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<br />GUARANTEE CONDITIONS AND STIPULATIONS
<br />
<br />1.
<br />
<br />DEFINmONS OF TERIvlS
<br />The foUoning remu wbr::ll use in !his Guarantee me:m:
<br />
<br />Guannlee. or to pay the full iUIlOUDl of this Guarantee or, if thi5
<br />Ollar-ullee is issued (Dr the b..-netit ofll bolder oC a mortgage, the
<br />Company shall have the opnol1to purchase the intl:blcdness
<br />seeured by said mortgag:. Such purchase, paj'IIlent or lender of
<br />payment of the full amount. of the Gaaranler:: sfmlllermiDa1c all
<br />liability of the Company b=W1der. Ie the: event after notice of
<br />chum hIlS been givCI110 the Com~y by the AssID'Cd the
<br />COt:llpao)' oam to purchase said indebtedness, the owner of'
<br />such indebtedness shall l1i!l15fer and assien said indebtedness
<br />and the mongage securing the SilIlle to tb~ Compaoy UPOll
<br />
<br />(il) "laod"; the 1il.Ild a=aibed, specifically or by rermnca
<br />in !his Guamnlce aod improvemelllS affixed thereto
<br />wbich by l:l.\V ctlnstitule re::d prop:ny:
<br />(b) upublic records"; those reeor:ds which imp:ltt (;01\$.
<br />lrUctivc lIotice of 1nl111e::s relating 10 s:lid land;
<br />(c) udate"; the cacWlc date:
<br />Cd) ..the Assured"; the party or parties Dl1med as the
<br />Assured in this Guarantee, or in a $llpplemel1tal writing
<br />Executed by the Comp;my;
<br />(e) 4Omongage"; mortgage, deed of trust. trust deed, or o!her
<br />security instrument
<br />
<br />6.
<br />
<br />L.Thm" ATION OF llABII.ITY - PAYMENT OF LOSS
<br />(a) The liability of the Company under this Guarantee shaI1
<br />be limiled to the amollllt of ae:tuallass SllStUned by !be
<br />Assured because ofrelianc: upon the assuranw herein
<br />set forth, but ill 00 CVClt sball such 1i000iliry t.'tcc:d the
<br />amount of !he lii:lhiIity staled 011 the fuec page berel:lf.
<br />
<br />2.
<br />
<br />EXCLUSIONS FROM COVER..'\GE OF 'l'HlS GUAR.~
<br />The Complll1Y assumes no liability for los5 or damage by reason
<br />OElbe [ollawing:
<br />
<br />(a) Toues or assessment which are not shown lIS aisriDg liens
<br />by the records DC aIlY ta:cini authority that It:'r;= ta.~cs
<br />or assessments Ol'l re3.I propelt)' or by the public lCl:oros,
<br />(b) Unpatenled mining claims; reservations or c:xccpuoas in
<br />patents or in Acts authorizing we issuance thereat; water
<br />Rights, daims, or title 10 water.
<br />(c ) Title to an)' prop:ny beyond the lines of the land e:cpr~ly
<br />dcscribed in L.\je destriptioll set forth in this Guaran~, or
<br />title la streelS, roads, avenue, lanes, Waj"3, or waterways
<br />on whieh ~d land abuts, or the righl to maiJ:!l.3.in theretn
<br />vaults, tunm:ls, ramps or;:my other structure or improvement;
<br />or ;:my rights of casements thcr.:in unless such property, rlg.i.ts
<br />or e<1Stmcnts arc e:qll'l:ssly <!lid specifically set faith in said
<br />Descriptioll. '
<br />(d) Defects, lici1, eocumbralll:es, advct'Se claims against the titl"
<br />As guaronteed or other matlet'S (1) created, $Ufiercd, assumed
<br />Or agreed to by on or mOll: of' me Assured: or (2) rerolting in
<br />No [ass to the Assured.
<br />
<br />(b)
<br />
<br />The Compaoy y,.iIl pay il1I costs Imposed upon the
<br />Assured in litigation czrlcd on by the ColllP~Y (or the
<br />Assured, and all costs and attorney's rees in Iitiga.lioo
<br />carried on by the Assured with me \\otinen aUll1orizalion
<br />or the Company.
<br />No clcim for 1Wnat!:.5 shall arise or b.: maintainnblc under
<br />this Guar.mtee (1) irthe Company cller ha~inJl received
<br />notice of Dn alleged deicel, lien or encumbrance not shown
<br />as an exceprron Dr excluded herein f.:rooV~
<br />sucb defect, lien or elleumbrance with a reasormb[e Uroe
<br />after receipl of sucb notice, or (2) for liability VO!Wltlll'if)'
<br />assumed by !he Assured in settling ao'y claim or suit
<br />without written consent of the Company.
<br />All paymeots Wlder th!s Gu2l'iUltt=:, c:.:tc:pt for anomcys
<br />fees as prD\;ded for in parograpb 6(b) hcreo~ s.IWI rcdu~
<br />the aroount of the liabiUty hClllin pro I<lnto, and DO
<br />pO'l}'mclU shall be made \~ilhout producing this Gwlr.utl:=
<br />For indol'Sell1:nr of such pa}'ll1cllI unI~ the Gwlr.mtee be lost
<br />Or destroyed, in which we proof of such loss or destnu:uoD.
<br />sh;ill be iUmisbcd to lh= satisfaction orlb: Company,
<br />When Liability has been definitely fi.-ced in ilccord:mcc l.itb. the
<br />conditions ofdlis Oumntee,the loss ord:!Ol3ge shall be p:1yab!c
<br />uithin thiny days the~::r.
<br />
<br />(c)
<br />
<br />(d)
<br />
<br />3.
<br />
<br />PROSECUTION OF ACTIONS
<br />(a) The Comp:my shalt bilve the right at its own cost to institute
<br />and prosecute any action or proceeding or de any other llct
<br />which ill its opinion Inl1Y br: neccssaI)' or desimblc 10 cstilblish
<br />or conlin:n the mlUtcrs b:rcin guaranleed; and the Company may
<br />ta!:= any appropriatel:lction under the terms of this Gu.aronte:
<br />whether or not it shall be liable thereunder and sha1J Dot thmby
<br />concede liability or waive an)' pro~ision hereof.
<br />(b) In all cases where thc Company does so institute and
<br />Prosecute any tlclion or proce:ding, the Assured shall permit
<br />nle COlD.p::uty 10 USe, al its option, th: mune orthe
<br />Assured for such pmposes. Whcnc\'cr requested by the Ccmpan)',
<br />The Assu:e.d shall give the Company aU IC3Sollllblc aid in
<br />Prosecuting such action or proceeding, and the CotllpilOY sha.l1
<br />Reimbwzc the Assured for any expenses so incurred.
<br />
<br />(e)
<br />
<br />1.
<br />
<br />SUBROGATION UPON PA YME1'!T OR SE111..ElI-fENT
<br />
<br />A StAlement tn writing or any loss or damage for which it is
<br />Claimed the Company is liable under this Gumntce shall be
<br />Furnished 10 the Comp:my \\oithin sixty days aftcr such loss or
<br />D=g= shall h:1vC beat dct=mlincd, and no right oCactioll shall
<br />Accrue 10 tllr: Assured under this Gu~ntce untU thirty days :ille.r
<br />Such Sli:lIcmcnt s.ball have been furnished. and no reco\.el)' shall
<br />Be h:ld by the Assured under this GlIal'4Ulte: unless action shall
<br />Be commcaced thereon within tWO years aftere."Cpiralion ofsilid
<br />Thirty day p~riod. Fililure to fl.lnlhh suth stalcment oflass or
<br />Damage or 10 commence sur:b action within the time hereinbefore
<br />Spcl:i.5ed. shall be tl cnZlclusivc bat ilgainst mcintenance by the
<br />Assured of any aetiOll under thi5 Guarantee.
<br />
<br />Whenever the Company sh:1U have sealed a claim under this. Guar.m\ce
<br />all right of subrogation shall vest in the Company ummected by any
<br />Act oClhe Assured, and it shall be subrogated to and be Clll:it!~d 10 all
<br />righlS and r=mcdics which the Assured would have had against l!.!lY
<br />pe~on or property in respect 10 such claim Iud Ibis Gu=ntcc nol b::u
<br />issued. lfthe payment does not cover the loss of the Assured, the
<br />Company sball be subrog;w:d to such tights :!lid remetlif:S in !he
<br />Proportion which said piljlIIenl.s bean to the amounl ofs;1id loss. The
<br />Assured it'rcqu=red by the Cornpanj', shall transfer to the Comp;my
<br />all rights and remedies ngahb"t any pmon or property necessary in omer -
<br />To petfCtl such right or Subrogation, and shcll permit the Cornpm)' 10 use
<br />the hilIllC of the Assured ill Zllj' transae:lion or litigation involving such
<br />rights or remedies.
<br />
<br />3.
<br />
<br />NOTICE OF LOSS - tThnTATION OF ACTION
<br />
<br />8.
<br />
<br />GUARA."ITEE ENTmE CONlRACT
<br />
<br />Any :1clioo or actions o~ rights or action the Assured mar have or m:l).
<br />bring l1J!l1inst the Company arising out orthe subject mailer hereof must
<br />be based on tbll pro\isions of this Guarantee. No provision or conditiDll
<br />a[this Gullnlntcc r:t!ll be waived or cbnnged exCl:pt by II ",,'riling eadorscd
<br />or :1ltae:hed hereto signed by the Pr~~llt, II Vie:: .President, !he S:e:retouy
<br />:lt1 Assist:lt1t SCCt'CllU)' or other va1idllting offic: of the Company.
<br />
<br />4. OPTION TO PAY, SETll.E, OR. COMPROMISE CI..AnvIS
<br />
<br />9. NOTICES, WHERE SENT
<br />
<br />The Company shall ft:l1l4 th: DPlion to PtlY or scnle or compromise
<br />For Dr in the n:!lI1~ of the Assured an)' claim whicb could result in
<br />Loss to the Assured within Ibe coverngc ofthis
<br />
<br />All notices required to be given the Company and llllY statement
<br />in writing required to be furnisbed the Company s1llll1 be ilddr.:ss.:d
<br />10 it .at the office which issued this GUlImnleC.
<br />
<br />Ul,
<br />
<br />The fee specilicd on the fue: of Iim (iullmttec is the (alai ic: for
<br />title search and examimllion llnd for this Guar.mtc:
<br />
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