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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 A of this Guarantee,the Company assumes no liability for loss or damage by
<br /> reason of the following:
<br /> (a) Defects,liens,encumbrances,adverse claims or other matters against the title,whether or not shown by the public records.
<br /> (b) (1)Taxes or assessments of any taxing authority that levies taxes or assessments on real property;or(2)Proceedings by a public agency which.
<br /> may result in taxes or assessments,or notices of such proceedings,whether or not the matters excluded under(1)or(2)are shown by the records
<br /> of the taxing authority or by the public records.
<br /> (c) (1)Unpatented mining claims;(2)reservations or exceptions in patents or in Acts authorizing the issuance thereof;(3)water rights,claims or
<br /> title to water,whether or not the matters excluded under(1),(2)or(3)are shown by the public records.
<br /> 2. Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee,the Company assumes no liability for loss or damage by
<br /> reason of the following:
<br /> (a) Defects,liens,encumbrances,adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described
<br /> in the description set forth in Schedule(A),(C)or in Part 2 of this Guarantee,or title to streets,roads,avenues,lanes,ways or waterways to
<br /> which such land abuts,or the right to maintain therein vaults,tunnels,ramps or any structure or improvements;or any rights or easements
<br /> therein,unless such property,rights or easements are expressly and specifically set forth in said description.
<br /> (b) Defects,liens,encumbrances,adverse claims or other matters,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
<br /> potential invalidity of any judicial or non judicial 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 /> I_ Definition of Terms. object for reasonable cause)to represent the Assured and shall to the Company pursuant to this Section shall not be disclosed to
<br /> The follow ing terms when used in the Guarantee mean not be liable for and will not pay the fees of any other counsel. others unless,in tate reasonable judgment of the Company,it is
<br /> (a) the "Assured"; the party or parties named as the nor will the Company pay any fees,costs or expenses incurred necessary in the administration of the claim Failure of the
<br /> Assured in this Guarantee, or on a supplemental writing by an Assured in the defense of those causes of action which Assured to submit for examination under oath,produce other
<br /> executed by the Company. allege matters not covered by this Guarantee. reasonably requested information or grant permission to secure
<br /> (b) "land":the land described or referred to in Schedule (c) Whenever the Company shall have brought an action reasonably necessary information from third parties as required
<br /> (A),(C)or in Part 2,and improvements affixed thereto which by or interposed a defense as permitted by the provisions of this in the above paragraph, unless prohibited by law or
<br /> law constitute real property,The term"land"does not include Guarantee, the Company may pursue any litigation to final governmental regulation, shall terminate any liability of the
<br /> any property beyond the lines of the area described or referred determination by a court of competent jurisdiction and expressly Company under this Guarantee to the Assured for that claim.
<br /> to in Schedule(A),(C)or in Part 2,nor any right,title,interest, reserves the right, in its sole discretion,to appeal from an 6. Options to Pay or Otherwise Settle Claims:
<br /> estate or easement in abutting streets,roads,avenues,alleys, adverse judgment or order. Termination of Liability.
<br /> lanes,ways or waterways. (d) In all cases where this Guarantee permits the Company In case ofa claim under this Guarantee,the Company shall
<br /> (e) "mortgage":mortgage,deed of trust,trust deed,or to prosecute or provide for the defense of any action or have the following additional options:
<br /> other security instrument. proceeding,an Assured shall secure to the Company tlhe right to (a) To Pay or Tender Payment of the Amount of Liability
<br /> (d) "public records": records established under state so prosecute or provide for the defense of any action or orto Purchase the Indebtedness.
<br /> statutes at Date of Guarantee for the purpose of imparting proceeding,and all meals therein,and permit the Company to The Company shall have the option to pay or settle or
<br /> constructive notice of matters relating to real property to use,at its option,the name of such Assured for this purpose. compromise for or in the name of the Assured any claim which
<br /> purchasers for value and without knowledge. Whenever requested by the Company, an Assured, at the could result in loss to the Assured within the coverage of this
<br /> (e) "date":the effective date. "Company's expense,shall give the Company all reasonable aid Guarantee,or to pay the full amount of this Guarantee or,if this
<br /> 2. Notice of Claim to be Given by Assured Claimant. in any action or proceeding, securing evidence, obtaining Guarantee is issued for the benefit ofa holder ofa mortgage ora
<br /> An Assured shall notify the Company promptly in writing in witnesses,prosecuting or defending the action or lawful act lienholder,the Company shall have the option to purchase the
<br /> case knowledge shall came to an Assured hereunder of any which in the opinion of the Company may be necessary or indebtedness secured by said mortgage or said lien for the
<br /> claim of title or interest which is adverse to the title to the estate desirable to establish the title to the estate or interest as stated amount owing thereon, together with any costs,reasonable
<br /> or interest,as stated herein,and which might cause loss or herein,or to establish the lien rights of the Assured. If the attorneys'fees and expenses incurred by the Assured claimant
<br /> damage for which the Company may be liable by virtue of this Company is prejudiced by the failure of the Assured to famish which were authorized by the Company up to the time of
<br /> Guarantee.rf prompt notice shall not be given to the Company, the required cooperation, the Company's obligations to the purchase,
<br /> then all liability of the Company shall terminate with regard to Assured under the Guarantee shall terminate. Such purchase,payment or tender of payment of the full
<br /> the matter or matters for which prompt notice is required; 5. Proof of Loss or Damage. amount of the Guarantee shall terminate all liability of the
<br /> provided,however,that failure to notify the Company shall in no In addition to and after the notices required under Section 2 Company hereunder.In the event after notice of claim has been
<br /> case prejudice the rights of arty Assured under this Guarantee of these Conditions and Stipulations have been provided to the given to the Company by the Assured the Company offers to
<br /> unless the Company shall be prejudiced by the failure and then Company,a proof of loss or damage signed and sworn to by the purchase said indebtedness,the owner of such indebtedness
<br /> only to the extent of the prejudice, Assured shall be furnished to the Company within ninety(90) shall transfer and assign said indebtedness,together with any
<br /> 3. No Duty to Defend or Prosecute. days after the Assured shall ascertain the facts giving rise to the collateral security, to the Company upon payment of the
<br /> The Company shall have no duty to defend or prosecute loss or damage.The proof of loss or damage shall describe the purchase price.
<br /> any action or proceeding to which the Assured is a party, matters covered by this Guarantee which constitute the basis of Upon the exercise by the Company of the option provided
<br /> notwithstanding the nature of any allegation in such action or loss or damage and shall state,to the extent possible,the basis for in Paragraph(a)the Company's obligation to the Assured
<br /> proceeding. of calculating the amount of the loss or damage.If the Company under this Guarantee for the claimed loss or damage,other than
<br /> 4. Company's Option to Defend or Prosecute Actions; is prejudiced by the failure of the Assured to provide the to make the payment required in that paragraph,shall terminate,
<br /> Duty of Assured Claimant to Cooperate. required proof of loss or damage,the Company's obligation to including any obligation to continue the defense orprosecution
<br /> Even though the Company has no duty to defend or such assured under the Guarantee shall terminate.In addition, of any litigation for which the Company has exercised its
<br /> prosecute as set forth in Paragraph 3 above: the Assured may reasonably be required to submit to options under Paragraph 4, and the Guarantee shall be
<br /> (a) The Company shall have the right,at its sole option examination under oath by any authorized representative of the surrendered to the Company for cancellation.
<br /> and cost,to institute and prosecute any action or proceeding, Company and shalt produce for examination,inspection and (b) To Pay or Otherwise Settle With Parties Other Than
<br /> interpose a defense,as limited in(b),or to do any other act copying, at such reasonable times and places as may be the Assured or With the Assured Claimant.
<br /> which in its opinion may be necessary or desirable to establish designated by any authorized representative ofthe Company,all To pay or otherwise settle with other parties for or in the
<br /> the title to the estate or interest as stated herein,or to establish records, looks, ledgers, checks, correspondence and name of an Assured claimant any claim assured against under
<br /> the lien rights of the Assured,or to prevent or reduce loss or memoranda,whether bearing a date before or atter Date of this Guarantee,together with any costs, attorneys'fees and
<br /> damage to the Assured.The Company may take any appropriate Guarantee,which reasonably pertain to the loss or damage, expenses incurred by the Assured claimant which were
<br /> action under the terns of this Guarantee,whether or not it shall Further,if requested by any authorized representative of the authorized by the Company up to the time ofpayment and which
<br /> be liable hereunder,and shall not thereby concede liability or Company,the Assured shall grant its permission,in writing,for the Company is obligated to pay.
<br /> waive any provision of this Guarantee.If the Company shall any authorized representative of the Company to examine, Upon the exercise by the Company of the option provided
<br /> exercise its rights under this paragraph,it shall do so diligently, inspect and copy all'records, books, ledgers, checks, for in Paragraph(b)the Company's obligation to the Assured
<br /> (b) If the Company elects to exercise its options as stated correspondence and memoranda in the custody or control of a under this Guarantee for the claimed loss or damage,other than
<br /> in Paragraph 4(a)the Company slhalI have the right to select third party,which reasonably pertain to the loss or damage.All to snake the payment required in that paragraph,shall terminate,
<br /> counsel of its choice(subject to the right of such Assured to information designated as confidential by the Assured provided including any obligation to continue the defense or prosecution
<br /> Lot Book Guarantee
<br /> CLTA Guarantee Form No.12(9/12/08)
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