ARCHIVED REPORTS LEC APPLICATION FOR CERTIFICATION

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ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY(10-17-92) WITH A.L.T.A.ENDORSEMENT-FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of material or to the extent insurance is afforded herein as to this policy and the Company will not pay loss or damage,costs, assessments for street improvements under construction or attorneys'fees or expenses which arise by reason of: completed at Date of Policy);or 1. (a)Any law,ordinance or governmental regulation(including (e)resulting in loss or damage which would not have been but not limited to building and zoning laws, ordinances, or sustained if the insured claimant had paid value for the insured regulations) restricting, regulating, prohibiting or relating to mortgage. (i)the occupancy, use, or enjoyment of the land; (ii)the 4. Unenforceability of the lien of the insured mortgage because of character,dimensions or location of any improvement now or the inability or failure of the insured at Date of Policy,or the hereafter erected on the land;(iii)a separation in ownership or inability or failure of any subsequent owner of the indebtedness, a change in the dimensions or area of the land or any parcel of to comply with applicable doing business laws of the state in which the land is or was a part; or (iv)environmental which the land is situated. protection, or the effect of any violation of these laws, 5. Invalidity or unenforceability of the lien of the insured ordinances or governmental regulations, except to the extent mortgage,or claim thereof,which arises out of the transaction that a notice of the enforcement thereof or a notice of a defect, evidenced by the insured mortgage and is based upon usury or lien or encumbrance resulting from a violation or alleged any consumer credit protection or truth in lending law. violation affecting the land has been recorded in the public 6. Any statutory lien for services,labor or materials(or the claim records at Date of Policy. of priority of any statutory lien for services,labor or materials (b)Any governmental police power not excluded by(a)above, over the lien of the insured mortgage) arising from an except to the extent that a notice of the exercise thereof or a improvement or work related to the land which is contracted for notice of a defect, lien or encumbrance resulting from a and commenced subsequent to Date of Policy and is not violation or alleged violation affecting the land has been financed in whole or in part by proceeds of the indebtedness recorded in the public records at Date of Policy. secured by the insured mortgage which at Date of Policy the 2. Rights of eminent domain unless notice of the exercise thereof insured has advanced or is obligated to advance. has been recorded in the public records at Date of Policy,but 7. Any claim, which arises out of the transaction creating the not excluding from coverage any taking which has occurred interest of the mortgagee insured by this policy,by reason of the prior to Date of Policy which would be binding on the rights of operation of federal bankruptcy, state insolvency, or similar a purchaser for value without knowledge. creditors'rights laws,that is based on: 3. Defects,liens,encumbrances,adverse claims,or other matters: (i) the transaction creating the interest of the insured mortgagee (a)created, suffered, assumed or agreed to by the insured being deemed a fraudulent conveyance or fraudulent transfer;or claimant; (ii)the subordination of the interest of the insured mortgagee as (b)not known to the Company, not recorded in the public a result of the application of the doctrine of equitable records at Date of Policy,but known to the insured claimant subordination;or and not disclosed in writing to the Company by the insured (iii) the transaction creating the interest of the insured claimant prior to the date the insured claimant became an mortgagee being deemed a preferential transfer except where insured under this policy; the preferential transfer results from the failure: (c)resulting in no loss or damage to the insured claimant; (a)to timely record the instrument of transfer;or (d)attaching or created subsequent to Date of Policy(except to (b)of such recordation to impart notice to a purchaser for the extent that this policy insures the priority of the lien of the value or a judgement or lien creditor. insured mortgage over any statutory lien for services,labor or The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE 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: 1. Taxes or assessments which are not shown as existing liens by 4. Discrepancies, conflicts in boundary lines, shortage in area, the records of any taxing authority that levies taxes or encroachments,or any other facts which a correct survey would assessments on real property or by the public records. disclose,and which are not shown by the public records. Proceedings by a public agency which may result in taxes or 5. (a)Unpatented mining claims;(b)reservations or exceptions in assessments, or notices of such proceedings, whether or not patents or in Acts authorizing the issuance thereof; (c)water shown by the records of such agency or by the public records. rights, claims or title to water, whether or not the matters 2. Any facts,rights,interests or claims which are not shown by the excepted under(a),(b)or(c)are shown by the public records. public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements,liens or encumbrances,or claims thereof,not shown by the public records. Attachment One(11/17/06)