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Form No . 12 (6/6/92 ) Order Number : 8701-
<br /> 2670205
<br /> CLTA Lot Book Guarantee Page Number: 6
<br /> (d) In all cases where this Guarantee permits the Company to prosecute or provide for the defense of any action or proceeding , an Assured shall secure
<br /> to the Company the right to so prosecute or provide for the defense of any action or proceeding, and all appeals therein, and permit the Company to
<br /> use, at its option , the name of such Assured for this purpose. Whenever requested by the Company, an Assured, at the Company's expense, shall give
<br /> the Company all reasonable aid in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or lawful act
<br /> which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as stated herein, or to establish the
<br /> lien rights of the Assured . If the Company Is prejudiced by the failure of the Assured to furnish the required cooperation , the Company's obligations to
<br /> the Assured under the Guarantee shall terminate .
<br /> S . Proof of Loss 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 loss
<br /> or damage signed and sworn to by the Assured shall be furnished to the Company within ninety (90 ) days after the Assured shall ascertain the facts
<br /> giving rise to the loss or damage. The proof of loss or damage shall describe the matters covered by this Guarantee which constitute the basis of loss
<br /> or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the
<br /> failure of the Assured to provide the required proof of loss or damage, the Company's obligation to such Assured under the Guarantee shall terminate .
<br /> In addition , the Assured may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall
<br /> produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the
<br /> Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Guarantee, which
<br /> reasonably pertain to the loss or damage . Further, if requested by any authorized representative of the Company, the Assured shall grant its
<br /> permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks,
<br /> correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss damage. All information designated as
<br /> confidential by the Assured provided to the Company, pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of
<br /> the Company, it is necessary in the administration of the claim . Failure of the Assured to submit for examination under oath, produce other reasonably
<br /> requested Information of grant permission to secure reasonably necessary information from third parties as required in the above paragraph , unless
<br /> prohibited by law or governmental regulation, shall terminate 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 the Assured
<br /> 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 a holder of a
<br /> mortgage or a lienholder, the Company shall have the option to purchase the indebtedness secured by said mortgage or said lien for the amount owing
<br /> thereon, together with any costs, reasonable attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up
<br /> 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 the event
<br /> after notice of claim has been given to the Company by the Assured the Company offers to purchase said indebtedness, the owner of such
<br /> indebtedness shall transfer and assign said indebtedness, together with any collateral security, to the Company upon payment of the 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 for the
<br /> claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense
<br /> or prosecution of any litigation for which the Company has exercised its options under Paragraph 4, and the Guarantee shall be surrendered to the
<br /> Company for cancellation .
<br /> (b) To Pay 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, together with
<br /> any costs, attorneys' fees and expenses incurred by the Assured claimant which were authorized by the Company up to the time of payment 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 /> claimed loss or damage, other than to make the payment required in that paragraph, shall terminate, including any obligation to continue the defense
<br /> 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 loss
<br /> 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 Exclusions
<br /> 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 stated 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 these
<br /> Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, at the time the loss or damage Assured against by this
<br /> 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 any
<br /> 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 there has
<br /> been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as 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 suit
<br /> without the prior written consent of the Company.
<br /> 9 . 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 amount of
<br /> liability pro tanto.
<br /> 10. Payment of Loss .
<br /> FirstAmerican Title Company
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