|
(Covered Risks continued)
<br /> 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action;
<br /> describing any part of the Land,is recorded in the Public Records,but only to the extent of the enforcement referred to in that notice.
<br /> 7 The exercise of the rights of eminent domain if a notice of the exercise;describing any part of the Land, is recorded in the Public Records.
<br /> 8 Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
<br /> 9. Title being vested other than as stated in Schedule A or being defective
<br /> (a) as a result of the avoidance in whole or in part;or from a court order providing an alternative remedy,of a transfer of all or any part of the title
<br /> to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a
<br /> fraudulent or preferential transfer under federal bankruptcy,state insolvency.or similar creditors'rights laws;or
<br /> (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy; state
<br /> insolvency,or similar creditors'rights laws by reason of the failure of its recording in the Public Records
<br /> (i) to be timely,or
<br /> (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor
<br /> 10 Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks I through 9 that has been created or attached or has
<br /> been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in
<br /> the Public Records that vests Title as shown in Schedule A.
<br /> The Company will also pay the costs,attorneys'fees,and expenses incurred in defense of any matter insured against by this Policy,but only to the
<br /> extent provided in the Conditions.
<br /> EXCLUSIONS FROM COVERAGE
<br /> The following matters are expressly excluded from the coverage of this policy,and the Company will not pay loss or damage,costs,attorneys'fees,
<br /> or expenses that arise by reason of-
<br /> 1 (a)Any law, ordinance; permit, or governmental regulation(including those relating to building and zoning)restricting, regulating, prohibiting,
<br /> or relating to
<br /> (i) the occupancy,use,or enjoyment of the Land,
<br /> (d)the character,dimensions,or location of any improvement erected on the Land,
<br /> (iii)the subdivision of land;or
<br /> (iv)environmental protection;
<br /> or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the
<br /> coverage provided under Covered Risk 5
<br /> (b)Any governmental police power This Exclusion 1(b)does not modify or limit the coverage provided under Covered Risk 6.
<br /> 2. Rights of eminent domain.This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8
<br /> 3 Defects,liens,encumbrances,adverse claims,or other matters
<br /> (a)created,suffered,assumed,or agreed to by the Insured Claimant;
<br /> (b) not Known to the Company; not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in
<br /> writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
<br /> (c)resulting in no loss or damage to the Insured Claimant;
<br /> (d)attaching or created subsequent to Date of Policy;or
<br /> (e)resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.
<br /> 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the
<br /> Title as shown in Schedule A.is
<br /> (a)a fraudulent conveyance or fraudulent transfer;or
<br /> (b)a preferential transfer for any reason not stated in Covered Risk 9 of this policy
<br /> 5.Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and
<br /> the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.
<br /> CONDITIONS
<br /> 1.DEFINITION OF TERMS
<br /> The following terms when used in this policy mean.
<br /> (a)"Amount of Insurance":The amount stated in Schedule A.as may be increased or decreased by endorsement to this policy, increased by Section 8(b),or
<br /> decreased by Sections 10 and I 1 of these Conditions.
<br /> (b)"Date of Policy"•The date designated as"Date of Policy"in Schedule A.
<br /> (c)"Entity":A corporation,partnership,trust, limited liability company,or other similar legal entity
<br /> (d)"Insured" The Insured named in Schedule A.
<br /> (i)the term"Insured"also includes
<br /> (A) successors to the Title of the Insured by operation of law as distinguished from purchase; including heirs, devisees, survivors, personal
<br /> representatives,or next of kin,
<br /> (B)successors to an Insured by dissolution,merger,consolidation,distribution,or reorganization,
<br /> (C)successors to an Insured by its conversion to another kind of Entity;
<br /> (D)a grantee of an Insured under a deed delivered without payment of actual valuable consideration conveying the Title
<br /> (1)if the stock,shares,memberships,or other equity interests of the grantee are wholly-owned by the named Insured;
<br /> (2)if the grantee wholly owns the named Insured;
<br /> FORM OF6(rev.12/10)(With Florida Modifications) Page 2 of 5
<br />
|