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Project 187 - Title Insurance - Corporate Yard - 2007-12-19 'V� CY� t 1,d 5 `u °h,Ni`.g.,.t� .r..M, f+. ', .W' e., l"1 1 .:�.�,p.,, .r �q"V ypl4.e. . ' ' , �x,#►�al�,al��1x;��x;l�4xli!+!�Aa1h V �j xli►�iatl�#xfR�Iti�IR��iIR++iw�x� at' , .+�r? iii, 9 .E ' Form No. 1084 'I California land The Association 'r 1 Standard Coverage Policy Form 1990 ` ` POLICY OF TITLE INSURANCE a t M E e ,. -t ISSUED BY 10 7. 44 First American Title Insurance Company ,3s SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE µ°' 'y 4 B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY a California herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, A Enot exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: ,fi ,. 1 Title to the estate or interest described in Schedule A being vested other than as stated therein; M 2. Any defect in or lien or encumbrance on the title; M ._ f 3. Unmarketability of The title; 4 4. Lack of a right of access to and from the land; AI s tand in addition, as to an insured lender only: 5. The invalidity or unenforceability of the lien of the insured mortgage upon the title; —. 4 6. The priority of any lien or encumbrance over the lien of the insured mortgage; said mortgage 1 F° being shown in Schedule B in the order of its priority; s~ '- f 7 The invalidity or unenforceability of any assignment of the insured mortgage, provided the I n a assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to I r'i. 4 vest title to the insured mortgage in the named insured assignee free and clear of all liens. �..t. 4 The Company will also pay the costs, attorneys'fees and expenses incurred in defense of The title or the lien of the I ` I. t� <.1. 11 insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. ► P 1 IN WITNESS WHEREOF, First American Title Insurance Company has caused this policy to be signed and sealed by t -d . its duly authorized officers as of Date of Policy shown in Schedule A. trTF -.a4 A ti ill 't a ;- * First American Title Insurance Company .- //7 E 1 BY/O < A , ire PRESIDENT - �-' ->yt� •.'j}.it ATTEST y SECRETARY ` -"W --sZr'.` o0 1 '� „1 i1 'i4`14.,:it7 J. i E.. 52 k5 X'y •i x /erf:Stil' T.-.±:R. 1 'throtildlit401/41440Viblii . AboviAtesteMovAir viAts wig; ISAbio - Agftkiasit • t•'W.4"-;74-01"1' :\.- ' , EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company assumed or agreed to by the insured claimant; will not pay loss or damage,costs, attorneys'tees ar expenses which arise by reason of. (b) not known to the Company,not recorded in the public records at Date of Policy,but 1. (a) Any law,ordinance or governmental regulation(including but not limited to building and known to the insured claimant and not disclosed in writing to the Company by the zoning laws,ordinances,or regulations)restricting,regulating,prohibiting or relating to insured claimant prior to the date the insured claimant became an insured under this (t) the occupancy, use, or enjoyment of the land, (n) the character, dimensions or policy, location of any improvement now or hereafter erected on the land;(iii)a separation in (c) resulting in no loss or damage to the insured claimant; ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part,or(iv)environmental protection,or the effect of any violation (d) attaching or created subsequent to Date of Policy;or of these laws,ordinances or governmental regulations,except to the extent that a notice (e) resulting in loss or damage which would not have been sustained if the insured of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from claimant had paid value for the insured mortgage or for the estate or interest insured a violation or alleged violation affecting the land has been recorded in the public records by this policy. at Date of Policy 4. Unenforceability of the lien of the insured mortgage because of the inability or failure (b) Any govemmental police power not excluded by(a)above,except to the extent that a of the insured at Date of Policy,or the inability or failure of any subsequent owner notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from of the indebtedness,to comply with the applicable doing business laws of the state a violation or alleged violation affecting the land has been recorded in the public records in which the land is situated. at Date of Policy. 5. Invalidity or unerdorceability of the lien of the insured mortgage,or claim thereof, 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in which arises out of the transaction evidenced by the insured mortgage and is based the public records at Date of Policy,but not excluding from coverage any taking which upon usury or any consumer credit protection or truth in lending law. has occurred prior to Date of Policy which would be binding on the rights of a purchaser 6. Any claim,which arises out of the transaction vesting in the insured the estate or for value without knowledge interest insured by their policy or the transaction creating the interest of the insured 3. Defects,liens, encumbrances,adverse claims, or other matters: lender,by reason of the operation of federal bankruptcy,state insolvency or similar (a) whether or not recorded in the public records at Date of Policy,but created,suffered, creditors'rights laws. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. Insured under the policy shall terminate, Inctudmg any lability or continued to be obligated to advance at and after Date of Policy. The following terms when used in this policy mean: obligation to defend,prosecute,or continue any litigation,with regard to the matter or matters requiring such cooperation. B. REDUCTION OF INSURANCE;REDUCTION (a) Insured-the Insured named in Schedule A.and,subject OR TERMINATION OF LIASNfTY, to any rights or defenses the Company would have had against the 5. PROOF OF LOSS OR DAMAGE. named insured,those who succeed to the interest of the named insured (a) Al payment underthls policy,except payments made for M operation of law as distinguished from purchase including,but not In addition to and after the notices required under Section 3 costs,attorneys'fees and expenses,shall reduce the amain of the limited to, heirs, distibutees, devisees. survivors, personal rep- of these Conditions and Stipulations have been provided the Company, Insurance ono arnt.However,as to an insured lender,any payments resentatives,next of kin,or coryerats or fiduciary successors.The term a proof of loss or damage signed and sworn to by each Insured made priori the acquisition of title to the estate or Intent as provided Insured'also Includes claimant shall be furnished to the Company within 90 days alter the N Section 2(a)of these Conditions and Stipulations shad not reduce 0)the owner of indebtedness secured by the Insured insured claimant shall ascertain the fact giving rise to the loss or pro tamo the amount of insurance afforded under this policy as to any mortgage and each successor in ownership of the Indebtedness except damage.The proof of loss or damage shall describe the defect in,or such insured,except to the extent that the payment reduce the amount a successor who Is an obligor under the previsions of Section 12(c) fen or encumbrance on the title,or other mater Insured against by this of the Indebtedness secured by the insured mortgage. of these Conditions and Stipulations(reserving,however,all rights and policy which constitutes the basis of loss or damage and shall sae, (b) payment In part by any person of the principal of the defenses as to any such successor that the Company would have had to the extent possible,the basis of calculating the amount of the less indebtedness,or other obligation secured by the insured mortgage, against and predecessor insured,unless the successor acquired the or damage.If the Company is prejudiced by the failure of an insured or any voluntary partial satisfaction or release of the insured mortgage, indebtedness as a purchaser to value without knowledge of the claimant to provide the required proof of loss or damage, the to the extent of to payment satisfaction or release,shall reduce the asserted defect ten, encumbrance, adverse claim or other mater Company's obligations to such Insured under the policy shall amount o insurance pm tenro The amcentof insurance maythereafter insured against by this policy as affecting title to the estate or Interest terminate,including any liability or obligation to defend,roseate,or be increased by accruing interest and advances made t protect the N the land: continue any litigation,with regard to the matter or matters requb ig lee of the insured mortgage and secured thereby.with aoerestOneiem, (Ili ay governmental agency or governmental Instrument- such proof of loss or damage, provided in no event shall the amount of insurance be greater than the ally which is an Insurer or guarantor under an Insurance contact or In addition,an insured claimant may reasonaby be required t Amotmt of Insurance stated m Schedule A. guaranty Insuring or guaranteeing the Indebtedness secured by the submit examination under oath by any autiorized representative of Insured mortgage,or any part thereof,whether named as an insured the Company and shall produce for examination, inspection and (c) Payment in Nifty any person orthe voluntary satisfaction herein or not copying,at such reasonable times and places as may be designated or release of the insured mortgage shall terminate all liability of the gB) he parties designated In Section 2(a) of these by any authorized representative of the Company,all month,heals, Company to an insured lender except as Provided in Section 2(a)of Condition and Stipulations. ledgers,chefs,correspondence and memoranda,whether bearing a these Conditions and Stipulations. date before or after Date of Policy,which reasonably pertain to the lass (b) Insured clamant an Insured claiming loss or damage. or damage.Further,if requested by any authorized representative of 10. LIABILITY NONCUMULATIVE. (c) Insured lender the owner of an Insured mortgage. the Company, the insured claimant shall grant its permission, in It is a pressy understood that the amount of insurance ode (d) 'Insured mortgage. a mortgage shown in Schedule B, writing,for any authorized representative of the Company to amine, this policy shall be educed by any amount the Company may pay Ore porno) which d named as an insured In Schedule vin in c. Inspect and copy at records,books,ledgers,checks,correspondence under any policy insuring a mortgage to which exceeded'is taken in and memoranda in the custody or control of a thW part,which Schedule B fir to which the insured has agreed,assumed or taken (e) mowledge' or known' actual knowledge, not con- reasonably pertain to the loss or damage.All Manakin designated subject or which is hereafter executed by an insured and which Is a stunner knowledge or notice which may be Imputed to an insured by as confdental by an Insured clamant provided to the Company charge or S on the estate or interest described or referred to In reason of any public records as defined in this policy or arty other pursuant t Nis Section shall not be disclosed to others unless,in the Schedule A,and the amount so paid shall be deemed a paymemende- records which Impart constructive notice of matters affecting the land. reasonable judgment of the Company, it is necessary in the this policy a the insured owner. (f) 'land"the land descnbed or referred to in Schedule(A), administration of the claim.Failure of an insured claimant to submit The provisions of this Section shall not apply to an Sired lender. and improvement affixed thereto which by law constitute real for examination under oath, produce other reasonably requested unless such Insured acquires title to said estate v merest m propery.The term land'does not include any property beyond the Information or grant Permission to secure reasonably necessary satisfaction of the indebtedness secured by an Insured mortgage. Pores of the area specifically descnbed or retorted to In Schedule(A), information from third Parties as requited In this paragraph,unless nor any right Otie,interest estate or easement in abutting simes, prohibited by law or governmental regulation, shag terminate any 11. PAYMENT OF LOSS. roads,avenues,alleys lanes,ways or waterways,but nothing heroin tatIM of the Company under this polcy as a Oct insured for the Gam. (a) No payment shat be made without hpoky producing this policy small madly or limit the extra to which a nght of access to and from for endorsement o the payment unless the policy has been lost or the lands Insured by this policy. destroyed,In which case proof of loss or destruction shall be famished (g) 'mortgage"mortgage,deed of tout trust deed,or other 6. TERM N A TO PAY OR OTHERWISE SETTLE CLAIMS; to the satisfaction of the Company security Instrument TERMINATION OF LIABILrT1t In case of a claim under this policy,the Company shall have �) When ratify and the extent of loss or damage has been (1n) 'public records':records established under state statutes the following additional options: definitely fixed in accordance with these Conditions and Stipulations, at Date of Policy for the purpose of imparting constructive notice of the loss or damage shall be payable within 30 days thereafter. matters relating to real property to purchasers for value and without (a)To Pay or Tender Payment of the Amount of insurance or knowledge. to Purchase the Indebtedness. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT (I) Iinmarkeabllity of the title:an alleged or apparent matter po to pay th tender any attorneys'the annum n e nes (a) The Conpam/s MgM of Subrogation. affecting the title tote land,not excluded or excepted Mom coverage, i n urr d y the i su ed cla ma toss,ch re fees and expenses by the Whenever the Company shall have settled and paid a claim under which would entitle a purchaser of the estate or Interest described in Company,oad u the Ie lime f p lyae, o ten were aymenta by the this policy,all dgrn o sub ation stall vest a the D the Co p up to the timed of pay: or tender of payment and which ref Company unaffected Schedule A or the insured mortgage to be released from the obligation the Company is obligated to pay;or by and ad of the Insured claimant to purchase by virtue of a contactual condition requiring the delivery (u)In case loss or damage is claimed under this policy by The Company shall be sutrogated to and be entitled to all rights of marketable title. the owner of the indebtedness secured by the Insured mortgage,to and oremedies whic in eeins to the this�against any 2. CONTINUATION OF INSURANCE purchase the indebtedness secured by the insured mortgage for the ssuon If p opsed in by the policy not been amount owing therein together with any cost,attorneys'fees and Is the Can Company,the Insured claim antshal transfer (a) Ater AcquisiUan of 1111e,m this policy insures the owner expenses incurred by the insured claimant which were authorized by la thesary in yall Perfect this right against suhanY Pawl. Cif Pr insured of the indebtedness secured by the insured mortgage,the coverage of the Company up to the Ome of purchase and which the Company Is clamant shall arm@ the Company policy shall continue in force as of Date o Policy in favor of(1)such obligated to pay. D pony to sue,comer rose or settle In the insured lender who acquires all or and part of the estate or interest in O the Company offers to purchase to indebtedness as herein name of the insured claimant and to use the name ol the Insured the land by foreclosure, trustee's sale, conveyance in rieu o provided,the owner of the indebtedness shall transfer,assign,and claimant In any transaction or litigation impMng these rights or mina a CLTA Standard Policy Schedule A Liability $ 900,000.00 Premium: $1,900.00 Order No. 927679-11 Policy 765356 Loan No. Costa Mesa Date of Policy December 19 2007 Time: 8:00 A.M. 1. Name of insured: Costa Mesa Sanitary District 2. The estate or Interest in the Land Described in Schedule A and which is covered by this policy is: A fee. 3 The estate or interest referred to herein, is at date of policy vested in: Costa Mesa Sanitary District CLTA Standard Coverage Policy(1990) Order No. 927679-11 CLTA Standard Policy Schedule A(continued) 4. The land referred to in this report is situated in the state of California county of Orange and is described as follows: The East 140 feet of the West 305.23 feet of the South 205 feet of Lot 1 of Tract No. 156,as shown on a Map thereof recorded in book 11 page(s)47 miscellaneous maps, Records of Orange County California(as measured from the center lines of Wilson Street and Fairview Road), excepting the North 45 feet thereof. CLTA Standard Coverage Policy(1990) Order No. 927679-11 CLTA Standard Policy Schedule B—Part I Exceptions From Coverage This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: 1 Taxes or assessments which are not shown as existing liens by the records of taxing authority that levies taxes or assessments on real property 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 said land or by making inquiry of persons in possession thereof. 3 Easement, claims of easement or encumbrances,which are not show by the public records. 4. Discrepancies,conflicts in boundary lines, shortage of area, encroachments,or any other facts which a correct survey would disclose, and which are not shown by public records. 5 Unpatented mining claims;reservations or exceptions in patents or in acts authorizing the issuance thereof: water rights,claims or title to water 6. Any lien or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not show by the public records. CLTA Standard Coverage Polic} (1990) Order No. 927679-11 CLTA Standard Policy Schedule B—Part 11 1 Second installment General and Special taxes for the fiscal year 2007 2008, including any assessments collected with taxes. 1st installment $1 167.66 paid(11/16/2007) 2nd installment $1,167.66 open Penalty $139 77(after 4-10) Code area 15-006 Parcel No. 419-091-05 Exemption $0 2. Second installment General and Special taxes for the fiscal year 2007-2008, including any assessments collected with taxes. 1st installment $2,473.04 paid(11/16/2007) 2nd installment $2,473.04 open Penalty $270.30(after 4-10) Code area 15-006 Parcel No. 419-091-04 Exemption $0 3 The lien of supplemental taxes, if any assessed pursuant to the provisions of section 75 et seq. of the revenue and taxation code of the State of California. 4 Rights of the way for the Benefit of Fairview Farms Water Company across and along said land for pipe lines, ditches and aqueducts; also rights of way for telephone lines and light and power lines; all of which rights of way shall follow us nearly as practicable the property lines; and also a right of way for railroad purposes along and over any streets or roads which have been or may be laid out, all as reserved in the deed from Heilman Commercial Trust & Savings Bank, a Corporation to T.A. Miller, et al, ux, recorded August 5, 1921 in book 374,page(s) 120 of Deeds. 5 An easement for purposes herein stated, and rights incidental thereto as provided in an instrument Recorded: in book 5160,page(s) 152, Official Records For street, highway and incidental purposes In favor of: City of Costa Mesa Affects: Parcel A. That portion of Lot 1 above described, lying within a strip of land 50.00 feet in width, the Westerly line of which is the centerline of Fairview Avenue (formerly Santa Ana Avenue). Parcel B: That portion of Lot 1 lying within a strip of land 30,00 feet in width, the Southerly line of which in the centerline of Wilson Street. Parcel C. That portion of Lot 1 lying within a triangular section of land bounded on the South by the Northerly line of Parcel 13, on the west by the Easterly line of Parcel A, and Northeasterly by a curved line, having a 17.00 foot radius, concave Northeasterly being tangent to the above described lines of Parcels A and B. End of Exceptions /NM CLTA Standard Coverage Policy(1990) wholly owned subsidiary of the insured corporation and their corporate Paragraph aft) all liability and obligations m the insured under teas insured owner,to all rights and remedies m to proportion winch the successors by operation of law and not by purchase,subject to any policy,carer than to make the payment required in that pa agraph,shall Company's an insured lerder,m alrsrighs and whole amount ms themus;�andcarmaM rights or defenses the Company may have against any predecessor terminate,including any IlabdO or obligation to defend,prosecute a to err me fired lender et10 l shall have recovered its insureds: and (81) any governmental agency or governmental in- continue any litigation, and the policy shall be surrendered m the principal,interest sNinentaliy which acquires all or any part of the estate or interest Company for canceHahon. and costs of collection. pursuant m a contract of insurance or guaranty insuring or guarantee- Upon the exercise by the Company of the option provided for in If hiss should result from any act d the insured claimant,as slated ing the indebtedness secured by the Insured mortgage. paragraph apq the Campanys obligation to an insured Lender under ahove.that act shall not void this polity,but the Company,el that event shall he required m pay only that Part W any bssos inured against this policy forme claimed mss or damage,other than the payment by @) After Conveyance t d Title.The coverage a this policy y required to he made, shall terminate, including any liability or this policy which shall exceed the amount if any,lost to the Company shall continue in force as al Dam of Policy in favor of an insured only obligation m defend,proseanm or continue any legation. by reason of the impairment by the tenured&^Mare of the Compays so gas the insured return an esmm or interest in the land, a holds right of subrogation. an indebtedness secured by a purchase money mortgage given by a (b)To Pay or Otherwise Settle WM Panes Other than the purchaser berm the insured,or only so long as the insured shall have Insured or Wtth the Insured Claimant (b) The ng the f Rights and Towner ono lab lily by mason of covenants a vrarany made by the insured In any (i)to pay or otherwise settle with other parties for or m the Notwi hstandi g the foregoing,the owner of the indebtedness transfer or conveyance of the estate or interest.This policy shall not name of an Insured claimant any claim insured against under this secured by an insured mortgage,provded the nicety of the lien ante continue In force in favor of any purchaser from the insured of either policy,together with any costs,attorneys'fees and expenses inchmed insured mortgage er Is enforceabilly s not affected,may release or h an estate or interest in to land,or an indebtedness secured by by the insured claimant which were authonzed by the Company up to subst ute me persaal Ilabllity of any deomr or guarantor,or extend or �) otherwise modify the terms of payment,or release a porton of the a purchase money mortgage given man insured. the time of payment and which otherwise s Company s obligated m pay, a estate or interest from the lien of the insured morage,or reease any (c) Amount of Insurance:The amount of insurance after the P9 m pay or forunde seine with the Insured claimant is collateral security for the indebtedness. loss acquisition or after the conveyance by an insured lender shall in neither or damage pod expenses ses incurred by the insured claimant which insured has knowledge of any omit of the or interest adverse to to (I The amount of insurance stated m Schedule A; were authorized is by the Company up m me time of payment and which title to the estate or interest or the priony or enforceability of the fen 00 The amount of the principal of the indebtedness secured Company s obligated ols m pay. of the insured mortgage,as insured,the Company shall be red m by the Insured mortgage as of Date of Policy, interest thereon, Upon the up to the Company's h(Q a(@,tie ss or daohligatiaes rota shall exceed the amount H any,rest to to Company by reason of to mortgage m assure compliance at laws or m protect is Ilan of the insured under tars policy forme cakned loss or damage,onto man impairment by the insured claimant of the Company's right of insured mortgage prior mme tine of reasonable acquisition estate ended to the payments requied to be made, shall terminate, including any subrogation. in me land and secured thereby and reasonable amouns wended to IlabiDy or obligation to defend,prosecute or continue any legation prevent deterioration of impwemens,but reduced by the amount of (c) The Company's Right Agaitd Nan-ba aretl OOOget all made;or 7. DETERMINATION AND EXTENT OF LIABILITY. The Company's right of subrogation against non-insured obligors (HI) The amount paid by any govemmenml agency or This policy s a contract of Indemnity against actual monetary shah exist and shall include,without Imitation,the rights of the nswed governmental instrumentality,if the agency or instrumenallty Is the loss or damage sustained or incurred by the insured claimant who has m indemnities. guaranties, other maces of insurance or bonds. insured claimant m the acgwsaon of the esate or Interest in suffered loss or damage by reason of mailers insured against by this notwithstanding any terms or conditions contained m those ism} satisfaction of its insurance contract or guaranty. policy and only to me extent herein described. meals which provide for subrogation nodes by reason be this popsy. A The n of the Company's right of subrogation shag not ce avoided by S. NOTICE OF CLAIM TO BE RIVEN BY INSURED CLAIMANT. (a) The liabiity of the Company under this policy to an acquisition of the insured mortgage by an obligor(except an obligor Insured lender shag in no case exceed the least of described in Section I(a)(i)of these Condsons and Stipulations)who The Insured shall notify the Company promptly in writing(I) (I)the Amount of Insurance stated in Schedule A.er, if acquires the insured mortgage as a result of an indemnity,guarantee, In case of any litigation as set form in Section 4(a)below,(8)in case applicable,the amount of insurance as defined in Section 2(c)of these other policy of insurance,or bond and the obligor will not be an insured knowledge shall come to an insured hereunder of any claim of title or Conditions and Stipulations; under this policy,notwithstanding Section 1(a)(q of these Condition interest which is adverse to the title to the estate or Interest or the lien (II)the amount of the unpaid principal indebtedness secured and Stipulations. of the insured mortgage,as insured,and which might cause loss or by the insured mortgage as Hurled or provided under Section 8 of damage for which the Company may be Dame by virtue of this policy, these Conditions and Stipulations or as reduced under Section 9 of 13. ARBITRATION. or(a)if tile to is estate or mmast or the lien aline insured mortgage, these Conditions and Stipulations,at the time the loss or damage Unless prohihtted by applicable aw,eMerme Comparhyorma as insured,Is rejected as unmarketable.If prompt notice shall not be insured against by this policy occurs,together with interest thereon; insured may demand arbitration pursuant to the Title Insurance Gwen mteCompany,tenas tothatinsuredall abiltyofteCompany a Al taton Rules of the American pursuant Association Ammahle shall terminate with raged to me mater or mates for which prompt (HI)the difference between the value of to Insured estate mace s required,provided,however,that!allure to notify the Company or interest as Insured and the value of the insured estate or Interest cabers may include,but are not Mated to,any contoversy or claim shall in m case prejudice the dghs of any Insured under this policy subject to the defect Den or encumbrance insured against by this between the Company and the insured arising out of or relalkhp to this mess the Company shoo be prejudiced by tamee and Men all PAM- policy,any service of to Company In connechen with its issuance or to the extern a to prejudice.1 be the breach of a policy provision or other obligation. All arbitrable (b)In the evert the insured lender has acquired the estate a mattes when the Amount of Insurance is$1,000,000 or less shall be 4. DEFENSE AND PRDSECUTION OF ACTIONS;DITTY OF INSURED Meant in the manner described In Section 2(a)of these Conditions arbitrated at the option of either the Company or the unwed.AI CLAIMANT TO PROPEMIE and Stipulations or has conveyed the title,then me liability of the arbitrable matters when the Amount of Insurance Is In excess of Company shall continue as set forth in Section 7(a) of these $l,000.000 shall be arbitrated my when agreed to by both to (a) Upm written request by the insured and subject to the Commons and Stpuatons. Company and the insured.ANltratlon pursuant to this policy and under options contained in Section 6 of these Coition and Stipulations,the (c) The lability of the Company under this policy to an the Rules in effect on the date the demand for arbitration is made or Company.at is own cost and waited unreasonable delay,shall provide insured owner of the estate or interest in the and described in at the option of to Insured,to Rules in effect at Dam of Policy shall for to defense of such insured in Btigation in which any mind party Schedule A shall not exceed the least a; be binding upon the parties.The award may Include attorneys'fees assets a claim adverse to the the or interest as insured but only as (p the Amount of Insurance stated in Schedule A;or only if the laws of the state in which the and is located permit a court to those stated causes of action alleging a Meet Hen or encumbrance (D)the difference between the value of the Insured estate or to award atmmeys'fees to a Prevailing party.Judgment Man the award or other mate Insured Waal by this policy.The Company shall have interest as insured and the value of the insured estate or interest rendered by the Arbihamr(s) may be entered in any cowl having the rigid to select counsel of Its choice(subject to the right of such subject to the defect lien or encumbrance insured against by this iunsdhton thereof. insured to object for reasonable cause)to represent to insured as to popsy. The law of the sins of me land shall apply to an nitration miter those stated causes of action and shall ne4 be gable for and will not the litre Insurance Arbihatlon Rules. pay to fees of any other counsel.The Carnally will not pay any fees, (d)The Company will pay only those costs,attorneys'fees A copy at the Rules may be obtained from the Ip e Company m costs or expenses incurred by an Insured in the defense of those and expenses Incurred in accordance with Section 4 of these request causes of action each aoege matters not insured against by this Corhdftions and Stipulations. Point 14. LIABILJTY LIMITED TO THIS POLICY, @) The Company shall have the right,at Its own rest to a LIMITATION OF LIABILITY POLICY ENTIRE CONTRACT. institute and prosecute any action or proceeding or to do any other act (a) If the Company establishes the titre, or remove to (a)This policy together with all endorsements,if any,attached which in e opinion may be necessary or desirable to esablsh the title alleged defect Den or encumbrance,or ones the lack of a right of harem by the Company is the entire policy and contract bovsen the to the estate or interest or the ben of the insured mortgage,as insured, access to or from to land,or cures the claim of uamrkeabliy of Insured and the Comparry.In hdeprem a any provision of His policy, or to proem or reduce loss or damage to an insured.The Company Ice,or otherwise esabeshes the Hen of the insured mortgage,all as Insured this policy shall be construed as a whole. may tam any appropriate action endures terns at tits policy,whetter insured,in a reasonably digger manner by any method,Including or not it shall be liable hereunder,and shall not thereby concede liability Htlgamn and as completion of any appeals therefrom,it shall have @)Any cam of mss or damage,whether or not based on or waive any provision of this polity.H as Company shall exercise Is fay performed its obligations with respect to that mailer and shag not negligence,and which arises out of the status of the lien of the insured rights under this paagraph,H shall do so dligmty. be Haber for any loss or damage caused thereby. mortgage or of the title tome estate or interest covered hereby or by (c) Whenever the Company shall have brought an action a @) In the event of Dtlgatlon, including litigation by to any action asserting such calm,shall he restricted to this pokey interposed a defense as required or permitted by the provisions at this Company or MB the ComParmys consent,the Company shall have no (c)No amendment of or endorsement to this policy can he poky.the Company may pursue any rogation to out deiernluatlon by Wilily for loss or damage until there has been a final determination made except by a writing endorsed hen=or attached harem signed a cart of=peted jmsercton and expressly reserves the right in by a court of competent jurisclicrere and disposition of all appeals by either the President a Vice President the Secretary,an Assistant Its sole dsaetort to appeal from any adverse judgment or order. therefrom,adverse to me title,or.If applicable.to the Den of the insured Secretary,or validating officer or authorized sanatory or to Company. mortgage,as insured. (d) in all cases what this policy permits or requires tiro 16. SEVERAMLITY. Company to prosecute or provide fa to defense of any action or (c)The Company shall not be gable for loss or damage to proceeding,to Insured shall secure to the Company the light to so any Insured for liability voluntarily assumed by the Insured In settling in de event any provision of this policy Is beg mad a prosecute or provide defense in to action or proceeding, and all any claim or sub walnut the prior written consent of the Company, unenforceable under applicable law,the policy shall be deemed not to appeals therein,and pennil the Company to use,at its option,the name (d)The Company shall not be liable for Include that provision am all other provisions shall remain N hill bite of such homed faros propose.Whenever requested by the Company, (I)any indebtedness created subsequent to Date of Policy and effect an insured,at the Campano edema shall give the Company all except for advances made to protect the lien of the insured mortgage 16. NOTICES,WHERE SENT, reasonable aid (I)in any action or proceeding, securing evidence, and secured thereby and reasonable amounts expended to prevent All notices aqu red to be ghv the tampon and any slreement obtain*,witnesses,prosecuting a defending the action or proceed- deterioration Of knprovemens:a ten venting equred m he be t v t the Company shall include the kg,a effecting settlement and(Ii)in any other lawful act which in the (I)coshuctlon loan advances made sunsequentm Dam of number of this policy and shall be addressed to the Company at opinion ate Company may be necessary or desirable to establish the Policy,except construction loan advances made subsequent to Dam I First Americm Way, Santa Ana California 92707 or e the office Mk to to estate or interest or the Alen of the insured mortgage,as of Policy for the purple of financing in whole or in part the which issued the policy. asmed.If to Company Is prejudiced by to failure of an insured to construction of an improvement to the land which at Date of Policy furnish the required cuoperaWn,to Company's obligations to such were secured by the Insured mortgage and Much the Insured was and '''''4'.'t 440 17.a .!' , r 4tN 7 y ' t �.. 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