HomeMy WebLinkAboutMS 738; RAN-WIL DEVELOPMENT; 89-480338; EasementRECORDiNG REQUEST t(t~o~$k!&QkTED BY'CONTIIENTAC Urn T T! * 6- Ij?ri?l,g Mqunt.ain Escrow C .orati n . 189 hSQy38
fMdyL TAX STATEMENT TO
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WHEN RECORDED MAIL TO
, "-1"-*- - 1 89 s -5 .pH ?.$f)5
e ' City of Carlsbad
!t ess 1200 Elm Avenue i co2g:'c RgCggDER
* Lp7Z'E'A k* L'fLE
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t, d Carlsbad, Ca. 92008
L Attn: City Clerk . _I
RECORDERS USE ONLY
ORDER NO. 1 5 8 q-f?-/JC
ESCROW NO. 11 19 0 -R GRANT DEED (PARTNERSHIP)
igL - 190 -13 FORM FURNISHED BY TERRA TITLE COMPANY
The undersigned grantor(s) declare(s):
Documentary transfer tax is $ 7 7 6 c n 0 .
(X) Computed on full value of property conveyed, or
( ) Computed on full value less value of liens and encumbrances remaining at time of sale.
( ) Unincorporated area ( x) City of Car J shad
Tax Parcel No. 156-190 - 13
RAN-WIL DEVELOPMENT ----------------------------------.---------- a partnership,
FOR A VALUABLE CONSIDERATION, DOES HEREBY GRANT TO
CITY OF CARLSBAD, A Municipal Corporation
the real property in the City of Carlsbad
County of San Diego , State of California, described as:
Parcel 1 of Parcel Map No. 15282, in the City of Carlsbad, County of
Sari Diego, State of California filed in the office of the County Recorder
Of Sari Diego County, June 30, 1988 as File/Page No. 88-317307 of Official
Records.
For exceptions and exclusions see Exhibit "A" attached hereto.
RAN-WIL DEVELOPMENT,
a California General Atnership
Dated: AUqUSt 24, 1989
TO 1946 CA (8-741 (Partnership)
STATE OF CALIFORNIA
COUNTY OF SAN T)TEC,O 1 ss.
Part]
F%ndil;Z'P e @xino, General Partner
I/ On August 24, 1989
before me, the undersigned, a Notary Public in and for said State, personally appeared t d, jam R - Brie+aman an
.
w W'
r w known to me
n to be the c, ERmpartners of the partnership 2 that executed t=trument. and acknowledged to me 17 d Randy P. Marino
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3."'' - AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL
THERETO AS SET FORTH IN A DOCUMENT
GRANTED TO : THE COUNTY OF SAN DIEGO
PURPOSE: PUBLIC ROAD RECORDED: SEPTEMBER 23, 1939 IN BOOK 943, PAGE 370 OF
AFFECTS z ROAD SURVEY 815
SAID INSTRUMENT ALSO GRANTS THE RIGHT TO EXTEND AND MAINTAIN DRAINAGE
STRUCTURES AND EXCAVATION AND EMBANKMENT SLOPES BEYOND THE LIMITS OF SAID RIGHT OF WAY WHERE REQUIRED FOR CONSTRUCTION AND MAINTENANCE.
OFFICIAL RECORDS
4. J' AN EASEMENT FOR THE PURPOSE SHOWN .BELOW AND RIGHTS INCIDENTAL THERETO
AS SET FORTH IN A DOCUMENT
PURPOSE: FOR TELEPHONE A'ND/OR ELECTRIC POLES AND LINES,
AND FOR SEWER, WATER, AND/OR GAS MAINS AND PIPE-
-LINES IN, UNDER, OVER AND ACROSS SAID PROPERTY,
TOGETHER WITH THE RIGHT TO ENTER ON SAID PROPERTY
.. . .. FOR PURPOSES OF CONSTRUCTIONI RECONSTRUCTION, . . .. . . . _.:
I _..? REPAIRING, AND/OR ALTERING ANY OF THE SAME, PRO-
VIDED HOWEVERI SUCH POLES, LINES OR PIPES SHALL
BE SO LOCATED AS TO INTERFERE WITH THE PROPERTY
AS LITTLE AS POSSIBLE
RECORDS . RECORDED: JUNE 13, 1942 IN BOOK 1356, PAGE 302 OF OFFICIAL
THE EXACT LOCATION AND EXTENT OF SAID EASEMENT IS NOT.DISCLOSED OF
RECORD.
5."' AN AGREEMENT TO WHICH REFERENCE IS HEREBY MADE FOR FULL PARTICULARS DATED: JUNE 17, 1985
.. ,'. . BY AND BETWEEN: SECURITY PACIFIC NATIONAL BANK, BANK OF AMERICA
/' PJATXOMAL TRUST AND SAVXNGS ASSOCXATION, A NATIONAL BANKING ASSOCIATION AS TRUSTEE OF TRUST
NO. 44-5-01188-0 FOR LYN M. LAW, ALSO KNOWN AS
OPAL V. LAW, A CORPORATION AND THE CITY OF CARLS-
BAD, A MUNICIPAL CORPORATION OF,THE STATE OF
CALIFORNIA
CARLSBAD FOR THE PAYMENT OF A PUBLIC FACILITIES
FEE
CIAL RECORDS
REGARD1 NG: AGREEMENT BETWEEN DEVELOPER-OWNER AND THE CITY OF
RECORDED: JULY 18, 1986 AS FILE/PAGE NO. 86-298177 OF OFFI-
6. ,.'' AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL
THERETO AS SET FORTH IN A DOCUMENT
* GRANTED TO: PAUL J. SCHMITT AND JANETTE L. SCHMITT, HUS- BAND AND WIFEr AS JOINT TENANTS AS TO AN
UNDIVIDED 50% INTEREST AND MARIA J. SCHMITT
SEPARATE PROPERTY, AS TO AN UNDIVIDED 50% HUNNICUTT, A MARRIED WOMAN, AS HER SOLE AND
INTERESTI ALL AS TENANTS IN COMMON
PURPOSE: PRIVATE SEWER LINE
RECORDED: DECEMBER 1, 1988 AS FILEjPAGE NO. 88-613693
AFFECTS: OVER, UNDER, ALONG AND ACROSS THAT PORTION
OF OFFICIAL RECORDS
OF PARCEL 1 CF SkiO PARCEL MAP WO. 15282, t f LYING WITHIN THE AREA DELINEATED AND
DESIGNATED THEREON AS "PROPOSED 10' PRIVATE
Exhibit "A" SEWER EASEMENT RESERVE5 FOR PARCEL 2."
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CERTIFICATION FOR ACCEPTANCE OF DEED
This is to certify that the interest in real property
conveyed by the deed or grant dated August 24, 1989
from 'RAN-WIL DEVELOPMENT, a California General PartnershiD
to the City of Carlsbad, California, a municipal corporation,
is hereby accepted by the City Council of the City of Carlsbad,
California pursuant to resolution No. 89-311 , adopted
on August 22, 1989 , and the grantee consents to the
recordation thereof by its duly authorized officer.
DATED z. August 25, 1989
By :
rk
I 0 SPRING 0 MOUNTAIN ESCROW
CORPORATION
September 25, 1989
-
City of Carlsbad
1200 Elm Avenue
Carlsbad, CA 92008
To whom it may concern;
PIE: Escrow NO: 11190-~
Pr0-Y located at: vacant land, Carlsbad, CA 92008
mclosed please find your original Policy of Title Insurance issued in connection
with the above referenced transaction. Keep this policy with your other documnts relating to this escrow,
If you should have.any questions,. please,. do not hesitate to call us, It has been our pleasure to serve you and we look forward to assisting you again in the futuze-
Sincerely,
E. @\+ Lynne Reirrt3r
Escrow Officer
m/em Enclosure
Carlsbad Branch 2725 Jefferson St Suite 2 P.O. Box I1 51 Carlsbad CA 92008 619-729-0978
(ciza
Continental Land Title Company
Subsidiary of
~wyeriJitleInsurance (&oration
All of us at Continental Land Title Company sincerely
appreciate the privilege of having served you in this
transaction.
YOUR policy of title insurance is an important record. It
provides you with valuable protection of your interest in
real property.
Please specify Continental Land Title Company for your
future title insurance needs. We believe that the unique
feature which distinguishes our service organization from
another, particularly in our field, is the skill and experience
of our personnel. Our people pride themselves in offering
you the finest, most up to date service and personal
assistance available in the title industry.
Specifying Continental Land Title Company may also
provide up to a 20% discount on your next title insurance
policy.
Sincerely,
/,,,*
Reauest $@A
(' ) continental Land Title Company when you refinance or sell L. A. Balocca
Your propew. President
Specifying "CONTINENTAL"
20% discount on your next may provide up to a
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Lll (Rev. 6/88)
California Land Title Association Standard Coverage Policy Form
Amended 12/6/85
and 2120186
hwyers Ttle insurance Corporation
SUBJECT TO SCHEDULE B AND THE CONDITIONS AND STIPULATIONS HEREOF, LAWYERS TITLE INSURANCE
CORPORATION, a Virginia corporation, herein called the Company, insures the insured, as of Date of Policy shown in Schedule A,
against loss or damage, not exceeding the amount of insurance stated in Schedule A, and costs, attorneys fees and expenses which the
Company may become obligated to pay hereunder, sustained or incurred by said insured by reason oE
1. Title to the estate or interest described in Schedule A 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 of 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, the Company has caused this Policy to be signed and sealed, to be valid when countersigned by an authorized
officer or agent of the Company, all in accordance with its By-Laws.
hwyers Ttle Insurance @rporatm
*.... \\\ - t ....-....cp 1)
"- \wJ1)4;*r, 8"L i f*\... - ._ '..%', I 2;' .. %\ President i i,::SE&t(.jt: Attest: !
'\- ".."* Secretary :
5 I ', 5'. b ) ... I 1 ..._...... 9 t 5 .. ,.: &- e) Q.lqpf&$ /
'I, *v"ug*o:".r
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061-0-075-Mww)L 11/87
i\
,,' " J ><: Exceptions ;" ,3 Sched~lle B
This Policy does not insure against loss or damage, nor costs, attorneys' fees or expenses, any or all of which arise by reason
of the following:
1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that Icvies 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 o
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 woulc
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) watel rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records.
6. Any right, title, interest, estate or easement in land beyond the lines of the area specifically described or referred to in Schedule C
or in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing in this paragraph shall modify or limit the extent tc
which the ordinary right of an abutting owner for access to a physically open street or highway is insured by this policy.
7. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting o
regulating or prohibiting the occupancy, use or enjoymen': of the land, or regulating the character, dimensions or location o
any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a change in the dimension
or area of the land or any parcel of which the land is or was a part, whether or not shown by the public records at Date o
I)olicy, or the effect of any violation of any such law, ordinance or governmental regulation, whether or not shown by the publi
records at Date of Policy.
8. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the pub1
records.
9. Defects, liens, encumbrances, adverse claims, or other matters (a) whether or not shown by the public records at date of polic
but created, caused, suffered, assumed or agreed to by the insured claimant; (b) not shown by the public records and not otherwi
excluded from coverage but known to the insured claimant either at Date of Policy or at the date such claimant acquired i
estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claima
to the Company prior to th'e date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to tl
insured claimant; (d) attaching or created subsequent to Elate of Policy; or (e) resulting in loss or damage which would not ha
been sustained if t'he insured claimant had been.a purch,aser or encumbrancer for value without knowledge.
Conditions and Stipulations
1. Definition of Terms The following terms when used in this policy mean: (a.) "insured": the insured named ir. Schedule A, and, subject to any
rights or defenses the Company may have had against the named insured, those who succeed to the inpest of such insured by operation of law as distinyished from purchase including. but not limited to, heirs, distributees. devisees, survivors. personal representatives, next of kin, or corporate fiducialy successo~~s. The term "insured" also includes (i) the owner of the indebtedness secured by the insured mortgage and each successor in
ownerbhip ot'such indebtedness (reserving, 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 instrumentality which is an
insurer or guarantor under an insurance contract or guaranty insuring or
D guaranteeing said indebtedness, or any part thereof, whether named as an
insured herein or not, and (iii) the parties designated in paragraph %(a: these Conditions and Stipulations. (b.) "insured claimant": an insured claiming Ioss or damage hereund (c.) "insured lender": the owner of an insured mortgage.
(d.) "insured mortgage": a mortgage shown in Schedule €3. the owner
which is named as an insured in Schedule A.
(e.) "knowledge": actual knowledge, not constructive knowledge or not
which may be imputed to an insured by reason of any public records
(f.) "land": the land described specifically or by reference in Schedule
and inlprovements affixed thereto which by law constitute real prope
provided, however, the term "land" does not include any area excludec
Paragraph No. 6 of Part I of Schedule B of this Policy.
(g.) "mortgage": mortgage. deed of trust, trust deed. or other secu instrument. (h.) "public records": those records which by law impart construct
notice of matters relating to the land.
((~ONDITIOXS ASD STIPULATIOSS Co d on the inside of the Last Page of This Policy) " "0 0' T,
CLTA STRNDARD COVERAGE 073 0' .1
SCHEDULE A
DATE OF POLICY: SEPTEMBER 6, 1989 AT 2:05 P.M.
AMOUNT OF INSURANCE $660,000.00
PREMIUM: $1,628.00
POLICY No. 75-00-438-684
ORDER No. 138247-05
1. NAME OF INSURED:
CITY OF CARLSBAD, A MUNICIPAL CORPORATION
2. THE ESTATE OR INTEREST REFERRED TO HEREIN IS AT DATE OF POLICY
VESTED IN:
CITY OF CARLSBAD, A MUNICIPAL CORPORATION
3. THE ESTATE OR INTEREST IN THE LAND DESCRIBED HEREIN AND WHICH
IS COVERED BY THIS POLICY IS:
A FEE
CLTA STANDARD COVERAGE e73
ORDER NO. 138247-05
POLICY NO. 75-00-430-684
0 ,I
SCHEDULE B
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE, NOR AGAINST COSTS,
FOLLOWING:
ATTORNEYS' FEES OR EXPENSES, ANY OR ALL OF WHICH ARISE BY REASON OF THE
PART I
ALL MATTERS SET FORTH IN PARAGRAPHS 1 TO 9 INCLUSIVE UNDER PART I ON THAT
CERTAIN PAGE ENTITLED SCHEDULE B INSERTED IMMEDIATELY PRECEDING SCHEDULE A
OF THIS POLICY.
PART I1
1. PROPERTY TAXES, INCLUDING ANY ASSESSMENTS COLLECTED WITH TAXES, TO BE
LEVIED FOR THE FISCAL YEAR 1989 - 1990 WHICH ARE A LIEN NOT YET
2. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PRO-
PAYABLE.
VISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF THE REVENUE
AND TAXATION CODE, OF THE STATE OF CALIFORNIA.
3. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL
THERETO AS SET FORTH IN A DOCUMENT
GRANTED TO: THE COUNTY OF SAN DIEGO
PURPOSE: PUBLIC ROAD
RECORDED: SEPTEMBER 23, 1939 IN BOOK 943, PAGE 370 OF
AFFECTS: ROAD SURVEY 815
SAID INSTRUMENT ALSO GRANTS THE RIGHT TO EXTEND AND MAINTAIN DRAINAGE
STRUCTURES AND EXCAVATION AND EMBANKMENT SLOPES BEYOND THE LIMITS OF
SAID RIGHT OF WAY WHERE REQUIRED FOR CONSTRUCTION AND MAINTENANCE.
OFFICIAL RECORDS
4. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO
AS SET FORTH IN A DOCUMENT
PURPOSE: FOR TELEPHONE AND/OR ELECTRIC POLES AND LINES,
AND FOR SEWER, WATER, AND/OR GAS MAINS AND PIPE-
LINES IN, UNDER, OVER AND ACROSS SAID PROPERTY,
TOGETHER WITH THE RIGHT TO ENTER ON SAID PROPERTY
FOR PURPOSES OF CONSTRUCTION, RECONSTRUCTION,
REPAIRING, AND/OR ALTERING ANY OF THE SAME, PRO-
VIDED HOWEVER, SUCH POLES, LINES OR PIPES SHALL
BE SO LOCATED AS TO INTERFERE WITH THE PROPERTY
AS LITTLE AS POSSIBLE
RECORDS
RECORDED: JUNE 13, 1942 IN BOOK 1356, PAGE 302 OF OFFICIAL
THE EXACT LOCATION AND EXTENT OF SAID EASEMENT IS NOT DISCLOSED OF
RECORD.
*. 0 0 ',
CLTA STANDARD (POL 75) SCHEDULE BKONTINUED)
ORDER NO.: 138247-05
PART I1
5. AN AGREEMENT TO WHICH REFERENCE IS HEREBY MADE FOR FULL PARTICULARS
DATED: JUNE 17, 1986
BY AND BETWEEN: SECURITY PACIFIC NATIONAL BANK, BANK OF AMERICA
NATIONAL TRUST AND SAVINGS ASSOCIATION, A
NATIONAL BANKING ASSOCIATION AS TRUSTEE OF TRUST
NO. 44-5-01188-0 FOR LYN M. LAW, ALSO KNOWN AS
BAD, A MUNICIPAL CORPORATION OF THE STATE OF
CALIFORNIA
CARLSBAD FOR THE PAYMENT OF A PUBLIC FACILITIES
FEE
CIAL RECORDS
OPAL V. LAW, A CORPORATION AND THE CITY OF CARLS-
REGARDING: AGREEMENT BETWEEN DEVELOPER-OWNER AND THE CITY OF
RECORDED: JULY 18, 1986 AS FILE/PAGE NO. 86-298177 OF OFFI-
6. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL
THERETO AS SET FORTH IN A DOCUMENT
GRANTED TO: PAUL J. SCHMITT AND JANETTE L. SCHMITT, HUS-
BAND AND WIFE, AS JOINT TENANTS AS TO AN
UNDIVIDED 50% INTEREST AND MARIA J. SCHMITT
HUNNICUTT, A MARRIED WOMAN, AS HER SOLE AND
SEPARATE PROPERTY, AS TO AN UNDIVIDED 50%
INTEREST, ALL AS TENANTS IN COMMON
PURPOSE: PRIVATE SEWER LINE
RECORDED: DECEMBER 1, 1988 AS FILE/PAGE NO. 88-613693
AFFECTS: OVER, UNDER, ALONG AND ACROSS THAT PORTION
OF OFFICIAL RECORDS
OF PARCEL 1 OF SAID PARCEL MAP NO. 15282,
LYING WITHIN THE AREA DELINEATED AND
DESIGNATED THEREON AS "PROPOSED 10' PRIVATE
SEWER EASEMENT RESERVED FQR PARCEL 2."
ORDER yo. 138247-05 .. e 0.
SCHEDULE C
THE LAND REFERRED TO IN THfS POLICY IS SITUATED IN THE COUNTY OF
SAN DIEGO, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
PARCEL 1 OF PARCEL MAP NO. 15282, IN THE CITY OF CARLSBAD, FILED IN THE
OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, JUNE 30, 1988 AS
FILE/PAGE NO. 88-317307 OF OFFICIAL RECORDS.
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(CONDITILNS AND STIPULATIONS Coned From Reverse Side of PoliLy Face) * C.
v.
L 2. (a.) Continuation of Insurance After Acquisition of Title by give the Company, atthe Company’s expense, all reasonable aid (1) in any
Insured Lender such action or proceeding in effecting settlement, securing evidence,
Ifthis policy insures the owner of the indebtedness secured by the insured obtaining witnesses, or prosecuting or defending such action or proceeding, mortgage, this policy shall continue in force as of Date of Policy in favor of and (2) in any other act which in the opinion of the Company may be such insured who acquires all or any part of said estate or interest in the necessary or desirable to establish the title to the estate or interest or the
land described in Schedule C by foreclosure, trustee’s sale, conveyance in lien of the insured mortgage, as insured, including but not limited to
lieu of foreclosure, or other legal manner which discharges the lien of the executing corrective or other documents.
insured mortgage, and if such insured is a corporation, its transferee of the
estate or interest so acquired, provided the transferee is the parent or 4. Proof of Loss or Damage - Limitation of Action
wholly owned subsidiary or such insured and in favor of any governmental In addition to the notices required under Paragraph 3(b) of these Conditions agency or instrumentality which acquires all or any part of the estate or and Stipulations, a proof of loss or damage, signed and sworn to by the interest pursuant to a contract of insurance or guaranty insuring or guaran- insured claimant shall be furnished to the Company within 90 days after the
teeing the indebtedness secured by the insured mortgage. After any such insured claimant shall ascertain or determine the facts giving rise to such
acquisition the amount of insurance hereunder, exclusive of costs, attorneys’ loss or damage. Such proof of loss or damage shall describe the defect in,
fees and expenses which the Company may be obligated to pay, shall not or lien or encumbrance on the title, or other matter insured against by this
exceed the least oE policy which constitutes the basis of loss or damage, and, when appropriate, (i) the amount of insurance stated in Schedule A state the basis of calculating the amount of such loss or damage. (ii) the amount of the unpaid principal of the indebtedness plus interest thereon, as determined under paragraph 6(a) (iii) hereof, expenses of Should such proof of loss or damage fail to state facts sufficient to enable
foreclosure and amounts advanced to protect the lien of the insured the Company to determine its liability hereunder, insured claimant, at the
mortgage and secured by said insured mortgage at the time of acquisition written request of the Company, shall furnish such additional information
of such estate or interest in the land; or (iv) the amount paid by any as may be reasonably be necessary to make such determination.
governmental agency or instrumentality, if such agency or instrumentality KO right of action shall accrue to insured claimant until 30 days after such
is the insured claimant, in acquisition of such estate or interest in satisfaction proof of loss or damage shall have been furnished.
of its insurance contract or guaranty. Failure to furnish such proof of loss or damage shall terminate any liability of the Company under this poiicy as to such loss or damage.
(b.) Continuation of Insurance After Conveyance of Title
The coverage of the policy shall continue in force as of Date of Policy, in
favor of an insured so long as such insured retains an estate or interest in
the land, or owns an indebtedness secured by a purchase money mortgage
given by a purchaser from such insured, or so long as such insured shall
have liability by reason of covenants of warranty made by such insured in
any transfer or conveyance of 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.
3. Defense and Prosecution of Actions - Notice of Claim to be
Given by an Insured Claimant
(a.) The Company, at its own cost and without undue delay, shall provide
for the defense of an insured in litigation to the extent that such litigation
involves an alleged defect, lien, encumbrance or other matter insured
against by this policy.
(b.) The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in (a) above, (ii) in case knowledge shall come to an insured hereunder of any claim or 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 of 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 terminate in regard to the matter or matters for which such prompt notice is required; provided,
however, 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.
(c.) The Company shall have the right at its own cost to institute and without undue delay prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest orthe lienofthe insuredmortgage, as insured; and the Company may take any appropriate action, whether or not it shall be liableunderthe terms of thispolicd and shall notthereby 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 permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order.
5. Options to Pay or Otherwise Settle Claims and Options to
Purchase Indebtedness
The Company shall have the option to pay or otherwise settle for or in the
name of an insured claimant any claim insured against, or to terminate all
liability and obligations of the Company hereunder by paying or tendering
payment of the amount of insurance under this policy together with any
costs, attorneys’ fees and expenses incurred up to the time of such payment
or tender of payment by the insured claimant and authorized by the
Company. In case loss or damage is claimedunder this policy by the owner or
the indebtedness secured by the insured mortgage, the Company shall have the further option to purchase such indebtedness for the amount owing
thereon together with all costs, attorneys’ fees and expenses which the
Company is obligated hereunder to pay. If the Company offers to purchase
said indebtedness as herein provided, the owner of such indebtedness shaL transfer and assign said indebtedness and the mortgage and any collatera securing the same to the Company upon payment therefor as hereir provided. Upon such offer being made by the Company, all liability an(
obligations of the Company hereunder to the owner of the indebtednes! secured by said insured mortgage, other than the obligation to purchast
said indebtedness pursuant to this paragraph, are terminated.
6. Determination and Payment of Loss
(a.) The liability of the Company under this policy shall in no case exceec the least of:
(i) the actual loss of the insured claimant; or
(ii) the amount of insurance stated in Schedule A, or, if applicable, thc
amount of insurance as defined in paragraph 2(a) hereof; or
(iii) if this policy insures the owner of the indebtedness secured by tht
insured mortgage, and provided said owner is the insured claimant, thc
amount of the unpaid principal of said indebtedness, plus interest thereon
provided such amount shall not include any additional principal indebtednes: created subsequent to Date of Policy, except as to amounts advanced tc protect the lien of the insured mortgage and secured thereby.
(b.) The Company will pay, in addition to any loss insured against by thi;
policy, all costs imposed upon an insured in litigation carried on by th Company for such insured, and all costs, attorneys’ fees and expenses i litigation carried on by such insured with the written authorization of th
Company.
(c.) When the amount of loss or damage has been definitely fixed i
accordance with the conditions of this policy, the loss or damage shall b
payable within 30 days thereafter.
(e.) In all cases where this policy permits or requires the Company to
prosecute or provide for the defense of any action or proceeding, the
insured 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 requested by the Company, such insured shall
7. Limitation of Liability No claim shallrise or be maintainable under this policy (a) ifthe Compan:
after having received notice of an alleged defect, lien or encumbranc
insured against hereunder, by litigation or otherwise, removes such defec lien or encumbrance or establisheb the title, or the lien of the insure mortgage, as insured, within areasonable time afterreceipt of such notic,
(CONDITIONS AND STIPULATIONS Continued and Concluded on Reverse Side of This Page)
(CONDITIONS AND STIPULATIONS Continued and Concluded From Reverse Side of This Page)
(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 lien of the insured mortgage, as insured, as pro- vided in paragraph 3 hereof; or (c) for liability voluntarily admitted or assumed by an insured without prior written consent of the Company.
8 Reduction of Insurance; Termination of Liability
All payments under this pol~cy. except payment made for costs. attorneys' fees and expenses, 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 hereunder. then such payments. prior to the acquisition of title to said estate or interest as provlded in paragraph 2(a) of these ConPions and Stipulations, shall not reduce pro tanto the amount of the insurance afforded hereunder as to any such Insured. except to the extent that such payments reduce the amount of the indebtedness secured by such mortgage.
Payment in full by any person or voluntary satisfaction or release of the insured mortgage shall termlnate all liablllty 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 insurance under chls policy as to the insured Owner of the estate or interest covered by thls policy, shall be reduced
shown or referred to in Schedule B hereof which is a lien on the estate or interest by any amount the Company may pay under any policy insuring (a) a mortgage
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 his 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 covered by this policy and the amount so paid shall be deemed a payment under this policy to said insured owner.
The provisions of thls paragraph 9 shall not apply to an Owner of the indebted- ness secured by the insured mortgage. unless such insured acquires title to said estate or interest in satlsfaction of sald Indebtedness or any part thereof.
10. Subrogation Upon Wyment or Settlement
Whenever the Company shall have paid or settled a clam under this policy, all rlght of subrogation shall vest In the Company unaffected by any act of the insund claimant, except that the owner of the indebtedness secured by 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 release a
portion of the estate or Interest from the hen of the insured mortgage. or relr any collateral security for the ~ndebtedness, provided such act occurs prio receipt by such insured of notice of any claim of title or interest adverse to title to the estate or Interest or the priority of the lien of the insured mortg and does not result in any loss of priority of the lien of the insured mortg;
The Company shall be subrogated to and be entitled to all rights and reme1
which such insured claimant would have had against any person or propen respect to such claim had this policy not been issued, and the Compan
hereby authorized and empowered to sue. compromise or settle in its nam in the name of the Insured to the full extent of the loss sustained by Company. If rcquested by the Company. the insured shall execute any anc documents to evidence the within subrogation. If the payment does not EO the loss of such insured claimant. the Company shall be subrogated to SI rights and x::edies in the proportion which said payment bears to the amo of sald loss, but such subrogation shall be in subordination to an insu
mortgage. If loss should result from any act of such insured claimant. such shall not void this policy. but the Company, in that event. shall as to SI
insured claimant be required to pay only that pan of any losses insured agai hereunder which shall exceed the amount, if any. lost to the Company
reason of the impairment of the right of subrogation.
11. Liability Limited to this hlicy This instrument together with all endorsements and other instruments. if a attached hereto by the Company is the entire policy and contract between insured and the Company. Any claim of loss or damage, whether or not ba!
on negligence. and which arises out of the status of the lien of the insul
mortgage or of the title to the estate or interest covered hereby, or any act1 asserting such claim, shall be restricted to the provisions and Conditions a1
Stipulations of this policy.
No amendment of or endorsement to this policy can be made except by writi
endorsed hereon or attached hereto signed by either the President. a Vice Pre! dent, the Secretary. an Assistant Secretary. or validating officer or authorin signatory of the Company.
No payment shall be made without producing this policy for endorsement such payment unless the policy be lost or destroyed. in which case proof of sul loss or destruction shall be furnished to the satisfaction of the Company.
U. Notices, Where Sent
All notices required to be given the Company and any statement in writing requir
to be furnished the Company shall be addressed to its Home Office, P.O. €3 27567, Richmond, Virginia 23261, or to its Pacific States Office, 10 Univerr
City Plaza, Universal City, CA 91608, or to the office which issued this polic
r _~_ " ." - .