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6.1. F. - Page 44
<br /> Form No. 14 arder Num6er: 4102-
<br /> 3813787
<br /> CLTA 5€�bdivision Guarantee (A-1�-75) Page Numl�er: 4
<br /> (d) In all cases where this Guarantee permits t�e Cumpany to prosecute or provide for the defense of any aclion or praceeding, an Assured shall secu€e
<br /> to the Carnpany the right to so prosecute or provide for the defense of any adion or proceedirtg, and afl appeals therein, and permit the Company ta
<br /> use, at its optlon, the name of such Assured far this purpose. Whenever req�ested 6y the Company, an Assured, at the Company's expense, shall give
<br /> the Company all reasonable aid in any actian or proceeding, securing evidence, obtaini€�g witnesses, prosecuting or defending the action or lawfui act
<br /> whtch €n the opinion oP Ehe Ca€npany rnay be necessary or desirable to establish t�e title to Ehe es#ate or interest as stated herein, or to estabfish the
<br /> Itert r�ghts of the Assured. bf the Company is prejud'sced hy the failure o€ the Assured to furnish the required cooperation, the Company's obligations to
<br /> the Assured under the Guarantee shaf! terminate.
<br /> 5. Froof of Lass Damage.
<br /> In addition to and after the natices requirecE under Section 2 0€ these Conditions and Stipulations have 6een provided to the Company, a proof of lass
<br /> or damage signed and swom �a by the Assured shall be furnished to the Company withi€� ninety (90) days after the Assured shal! ascertain the facts
<br /> giving rise to the loss or damage. The proof of loss or damage shall describe the rnatters covered by this Guarantee wh[ch constitute the basis oP loss
<br /> or damage and shall state, to Ehe extent possib�e, the basis of calculating the amount of the lass or darnage. If the Company is prejudiced by the
<br /> failure of the Assurecf to provicEe the required prooP af loss or darrtage, the Ca€npany's obliga#ion ta such Assured under the Guarantee shall termtnate.
<br /> In addition, the Ass€�red may reasonably be required to sub€nit to exa�nination under oath by any authorized representative af the Company and shalf
<br /> produce for exam[nation, inspectipn and copying, at such reasanable times and pfaces as rrtay be designated by any author�zed representative oF the
<br /> Company, all records, boafcs, ledgars, checks, correspondence and memoranda, whether bearEng a date Before or af�er Date of Guarantae, which
<br /> reasonabiy pertain to the loss ar damage. Further, if requested by any autho€ized representative of the Cornpany, the Assured shafl grant its
<br /> permission, in writing, for any authorized representative of the Corr�pany to examine, inspect aad copy afl recards, bao[cs, ledgers, checks,
<br /> correspondence and memoranda in Yhe custody ar cantro! of a third party, vah[ch reasonabiy perEain to the loss damage. Ril inforrrtatEon designated as
<br /> conf€dentia[ by the Ass�red provided to the Co€npany, pursuanY to thls Section shall �ot 6e disclosed to others unless, in the reasona6Ee judgment o€
<br /> the Co€npany, it is necessary in tf�e adminis#ration of the clairrt. Failure of the Assured to submit far examination under oath, produce other reasona6ly
<br /> requested information of grant permfssion to secure reasona6ly necessary information fi thi�cf parties as rnquired in the above paragraph, uniess
<br /> prot€ibited by faw or governmental regulat'son, sha[I terminate any lia6i3ity oF the Company under this Guarantee to the Assured for that cfaim.
<br /> 6. O�tians �o Pay or Otherwise Seftle Claims: Terrninat?on of t�ability.
<br /> Tn case of a claim under #his G€�arantee, the Corr�pany shall have the following additionaf options:
<br /> (a} To Pay or Tender Payment of the Amount o€ Liabi[ity or to Purchase the Indebtedness.
<br /> The Company shall have the aption to pay or se[tle or compromise for ar in the narne of t�e Assured any cla'€m which cauld result in loss to tF�e Assured
<br /> within the coverage of thls Guarantee, or to pay the fufl ama€�nt of this Guarantee or, if this Guarantee is fssued far the 6enefit of a ho€der of a
<br /> mortgage or a Ilenholder, the Carr€pany shal[ have the option to p�rchase the indebtedness secured by sa'€d mortgage ar said lien for the amount ouvtng
<br /> thereon, tagether with any msts, reasonable attarneys' feas and expenses incurred by the Assured claiman� whlch were authorized by the Company up
<br /> fo the Yime of purchase.
<br /> Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate a!I liahility of the Company hereunder. In the event
<br /> after notice of claim has 6een glven to the Company by tfEe Assured the Company offers to purcfi�ase safd [ndebtedness, the owner of such
<br /> indebtedness shall transfer and assign said indebtedness, Eogether with any collateral securify, to the Company upon payment of the purchase price.
<br /> Upon the exercise by Yhe Company of the option provided for in Paragraph (a) the Company's ot�ligation to the Assured under Yhis Guarantee €or the
<br /> clalmed loss or damage, other than Eo rr�ake the payment required in that paragraph, shall kerminate, induding any ahligation to continue the defense
<br /> or prosec�tion af any litlgation far which the Company has exercised its optians under Paragraph 4, and the Guarantee shall be surrendered to the
<br /> Campany for canceflatlon.
<br /> (b) To Pay Otherwise 5et�le With Parties Other Than the Assured or With the Assured Claimant.
<br /> To pay or atherwise settle with other parties for ar �n the narr�e of an Assured claiman� any c{aim Assured against under thES Guarantee, tagether with
<br /> any costs, attorneys' fees and expenses Incurred by the Assured claimant which uvere authorized by the Company up to the time of paytnent and which
<br /> the Company is obligated to pay.
<br /> Upon the exercise by the Company of the option provided for in Paragraph (b) the Company's obligation to the Assured under this Guarantee for the
<br /> cEaimed loss ar damage, other than Eo make the payment required in that paragraph, shal[ terminate, incl�ding any obligation to continue the defense
<br /> or prosecution of any litigation for whieh the Company has exercised its options under Paragraph �f.
<br /> 7. Deterrnination and �xtent of Liability.
<br /> This Guarantee is a contract oE I�demnity agalns# actua9 monetary loss or damage sustained or Incurred by the Assured clai€nant who has suffered loss
<br /> or clamage by reason o€ reliance upon Ehe sssurances set forth in this Guarantee and only ta Ehe extent herein described, and s€�bject to the Excl�as[ons
<br /> From Coverage of �his Guarantee.
<br /> �he Liability af the Company under this Guarantee to the Ass€�red shal{ nnt exceed the leas# oP:
<br /> (a) the amount af Eiability stated in Schedule A ar in Part 2;
<br /> (b) the arnount of the unpaid principal indebtedrtess secured by the mnrtgage of an Assured mor#gagee, as limited or provided �nder Section G of these
<br /> Conditior�s and StEpulations or as reduced under 5ection 9 of these Conditions and Stlpulations, at the ti€ne the lass or clamage Assured agains# by this
<br /> Guarantee occurs, together with interest thereon; or
<br /> {c) the difference 6elween the va€ue of the estate or fnterest cavered hereby as stated herein and the value of the estate or interest su6�ect to any
<br /> defect, lien or encum6rance Assurecf against 6y this Guarantee.
<br /> 8. timitation of l.iahiiity.
<br /> (a) If the Company esta6lishes the title, or rernnves the alleged de€ect, lien or eneum6rance, or c�res any other matter Assured against 6y this
<br /> Guarantee in a reasona6ly dfliqent manner f�y any method, including litigation and the completinn of any appeals Cherefrosn, it sha{I have fully
<br /> perFo€med its o�ligations with respect to that matter and shall not be iiable for any Ioss ar damage caused thereby.
<br /> (b) In the eve€�t oF any litigatian by the Co�pany or with Ehe Company's consent, the Company shal[ have na liability for loss or damage untll there has
<br /> been a final determination by a court of competent jurisdlction, and dispos[tion of all appeals theref�om, adverse to the titfe, as stated herein.
<br /> (c) The Company shall not be {iable for lass or damage to any Assured €or liability vol�ntarily assu€ned by the Assured in sett[Eng any cfaim or sulE
<br /> without the priar wriEten consant nP tha Company.
<br /> 9, Reduction o€ Lia6ility or "ferrnination of L�abil�ty.
<br /> AEl payments under this Guarantee, except payments made for cosis, attorneys' fees and expe€�ses pursuant to Paragraph �+ shall red�ce the arnount of
<br /> liabllity pro tanto,
<br /> 10. Payment of Loss.
<br /> FirstAmerican Title Company
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