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D-224 GRANT DEED, 1431 MILLER AVE, APN 369-15-004 p285pacEI390 �- BRENDA DAVIS RDE # 003 R,'CORDED AT THE REQUEST OF: SANTA CLARA COUNTY RECORDER 4/15/1996 Recorded at the request of 8:00 AM AMERICAN TITLE INSURANCE COMPANY American Title Insurance Co. When recorded mail this deed and, unless otherwise shown DOCUMENT' 0 01 3 2 5 7 2 0 2 Titles: 1 / Pages: 2 below, mail tax statements to: Fees. 10.00 Taxes . . 242.00 City of Cupertino, A Municipal 11111111111 Copies. Corporation w0013257202* AMT PAID 252.00 10300 Torre Avenue Cupertino CA 95014 Order No.: 310345 Escrow No.: 310345 ` APN: 369-15-004 SPACE ABOVE THIS LINE FOR RECORDS USE The undersigned declares that: CITY TRANSFER TAX IS $-0-and DOCUMENTARY TRANSFER TAX IS $242.00andis X Computed on the full value of the interest or property conveyed, or is Computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale. The land, tenements or realty is located in Unincorporated area xx City of Cupertino GRANT DEED FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, John Martin Tracy and Nancy Johnson Tracy, husband and wife as community property hereby GRANT(S)to City of Cupertino, a Municipal Corporation the following described real property in the county of Santa Clara, state of California See Attached Exhibit A Property is commonly known as: 10431 Miller Avenue, Cupertino, CA 95014 Dated: April 11, 1996 o Martin Tracy Nancy JohnsoA Tracy STATE OF CALIFORNIA COUNTY OF Santa Clara } S.S. On April 12,1996 before me, Wai Ling Chu personally appeared John Martin Tracy and Nancy Johnson Tracy personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal �WAI� L�INGCHU ` ""' '• COMM.#1076475 NOTARY PUBLIC cin Signature ,� lJ� _ e e CALIFORNIA 2 i . SANTA CLARA COUNTY " EXPIRES DEC. 1, 1999 r� PRELIMINARY CHANGE OF OWNERSHIP REPORT FOR RECORDER'S USE ONLY [To be completed by transferee (buyer) prior to transfer of subject property in accordance with Section 480.3 of the Revenge and Taxation Code.] A Preliminary Change of Ownership Report must be filed with each conveyance in the County Recorder's office for the county where the property is located; this particular fori'n may be used in all 58 counties of California. THIS REPORT IS NOT A PUBLIC -DOCUMENT r7 SELLER/TRANSFEROR: BUYER/TRANSFEREE: `7 C ASSESSOR'S PARCEL NUMBER(S) PROPERTY ADDRESS OR LOCATION: �nl e4 3 MAIL TAX INFORMATION TO: Name Address 1630/d 7,/,rl-e NOTICE: A lien for property taxes applies to your property on March 1 of each year for the taxes owing in the following fiscal year, July 1 through June 30. One-half of these taxes is due November 1, and one-half is due February 1. The first installment becomes delinquent on December 10, and the second installment becomes delinquent on April 10. One tax bill is mailed before November 1 to the owner of record. IF THIS TRANSFER OCCURS AFTER MARCH 1 AND ON OR BEFORE DECEMBER 31, YOU MAY BE RESPONSIBLE FOR THE SECOND INSTALLMENT OF TAXES DUE FEBRUARY 1. The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the Santa Clara Countv Assessor. For further information on your supplemental roll obligation,please call the Santa Clara County Assessor at 408/299-4781 PART I: TRANSFER INFORMATION Please answer all questions. YES N ❑ A. Is this transfer solely between husband and wife(Addition of a spouse,death of a spouse,divorce settlement, etc.)? ❑ B. Is this transaction only a correction of the name(s)of the person(s)holding title to the property(For example,a name change upon marriage)? ❑ C. Is this document recorded to create, terminate, or reconvey a lender's interest in the property? ❑ D. Is this transaction recorded only to create, terminate,or reconvey a security interest(e.g.cosigner)? ❑ E. Is this document recorded to substitute a trustee under a deed of trust, mortgage,or other similar document? ❑ �� F. Did this transfer result in the creation of a joint tenancy in which the seller(transferor)remains as one of the joint tenants? ❑ ❑ G. Does this transfer return property to the person who created the joint tenancy(original transferor)? ❑ H. Is this transfer of property: ❑ 1. to a trust for the benefit of the grantor, or grantor's spouse? ❑ 2. to a trust revocable by the transferor? ❑ 3. to a trust from which the property reverts to the grantor within 12 years? ❑ I. If this property is subject to a lease, is the remaining lease term 35 years or more including written options? ❑ J. Is this a transfer from parents to children or from children to parents? ❑ K. Is this transaction to replace a principal residence by a person 55 years of age or older? ❑ L. Is this transaction to replace a principal residence by a person who is severely disabled as defined by Revenue and Code Section 69.5? If you checked yes to J,K or L,you may qualify for a property tax assessment exclusion,which may result in lower taxes on your property. Failure to file a claim results in the reassessment of the property. Please provide any other information that would help the Assessor to understand the nature of the transfer. r IF YOU HAVE ANSWERED "YES" TO ANY OF THE ABOVE QUESTIONS EXCEPT J, K, OR L, PLEASE SIGN AND DATE, OTHERWISE COMPLETE BALANCE OF THE FORM. PART II: OTHER TRANSFER INFORMATION A. Date of transfer if other than recording date B. Type of transfer. Please check appropriate box. Purchase ❑ Foreclosure ❑ Gift ❑ Trade or Exchange ❑ Merger, Stock,or Partnership Acquisition Contract of Sale—Date of Contract ❑ Inheritance—Date of Death ❑ Other: Please explain: ❑ Creation of Lease ❑ Assignment of a Lease ❑Termination of a Lease Date lease began ' Original term in years(including written options) Remaining term in years(including written options) C. Was only a partial interest in the property transferred? ❑ YesNo If yes, indicate the percentage transfered %. SBE-ASD AH 502-A FRONT 7-1-94 PRELIMINARY CHANGE OF OWNERSHIP REPORT Please answer, to the best of your knowledge, all applicable questions, sign and date. If a question does not apply, indicate with "N%A:' , PART III: PURCHASE PRICE AND TERMS OF SALE A. CASH DOWN PAYMENT OR Value of Trade or Exchange(excluding closing costs) .Amount�4 B. FIRST DEED OF TRUST @ % interest for years. Pymts./Mo.=$ (Prin. & Int. only) Amount:: �s ❑ FHA ❑ Fixed Rate ❑ New Loan ❑ Conventional ❑ Variable Rate ❑ Assumed Existing Loan Balance ❑ VA ( Discount Points) ❑ All inclusive D.T. ($ Wrapped) ❑ Bank or Savings&Loan ❑ Cal Vet ❑ Loan Carried by Seller ❑ Finance Company Balloon Payment ❑ Yes ❑ No Due Date Amount$ C. SECOND DEED OF TRUST @ % interest for years. Pymts./Mo.= $ (Prin. & Int. only) Amount$ `' ❑ Bank or Savings& Loan ❑ Fixed Rate ❑ New Loan ❑ Loan Carried by Seller ❑ Variable Rate ❑ Assumed Existing Loan Balance Balloon Payment ❑ Yes ❑ No Due Date Amount$ D. OTHER FINANCING: Is other financing involved not covered in (b)or(c)above? ❑ Yes ❑ No Amount$ Type @ % interest for years. Pymts./Mo.= $ (Prin. & Int. only) ❑ Bank or Savings & Loan ❑ Fixed Rate ❑ New Loan ❑ Loan Carried by Seller ❑ Variable Rate ❑ Assumed Existing Loan Balance Balloon Payment ❑ Yes ❑ No Due Date Amount$ E. IMPROVEMENT BOND ❑ Yes ❑ No Outstanding Balance: Amount$ F. TOTAL PURCHASE PRICE(or acquisition price, if traded or exchanged, include real estate commission if paid.) Total Items A through E $ G.PROPERTY PURCHASED ❑ Through a broker CJ irect from seller ❑ Other(explain) If purchased through a broker, provide broker's name and phone number: Please explain any special terms or financing and any other information that would help the Assessor understand the purchase price and terms of sale. PART IV: PROPERTY INFORMATION A. IS PERSONAL PROPERTY INCLUDED IN PURCHASE PRICE (other than a mobilehome subject to local property tax)? ❑ Yes lAgo If yes, enter the value of the personal property included in the purchase p;?'Yes $ (Attach itemized list of personal property) B. IS THIS PROPERTY INTENDED AS YOUR PRINCIPAL RESIDENCE? No If yes, enter date of occupancy MONTH DAY/ MONTH D 19_or intended occupancy / , 19_. AY C. PE OF PROPERTY TRANSFERRED: Single-family residence ❑ Agricultural ❑ Timeshare ultiple-family residence(no. of units: ) ❑ Co-op/Own-your-own ❑ Mobilehome ❑ ommercial/Industrial ❑ Condominium ❑ Unimproved lot ❑ Other(Description: ) D. DOES THE PROPERTY PRODUCE INCOME? ❑ Yes &0 E. IF THE ANSWER TO QUESTION D IS YES, IS THE INCOME FROM: ❑ Lease/Rent ❑ Contract O Mineral Rights ❑ Other—Explain: F. WHAT WAS THE CONDITION OF PRO�TY AT THE TIME OF SALE? El Good Average ❑ Fair Poor Enter here, or on an attached sheet, any they information that would assist the Assessor in determining the value of the property such as the physical condition of the property, restrictions, etc. Z_I certify that the foregoing is true, correct and complete to the best of my knowledge and i6f. Signed Date NEW OWNER/CORPORATE OFFICE9.-- L, Please Print Name of New Owner/Corporate Officer Phone Number where you are available from 8:00 a.m.-5:00 p.m. ( ) (NOTE:The Assessor may contact you for further Informatlon) If a document evidencing a change of ownership is presented to the recorder for recordation without the concurrent filing of a preliminary change of ownership report,the recorder may charge an additional recording fee of twenty dollars($20). SBE-ASD AH 502-A BACK 7-1-94 ASSESSOR'S FORM 4055 ®8931 REV 6/94 AMERICAN JITLE INSURANCE COMPANY Serving the American Dream 19200 Stevet0 Creek Blvd.,Suite 230 ' Cupertino,California 95014 ' Telephone(408)253-6990 . Fax:(408)253-3780 BUYER'S CLOSING STATEMENT Escrow: 310345 Order: 310345 Escrow Officer: WAI LING CHU Date: 4/11/96 ESTIMATED Closing Date: 4/15/96 ESCROW STATEMENT OF: City of Cupertino, A Municipal Corporation SELLER: John Martin Tracy, Nancy Johnson Tracy Property Address: 10431 Miller Avenue, Cupertino, CA 95014 ITEMS DEBITS CREDITS TOTAL CONSIDERATION 220, 000.00 PROBATIONS/ADJUSTMENTS FROM TO 2nd in. & Pen 95-96, TAX ACCOUNT 369-15-004 CURRENT YEAR TAXES AT $1,926.00 4/15/96 7/01/96 406.60 TITLE CHARGES TO AMERICAN TITLE INSURANCE COMPANY Deed Recording Fee 12.00 ESCROW CHARGES Doc Preparation Fee 100.00 BALANCE DUE ESCROW 220,518.60 TOTALS $ 220,518.60 $ 220,518.60 CA' Vpkovich, rtino, A Municipal Corporation B Directo of Public SCHEDULE A Order Number: 310345 Policy No.: 27-01-90 105540 Amount of Insurance: $ 220,000.00 Premium Amount: $ 757.00 Date of Policy: April 15, 1996 at 08:00 a.m. 1. Name of Insured: City of Cupertino, a Municipal Corporation 2. The estate or interest in the land described herein and which is covered by this policy is: A Fee 3. Title to the estate or interest in the land is vested in: City of Cupertino a Municipal Corporation 4. The land referred to in this policy is situated in the City of Cupertino, County of Santa Clara, State of California, and is described as follows: SEE EXHIBIT "ONE" ATTACHED HERETO AND MADE A PART HEREOF THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED CLTA Standard Policy - 1990 Form Order No. 310345 Policy No. 27-01-90 105540 EXHIBIT "ONE" Lot 79, Tract 1343 Casa Del Sol No 2, filed on February 15, 1955 in Book 54 of Maps, Pages 42 and 43, Santa Clara County Records. EXCEPTING THEREFROM the underground water without rights of surface entry, as granted in the Deed from Peninsula Title Guaranty Company, a Corporation to San Jose Water Works, a California Corporation, dated April 22, 1955 in Book 3152 of Official Records, Page 349. Assessors Parcel No: 369-15-004 CLTA Standard Policy - 1990 Form Order No. 310345 Policy No. 27-01-90 105540 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) which arise by reason of: PART I All matters set forth in paragraphs 1 through 5 inclusive on the cover of this policy under the caption Part I of Schedule B. PART II 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 1996-1997. 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 3. Easement(s) for the purposes(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: Public Utility Easement Affects: The northerly and westerly 5 feet 4. Covenants, conditions and restrictions (deleting therefrom any restrictions indicating any preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin) as set forth in the document Recorded: February 17, 1955, Book 3089, Page 274, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. PRICE —..._ 4 J_. _i. 504-M-40 ----AVE P.M. 473-M-29 P.M' TRACT N= 4461 IWILLISTON PARK .27 .. •:. .... N .. ,1w3A[w-/I.f.;L.i- ..f....i..f4 w.�n.�' .!�f.L art.•�...431.1..,.,,,.�..�,..• °4l-. - . O —T 777- �,. h-*. 9 Er: e� :glut t•r` �•. •,r fv..;3n„ r ,� • IOFFICEOf., i COJRTYCLARA. TCO �T . 's:AuioiRiilxy'�' eRr, -+pp�. 'This plat is for your a d in locating your farad vrth refererca to streets arid other parcels. While this plat is believed to be r."Jrect.IIe company 3fi9 i5 s assumes no liability for any loss occuning by r2ann c' e aMc it Tc American Tile Instuana CVT9r 211Y \;`\ �,. ., P. MILLER SUED. 1z100, CITY OF CUPERT!NO a? R O S\.141144 / 4 94C Ile ti a = \\ i v y� 375 4A- TANTAU SU SO. ~Pp s ALDEf BRQOK - r. f r4'�'• � 4' .J. 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SUBROGATION UPON PAYMENT OR SETTLEMENT 13. ARBITRATION (a) The Company's Right of Subrogation. Unless prohibited by applicable law,either the Company or the insured-nay d..- Whenever the Company shall have settled and paid a claim under this policy,all mand arbitration pursuant to the Title Insurance Arbitration Rules of the American right of subrogation shall vest in the Company unaffected by any act of the insured Arbitration Association.Arbitrable matters may include,but are not limited to,any claimant. controversy or claim between the Company and the insured arising out of or relating The Company shall be subrogated to and be entitled to all rights and remedies to this policy, any service of the Company in connection with its issuance or the which the insured claimant would have had against any person or property in respect breach of a policy provision or other obligation. All arbitrable matters when the to the claim had this policy not been issued. If requested by the Company,the in- Amount of Insurance is$1,000,000 or less shall be arbitrated at the option of either sured claimant shall transfer to the Company all rights and remedies against any person the Company or the insured. All arbitrable matters when the Amount of Insurance or property necessary in order to perfect this right of subrogation.The insured clai- is in excess of$1,000,000 shall be arbitrated only when agreed to by both the Com- mant shall permit the Company to sue,compromise or settle in the name of the in- pany and the insured.Arbitration pursuant to this policy and under the Rules in ef- sured claimant and to use the name of the insured claimant in any transaction or litiga- fect on the date the demand for arbitration is made or,at the option of the insured, tion involving these rights or remedies. the Rules in effect at Date of Policy shall be binding upon the parties. The award If a payment on account of a claim does not fully cover the loss of the insured may include attorneys'fees only if the laws of the state in which the land is located claimant,the Company shall be subrogated(i)as to an insured owner,to all rights permit a court to award attorneys fees to a prevailing party.Judgment upon the award and remedies in the proportion which the Company's payment bears to the whole rendered by the Arbitrator(s)may be entered in any court having jurisdiction thereof. amount of the loss;and(ii) as to an insured lender, to all rights and remedies of The law of the situs of the land shall apply to an arbitration under the Title In- the insured claimant after the insured claimant shall have recovered its principal, surance Arbitration Rules. interest, and costs of collection. A copy of the Rules may be obtained from the Company upon request. If loss should result from any act of the insured claimant, as stated above, that 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE act shall not void this policy, but the Company, in that event, shall be required to CONTRACT pay only that part of any losses insured against by this policy which shall exceed (a) This policy together with all endorsements,if any,attached hereto by the Com- the amount,if any,lost to the Company by reason of the impairment by the insured pany is the entire policy and contract between the insured and the Company.In in- claimant of the Company's right of subrogation. terpreting any provision of this policy, this policy shall be construed as a whole. (b) The Insured's Rights and Limitations. (b) Any claim of loss or damage,whether or not based on negligence,and which Notwithstanding the foregoing,the owner of the indebtedness secured by an in- arises out of the status of the lien of the insured mortgage or of the title to the estate sured mortgage,provided the priority of the lien of the insured mortgage or its en- or interest covered hereby or by any action asserting such claim,shall be restricted forceability is not affected, may release or substitute the personal liability of any to this policy. debtor or guarantor,or extend or otherwise modify the terms of payment,or release (c) No amendment of or endorsement to this policy can be made except by a writing a portion of the estate or interest from the lien of the insured mortgage,or release endorsed hereon or attached hereto signed by either the President,a Vice President, any collateral security for the indebtedness. the Secretary,and Assistant Secretary,or validating officer or authorized signatory When the permitted acts of the insured claimant occur and the insured has knowledge of the Company. of any claim of title or interest adverse to the title to the estate or interest or the 15. SEVERABILITY priority or enforceability of the lien of an insured mortgage,as insured,the Com- In the event any provision of the policy is held invalid or unenforceable under pany shall be required to pay only that part of any losses insured against by this policy applicable law,the policy shall be deemed not to include that provision and all other which shall exceed the amount,if any,lost to the Company by reason of the impair- provisions shall remain in full force and effect. ment by the insured claimant of the Company's right of subrogation. 16. NOTICES, WHERE SENT (c) The Company's Rights Against Non-insured Obligors. All notices required to be given the Company and any statement in writing re- The Company's right of subrogation against non-insured obligors shall exist and quired to be furnished the Company shall include the number of this policy and shall shall include,without limitation,the rights of the insured to indemnities,guaranties, be addressed to the Company at: other policies of insurance or bonds,notwithstanding any terms or conditions con- tained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an in- Fidelity National Title Insurance Company sured mortgage by an obligor(except an obligor described in Section I(a)(ii)of these National Claims Administration: Conditions and Stipulations) who acquires the insured mortgage as a result of an 17911 Von Karman Avenue, Suite 300 indemnity, guarantee, other policy of insurance, or bond and the obligor will not Irvine, CA 92714-6253 be an insured under this policy,notwithstanding Section 1(a)(i)of these Conditions and Stipulations. SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs, attorneys'fees or expenses) which arise by reason of: PART I I.Taxes or assessments which are not shown as existing leins by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments,or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b)reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c)water rights, claims to title to water, whether or not the matters excepted under (a), (b) or(c) are shown by the public records. I'III ■�� 1 1 Fidelity National Title Insurance Company 17911 Von Karman Avenue, Suite 500 Irvine, CA 92714-6253 however,all rights and defenses as to any successor that theCompanywould have had against any predecessor insured,unless the successor acquired the indebtedness (i)the amount of insurance stated in Schedule A; as a purchaser for value without knowledge of the asserted defect,lien,encumbrance, (ii)the amount of the principal of the indebtedness secured by the insured mort- adverse claim or other matter insured against by this policy as affecting title to the gage as of Date of Policy, interest thereon, expenses of foreclosure, amounts ad- estate or interest in the land); vanced pursuant to the insured mortgage to assure compliance with laws or to pro- (ii)any governmental agency or governmental instrumentality which is an in- tect the lien of the insured mortgage prior to the time of acquisition of the estate surer or guarantor under an insurance contract or guaranty insuring or guaranteeing or interest in the land and secured thereby and reasonable amounts expended to pre- the indebtedness secured by the insured mortgage,or any part thereof,whether named vent deterioration of improvements,but reduced by the amount of all payments made; as an insured herein or not; or (iii)the parties designated in Section 2(a)of these Conditions and Stipulations. (iii)the amount paid by any governmental agency or governmental instrumentali- (b) "insured claimant": an insured claiming loss or damage. ty,if the agency or instrumentality is the insured claimant,in the acquisition of the (c) "insured lender": the owner of an insured mortgage. estate or interest in satisfaction of its insurance contract or guaranty. (d) "insured mortgage": a mortgage shown in Schedule B, the owner of which 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT is named as an insured in Schedule A. An insured shall notify the Company promptly in writing(i)in case of any litiga- tion as set forth in 4(a)below,(ii)in case knowledge shall come to an insured hereunder (e)"knowledge"or"known":actual knowledge,not constructive knowledge or of any claim of title or interest which is adverse to the title to the estate or interest notice which may be imputed to an insured by reason of the public records as defin- or the lien of the insured mortgage,as insured,and which might cause loss or damge ed in this policy or any other records which impart constructive notice of matters for which the Company may be liable by virtue of this policy,or(iii)if title to the affecting the land. estate or interest or the lien of the insured mortgage,as insured, is rejected as un- (f) "land": the land described,or referred to in Schedule A,and improvements marketable. If prompt notice shall not be given to the Company,then as to that in- affixed thereto which by law constitute real property. The term "land" does not sured all liability of the Company shall terminate with regard to the matter or mat- include any property beyond the lines of the area described or referred to in Schedule ters for which prompt notice is required;provided,however,that failure to notify A,nor any right,title,interest,estate or easement in abutting streets,roads,avenues, the Company shall in no case prejudice the rights of any insured under this policy alleys,lanes,ways or waterways,but nothing herein shall modify or limit the extent unless the Company shall be prejudiced by the failure and then only to the extent to which a right of access to and from the land is insured by this policy. of the prejudice. (g)"mortgage":mortgage,deed of trust,trust deed,or other security instrument. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED (h) "public records": records established under state statutes at Date of Policy CLAIMANT TO COOPERATE for the purpose of imparting constructive notice of matters relating to real property (a)Upon written request by an insured and subject to the options contained in Sec- to purchasers for value and without knowledge. tion 6 of these Conditions and Stipulations,the Company,at its own cost and without (i)"unmarketability of the title":an alleged or apparent matter affecting the title unreasonable delay,shall provide for the defense of such insured in litigation in which to the land,not excluded or excepted from coverage,which would entitle a purchaser any third party asserts a claim adverse to the title or interest as insured, but only of the estate or interest described in Schedule A or the insured mortgage to be released as to those stated causes of action alleging a defect, lien or encumbrance or other from the obligation to purchase by virtue of a contractual condition requiring the matter insured against by this policy. The Company shall have the right to select delivery of marketable title. counsel of its choice(subject to the right of such insured to object for reasonable 2. CONTINUATION OF INSURANCE cause)to represent the insured as to those stated causes of action and shall not be (a)After Acquisition of Title by Insured Lender.If this policy insures the owner liable for and will not pay the fees of any other counsel.The Company will not pay any fees, costs or expenses incurred by an insured in the defense of those causes of the indebtedness secured by the insured mortgage,the coverage of this policy shall of action which allege matters not insured against by this policy. continue in force as of Date of Policy in favor of(i)such insured lender who ac- quires all of any part of the estate or interest in the land by foreclosures,trustee's sale,conveyance in lieu of foreclosure,or other legal manner which discharges the (b)The Company shall have the right,at its own cost,to institute and prosecute lien of the insured mortgage; (ii)a transferee of the estate or interest so acquired any action or proceeding or to do any other act which in its opinion may be necessary from an insured corporation,provided the transferee is the parent or wholly-owned or desirable to establish the title to the estate or interest or the lien of the insured subsidiary of the insured corporation, and their corporate successors by operation mortgage, as insured, or to prevent or reduce loss or damage to an insured. The of law and not by purchase,subject to any rights or defenses the Company may have Company may take any appropriate action under the terms of this policy,whether against any predecessor insureds;and(iii)any governmental agency or governmen- or not it shall be liable hereunder,and shall not thereby concede liability or waive tal instntmentalilty which acquires all or any part of the estate or interest pursuant any provision of this policy. If the Company shall exercise its rights under this to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured paragraph, it shall do so diligently. by the insured mortgage. (c)Whenever the Company shall have brought an action or interposed a defense 7. DETERMINATION AND EXTENT OF LIABILITY as required or permitted by the provisions of this policy,the Company may pursue This policy is a contract of indemnity against actual monetary loss or damage sus- any litigation to final determination by a court of competent jurisdiction and expressly tained or incurred by the insured claimant who has suffered loss or damage by reason reserves the right,in its sole discretion,to appeal from any adverse judgment or order. of matters insured against by this policy and only to the extent herein described. (d)In all cases where this policy permits or requires the Company to prosecute (a) The liability of the Company under this policy to an insured lender shall not or provide for the defense of any action or proceeding, an insured shall secure to exceed the least of: the Company the right to so prosecute or provide defense in the action or proceeding, (i)the Amount of Insurance stated in Schedule A,or,if applicable,the amount and all appeals therein,and permit the Company to use,at its option,the name of of insurance as defined in Section 2(c)of these Conditions and Stipulations; such insured for this purpose. Whenever requested by the Company, an insured, (ii)the amount of the unpaid principal indebtedness secured by the insured mor- at the Company's expense,shall give the Company all reasonable aid(i)in any ac- tgage as limited or provided under Section 8 of these Conditions and Stipulations tion or proceeding, securing evidence, obtaining witnesses,prosecuting or defen- or as reduced under Section 9 of these Conditions and Stipulations,at the time the ding the action or proceeding,or effecting settlement, and(ii)in any other lawful loss or damage insured against by this policy occurs,together with interest thereon;or act which in the opinion of the Company may be necessary or desirable to establish (iii)the difference between the value of the insured estate or interest as insured the title to the estate or interest or the lien of the insured mortgage, as insured. If and the value of the insured estate or interest subject to the defect,lien or encum- the Company is prejudiced by the failure of an insured to furnish the required coopera- brance insured against by this policy. tion, the Company's obligations to such insured under the policy shall terminate, (b)In the event the insured lender has acquired the estate or interest in the manner including any liability or obligation to defend,prosecute,or continue any litigation, described in Section 2(a)of these Conditions and Stipulations or has conveyed the with regard to the matter or matters requiring such cooperation. title,then the liability of the Company shall continue as set forth in Section 7(a)of 5. PROOF OF LOSS OR DAMAGE these Conditions and Stipulations; In addition to and after the notices required under Section 3 of these Conditions (c)The liability of the Company under this policy to an insured owner of the estate and Stipulations have been provided the Company,a proof of loss or damage signed or interest in the land described in Schedule A shall not exceed the least of: and sworn to by each insured claimant shall be furnished to the Company within (i) the Amount of the Insurance stated in Schedule A; or, 90 days after the insured claimant shall ascertain the facts giving rise to the loss or (ii)the difference between the value of the insured estate or interest as insured damage.The proof of loss or damage shall describe the defect in,or lien or encum- and the value of the insured estate or interest subject to the defect,lien or encum- brance on the title,or other matter insured against by this policy which constitutes brance insured against by this policy. the basis of loss or damage and shall state,to the extent possible,the basis of calculating (d)The Company will pay only those costs,attorneys'fees and expenses incurred the amount of the loss or damage. If the Company is prejudiced by the failure of in accordance with Section 4 of these Conditions and Stipulations. an insured claimant to provide the required proof of loss or damage,the Company's obligations to such insured under the policy shall terminate,including any liability 8. LIMITATION OF LIABILITY or obligation to defend,prosecute,or continue any litigation,with regard to the matter (a)If the Company establishes the title,or removes the alleged defect,lien or en- or matters requiring such proof of loss or damage. cumbrance,or cures the lack of a right of access to or from the land,or cures the In addition,an insured claimant may reasonably be required to submit to examination claim of unmarketability of title,or otherwise establishes the lien of the insured mort- under oath by any authorized representative of the Company and shall produce for gage,all as insured,in a reasonably diligent manner by any method,including litigation examination, inspection and copying, at such reasonable times and places as may and the completion of any appeals therefrom,it shall have fully performed its obliga- be designated by any authorized representative of the Company,all records,books, tions with respect to that matter and shall not be liable for any loss or damage caused ledgers,checks,correspondence and memoranda,whether bearing a date before or thereby. after Date of Policy, which reasonably pertain to the loss or damage. Further, if (b)In the event of any litigation,including litigation by the Company or with the requested by any authorized representative of the Company, the insured claimant Company's consent, the Company shall have no liability for loss or damage until shall grant its permission,in writing,for any authorized representative of the Com- there has been a final determination by a court of competent jurisdiction,and disposition pany to examine,inspect and copy all records,books,ledgers,checks,correspondence of all appeals therefrom,adverse to the title,or,if applicable,to the lien of the in- and memoranda in the custody or control of a third party,which reasonably pertain sured mortgage, as insured. to the loss or damage.All information designated as confidential by an insured clai- (c)The Company shall not be liable for loss or damage to any insured for liability mant provided to the Company pursuant to this Section shall not be disclosed to others voluntarily assumed by the insured in settling any claim or suit without the prior unless,in the reasonable judgment of the Company,it is necessary in the administration written consent of the Company. of the claim. Failure of an insured claimant to submit for examination under oath, (d)The Company shall not be liable to an insured lender for:(i)any indebtedness produce other reasonably requested information or grant permission to secure created subsequent to Date of Policy except for advances made to protect the lien reasonably necessary information from third parties as required in this paragraph, of the insured mortgage and secured thereby and reasonable amounts expended to unless prohibited by law or governmental regulation, shall terminate any liability prevent deterioration of improvements;or(ii)construction loan advances made subse- of the Company under this policy as to that insured for that claim. quent to Date of Policy,except construction loan advances made subsequent to Date 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS:TERMINATION of Policy for the purpose of financing in whole or in part the construction of an im- provement to the land which at Date of Policy were secured by the insured mortgage OF LIABILITY and which the insured was and continued to be obligated to advance at and after Date In case of a claim under this policy,the Company shall have the following addi- of Policy. tional options: 9. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION OF (a)To Pay or Tender Payment of the Amount of Insurance or to Purchase LIABILITY the Indebtedness. (a)All payments under this policy, except payments made for costs, attorneys' (i) to pay or tender payment of the amount of insurance under this policy together fees and expenses,shall reduce the amount of insurance pro tanto.However,as to with any costs,attorneys'fees and expenses incurred by the insured claimant,which an insured lender,any payments made prior to the acquisition of title to the estate were authorized by the Company,up to the time of payment or tender of payment or interest as provided in Section 2(a)of these Conditions and Stipulations shall not and which the Company is obligated to pay; or reduce pro tanto the amount of insurance afforded under this policy as to any such (ii) in case loss or damage is claimed under this policy by the owner of the insured,except to the extent that the payments reduce the amount of the indebtedness indebtedness secured by the insured mortgage,to purchase the indebtedness secured secured by the insured mortgage. by the insured mortgage for the amount owing thereon together with any costs,at- (b) Payment in part by any person of the principal of the indebtedness, or any torneys'fees and expenses incurred by the insured claimant which were authorized other obligation secured by the insured mortgage,or any voluntary partial satisfac- by the Company up to the time of purchase and which the Company is obligated to pay. tion or release of the insured mortgage, to the extent of the payment, satisfaction If the Company offers to purchase the indebtedness as herein provided,the owner or release,shall reduce the amount of insurance pro tanto.The amount of insurance of the indebtedness shall transfer,assign,and convey the indebtedness and the in- may thereafter be increased by accruing interest and advances made to protect the sured mortgage, together with any collateral security, to the Company upon pay- lien of the insured mortgage and secured thereby, with interest thereon, provided ment therefor. in no event shall the amount of insurance be greater than the Amount of Insurance Upon the exercise by the Company of the option provided for in paragraph a(i), stated in Schedule A. all liability and obligations to the insured under this policy,other than to make the (c)Payment in full by any person or the voluntary satisfaction or release of the payment required in that paragraph,shall terminate,including any liability or obligation insured mortgage shall terminate all liability of the Company to an insured lender to defend,prosecute,or continue any litigation,and the policy shall be surrendered except as provided in Section 2(a)of these Conditions and Stipulations. to the Company for cancellation. Upon the exercise by the Company of the option provided for in paragraph a(ii) 10. LIABILITY NONCUMULATIVE the Company's obligation to an insured Lender under this policy for the claimed loss or damage, other than the payment required to be made, shall terminate, in- It is expressly understood that the amount of insurance under this policy shall be cluding any liability or obligation to defend, prosecute or continue any litigation. reduced by any amount the Company may pay under any policy insuring a mortgage (b)To Pay or Otherwise Settle With Parties Other than the Insured or With to which exception is taken in Schedule B or to which the insured has agreed,assumed, or taken subject,or which is hereafter executed by an insured and which is a charge the Insured Claimant. or lien on the estate or interest described or referred to in Schedule A,and the amount (i)to pay or otherwise settle with other parties for or in the name of an insured so paid shall be deemed a payment under this policy to the insured owner. claimant any claim insured against under this policy, together with any costs, at- The provisions of this Section shall not apply to an insured lender, unless such torneys'fees and expenses incurred by the insured claimant which were authorized insured acquires title to said estate or interest in satisfaction of the indebtedness secured by the Company up to the time of payment and which the Company is obligated by an insured mortgage. to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage pro- 11. PAYMENT OF LOSS vided for under this policy, together with any costs, attorneys' fees and expenses (a)No payment shall be made without producing this policy for endorsement of incurred by the insured claimant which were authorized by the Company up to the the payment unless the policy has been lost or destroyed, in which case proof of time of payment and which the Company is obligated to pay. loss or destruction shall be furnished to the satisfaction of the Company. Upon the exercise by the Company of either of the options provided for in paragraphs b(i)or b(ii),the Company's obligations to the insured under this policy for the claimed (b)When liability and the extent of loss or damage has been definitely fixed in loss or damage, other than the payments required to be made, shall terminate, in- accordance with these Conditions and Stipulations,the loss or damage shall be payable cluding any liability or obligation to defend, prosecute or continue any litigation. within 30 days thereafter.