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CONDITIONS AND STIPULATIONS (Continued and Concluded From Reverse Side of Policy Face)
<br />the ;full amount of this policy, together
<br />with all costs,, attorneys' fees and expenses
<br />which the Company is obligatedhereunder
<br />to pay, shalll�terminaf,all. liability of the
<br />Company hereunder., In the event; after
<br />notice of claim has been given to the Com-
<br />pany by the Insured, the Company offers
<br />to purchase said indebtedness, the :owner of
<br />such indebtedness shall transfer and 'assign
<br />said indebtedness and the mortgage' securing
<br />the same to the Company upon payment of
<br />the purchase price.
<br />7. PAYMENT OF 'LOSS
<br />(a) The liability of the Company under
<br />this polity_ shall in no case exceed, in all,
<br />the actual. loss of the Insured and costs and
<br />attorneys` fees which the Company may be
<br />obligated hereunder to pay.
<br />(b) The Company will pay; in addition
<br />to any loss insured against by this policy,,
<br />all costs imposed upon the Insured in liti-
<br />gation carried on by the Company_ for the
<br />Insured,, and all costs and attorneys' fees in
<br />litigation carried on by the Insured with
<br />the written authorization of the Company.
<br />(e) No claim for damages shall arise or
<br />be maintainable under this policy (1) if
<br />the Company; after having received notice
<br />of an, alleged defect, lien or encumbrance:
<br />not excepted or excluded herein removes
<br />such defect, lien or encumbrance within a
<br />reasonable time after ;receipt_of such notice.
<br />,or'(2) for liability voluntarily assumed by
<br />the Insured, in settling, ,any claim or suit
<br />without written consentof the Company;
<br />or (3)' in the event the title is rejected as
<br />unmarketable because of a defect, lien or
<br />encumbrance not excepted or excluded in
<br />this policy, until there has been a final
<br />determination by a court of competent juris-
<br />diction sustaining such rejection.
<br />(d) All payments under this policy, ex-
<br />cept payments made for costs, attorneys'
<br />fees and expenses, shall reduce the amount
<br />of the insurance, pro Canto and no payment
<br />shall be made without producing this polity
<br />for endorsement. of -such payment unless
<br />the polity be lost or destroyed, in which
<br />case proof of such loss or destruction shall
<br />be furnished to the satisfaction of the -Com-
<br />pany; provided, however, .if the, owner of
<br />an indebtedness secured by a mortgage
<br />shown in Schedule B' is an Insured, herein.
<br />then such 'payments shall not reduce pro
<br />tanto the amount of the insurance afforded
<br />hereunder as to such ,Insured, except to the
<br />extent that such payments reduce the amount
<br />of the indebtedness secured by such Mort,
<br />gage. Payment in full by any person or,
<br />vgluntarq satisfaction or release by the In
<br />sured of a- mortgage covered ;by this policy
<br />shall terminate all liability of the Company
<br />to the insured owner of the indebtedness
<br />secured by such mortgage, except as pro-
<br />vided in paragraph .2 hereof,
<br />(e) When liability has been definitely
<br />fixed in accordance with the conditions of
<br />this policy the loss or damage shall be pay -
<br />Able within thirty days thereafter.
<br />8. LIABILITY NONCUMULATIVE'
<br />It is expressly understood that, the,
<br />amount of this policy is reduced by any
<br />amount the Company may pay under any
<br />polity insuring the validity or priority of
<br />any mortgage shown or referred to in
<br />Schedule B hereof or any mortgage here-
<br />after executed by the Insured which is 'a
<br />charge or lien on the estate or interest
<br />described or referred to in Schedule. A, and
<br />the amount so paid shall be. deemed a pay;
<br />ment to the Insured, under this polity. The
<br />'provisions of this paragraph numbered -8
<br />shall not apply to an, Insured owner of an
<br />indebtedness secured: by a'mortgage shown
<br />in Schedule tB unless such, Insured acquires
<br />title to said. estate or interest.in satisfaction
<br />of said indebtedness or any part thereof.
<br />9. SUBROGATION UPON, PAYMENT OR.
<br />SETTLEMENT
<br />Whenever the "Company shall have settled
<br />a claim under this policy; all right of sub
<br />rogation shall vest. in the Company un-
<br />affected by any act of the Insured„ and it
<br />shall be subrogated to and be entitled to
<br />all rights' and' remedies which the Insured
<br />would have had against any person or, prop-
<br />erty in respect to such claim had this policy
<br />not been -issued. If the payment does not
<br />cover the loss of the Insured, the Company
<br />shall be subrogated to such rights and
<br />remedies ,in the proportion which said pay-
<br />ment bears to the amount of said loss. If
<br />loss should result from any act. of .the In-
<br />sured, such act shall not void this policy,
<br />but the Company, in that event; shall be
<br />required to pay only that part of any losses
<br />in against hereunder which shall ex-
<br />ceed the amount, if any; lost to the Com-
<br />pany by reason of the impairment of the
<br />right:. of subrogation. The Insured, if re-
<br />quested by the Company; shall transfer to
<br />the Company all rights and remedies
<br />against any person or property necessary in
<br />order to perfect such right, of subrogation,
<br />and shall permit the Company to use the
<br />name of the Insured in any transaction or
<br />litigation involving :such rights or remedies.
<br />If the Insured is the owner of the in-
<br />debtedness secured, by a mortgage covered
<br />by this policy, .such Insured may release or
<br />substitute the personal liability of any
<br />debtor or guarantor, or extend or otherwise
<br />modify the terms of payment, or release
<br />a portion of the estate or interest from the
<br />lien of the mortgage, or release any cot -
<br />lateral security for the indebtedness, pro-
<br />vided such act does not result in any loss
<br />of priority of the lien of the mortgage.
<br />10. POLICY ENTIRE CONTRACT
<br />Any action or, actions or rights of action
<br />that the Insured may have or may bring
<br />against the Company arising out of the
<br />status of the: lien of the mortgage covered
<br />by this policy or the title of the estate or
<br />interest insured herein must be based on
<br />the provisions of this 'policy,.
<br />No provision or condition of this policy
<br />can be, waived or changed except by writing.
<br />endorsed hereon or attached hereto signed
<br />by the President, a Vice President; the
<br />Secretary; an Assistant Secretary or other
<br />validating officer of the Company.
<br />11. NOTICES, WHERE, SENT
<br />All. notices required to be given the Coin
<br />pany and any statement, in writing required
<br />to be furnished the Company shall be
<br />dressed to it at the office which issued this
<br />polity or to its Home Office, 433 South
<br />Spring, Street, Los Angeles 54, California.
<br />12. THE PREMIUM SPECIFIED IN SCHEDULE
<br />A IS THE ENTIRE CHARGE FOR TITLE SEARCH,.
<br />TITLE EXAMINATION AND TITLE INSURANCE.
<br />TI
<br />Title Insurance and Trust Company
<br />rounoeo iN iooa
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