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SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE
<br />1. Except to the extent that specific assurances are provided in Schedule Aof this Guarantee, the Company assumes no liability for loss mdamage by reason of the
<br />following:
<br />(a) Defects, liens, encumbrances, adverse claims mother matters against the title, whether mnot shown by the public records.
<br />88 (1) Taxes or assessments of any taxing authority that levies taxes or assessments on mal property; or, (2) Proceedings by upuNic agency which may result in
<br />taxes or assessments, o/notices ofsuch proceedings, whether o/not the matters excluded under (1) or (2) are shown by the records of the taxing authority or by the
<br />public records.
<br />(c) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the |oxuunou thereof; (3) water hghts, claims ortitle 1n water,
<br />whether ornot the matters excluded under (1).(2)or(3)are shown bythe public records.
<br />2. Notwithstanding any specific assurances which are provided in SohoUu|o A of this Guarantee, the Company omoumoo no liability for |noo or damage by muxan of
<br />the following:
<br />(a) Defects, liens, encumbrances, adverse claims mother matters affecting the title tuany property beyond the lines ofthe land expressly described inthe description
<br />set forth inSchedule (A).(C)orinPart 2of this Guarantee, u/title to streets, roads, avenues, lanes, ways or waterways to which such land abuts, orthe right to main-
<br />tainthominvuuKo.tunna|o.mmpooramystmctumorimpmvomoNm;oranyhgNmoroaoomonts therein, unless such property, rights nreasements are expressly and
<br />specifically set forth insaid description.
<br />¢A Defects, |ionx, onuumAmn000, adverse claims or other muUom, whether or not shown by the public records; (1) which are xmeted, oo#omd, assumed or agreed
<br />tobyone ormore of the Assureds; (2)which result innoloss to the Assured; nr(3)which donot result inthe invalidity orpotential invalidity ofany judicial urnon-
<br />judicial pmooaUingwkioUiow@UinthoonopoonUpurp0000f the assurances provided.
<br />(c) The identity of any party shown orreferred to in Sokodu|o A.
<br />(d) The validity, |ogu| effect mpriority of any matter shown orreferred Uo in this Guarantee.
<br />GUARANTEE CONDITIONS AND STIPULATIONS
<br />t Definition of Terms.
<br />The following terms when used inthe Guarantee
<br />mean:
<br />(a)the 'Amoumd^: the party mparties named un
<br />the Assured in this Guomnteo, or on u ouVp|ommntu|
<br />writing executed 8ythe Company.
<br />(b) ^|unU^: the land U000hbod or referred to in
<br />Schedule UQ(C)minPart 2.and improvements affixed
<br />thereto which bylaw constitute real property. The term
<br />^|unU^does not include any property beyond the lines of
<br />the area described orreferred to|n Schedule (A)(C) or
<br />inPart 2.nor any right, title, interest, estate oreasement
<br />inabutting streets, roads, avenues, alleys, lanes, ways
<br />or waterways.
<br />(c) "mortgage": murtgugo, deed of trust. trust
<br />deed, orother security instrument.
<br />(d) "public records": mourdn ootaUUoUoU under
<br />state statutes at Date of Guarantee for the purpose of
<br />imparting constructive notice ofmatters relating 0oreal
<br />property to purchasers for value and without knowledge.
<br />(e) "date": the effective date.
<br />2. Notice of Claim tobmGiven byAssured
<br />AnAssured shall notify the Company promptly in
<br />writing in case kmxwm1go shall come to an Assured
<br />hereunder of any claim of title or interest which is
<br />adverse tnthe title to the estate or interest, as stated
<br />homin, and which might oouoo |nxo or Uumugo for
<br />which the Company may be liable by virtue of this
<br />GummNmo. If prompt notice shall not be given to the
<br />Company, then all liability of the Company uhuU1ormi-
<br />nato with regard to the matter or matters for which
<br />prompt notice iarequired; provided, however, that failure
<br />to notify the Company ohuU in no uun* prejudice the
<br />rights of any Assured under this Guarantee unless �o
<br />Company oAuU be prejudiced by the failure and then
<br />only 0uthe extent of the prejudice.
<br />3. No Duty toDefend orProsecute.
<br />The Company shall have noduty todefend mprosecute
<br />any action mproceeding 0owhich the Assured is u
<br />party, notwithstanding the nature ofany allegation in
<br />such action orproceeding.
<br />4. Company's Option to Defend mProsecute
<br />Actions; Duty of Assured Claimant to
<br />Cooperate.
<br />Even though the Company has no duty to defend
<br />orprosecute uoset forth inParagraph 3above:
<br />(a) The Company shall have the right, at its oo|o
<br />option and cost, toinstitute and prosecute any action o/
<br />proceeding, interpose udefense, aalimited in(b)'or0o
<br />doany other act which inits opinion may bonecessary
<br />urdesirable toestablish the title Vothe estate orinterest
<br />as stated homio, or to establish the lien hgNm of the
<br />Assured, nrtoprevent o/reduce loss ordamage to the
<br />Assured. The Company may take any appropriate action
<br />under the terms dthis Guarantee, whether ornot Kshall
<br />be |iub|a hereunder, and shall not thereby onnoodo lia-
<br />bility or waive any provision of this Guarantee. If the
<br />Company shall exercise its rights under this paragraph,
<br />itshall dnoodiligently.
<br />(b)Nthe Company elects toexercise its options ao
<br />stated in Paragraph 4(a) the Company shall have the
<br />right toselect counsel ofits choice (subject to the right
<br />ofsuch Assured toobject for reasonable cause) 1orep-
<br />resent the Assured and shall not boliable for and will not
<br />pay the fees ofany other counsel, nor will the Company
<br />pay any fees, costs orexpenses incurred UyonAssured
<br />in the defense of those ouuoou of action which o||ogo
<br />matters not covered Uythis Guarantee.
<br />(o)Whenever the Company shall have brought un
<br />action urinterposed udefense uapermitted bythe pro-
<br />visions of this Guarantee, the Company may pursue any
<br />litigation Nfinal determination byucourt of competent
<br />jurisdiction and expressly reserves the right, inits sole
<br />discretion, toappeal from unadverse judgment nrorder.
<br />(d) In all cases where this Guarantee permits the
<br />Company toprosecute urprovide for the defense ofany
<br />action or proceeding, an Assured shall secure |othe
<br />Company the right to mo pm000uto or provide for the
<br />defense ofany action orproceeding, and all appeals
<br />thomin, and permit the Company to use, at its npUon,
<br />the name ofsuch Assured for this purpose. Whenever
<br />requested by the Company, on Assured, at the
<br />Company's expense, shall give the Company all reason-
<br />able aidinunyuoUnnorpm000Uing.000uhnQe/iUonoo'
<br />--obtaining witnesses, prosecuting or defending the
<br />Won or lawful act which in the opinion of the Company
<br />may bonecessary mdesirable toestablish the title to
<br />the estate minterest oostated herein, mtoestablish the
<br />lien rights ofthe Assured. Kthe Company is prejudiced
<br />by the failure of the Aoxomd to furnish the required
<br />cooperation, the Company's obligations tnthe Assured
<br />under the Guarantee shall terminate.
<br />5. Proof of Loss ovDamage.
<br />In addition to and after the notices required under
<br />Section 2 of these Conditions and Stipulations have
<br />been provided Vuthe Company, aproof ofloss mdam-
<br />age n|OnoUundmwomtobythoAoxumdxhuUb*fur-
<br />nixhodNthuCompuoywKhinninoW(Q0)duyoaftmrdm
<br />Assured shall ascertain the facts giving rise 0othe loss
<br />urdamage. The proof ofloss nrdamage shall describe
<br />the matters covered bythis Guarantee which constitute
<br />the basis ofloss nrdamage and shall state, tnthe extent
<br />possible, the basis ofcalculating the amount of the loss
<br />n/damage. |f the Company |oprejudiced Uythe failure
<br />ofthe Assured loprovide the required proof ofloss nr
<br />damage, the Company's obligation to such Assured
<br />under the Guarantee oHaU terminate. In addition, the
<br />Assured may reasonably borequired tosubmit tuexam-
<br />ination under oath by any authorized representative of
<br />the Company and ehu|| produce for oxuminubun,
<br />inspection and oo0yin0, at such reasonable times and
<br />places uxmay bodesignated byany authorized repre-
<br />sentative of the Company, all records, books, {odgom,
<br />ohooko, correspondence and momommdu, whether
<br />bearing adate before orafter Date ofGuarantee, which
<br />muououh|y pertain to the |oxx or damage. Further, if
<br />requested by any uutUohmU representative of the
<br />Company, the Assured shall grant As permission, in
<br />writing, for any authorized representative of the Com-
<br />pany to
<br />pm'panyto exumino, inspect and copy all momUx. books,
<br />|odOom, xhouku, correspondence and memoranda in
<br />the custody orcontrol nfuthird party, which reasonably
<br />pertain to the |000 or damage. All information desig-
<br />nated as confidential by the 800umd provided to the
<br />Company pursuant 0othis Section shall not Uodisclosed
<br />to Nhom un|onx, in the munonub|o judgment of the
<br />Company, it is necessary in the administration of the
<br />claim. Failure of the Assured 0osubmit for examination
<br />under natU, pmd000 other muounub|y requested
<br />eormation or grant permission to secure reasonably
<br />moo myinfonnation from third parties as required
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