SITE INFORMATION AND CORRESPONDENCE

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4, !1, tALLUbIWOrxym4VrexRve The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: -s h. .;v.: ,,7 t' ; " 1. (a) Any low,ordinance or governmental rt;tion(including but H t littsited,to building or zoning laws, . nonces,or regulations)restricting,regulat- ing,prohibiting or relating to(1)the occupancy,use,or enjoyment of the land;(ii)the character,dimensions or oocation of any improvement now or hereafter erected on the land;(iii)a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part;or(iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the f enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Polir a notice of detect,lien or cy. (b) Any governmental police power not excluded by(a)above,except to the:extent that a notice of the exercise thereof o encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on'the rights of,a purchaser for value without knowledge. 3. Defects,liens, encumbrances, adverse claims or other matters: it (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to-the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c resulting in no loss or damage to the insured claimant; h (d�) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had value paid for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inabilityor failure of:the insured of Date of Policy,or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim,`which arises out of the transaction vesting in the insured the estate or .interest insured by this policy or the transaction creating the interest I of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. r i CONDITIONS AND STIPULATIONS + 1. DEFINITION OF TERMS. manner which discharges the lien of the insured mortgage; (ii) a transferee of The following terms when used in this policy mean: (a) "insured":the insured named in Schedule A,and,subject to any rights t the estate s interest so acquired from an insured corporation, provided the or defenses the Company would have had against the named insured, those „transferee is the parent or wholly-owned subsidiary of the insured corporation. who succeed to the interest of the named insured by operation of law as disfin• and their corporate successors by operation of law and not by purchase,subject guished from purchase including, but not limited to,heirs,distributees,devisees, !o any rights or defenses the Company may have against any predecessor survivors,personal representatives,next of kin,or corporate or fiduciary wcces- insureds; and (iii} any governmental agency or governmental instrumentality sors.The term"insured" also includes which acquires all or any part of the estate or interest pursuant to a contract of (i) the owner of the indebtedness secured by the insured mortgage insurance or guaranty insuring or guaranteeing the indebtedness secured by the and eaci,successor in ownership of the indebtedness except a successor who is insured mortgage. an obligor under the provisions of Section 12(c)of these Conditions and Stipula- (b) After Conveyance of Title by an insured.The coverage of this policy tions(reserving, however, all rights and defenses as to any successor that the shall continue in force as of Date of Policy in favor of an insured only so long as Company would hove had against any predecessor insured,unless the successor the insured retains an estate or interest in the land, or holds an indebtedness acquired the indebtedness as a purchaser for value without knowledge of the secured by a purchase money mortgage given by a purchaser from the insured, asserted defect, lien, encumbrance, adverse claim or other matter .insured or only so-long as the insured shall have liability by reason of covenants of against by this policy as affecting title to the estate:or interest in the land); warranty made by the insured in any transfer or conveyance of the estate or (ii) any governmental agency or governmental instrumentality which is interest.This policy shall not continue in force in favor of any purchaser from an on insurer or guarantor under an insurance contract'or guaranty insuring or insured of either (i),an estate or interest in the land, or (ri) an indebtedness guaranteeing the indebtedness secured by the insured mortgage, or any part secured by a purchase money mortgage given to an insured. whether named as an insured herein or not; (c) Amount of.Insurance.The amount of insurance after the acquisition or thereof, (iii) the parties designated in Section 2(a) of these Conditions and offer the conveyance by an insured lender shall in neither event exceed the Stipulolions.' feast of: (b) "insured claimant": an insured claiming loss or damage. (i) The amount of insurance stated in Schedule A; The amount of the principal of the indebtedness secured by the (c) "insured lender": the owner of an insured mortgage. (n) ( ) insured mortgage as of Date Policy,interest thereon,expenses of foreclosure, "insured mortgage": a mortgage shown in Schedule B, the owner of to camounts advanced pursuant to the insured mortgage to assure compliance with which is named as an insured in Schedule A.actual knowledge, not constructive knowl• laws or to!protect the lien of the insured mortgage prior to the time of acquisi- (e) "knowledge" or "known":imputed to on insured by reason of the public tion of the estate or interest in the land and secured thereby and reasonable edge-or notice which may records as defined in this policy or any other records which impart constructive amounts expended to prevent deterioration of improvements, but reduced by notice of matters affecting the land. the amount of all payments made; or (f) "land":the land described or referred to in Schedule A,and improve- (iii) The amount paid by any governmental agency or governmental ments affixed thereto which by law constitute real property. The term'land" instrumentality, if the agency or the instrumentality is the insured claimant, in does not include any property beyond the lines of the area described or the acquisition of the estate or interest in satisfaction of its insurance contract or .referred to in Schedule A, nor any right, title, interest, estate or easement in guaranty. abutting streets, roads, avenues,alleys, lanes, ways or waterways, but nothing 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. herein sholl.modify or limit the extent to which a right of access to and from the An insured shall notify the Company promptly in writing (i)in case of any litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an land is insured by this policy. insured hereunder of any claim of title or interest which is adverse to the title to (g) "mortgage": mortgage, deed of trust, trust deed, or other security the estatevr interest or the lien of the insured mortgage,as insured,and which instrument, (h� "public records": records established under state statutes of Date of might cause loss or damage for which the Company may be liable by virtue of 'Polity or the purpose of imparting constructive notice of matters relating to real this policy, or (iii) if title je the estate or interest or the lien of she insured property to purchasers for value and without knowledge. mortgage,as insured,is rejected as unmarketable.If prompt notice shall not be (i) "unmorketability of the title":an alleged or apparent matter affecting given to the Company,then as to that insured all liability of the Company shall the title to the land, not excluded or excepted from coverage, which would terminate with regard to the matter or matters for which prompt notice is entitle a purchaser of the estate or interest described in Schedule A or the required;provided,however,that failure to notify the Company shall in no case insured mortgage to be released from the obligation to purchase by virtue of a prejudice the rights of any insured under this polity unless the Company shall be contractual condition requiring the delivery of marketable title. prejudiced by the failure and then onlyto the extent of the prejudice. 4. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED 2. CONTINUATION OF INSURANCE. CLAIMANT TO COOPERATE. (a) After Acquisition of Title by Insured Lender.If this policy insures the (a) Upon written request by an insured and subject to the options owner of the indebtedness secured by the insured mortgage, the coverage of contained in Section 6 of these Conditions and Stipulations,the Company,at its this policy shall continue in force as of Date of Policy in favor of(i)such insured own cost and without unreasonable delay,shall provide for the defense of such lender who acquires all or any part of the estate or interest in the land by insured in litigation in which any third party asserts a claim adverse to the title foreclosure, trustees sale, conveyance in lieu of foreclosure, or other legal or interest as insured, but only as to those stated causes of action alleging a k