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Order Number: NCS -1153254 -SC <br />Page Number: 14 <br />The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, <br />attorneys' fees, 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, <br />prohibiting, or relating to <br />i, 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 <br />limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. <br />b. Any governmental police power. This Exclusion I(b) does not modify or limit the coverage provided under Covered Risk 5, 6, <br />13(c), 13(d), 14 or 16. <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 <br />disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this <br />policy; <br />c. resulting in no loss or damage to the Insured Claimant; <br />d. attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered <br />Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or <br />e, resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. <br />4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable <br />doing -business laws of the state where the Land is situated. <br />5. Invalidity or unenforceability in whole or in part df the lien of the Insured Mortgage that arises out of the transaction evidenced by <br />the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in -lending law. This Exclusion does not <br />modify or limit the coverage provided in Covered Risk 26. <br />6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made <br />after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by <br />this policy, This Exclusion does not modify or limit the coverage provided in Covered Risk 11. <br />7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent <br />to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. <br />8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in <br />accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. <br />9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction <br />creating the lien of the Insured Mortgage, is <br />a. a fraudulent conveyance or fraudulent transfer, or <br />b. a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. <br />First American Title Insurance Company <br />ATTY/AGR/2024.193.1—AFFORDABLE HOUSING LAND DONATION AGREEMENT- EXHIBIT A-2 - PRELIMINARY TITLE REPORT <br />REV: 10-22-24 VR <br />Page 14 of 14 <br />