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JAN/09/2007/TUE 09:23 AM • P. 005
<br /> Farm No.12(6/6/92) Order Number:9701-
<br /> 902175
<br /> CLTA lot Jim&Guarantee Page Number: 4
<br /> SCHEDULE OF EXCLUSIONS FROM COVERAGE of THIS GUARANTEE
<br /> 1. Except to the extent that specific assurance aro Provided In Schedule A of bas Guarantee,the Company assumes no liability for loss or damage by
<br /> reason of the following:
<br /> (a) Dafera,liens,encumbrances,adverse claims or other matters against the title,whether or not shown by the public records.
<br /> (b) (1) Tains or assesementa of arty taxing authority that levies taxes or assesshhen�on real property;or,(Z)Proceedings by a public agency which
<br /> may result In taxes ar assessments,or notices of such proceedings,whether or not the matters excluded under(1)or(2)are gown by the records of
<br /> the twang authority or by the public records.
<br /> (c) (1) Unpatented mining claims;(2)reservations a exceptions in patents a In ACs authorizing the issuance thereof;(3)weber rights,dalms or title
<br /> to weber,whether or not the matters excluded under(1),(2)or(3)are shown"a public records.
<br /> 2. Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee,the Company assumes no liability for los or damage
<br /> try reason of the following:
<br /> (a) Defects,liens,encumbrances,adverse daims ar ether matters affecting the title to any property beyond the lines of the land expressly described in
<br /> the description set forth In Schedule(A),(C)or In Part 2 of this Guarantee,or title to sleets,roads,avenues,lanes,ways or waterways to which such
<br /> land abuts,a the right to maintain therein vaults,tunnels,romps,or any structure or improvements,or any rights or easements therein,unless such
<br /> property,rights or easements are expressly and sped9celly set forth in said description.
<br /> (b) Defects,liens,encumbrances,adverse claims or other maters,whether or not shown by the public records;(1)Which are created,suffered,
<br /> assumed or agreed to by one or more of the Assureds;(2)which result in no loss to the Assured;or(3)which do not result in the invalidity or potential
<br /> trwalidRy,of any jhditiai or non judical proceeding which is within the scope and purpose of the assurances provided.
<br /> (c) The identity of any party shown or referred to in Schedule A.
<br /> (d) The validity,legal effect or priority of any matter shown or referred to in this Guarantee.
<br /> GUARANTEE CONDITIONS AND STIPULATIONS
<br /> 1. DerinWenefTerms.
<br /> The following terms when used In the Guarantee mean
<br /> . (a)the"Assured":the party or parties named as the Assured In this Guarantee,or on a supplemental writing executed by the Company.
<br /> Cb)'7and":the land described or referred to in Schedule(A)(C)or in part 2,and Improvements affixed thereto which by taw consbtote real property.
<br /> The tarm'tand"does not Include any property beyond the tines of the area described or referred to in Schedule(A)(C)or in Part 2,nor any rlght,title,
<br /> Interest,estate or easement in abutting sheets,roads,avenues,alleys,lanes,ways or waterways.
<br /> (c)"mortgageu:mortgage,deed of t us4 bust deed,or other security Instrument
<br /> (d)"public records":records established under state statutes at Date of Guarantee for the purpose of Imparting consnrcWe notice of matters relating
<br /> to real property to purchasers for value and whhout knowledge.
<br /> i (e)"date":the effective date.
<br /> 2. Notice of Claim to be Given by Assured Claimant.
<br /> An Assured shall notify the Company promptly In wdting in case knowledge shell come to an Assured hereunder of any dawn of I9Ue er Interest which is
<br /> adverse to the title m the retire or Interest,as stated herein,and which might muse los W damage for which the Company may be liable by virtue of
<br /> this Guarantee. If prompt notice shall not be given to the Company,then all liability of the Company shall terminate with regard to the manner or
<br /> matters for which prompt notice is required;provided,however,that failure to notify the Company shall In no case prejudice the rights of any Assured
<br /> under this Guarantee unless the Company shall be prejudiced by the failure and than only to the extern of the prejudice.
<br /> 3. No Duty to Defend or Prosecute.
<br /> The Company shall have no duty to defend or prosecute any action or proaeding to Which the Assured is a party,notwithstanding the nature of any
<br /> allegation In such action or proceeding,
<br /> 1 4, Comparrt+s Option to Defend or prosecute Anions;Duty of Assured Claimant to Cooperate,
<br /> Even though the Company has no duty to defend or prosaate as set forth In Paragraph 3 above:
<br /> i (a)The Company shall have the right,at Its sole option and cost to institute and prosecute any action or proceeding,interpose a defense,as limited In
<br /> (b),or to do any other act which In its opinion may be necessary or desirable m establish the title to the estate or Intsmst as stated herein,or to
<br /> establish the lien rights of the Assured,or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under
<br /> j the terms of this Guarantee,whether or not It shall be Gable hereunder,and shall not thereby concede liability or waive any provision of this
<br /> i Guarantee. IF the Company shall exercise as rights under this paragraph,It shall do so dllgenty.
<br /> (b)If the Company elects to exercise its options as sated In Paragraph 4(a)the Company shall have the right to select counsel of its choice(subject to
<br /> the right of such Assured to object for reasonable cause)to represent the Assured and shall not be liable for and will not pay the fees of any etcher
<br /> counm,nor will the Company pay any fees,costs or expenses Incurred by an Assured in the defense of those muses of action which allege matters
<br /> not covered by this Guarantee.
<br /> Cc)Whenever the Company shall have brought an action or interposed a defense as permitted"a provisions of this Guarantee,the Company may
<br /> ! pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the dght,In Its sole discretion,to appeal from an
<br /> adverse judgment or order.
<br /> (d)In all cases where this Guarantee permiU the Company tO prosecute or provide for the defense of any action Or proceeding,an Assured shall Secure
<br /> to the Company the right tow prosecute or provide fir the defense of any action or proceeding,and all appeals therein,and permit the Company to
<br /> use,at Its optfen,the name of such Assured for this purposewhenever requested by the Company,an Assured,at the Companys expense,shall give
<br /> the Company all reasonable aid in any action or proceeding,searing evidence,obtaining witnesses,prosecuttng or defending the action or lawful ad
<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 famish the required cooperation,the Company's obligations to
<br /> the Assured under the Guarantee shall terminate.
<br /> S. Proof of Loss Damage.
<br /> FrstAmerican Td1&Company of Stockton
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