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<br /> defect,lien For encumbrance or other matter insuredist b this policy.The (ii) in case los-: ",amoge is claimed under this policy by the owner of
<br /> Company shall have the right to select counsel fits e(subject to the right the indebtedness sec:A y the insured mortgage, to purchase the indebted-
<br /> of such insured to 61ect for reasonable cause) to represent the insured as to ness secured by the insured mortgage for the amount owing thereon together
<br /> and
<br /> those stated causes of action shag not be liable for and will not pay the with any costs, attorneys' fees and expenses incurred by the insured claimant
<br /> fees of any,other counsel.The company will not pay any fees,costs or expenses which were authorized by the Company up to the time of purchase and which
<br /> incurred by an insured in the defense of those causes of action which,allege the Company is obligated to pay.
<br /> matters not insured against by this policy. If the Company offers to purchase the indebtedness as herein provided,
<br /> (b) The Company shall have the right,.at its awn cost, to institute-and the owner of the indebtedness shall transfer, assign, and convey the indebted-
<br /> prosecute any action or proceeding or to do any other act which in its opinion ness and the insured mortgage, together with any collateral security, to the
<br /> may be necessary or desirable to establish the title to the estate or interest or Company upon payment therefor. 7
<br /> the lien of the insured mortgage, as insured, ar to prevent or reduce loss or Upon the exercise by the Company of the option provided for in para-
<br /> damage town insured. The Company may take any appropriate action under graph a(i}, all liability and obligations to the insured under this policy, other
<br /> the terms of this policy,whether or not it shall be liable hereunder,and shall not than.to make the r,yyment required in that paragraph, shall terminate, includ- )
<br /> thereby concede liability or waive any provision of this policy. if the Company "1 ing any liability ar:abiigation to defend, prosecute, or continue any litigation,
<br /> shall exercise its rights under this paragraph, it shall do so diligently. and the policy shall be surrendered to the Company for cancellation.
<br /> (c) Whenever the Company shall have brought on action or interposed a Upon the exercise by the Company of the option provided for in paragraph
<br /> defense as�re wired or permitted b the provisions of this policy,the Company a(ii) the Company's obligation t n theurayment required toder under ibeomiade forthe
<br /> 9
<br /> may pursue any litigation to final determination by a court of competent luras- claimed loss or damage, other for p y
<br /> diction and expressly reserves the right,in its sole discretion,to appeal from any terminate, including any liability or obligation to defend, prosecute or continue
<br /> adverse judgment or order. any litigation.
<br /> (d) In all cases where this policy permits or requires the Company to prose (b To Pay or Otherwise Settle With Parties Other than the Insured or
<br /> cute or provide for the defense of any action or proceeding, an insured shall With the Insured Claimant.
<br /> secure to the Company the right to so prosecute or provide defense in the action (i) to pay or otherwise settle with other parties far or in the name of
<br /> or proceeding, and all appeals therein, and permit the Company to use, at its an insured claimant any claim insured against under this policy, together with
<br /> option,the name of such insured for this purpose. Whenever requested by the any casts, attorneys' fees and expenses incurred by the insured claimant which
<br /> Company, an insured, at the Company's expense, shall give the Company all were authorized by the Company up to the time of payment and which the
<br /> reasonable aid (i} in any action or proceeding, securing evidence, obtaining Company is obligated to pay;oror
<br /> witnesses, prosecuting or defending the action or proceeding,or effecting set- (ii) to pay or otherwise settle with the insured claimant the loss es
<br /> dement, and se in an other lawful he which i r the opinion of the Company damage provided for under this pol;c , together with any costs, attorneys'fees
<br /> may be necessary or desirable to establish the title to the estate or interest or and expenses incurred by the insured claimant which were authorized to the
<br /> the lien of the insured mortgage, as insured. if the Company is prejudiced by Company up to the time of payment and which the Company is obligated to
<br /> the failure of an insured to furnish the required cooperation, the Company's pay.
<br /> obligations-to such insured under the policy shall terminate,including any liabil- Upan the exercise by the Company f either of the options provided for in
<br /> ity or obligation to defend,prosecute,or continue any litigation,with regard to paragraphs b(i) or b(ii), the Company s obligations to the insured under this
<br /> the matter or matters requiring such cooperation. poky'far claimed loss or damage, other than the payments required to be
<br /> made,shall terminate,including any liability or obligation to defend, prosecute
<br /> 5. PROOF OF LOSS OR DAMAGE. or continue any litigation.
<br /> In addition to and after the notices required under Section 3 of these Con- DETERMINATION AND EXTENT OF LIABILITY,
<br /> ditions and Stipulations have been provided the Company, a proof of loss a This olio is a contract of indemnity against actual monetary loss or dam-
<br /> damage signed and sworn to by each insured claimant shall be furnished to the f? y or
<br /> Company within 90 days after the insured claimant Shall ascertain the facts age by reason ofrmatt red �stnsv edragainst by thshpolicy and eonl Itosthe
<br /> giving rise to the lass or damage.The proof of loss or damage shall describe the extenthereindescribed.
<br /> defect in,or lien or encumbrance on the title,or other matter insured against he o The liability of the Company under this policy to an insured lender shall i
<br /> this policy which constitutes the basis of loss or damage and shall state,to the not exceed the lea of:
<br /> extent possible,the basis of calculating the amount of the loss or damage.if the , the Amount of Insurance stated in Schedule A, or, if applicable,
<br /> Company is prejudiced by the failure of an insured claimant to provide the the amount of insurance as defined in Section 2 (c) of these Conditions and ll
<br /> required proof of loss or damage, the Company's obligations to such insured Stipulations;
<br /> under the policy shall terminate, including any liability or obligation to defend, p (ii) the amount o4 the unpaid primPaI indebtedness secured by the
<br /> prosecute, or continue any litigation, with regard to the matter or matters insured mortgage as limited or provided under Section B of these Conditions
<br /> requiring such proof of loss or damage. and Stipulations or as reduced under Section 9 of these Conditions and Stipula
<br /> In addition, an insured claimant may reasonably be required to submit an tions, at-the time the lass or damage insured against by this policy occurs,
<br /> examination under oath by any authorized representative of the Company and together with interest skiers o or
<br /> shall produce for examination,inspection and copying,at such reasonable times 9 �,� the difference between the value of the insured estate or interest
<br /> and places as may be designated by any authorized representative of the (iii)
<br /> Compony,.all records,books,ledgers,checks,correspondence and memoranda, as insured and the value of the insured estate or interest subject to the defect,
<br /> lien or encumbrance insured against by this policy.
<br /> whether bearing a date before or after Date of Policy, which reasonably per 6 In the event the insured lender has acquired the estate or interest in the
<br /> toin to the loss or damage. Further,if requested by any authorized representa- manner described in Section 2(a) of these Conditions avid Stipulations or has
<br /> tive of the Company,,the insured claimant shall grant its permission, in writing, conveyed the title,then the liability of the Company shall continue as set forth in
<br /> for any authorized representative of the Company to examine,inspect and copy Section 7(a) of these Conditions and Stipulations.
<br /> all records, books, ledgers,checks, correspondence and memoranda in the cus c The liability of the Company under this policy to on in
<br /> owner of
<br /> tody or control of a third party,which reasonably pertain to the loss or damage. the estate or interest in the land described in Schedule A shall not exceed the
<br /> All information designated as confidential by an insured claimant provided to. least of:
<br /> the Company pursuant to this Section shall not be disclosed to others unless, in the Amount of Insurance stated in Schedule A; or,
<br /> the reasonable judgment of the Company, it is necessary in the administration (i)the difference between the value of the insured estate or interest
<br /> of the claim. Failure of an insured claimant to submit for examination under
<br /> oath, produce other reasonably requested information or grant permission.to as ins
<br /> e d and then Insured tagainst red this ate r interest subject to the defect,!
<br /> secure reasonably necessary information from third parties as required in this (d) The Company will pay only those costs, attorneys' fees and expenses
<br /> paragraph, unlessprohibited by law or governmental regulation, shall fermi- incurred in accordance with Section 4 of these Conditions and Stipulations.
<br /> nate any-liability of the Company under this policy as to that insured for that B LIMITATION OF LIABILITY.
<br /> claim. a If the Company establishes the title,or removes the alleged defect,lien
<br /> b. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION or encumbrance,:or cures the lack of a right of access to or from the land, e
<br /> OF LIABILITY, cures the claim of unmarketability of title,ar otherwise establishes the lien of the
<br /> In case of a claim under this policy, the Company shall have the following insured mortgage, all as insured, in a reasonably diligent manner by any
<br /> additional options: method, incl
<br /> litigation and the completion of any appeals therefrom, d
<br /> (a) To Pay ar Tender Payment of the.Amount of Insurance or to Pur shall have fully performed its obligations with respect to that matter and shall not
<br /> chase the Indebtedness. be liable for an loss or damage caused thereby. {
<br /> (i) to pay or tender payment of the amount of insurance under this Y
<br /> policy together with any costs, attorneys' fees and expenses incurred by the
<br /> insured claimant, which were authorized by the Company, up to the time of
<br /> payment or tender of payment and which the Company is obligated to pay; or' {
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