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(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 />(1) the occupancy, use. or enjoyment of the Land,
<br />(ii) 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 11 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 />(I) 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
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