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EXCEPTIONS FROM COVERAGE <br /> This policy does not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)which arise by reason of: <br /> 1, Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real <br /> property or by the public records. <br /> Proceedings by a public agency which may result in taxes or assessments,or notices of such proceedings,whether or not shown by the <br /> records of such agency or by the public records. <br /> 2. Any facts, rights,interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or <br /> by making inquiry of persons in possession thereof. <br /> 3. Easements,liens or encumbrances, or claims thereof,which are not shown by the public records, <br /> i 4, Discrepancies,conflicts in boundary fines,shortage in area,encroachments,or any other facts which a correct survey would disclose,and <br /> which are not shown by the public records. <br /> 5, (a)Unpatented mining claims; (b)reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c)water rights, claims or <br /> title to water,whether or not the matters excepted under(a),(b)or(c)are shown by the public records. <br /> Page 3 of 3 <br />