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HomeMy WebLinkAbout; DAON CORP.; 84-085792; Easement,-& -. k. , I:cL.L""..::. <?.8,<r,,m 7- yJST 'e? In!?, -1 Jdh, iiTl,g f& ..+-?>"t""" "e. j . grd& do. 875924-14 '- 6 .. 137s 84*85w9z Escrow NO." TE-875924 Loan No. " _. . .,_. ~"~~~~~~~~~,~.~~-~,, ::.: ,.. . ./.,." cE-F;;;;:;L-!'+ .) ,,,',- :;y ~, ! ~ .: ; 1 <.; ! 1 C" r,"5. ,r.>,+ L,;;:;; "',. .,';' ?. ... :,. + WHEN RECORDED MAIL TO: I p84 E'I),R -3 L.3 3: 1. 4 e. 4 LLI v 3 CITY OF CARLSBAD 1200 Elm Avenue Carlsbad, California 92008 1 j/ E[? ,?( i - ._ ..' , " Eufl'T\,r ..F 1 i::., - "" .' .;I. .' I' s : . "."_A Attn: Daniel S. Hentschke SPACE ABOVE THIS LINE FOR RECORDER'S UE MAIL TAX STATEMENTS TO: same as above DOCUMENTARY TRANSFER TAX $...d~.c.iQ! .:.... Computed on the consideration or value of property ...... Computed on the consideration or value less liens 01 remainingat time of sale; Signature of Declaraz 07 Agent determining tax - F FIRST AMERICAN TITLE /-A&,Afl&u A49 a3-0iro -(a GF;r/rf&@d CORPORATION GRANT DEED (Fire Station Site) FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, DAON CORPORATION a corporation organized under the laws of the State of Delaware GRANT to @ THE CITY OF CARLSBAD, a municipal corporation the real property in the City of Countyof San Diego Carlsbad , State of California, set forth on attached Exhibit A, which is incorporated in this Grant Deed by reference. STATE OF CALIFORNIA z )S. c COUNTY OFAanEe Q ,- 5 On February 7, 1954 , before me, the undersigned, a Notary Public in and for v - + 0 said State, : known to me to be the>kZi&t, and ._ ppI"'~~gg "1 ~.h~,;&Jy v;;*. Colton, 11 1 ,m ' ._ ! known to me to be the v ' p ' Land %=my of the corporation that executed the within instrument, Q and known to me to be the persons who executed the within E .c instrument on behalf of the corporation therein named, and ac- c Y - ._ 5 knowledged to me that such corporation executed the within g instrument pursuant to its by-laws or a resolution of its board of g directors. c .J Notary Public - California QMi#G€ COUNTY My Ommisslon Expres (kt 1. 1985 Name (Typed or Printed) Dated STATE OF CALIFORNIA COUNTY OF I I= On , before me, i the undersigned,a Notary Public in and for said State, personallyappear- ed % and personally known to me (or proved to me on the basis of satisfactory evidence) to be the persons who executed the within instrument as 0.arirbri and -3 on behalf of (This area for official notarial seal) DAON CORPORATION. ~~ ~ ~~ ~-~ ware co . W,A. 'Colton/: III/V.P. L the corporation therein named, and acknowledged to me that such cor- / poration executed the within instrument pursuant to its bylaws or a resolution of its board of directors. .( WITNESS my hand and official seal. -4 P a c *. :. - ~ . .~ ,$* ;';, .s; "f., ~?- " P , *. I lL. 2 *" .; <c > i I .-, First American Title Insurance Company 114 EAST FIFTH STREET, (P. 0. BOX 267) SANTA ANA, CALIFORNIA 92702. (714) 558-321 1 A subsidiary of The First American Financial Corporatiun I. i *\+ 0 I J* .I i 1- 1377 " LEGAL DESCRIPTION A parcel of land being a portion of Section 31, Township 12 Sc County of San Diego, State of California, described as follow: Range 3 West, San Bernardino Meridian, in the City of Carlsbal COlXXENCING at the Southeast corner of Parcel 3 of Parcel Map : on file in the Office of County Recorder of San Diego County, of California, Being the Southeast corner of Section 30 as SI on said Parcel Map; thence, South 89'43'11" West along the Sol line of said Parcel 3, a distance of 48-19 feet to a point on Southwesterly right-of-way line of road survey 454 on file in Office of County Engineer of said County; thence, leaving saic Southerly line and along said right-of-way line South 31"32'1( West 247.14 feet to the TRUE POINT OF BEGINNING; thence, leavj said right-of-way line North 89"43'11" East 145.34 feet to a 1 on the Northwesterly right-of-way line of proposed Rancho Sant Drive; thence, along said Northwesterly right-of-way line Sout 12"22'42" West 22.51 feet to the beginning of tangent 1137 foc radius curve concave Northwesterly; thence, Southwesterly alor distance :,f 144-68 feet, thence, leaving said N:>rthwesterly rj 05-way line North 69°00'00" West 172.47 feet to a point on saj Southwesterly right-of-way line; thence, North 31O32'16" East 115.50 feet to the TRUE POINT OF BEGINNING containing 0.500 ac more or less. the arc of said curve through a central angle of 7"17 1 27" a .. .. .. 4 EXHIBIT A 5. * al c )* 1378 i CERTIFICATION FOR ACCEPTANCE OF DEED ~~ ~ This is to certify that the interest in real property conveyed by the deed or grant dated FA- 7, 1984 from Daon Cowration to the City of Carlsbad, California, a municipal corporation, is hereby accepted by the City Council of the City of Carlsbac California pursuant to resolution No. 7516 , adopted on February 21, 1984 , and the grantee consents to the recordation thereof by its duly authorized officer. DATED: February 22, 1984 By : *fh /@!- ALETHA L. FLAUTENKRANZ, City C!.I ' Form NO. ;OS4 (10/73) ' Standard Coverage Policy Form California Land Title Association Copyright 1973 * POLICY OF TITLE INSURANCE ISSUED BY First American Title Iitsurancc Company SUBJECT TO SCHEDULE B AND THE CONDITIONS AND STIPULATIONS HEREOF, FIRST AMERICAN TI INSURANCE COMPANY, a California corporation, herein called the Company, insures the insured, as of Date of PC shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and c attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by insured by reason of: 1. Title to the estate or interest described in Schedule H being vested other than as stated therein: 2. Any defect in or lien or encumbrance on such title; 3. Unmarketability of such title; or 4. Any lack of the ordinary right of an abutting owner for access to at least one physically open street or highway if the land, in fact, abuts upon one or more such streets or highways; and in addition, as to an insured lender only: 5. Invalidity of the lien of the insured mortgage upon said estate or interest except to the extent that such invalidity, or claim thereof, arises out of the transaction evidenced by the insured mortgage and is based upon a. usury, or b. any consumer credit protection or truth in lending law; 6. Priority of any lien or encumbrance over the lien off the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; or 7. Invalidity of any assignment of the insured mortgage, provided such assignment is shown in Schedule B. IN WITNESS WHEREOF, First American Title Insurance Company has caused this policy to be signed and sealed t duly authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Compi; BY PRESID ATTEST kA c, y.,&.* SECRET Bl $481 89'1 CONDITIONS AND STIPULATIONS 'j. DEFINITION OF TERMS (iii) the amount paid by any governmental The following terms when used in this policy agency or instrumentality, if such agency or instru- such estate or interest in satisfaction of its insur- mentality is the insured claimant, in acquisition of A, and, subject to any rights or defenses the Com- (a) "insured": the insured named in Schedule ante COntraCt or guaranty. pany may have had against the named insured, (b) CONTINUATION OF INSURANCE those who succeed to the interest of such insured AFTER CONVEYANCE OF TITLE mean: by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, de visees. survivors, personal representatives, next of kin, or corporate or fiduciary successors. The term "insured" also includes (i) the owner of the indebt- successor in ownership of such indebtedness (re edness secured by the insured mortgage and each serving, however, all rights and defenses as to any such successor who acquires the indebtedness by operation of law as described in the first sentence of this subparagraph (a) that the Company would have had against the successor's transferor), and further includes (ii) any governmental agency or instrumentalitv which is an insurer or auarantor force as of Date of Policy, in favor of an insured so The coverage of this policy shall continue in long as such insured retains an estate or interest in the land, or owns an indebtedness secured by a pur- chase money mortgage given by a purchaser from such insured, or so long as such insured shall have by such insured in any transfer or conveyance of liability by reason of covenants of warranty made such estate or interest; provided, however, this policy shall not continue in force in favor of any purchaser from such insured of either said estate or interest or the indebtedness secured by a purchase money mortgage given to such insured. " under an insurance contract or guaranty insuring or 3. DEFENSE AND PROSECUTION OF guaranteeing said indebtedness, or any part thereof, ACTIONS - NOTICE OF CLAIM TO BE whether named as an insured herein or not, and (iii) the parties designated in paragraph 2 (a) of GIVEN BY AN INSURED CLAIMANT these Conditions and Stipulations. undue delay, shall provide for the defense of an (a) The Company, at its own cost and without loss or damage hereunder. gation involves an alleged defect, lien, encum- (c) "insured lender": the Owner of an insured brance or other matter insured against by this mortgage. policy. (b) "insured claimant": an insured claiming insured in litigation to the extent that such liti- Schedule 6, the owner of which is named as an in- (d) "insured mortgage": a mortgage shown in sured in Schedule A. (e) "knowledge": actual knowledge, not con- structive knowledge or notice which may be im- puted to an insured by reason of any public records. (f) "land": the land described, specifically or by reference in Schedule C, and improvements af- fixed thereto which by law constitute real property; clude any area excluded by Paragraph No. 6 of provided, however, the term "land" does not in- Part I of Schedule B of this Policy. (9) "mortgage"; mortgage, deed of trust, trust deed, or other security instrument. (h) "public records": those records which by to the land. law impart constructive notice of matters relating 2. (a) CONTINUATION OF INSURANCE AFTER ACQUISITION QF TITLE BY INSURED LENDER If this policy insures the owner of the indebt- shall continue in force as of Date of Policy in favor edness secured by the insured mortgage, this policy of such insured who acquires all or any part of the estate or interest in the land described in Schedule C by foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal manner which dis- charges the lien of the insured mortgage, and if such or interest so acquired, provided the transferee is insured is a corporation, its transferee of the estate the parent or wholly owned subsidiary of such in- sured; and in favor of any governmental agency or instrumentality which acquires all or any part of the ance or guaranty insuring or guaranteeing the in- estate or interest pursuant to a contract of insur- debtedness secured by the insured mortgage. After any such acquisition the amount of insurance here under, exclusive of costs, attorneys' fees and ex- pay, shall not exceed the least of: penses which the Company may be obligated to (i) the amount of insurance stated in (ii) the amount of the unpaid principal of the indebtedness plus interest thereon, as deter- mined under paragraph 6 (a) (iii) hereof, expenses of foreclosure and amounts advanced to protect the lieu of the insured mortgage and secured by said insured mortgage at the time of acquisition of such estate or inEerest in the land; or Schedule A; (b) The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in (a) above, (id in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest or the lien of the insured mortgage. as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest or the lien of the insured mortgage, as insured, is rejected as unmarketable. If such prompt notice shall not be given to the Company, then as to such insured all liability of the Company shall cease and termi- nate in regard to the matter or matters for which that failure to notify shall in no case prejudice the rights of any such insured under this policy unless the Company shall be prejudiced by such failure and then only to the extent of such prejudice. own cost to institute and without undue delay (c) The Company shall have the right at its other act which in its opinion may be necessary or prosecute any action or proceeding or to do any desirable to establish the title to the estate or inter- est or the lien of the insured mortgage, as insured: and the Company may take any appropriate action, whether or not it shall be liable under the terms of this policy, and shall not thereby concede liability or waive any provision of this policy. (d) Whenever the Company shall have brought any action or interposed a defense as required or Company may pursue any such litigation to final permitted by the provisions of this policy, the determination by a court of competent jurisdiction and expressly reserves the right, in its sole discre tion, to appeal from any adverse judgment or order. (e) In all cases where this policy permits or re quires the Company to prosecute or provide for the defense of any action or proceeding, the in- sured hereunder shall secure to the Company the right to so prosecute or provide defense in such action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of such insured for such purpose. Whenever re quested by the Company, such insured shall give the Company, at the Company's expense, all reason- able aid (1) in any such action or proceeding in effecting settlement, securing evidence, obtaining witnesses, or prosecuting or defending such action or proceeding, and (2) in any other act which in the opinion of the Company may be necessary or desit%ble to establish the title to the estate, or such prompt notice is required; provided, however, e interest or the lien of the insu sured, including but not limit1 rective or other documents. 4. PROOF OF LOSS OR Dl LIMITATION OF ACTIO1 graph 3 (b) of these Condition In addition to the notices I proof of loss or damage, signed pany within 90 days after tl insured claimant shall be furl shall ascertain or determine th such loss or damage. Such pro shall describe the defect in, or on the title, or other matter in policy which constitutes the t age, and, when appropriate, calculating the amount of su Should such proof of loss state facts sufficient to enabl, determine its liability hereunde at the written request of Con such additional information as necessary to make such determi claimant until 30 days after SL damage shall have been furnishe Failure to furnish such pro( shall terminate any liability of this policy as to such loss or dar No right of action shall .. 5. OPTIONS TO PAY OR OT CLAIMS AND OPTIONS T DEBTEDNESS The Company shall have tl otherwise settle for or in the claimant any claim insured a! nate all liability and obligatio1 amount of insurance under t hereunder by paying or tender with any costs, attorneys' fee curred up to the time of such of payment by the insured claim by the Company. In case loss o under this policy by the owner secured by the insured mortgage, have the further option to purc all costs, attorneys' fees and e ness for the amount owing the Company is obligated hereund Company offers to purchase si herein provided, the owner of shall transfer and assign said in mortgage and any collateral se the Company upon payment provided. Upon such offer b Company, all liability and oblig pany hereunder to the owner ( secured by said insured mortg; obligation to purchase said ind to this paragraph, are terminate( 6. DETERMINATION AND PI (a) The liability of the Cc policy shall in no case exceed th (i) the actual loss of th or (ii) the amount of ir Schedule A, or, if applicable, surance as defined in paragrapl (iii) if this policy insun provided said owner is the inst indebtedness secured by the inst amount of the unpaid principal ness, plus interest thereon, proc shall not include any additional I ness created subsequent to Date as to amounts advanced to prot insured mortgage and secured thr loss insured against bv this DO (b) The Company will pay, Q osed upon an insured in litiga (Continued on w w CLTA Standard Coverage Policy ef C-102 5 SCHEDULE A Title Fee: $100.24 Amount of Insurance $28,000.00 Policy No. 875924-14 Date of Policy: March 8, 1984 at 3:44 P.M. 1. Name of Insured: THE CITY OF CARLSBAD, a municipal corporation 2. The estate or interest referred to is at Date of Policy vested in: THE CITY OF CARLSBAD, a municipal corporation 3. The estate or interest in the land described in Schedule C and whic covered by this policy is: FEE w v CLTA Standard Coverage Policy SOULE B This policy does not insure against loss or damage, nor against costs, attorneys' fees or expenses, any or all of which arise by reason of the following : Part One: 1. Taxes or assessments which are not shown as existing liens 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 by making inquiry of 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 or title to water. 6. Any rights, title, interest, estate or easement in land beyond the lines of the area specifically described or referred to in Schedule Cy or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph shall modify or limit the extent to which the ordinary right of an abutting owner for access to a physically open street or highway is insured by this policy. 7. Any laws , ordinance or governmental regulation (including but not limited to building and zoning ordinance) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. 8. Rights-of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records. v >v 9. Defects, liens, encumbrances, adverse claims, or other matters (a) not shown by the public records and not otherwise excluded from coverage but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant. to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had been a purchaser or encumbrancer for value without knowledge. created, suffered, assumed or agreed to by the insured claimant; (b) 0 @ CLTA Standard Coverage Policy SCHEDULE B Part Two: 1. General and Special taxes for the fiscal year 1984-85, a lien, not payable. 2, The lien of supplemental taxes assessed pursuant to Chapter 498, Statute 1983 of the State of California. 3. An Agrement regarding Public Facilities Fees, dated July 8, 1981, up0 terms, covenants, and conditions contained therein. EXECUTED BY AND BEWEN: DAON CORPORATION and THE CITY OF CARLSBl municipal corporation. RECOPBED: September 8, 1981 as File No. 81-286838 of Official &cor&. 4- The effect , if any, of Record of Survey Map No. 9293, which sets fort purports to set forth certain dimensions and bearings of the 1 described property. * 9 SCHEDULE C The land referred to in this policy is situated in the State of Californi County of San Diego and is described as follows: A parcel of land being a portion of Section 31, Township 12 South, Range 3 Wes San Bernardino Base and Meridian, in the City of Carlsbad, County of San Dieg State of California, described as follows: Commencing at the Southeast corner of Parcell 3 of Parcel Hap 10179 on file the Office of County Recorder of San Diego County, State of California. Be: the Southeast corner of Section 30 as shown on said Parcel Xap; thence, SOi 89'43'11" West along the Southerly line of said Parcel 3, a distance of 48 feet to a point on the Southwesterly right-of-way line of Road Survey No. 454 file in the Office of County Engineer of said County; thence, leaving S~ Southerly line and along said right-of-way line South 31'32'16" West 247.14 f to the TRUE POINT OF BEGINNING; thence, leaving said right-of-way line No 89'43'11" East 145.34 feet to a point on the Northwesterly right-of-way line proposed Rancho Santa Fe Drive; thence, along said Northwesterly right-of- line South 12'22'42" West 22.51 feet to the beginning of a tangent 1137 f radius curve concave Northwesterly; thence, Southwesterly along the arc of s curve through a central angle of 7'17'27" a distance of 144.68 feet; ther leaving said Northwesterly right-of-way line North 69'00'00" Vest 172.47 feet a point on said Southwesterly right-of-way line; thence, North 31'32'16" E 115.50 feet to the TRUE POINT OF BEGINNING containing 0.500 acres more or les r lv/bp aca m INDORSEMENT * Attached to Policy No. 875924-14 Issued by First American Title Insurance Company The Company, recognizing the current effect of inflation on real property valuation and intending to provide ad monetary protection to the Insured Owner named in said Policy, hereby modifies said Policy, as follows: 1. Notwithstanding anything contained in said Policy to the contra:\/, the amount of insurance provided Policy, as stated in Schedule A thereof, is subject to cumulative annual upward adjustments in the mame the extent hereinafter specified. 2. "Adjustment Date" is defined, for the purpose of this Indorsement, to be 12:Ol a. rn. on the first January occurs more than six months after the Date of Policy, as shown in Schedule A of the Policy to which this ment is attached, and on each succeeding January 1. 3. An upward adjustment will be made on each of the Adjustment Dates, as defined above, by increasing tl mum amount of insurance provided by said Policy (as said amount may have been increased theretofore u terms of this Indorsement) by the same percentage, if any, by which the United States Department of Cc Composite Construction Cost Index (base period 1967) for- the month of September immediately prect ceeds such Index for the month of September one year earlier; provided, however, that the maximum ar insurance in force shall never exceed 150% of the amount of insurance stated in Schedule A of said Po the amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulal duces the amount of insurance in force. There shall be no annual adjustment in the amount of insu years in which there is no increase in said Construction Cost Index. 4. In the settlement of any claim against the Company under said Policy, theamount of insurance in forc deemed to be the amount which is in force as of the date on which the insured claimant first learn assertion or possible assertion of such claim, or as of the date of receipt by the Company of the first such claim, whichever shall first occur. Nothing herein contained shall be construed as extending or changing the effective date of said Policy. This indorsement is made a part of said Policy and is subject to the schedules, conditions and stipulations therei as modified by the provisions hereof. First American Title Insurance Company BY PRESIDENT BY STANT SECRETARY NOTE: In connection with a future application for title insurance covering said land, reissue credit on premiL (if applicable at all) will be allowed only upon the original face amount of insurance as stated in Schedule A of s FA- 1 Owner I aca e INDORSEdENT '(I) Attached to Policy No. 875924-14 Issued by First American Title Insurance Company 1. This Indorsement shall be effective only if at Date of Policy there is located on the land described in said I one-to-four family residential structure, in which the Insured Owner resides or intends to reside. For the purposc Indorsement the term "residential structure" is defined as the principal dwelling structure located on said land t whh a/( improvements thereon related to residential use of the property except plantings of any nature, PC fences and perimeter walls, and the term "Insured Owner" is defined as any insured named in paragraph 1 of Sch and, subject to any rights or defenses the Company may have had under said Policy and all indorsements, such il heirs, distributees, devisees, survivors, personal representatives or next of kin. 2. The Company hereby insures the Insured Owner of the estate or interest described in Schedule A against loss or which the Insured Owner shall sustain by reason of: a. the existence at Date of Policy of any of the following matters: (1) lack of a right of access from said land to a public street; (2) any statutory lien for labor or materials attaching to said estate or interest arising out of any wor provement on said land, in progress or completed at the date of the policy, except those liens arisir a work of improvement for which the insured has agreed to be responsible. b. the removal of the residential structure or the interference with the use thereof for ordinary residential I as the result of a final Court Order or Judgment, based upon the existence at the Date of the PC (1) any encroachment of said residential structure or any part thereof onto adjoining lands, or onto ; ment shown as an exception in Part II of Schedule B of said Policy, or onto any unrecorded su easement; (2) any violation on the land of enforceable covenants, conditions or restrictions, provided that this shall not refer to or include the terms, covenants and conditions contained in any lease, sub- contract of sale referred to in this Policy; (3) any violation of applicable zoning ordinances to the extent that such ordinances regulate (a) area, depth of the land as a building site for the residential structure; (b) floor space area of the resident ture; (c) set back of the residential structure from the property lines of the land; or (d) heigt. residential structure. c. damage to the residential structure resulting from the exercise of any right to use the surface of said Ian' extraction or development of the minerals excepted from the description of said land or shown as a re in Schedule B. The total liability of the Company under said Policy and all indorsements attached thereto shall not exceed, in the i the amount of said Policy and costs which the Company is obligated under the conditions and stipulations thereof to nothing contained herein shall be construed as extending or changing the effective date of said Policy. This Indorsement is made a part of said Policy and is subject to the schedules, conditions and stipulations therein, modified by the provisions hereof. First American Title Insurance Company BY PRESIDENT BY ANT SECRETARY One-Four I. ~~ND~TlONS AND STIPULATIONS .a_ 4 (Continued from inside front cover) the Company for such insured, and all costs, attorneys' fees and expenses in litigation carried on by such insured with the written authorization of the Company. been definitely fixed in accordance with the con- (c) When the amount of loss or damage has ditions of this policy, the loss or damage shall be payable within 30 days thereafter. 7. LIMITATION OF LIABILITY No claim shall arise or be maintainable under this policy la) if the Company, after having received notice of an alleged defect, lien or encumbrance in- sured against hereunder, by litigation or other- wise, removes such defect, lien or encumbrance or establishes the title, or the lien of the insured mort- gage, as insured, within a reasonable time after receipt of such notice; (b) in the event of litigation until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title or to the vided in paragraph 3 hereof; or (c) for liability lien of the insured mortgage, as insured, as pro- voluntarily admitted or assumed by an insured without prior written consent of the Company. 8. REDUCTION OF INSURANCE; TERMINA- TION OF LIABILITY ment made for costs, attorneys' fees and expenses, All payments under this policy, except pay- shall reduce the amount of the insurance pro tanto; provided, however, if the owner of the indebtedness secured by the insured mortgage is an insured here under, then such payments, prior to the acquisition of title to said estate or interest as provided in paragraph 2 (a) of these Conditions and Stipula- tions, shall not reduce pro tanto the amount of the insurance afforded hereunder as to any such in- sured, except to the extent that such payments reduce the amount of the indebtedness secured by such mortgage. satisfaction or release of the insured mortgage shall Payment in full by any person or voluntary terminate all liability of the Company to an insured owner of the indebtedness secured by the insured mortgage, except as provided in paragraph 2 (a) hereof. 9. LIABILITY NONCUMULATIVE It is expressly understood that the amount of of the estate or interest covered by this policy, shall insurance underthis policy, as to the insured owner be reduced by any amount the Company may pay under any policy insuring (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or (b) a mortgage hereafter executed by an insured which is a charge or lien on the estate Or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy. The Company shall have the option to apply to the payment of any such mortgage any amount that otherwise would be payable hereunder to the insured owner of the estate or interest cov- ered by this policy and the amount so paid shall be deemed apayment under this policy to said insured owner. The provisions of this paragraph 9 shall not apply to an owner of the indebtedness secured by the insured mortgage, unless such insured acquires title to said estate or interest in satisfaction of said indebtedness or any part thereof. 10. SUBROGATION UPON PAYMENT OR Whenever the Company shall have paid or settled a claim under this policy, all right Of Sub- rogation shall vest in the Company unaffected by any act of the insured claimant, except that the owner of the indebtedness secured bv the insured mortgage may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or re lease a portion of the estate or interest from the collateral security for the indebtedness, provided lien of the insured mortgage, or release any such act occurs prior to receipt by such insured of notice of any claim of title or interest adverse to the title to the estate or interest or the priority of the lien of the insured mortgage and does not result in any loss of priority of the lien of the in- sured mortgage. The Company shall be subrogated to and be entitled to all rights and remedies which such insured claimant would have had against any person or property in respect to such claim had this policy not been issued, and the Company is here by authorized and empowered to sue, compromise or settle in its name or in the name of the insured to the full extent of the loss sustained by the Com- shall execute any and all documents to evidence pany. If requested by the Company, the insured the within subrogation. If the payment does not cover the loss of such insured claimant, the Com- pany shall be subrogated to such rights and reme dies in the proportion which said payment bears to the amount of said loss, but such subrogation shall SETTLEMENT be in subordination to an insured mortgage. If loss should result from any act of such insured claimant. such act shall not void this policy, but the Com- claimant be required to pay only that part of any pany, in that event, shall as to such insured losses insured against hereunder which shall exceed the amount, if any, lost to the Company by reason of the impairment of the right of subrogation. 11. LIABILITY LIMITED T This instrument together ments and other instruments, if to by the Company is the enti tract between the insured and th Any claim of loss or dama! status of the lien of the insured based on negligence, and whicl title to the estate or interest any action asserting such claim to the provisions and condition: this policy. policy can be made except b No amendment of or en1 hereon or attached hereto sic President, a Vice President, Assistant Secretary, or validatir ized signatory of the Company. this policy for endorsement 01 No payment shall be made less the policy be lost or destrc proof of such loss or destructia to the satisfaction of the Compi 12. NOTICES, WHERE SENT and any statement in writing All notices required to be nished the Company shall be am home office at 421 North Mail California, 92701, or to the ( this policy. e. e _a. .. .- .