woh Florida Modifications) Page 3
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