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CONDITIONS AND STIPULATIONS
<br />I. DEFINITION OF TERMS
<br />The following terms when used in this policy mean:
<br />to any )rights or defenses the ompannsured namedy may have ad agaisubject
<br />st t e
<br />mined insured, those who succeed to the interest of such insured by
<br />operation of law as distinguished from purchase including, but not
<br />limited to, heirs, distributees, devisees, survivors, personal represen-
<br />tatives, next of kin, or corporate or fiduciary successors.
<br />(b) "insured claimant": an insured claiming loss or damage
<br />hereunder.
<br />(c) "knowledge": actual knowledge, not constructive knowledge
<br />or notice which may be imputed to an insured by reason of any
<br />public records.
<br />(d) "land": the land described, specifically or by reference in
<br />Schedule A, and improvements affixed thereto which by law constitute
<br />real property; provided, however, the term "land" does not include
<br />any: property beyond the lines of the area sRecifitally described or
<br />referred to in Schedule A, nor any right, utle, interest, estate or
<br />easement in abutting streets, roads, avenues, alleys, lanes, ways or
<br />waterways, but nothing herein sell modify or limit the extent to
<br />which a right of access to and from the land is insured by this policy.
<br />(e) "mortgage": mortgage, deed of trust, trust deed, or other
<br />security instrument.
<br />(f) "public records": those records which by law impart con-
<br />structive notice of matters relating to said land.
<br />T. CONTINUATION OF INSURANCE AFTER CONVEYANCE
<br />OF TITLE
<br />The coverage of this policy shall continue in force as of Date
<br />of Policy in favor of an insured so long as such insured retains an
<br />estate or'interest `in the land, or holds an indebtedness secured by a
<br />purchase money mortgage given by a purchaser from such insured,
<br />or so longus such insured shall have liability by reason of covenants
<br />of warranty made by such insured in any transfer or conveyance
<br />Of such estate or interest; provided, however, this policy shall not
<br />continue in force in favor of any purchaser from such insured of
<br />either said estate or interest or the indebtedness secured by a pur-
<br />chase money mortgage given to such insured.
<br />3. DEFENSE AND PROSECUTION OF ACTIONS—NOTICE OF
<br />CLAIM TO BE GIVEN BY AN INSURED CLAIMANT
<br />(a) The Company, at its own cost and without undue delay, shall
<br />provide for the defense of an insured in all litigation consisting of
<br />actions or proceedings commenced against such insured, or a defense
<br />interposed against an insured in an action to enforce a contract for
<br />a sale of the estate or interest in said land, to the extent that such
<br />litigation is founded upon an alle4ed defect, lien, encumbrance, or
<br />other matter insured against by this policy.
<br />(b) The insured shall notify the Company promptly in writing
<br />(i) in case any action or proceeding is begun or defense is inter-
<br />posed as set forth in fa) above, (ii) in case knowledge shall come
<br />to an insured hereunder of any clairr �f title or interest which is ad-
<br />verse to the title to the estate or inter.it, as insured, and which might
<br />cause loss or damage for which the Company may be liable by
<br />virtue of this policy, or (iii) if title to the estate or interest, as
<br />insured, is rejected as unmarketable. If such prompt notice shall
<br />not be given to the Company, then as to such insured all liability of
<br />the Company shall cease and terminate in regard to the matter or
<br />matters for which such prompt notice is required; provided, however,
<br />that failure to notify shall in no case prejudice the rights of any such
<br />insured under this policy unless the Company shall be prejudiced
<br />by such failure and then only to the extent of such prejudice.
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<br />(c) The Company shall have the right at its own cost to institute
<br />and without undue delay prosecute any action or proceeding or to do
<br />any other act which in its opinion may be necessary or desirable to
<br />establish the title to the estate or interest as insured, and the Company
<br />may take any appropriate action under the terms of this policy,
<br />whether or not it shall be liable thereunder, and shall not thereby
<br />concede liability or waive any provision of this policy.
<br />(d) Whenever the Company shall have brought any action or
<br />interposed a defense as required or permitted by the provisions of this
<br />Policy, the Company may pursue any such litigation to final deter-
<br />mination by a court of competent jurisdiction and expressly reserves
<br />the right, in its sole discretion, to appeal from any adverse judg-
<br />ment or order.
<br />(e) In all cases where this policy permits or requires the Com-
<br />ceeding the insured hereunder rovide shall secure to the Cor the defense of mpany the right
<br />to so prosecute or provide defense in sueh action or proceeding, and
<br />all appeals therein, and permit the Company to use, at its option, the
<br />name of such insured for such purpose. Whenever requested by
<br />the Company, such insured shall give the Company all reasonable
<br />aid in any such action or proceeding, in effecting settlement, securing
<br />evidence, obtaining witnesses, or prosecuting or defending such action
<br />or proceeding, and the Company shall reimburse such insured for any
<br />expense so incurred.
<br />4. NOTICE OF LOSS—LIMITATION OF ACTION
<br />In addition to the notices required under paragraph 3(b) of these
<br />Conditions and Stipulations, a statement in writing of any loss or
<br />damage for which it is claimed the Company is liable under this
<br />Policy shall be furnished to the Company within 90 days after such
<br />loss or damage shall have been determined and no right of action
<br />shall accrue to an insured claimant until 30 days after such statement
<br />shall have been furnished. Failure to furnish such statement of loss
<br />or damage shall terminate any liability of the Company under this
<br />policy as to such loss or damage.
<br />S. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS
<br />The Company shall have the option to pay or otherwise settle
<br />for or in the name of an insured claimant any claim insured against
<br />or to terminate all liability and obligations of the Company hereunder
<br />by paying or tendering payment of the amount of insurance under
<br />this policy together with any costs, attorneys' fees and expenses in.
<br />curred up to the time of such payment or tender of payment, by the
<br />insured claimant and authorized by the Company.
<br />S. DETERMINATION AND PAYMENT OF LOSS
<br />(a) The liability of the Company under this policy shall in no
<br />case exceed the least of:
<br />( i) the actual loss of the insured claimant; or
<br />( ii) the amount of insurance stated in Schedule A.
<br />(b) The Company will pay, in addition to any loss insured
<br />against by this policy, all costs imposed upon an insured in litigation
<br />carried on by the Company for such insured, and all costs, attorneys'
<br />fees and expenses in litigation carried on by such insured with the
<br />written authorization of the Company.
<br />(e) When liability has been definitely fixed in accordance with
<br />the conditions of this policy, the loss or damage shall be payable
<br />within 30 days thereafter.
<br />Conditions and Stipulations Continued Inside Cover
<br />CONTROL NO. 120-118211
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