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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 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 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 Insured,
<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 /> shall not continue In force in favor of any purchaser from the
<br /> (i)The term"Insured"also includes 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 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 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 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, liability to the Insured Claimant under the policy shall be reduced
<br /> (3)if the grantee is wholly-owned by 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 /> 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 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 options
<br /> (f)"Knowledge"or"Known Actual knowledge,not constructive contained in Section 7 of these Conditions,the Company,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 the
<br /> the Public Records or any other records that impart constructive defense of an Insured in litigation in which any third parry asserts
<br /> a claim covered bythis 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 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 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 will not pay
<br /> abutting streets,roads,avenues,alleys,lanes,ways,or waterways, the fees of any other counsel. The Company will not pay 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 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 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 to
<br /> Date of Policy for the purpose of imparting constructive notice of establish the Title,as insured,or to prevent or reduce loss or
<br /> matters relating to real property to purchasers for value and without damage to the Insured. The Company may take any appropriate
<br /> Knowledge. With respect to Covered Risk 5(d),"Public Records' action under the terms of this policy,whether or not it shall be
<br /> liable to the Insured. The exercise of these rights shall not be an
<br /> shall also include environmental protection liens filed in the records admission of liability or waiver of any provision of this policy.
<br /> of the clerk of the United States District Court for the district where If the Company exercises its rights under this subsection,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 sole
<br /> ORT Farm 4M FL discretion,to appeal any adverse judgment or order.
<br /> ALTA Owners Policy of Title Insurance 6-17-06(with Florida Modifications) Page 3
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