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Form No. 12 (6/6/92) Order Number : 8701-
<br /> 2670205
<br /> CLTA Lot Book Guarantee Page Number : 5
<br /> SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE
<br /> 1 . Except to the extent that specific assurance are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by
<br /> reason of the following :
<br /> (a ) Defects, liens, encumbrances, adverse claims or other matters against the title, whether or not shown by the public records.
<br /> ( b) ( 1 ) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) Proceedings by a public agency which
<br /> may result in taxes or assessments, or notices of such proceedings, whether or not the matters excluded under ( 1 ) or (2) are shown by the records of
<br /> the taxing authority or by the public records.
<br /> ( c) ( 1 ) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title
<br /> to water, whether or not the matters excluded under ( 1 ), (2) or (3) are shown by the public records.
<br /> 2 . Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage
<br /> by reason of the following :
<br /> (a ) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described in
<br /> the description set forth in Schedule (A), (C) or in Part 2 of this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways to which such
<br /> land abuts, or the right to maintain therein vaults, tunnels, ramps, or any structure or improvements; or any rights or easements therein, unless such
<br /> property, rights or easements are expressly and specifically set forth in said description .
<br /> (b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the public records; ( 1 ) which are created, suffered,
<br /> assumed or agreed to by one or more of the Assureds; (2) which result in no loss to the Assured; or (3) which do not result in the invalidity or potential
<br /> invalidity of any judicial or non -judicial proceeding which is within the scope and purpose of the assurances provided .
<br /> (c) The identity of any party shown or referred to in Schedule A .
<br /> (d) The validity, legal effect or priority of any matter shown or referred to in this Guarantee .
<br /> GUARANTEE CONDITIONS AND STIPULATIONS
<br /> 1 . Definition of Terms .
<br /> The following terms when used in the Guarantee mean :
<br /> (a ) the "Assured" : the party or parties named as the Assured in this Guarantee, or on a supplemental writing executed by the Company .
<br /> ( b) "land " : the land described or referred to in Schedule (A) (C) or in Part 2, and improvements affixed thereto which by law constitute real property.
<br /> The term "land" does not include any property beyond the lines of the area described or referred to in Schedule (A) (C) or in Part 2, nor any right, title,
<br /> interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways .
<br /> (c) "mortgage" : mortgage, deed of trust, trust deed, or other security instrument.
<br /> (d ) "public records" : records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating
<br /> to real property to purchasers for value and without knowledge.
<br /> (e) "date" : the effective date.
<br /> 2. Notice of Claim to be Given by Assured Claimant.
<br /> An Assured shall notify the Company promptly in writing in case knowledge shall come to an Assured hereunder of any claim of title or interest which is
<br /> adverse to the title to the estate or interest, as stated herein, and which might cause loss or damage for which the Company may be liable by virtue of
<br /> this Guarantee. If prompt notice shall not be given to the Company, then all liability of the Company shall terminate with regard to the manner or
<br /> matters for which prompt notice is required ; provided, however, that failure to notify the Company shall in no case prejudice the rights of any Assured
<br /> under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice.
<br /> 3 . No Duty to Defend or Prosecute.
<br /> The Company shall have no duty to defend or prosecute any action or proceeding to which the Assured is a party, notwithstanding the nature of any
<br /> allegation in such action or proceeding .
<br /> 4. Company 's Option to Defend or Prosecute Actions; Duty of Assured Claimant to Cooperate .
<br /> Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above :
<br /> (a ) The Company shall have the right, at its sole option and cost, to institute and prosecute any action or proceeding, interpose a defense, as limited in
<br /> ( b), or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or Interest as stated herein , or to
<br /> establish the lien rights of the Assured, or to prevent or reduce loss or damage to the Assured . The Company may take any appropriate action under
<br /> the terms of this Guarantee, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this
<br /> Guarantee. If the Company shall exercise its rights under this paragraph, it shall do so diligently.
<br /> ( b) If the Company elects to exercise its options as stated In Paragraph 4 (a ) the Company shall have the right to select counsel of its choice (subject to
<br /> the right of such Assured to object for reasonable cause) to represent the Assured and shall not be liable for and will not pay the fees of any other
<br /> counsel, nor will the Company pay any fees, costs or expenses incurred by an Assured In the defense of those causes of action which allege matters
<br /> not covered by this Guarantee.
<br /> (c) Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of this Guarantee, the Company may
<br /> pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from an
<br /> adverse judgment or order.
<br /> First American Title Company
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