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Form No. 12(6/6/92) Order Number: 8701-
<br /> 2930875
<br /> CLTA Lot Book Guarantee Page Number: 5
<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 /> First American Title Company
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