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JAN/09/2007/TUE 09, 23 AM 0 P. 006
<br /> Form No.12(6/6/92) Order Number:8701-
<br /> 302175
<br /> CLTA Lot Book Guarantee Page Number; 5
<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 Guammee which constitute the basis of less
<br /> or damage and shall state,to the extent possible,the basis of calculating the amount of the Inns or damage. If the Company Is prejudiced by the
<br /> failure of the Assured to provide the required proof of lass or damage,the Companys obligation to such Assured under the Guarantee shall brmnate,
<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 mpNng,at such reasonable times and places as may be desigrated by any authorized representative of the
<br /> Company,all records,books,kdgers,checks,correspondence and memoranda,whether bearing a dare before or after Date of Guarantee,which
<br /> reasonably pertain to the loss or damage. Pusher,if requested by any authorized representative of the Company,the Assured shall grant its
<br /> permission,in writing,for any allthcrimd representative of the Company to examine,Inspect and copy all recoMs,brooks,ledgers,checks,
<br /> correspondence and memoranda In the custody or control of a third party,which reasonably peitain to the loss damage. All Information designated as
<br /> confidential by the Assured provided to the Company,pursuant to this Section shall nob he disclosed to others unless,In the reasmable judgment of
<br /> the Company,it is necessary In the administration of the claim. Paildre 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:7erminatlon 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 w to Purdiam 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 Guarentea,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 Ilenholder,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 insured by the Assured dalmant which were authorized by the Cnmpww up
<br /> to the time of purchase.
<br /> Such purchase,payment or tender of payment N the full amount of the Guarantee shag 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 incebtedness,together with any collateral security,to the Company upon payment of the purchase price.
<br /> Upon the exere se 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 Nth 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 Posts,atbomeys'fees and expenses Incurred try 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 p,nseartim of any 116gri 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 dalmant who has suffered loss
<br /> or damage try reason of reliance upon the assurances set forth In this Guarantee and only to the extent herein described,and subject to the Fedusbns
<br /> From Coverage ofThis Guarantee.
<br /> The Liability of the Company under this Guarantee to the Assured shall not exceed the least OP.
<br /> (a)the amount of liability stated in Schedule A or In Part 2;
<br /> (b)the amount of the unpaid principal Indebtedness severed 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 M these Conditions and stlpulatlans,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 W Interest subject to any
<br /> defect,lien or encumbrance Assured against by this Guarantee.
<br /> i & Unnitation of Liability.
<br /> (a)If the Company establishes the tide,a removes the alleged defect,lien or encumbrance,or ares any other matter Assured against by this
<br /> i 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 shad not be liable for any loss or damage caused thereby.
<br /> (b)In the event of any litigation by the Company or with the Cumpany's consent,the Comparry shall have no liability for loss or damage unbi there has
<br /> been a final determination by a court of competent jurisdiction,and disposition of all app'ea therefrom,adverse to the title,as slated herein.
<br /> (c)The Company shall not be liable for loss or damage to any Assured for liability volimbariy assumed by the Assured in settling any claim or suit
<br /> without the poor written consent of the company,
<br /> 9.Reduction of Chabitty or Tamhination of Liability.
<br /> All payments under this Guarantee,except payments made for costs,attorneys'fees and expenses pursuant to Paragraph 4 shag reduce the amount of
<br /> liability pro tanto.
<br /> 30. Payment of Loss.
<br /> (a)No payment shall be made without producing this Guarantee for endorsement of the payment unless the Guarantee has been lost or destroyed,in
<br /> which case proof of loss or destruction shall he furnished to the satisfaction of the Company,
<br /> (b) When liability and the extent of kers or damage has been definitely fixed in accordance with these Conditions and stipulations,the loss or damage
<br /> shall be payable within thirty(30)days thereafter.
<br /> 11. Subrogation Upon Payment or Settlement
<br /> Whenever the Company shall have settled and paid a claim under this Guarantee,all right of subrogation shall vest in the Company unaffected by any
<br /> act of the Assured claimant
<br /> The Company shall be subrogated to and be entitled to all rights and remedies which the assured would have had against any person or property in
<br /> respect to the claim had this Guarantee not been Issued. If requested by the Company,the Assured shag transfer to the Company all rights and
<br /> remedies against any person or property necessary in order to perfect this right of subrogatiPn. The Assured shall permit the Company to sue,
<br /> minpramies or settle In ft name of the Assured and to use the name of the Asured in any transaction or litigation Involving these rights or remedies.
<br /> First Arriefican Tyb'e Company of Stockton
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