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CHICAGO TITLE INSURANCE COMPANY GUARANTEE NO. FSST-TO16000835
<br />(continued)
<br />5. PROOF OF LOSS OR DAMAGE
<br />In addition to and after the notices required under Section 2 of these Conditions and Stipulations have been provided to the Company, a proof of
<br />loss or damage signed and sworn to by the Assured shall be furnished to the Company within ninety (90) days after the Assured shall ascertain
<br />the facts giving rise to the loss or damage. The proof of loss or damage shall describe the matters covered by this Guarantee which constitute the
<br />basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is
<br />prejudiced by the failure of the Assured to provide the required proof of loss or damage, the Company's obligation to such assured under the
<br />Guarantee shall terminate. In addition, the Assured may reasonably be required to submit to examination under oath by any authorized
<br />representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be
<br />designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether
<br />bearing a dale before or after Date of Guarantee, which reasonably pertain to the loss or damage. Further, if requested by any authorized
<br />representative of the Company, the Assured shall grant its permission, in writing, for any authorized representative of the Company to examine,
<br />inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably
<br />pertain to the loss or damage. All information designated as confidential by the Assured provided to the Company pursuant to this Section shall
<br />not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the
<br />Assured to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably
<br />necessary information from third parties as required in the above paragraph, unless prohibited by law or governmental regulation, shall terminate
<br />any liability of the Company under this Guarantee to the Assured for that claim.
<br />6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS: TERMINATION OF LIABILITY
<br />In case of a claim under this Guarantee, the Company shall have the following additional options:
<br />(a) To Pay or Tender Payment of the Amount of Liability or to Purchase the Indebtedness.
<br />The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in loss to
<br />the Assured within the coverage of this Guarantee, or to pay the full amount of this Guarantee or, if this Guarantee is issued for the benefit of
<br />a holder of a mortgage or a lienholder, the Company shall have the option to purchase the indebtedness secured by said mortgage or said
<br />lien for the amount owing thereon, together with any costs, reasonable attorneys' fees and expenses incurred by the Assured claimant which
<br />were authorized by the Company up to the time of purchase.
<br />Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate all liability of the Company hereunder. In
<br />the event after notice of claim has been given to the Company by the Assured the Company offers to purchase said indebtedness, the owner
<br />of such indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of the
<br />purchase price.
<br />Upon the exercise by the Company of the option provided for in Paragraph (a) the Company's obligation to the Assured under this Guarantee
<br />for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to
<br />continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4, and the Guarantee
<br />shall be surrendered to the Company for cancellation.
<br />(b) To Pay or Otherwise Settle With Parties Other Than the Assured or With the Assured Claimant.
<br />To pay or otherwise settle with other parties for or in the name of an Assured claimant any claim assured against under this Guarantee,
<br />together with any costs, attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the
<br />time of payment and which 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
<br />for the claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to
<br />continue the defense or prosecution of any litigation for which the Company has exercised its options under Paragraph 4.
<br />7. DETERMINATION AND EXTENT OF LIABILITY
<br />This Guarantee is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Assured claimant who has suffered
<br />loss or damage by reason of reliance upon the assurances set forth in this Guarantee and only to the extent herein described, and subject to the
<br />Exclusions From Coverage of This Guarantee.
<br />The liability of the Company under this Guarantee to the Assured shall not exceed the least of:
<br />(a) the amount of liability slated in Schedule A or in Part 2;
<br />(b) the amount of the unpaid principal indebtedness secured by the mortgage of an Assured mortgagee, as limited or provided under Section 6 of
<br />these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage assured
<br />against by this Guarantee occurs, together with interest thereon; or
<br />(c) the difference between the value of the estate or interest covered hereby as stated herein and the value of the estate or interest subject to
<br />any defect, lien or encumbrance assured against by this Guarantee.
<br />8. LIMITATION OF LIABILITY
<br />(a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures any other matter assured against by this
<br />Guarantee in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully
<br />performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby.
<br />(b) In the event of any litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until
<br />there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as
<br />stated herein.
<br />(c) The Company shall not be liable for loss or damage to any Assured for liability voluntarily assumed by the Assured in settling any claim or
<br />suit without the prior written consent of the Company.
<br />S. REDUCTION OF LIABILITY OR TERMINATION OF LIABILITY
<br />All payments under this Guarantee, except payments made for costs, attorneys' fees and expenses pursuant to Paragraph 4 shall reduce the
<br />amount of liability pro tanto.
<br />CLTA Lot Book Guarantee (06/06/1992) Pnnted: 03.21.16 @ 10:55 AM
<br />Page 6 CA-CT-FSST-02180.054532-SPS-1-16-FSST-TO16000835
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