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HomeMy WebLinkAboutTitle Insurance \'\'\ • Mortgagee Policy of Title Insurance "� Issued by \O r n Fidelity National Title ^ INSURANCE COMPANY Policy Number: TX2070-10-81425-2008.2710143-75677301 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, FIDELITY NATIONAL TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures as of Date of Policy shown in Schedule A, against loss or damage not exceeding the amount of insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than a stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Lack of a right of access to and from the land; 4. The invalidity or unenforceability of the lien of the insured mortgage upon the title; 5. The priority of any lien or encumbrance over the lien of the insured mortgage; 6. Lack of priority of the lien of the insured mortgage over any statutory or constitutional mechanic's contractor's, or materialman's lien for labor or material having its inception on or before Date of Policy; 7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the insured mortgage in the named insured assignee free and clear of all liens; 8. Lack of good and indefeasible title. The Company also will pay the costs, attorneys'fees and expenses incurred in defense of the title or the lien of the insured mortgage. as insured, but only to the extend provided in the Conditions and Stipulations. IN WITNESS HEREOF, FIDELITY NATIONAL TITLE INSURANCE COMPANY has caused this policy to be executed by its President under the seal of the Company, but this policy is to be valid only when it bears an authorized countersignature, as of the date set forth in Schedule A. Issued by: FIDELITY NATIONAL TITLE INSURANCE COMPANY TX2070 81425 may:* (( ai�1University Title Company ' �' 1021 University Drive East )2L_Lodim College Station,TX 77840-2120 �.,,i1/ ATTEST Tel:(979)260-9818 Fax:(979)268-3080 Texas T-2:Mortgage Policy of Title insurance FORM 1493 Effective 1-1-93(Rev.10-1-97) Reprinted(8199) TEXAS MORTGAGEE POLICY OF TITLE INSURANCE SCHEDULE A Policy No. 2710143-75677301 GF No.:00081425 Amount of Insurance $422,490.00 Date of Policy April 9,2008 at 2:17 P.M. Premium $1,718.00 1. Name of Insured: Brazos Valley Bank,N.A.,and each successor in ownership of the indebtedness secured by the insured mortgage, except a successor who is an obligor under the provisions of Section 12{c}of the Conditions and Stipulations. 2. The estate or interest in the land that is insured as encumbered by the insured mortgage is: Fee Simple 3. Title to the estate or interest in the land is insured as vested in: 200 University Drive,LLC,a Texas Limited Liability Company 4. The insured mortgage and the assignments thereof,if any,are described as follows: Deed of Trust and Security Agreement: Grantor: 200 University Drive,LLC,a Texas limited liability company Trustee: Steven D.Harper Beneficiary: Brazos Valley Bank,N.A. Amount: $422,490.00 Dated: April 4,2008 Recorded: April 9,2008,Volume 8530,Page 13,Official Records,Brazos County,Texas. Said Note being additionally secured by Assignment of Rent,Leases,and Other Benefits: Dated: April 4,2008 Recorded: Volume 8530,Page 28,Official Records,Brazos County,Texas. 5. The land referred to in this policy is described as follows: See Exhibit A attached hereto and made a part hereof. University Title Company Fidelity National Title Insurance Company Texas Mortgagee Policy T-2(Rev. I-I-93)-Schedule A Valid Only if Schedule S and Cover are attached Exhibit A Metes and bounds description of all that certain tract or parcel of land being a remainder of Lot 1, Block 8, Boyett Subdivision, according to the plat recorded in Volume 101, Page 204 of the Deed Records of Brazos County, Texas, and a portion of Block 8,W.C.Boyett Estate Partition according to the plat recorded in Volume 100,Page 440 of the Deed Records of Brazos County,Texas,said portion of Block 8,W.C.Boyett Estate Partition,being the same two tracts of land described as the east 1/2 of a 35.8 foot wide strip by a Quit Claim Deed to Jimmie L. Walston recorded in Volume 1685,Page 262 of the Official Public Records of Brazos County, Texas, and the west 1/2 of a 35.8 foot wide strip by a Quit Claim Deed to Jimmie Waltson recorded in Volume 1685,Page 259 of the Official Public Records of Brazos County,Texas. Said tract being more particularly described by metes and bounds as follows: COMMENCING at a 1/2 inch pipe found marking the common corner of Lot 2 and Lot 3,Block 8,Boyett Subdivision; Thence: S 41° 17' 06" W along the northwest line of said Lot 2 for a distance of 24.00 feet to a 5/8 inch iron rod set marking the common corner of said Lot 1 and Lot 2 and the)'OINT OF BEGINNING of this herein described tract; THENCE S 48°30' 57" E along the common line of said Lot 1 and Lot 2,Block 8,Boyett Subdivision,for a distance of 103.17 feet to an "X" set in concrete on the northwest right-of-way line of University Drive (variable width R.O.W.) marking the northeast corner of this herein described tract; THENCE S 41°29' 03" W along the northwest line of University Drive for a distance of 24.75 feet to an "X" set in concrete marking an angle point in said line,said "X" set being on the common line of said Lot 1 and said east 1/2 of a 35.8 foot wide strip(1685/262); THENCE S 51°07'03" W continuing along the northwest line of University Drive for a distance of 35.76 feet to an "X" set in concrete marking the south corner of this herein described tract, for reference a concrete right-of-way marker found under asphalt bears S 51°07'03"W for a distance of 35.61 feet; THENCE N 43°51' 33" W through said Block 8,W.C.Boyett Estate Partition,and along the common line of said west 1/2 of a 35.8 foot wide strip(1685/259)and a called tract of land described as three tracts by a Deed to William T.Moore recorded in Volume 216,Page 29 of the Deed Records of Brazos County,Texas, for a distance of 187.92 feet to an"X" set in concrete on the southeast right-of-way line of Patricia Street(30'R.O.W.),for reference a broken right-of-way marker found bears: S 41° 07' 03"W for a distance of 204.30 feet; THENCE N 41° 07' 03" E along the southeast line of Patricia Street for a distance of 34.15 feet to an "X" set in concrete marking the west corner of Lot 14,Block 8,Boyett Subdivision(101/205); THENCE S 44° 19' 57" E along the common line of said Lot 14,Block 8,and said east 1/2 of a 35.8 foot wide strip(1685/262) for a distance of 90.57 feet to a 5/8 inch rod set marking the west corner of said Lot 1,Block 8; THENCE N 41° 29' 03" E along the northwest line of said Lot 1 for a distance of 17.20 feet to the POINT OF BEGINNING containing 0.2023 of an acre of land more or less as surveyed on the ground December, 1998 for more descriptive information see plat prepared January, 1999. Bearing orientation shown herein is based on grid north as established from City of College Station GPS Monuments. NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such area or quantity is correct,but is made only for informational and/or identification purposes and does not override Item 2 of Schedule B hereof. SCHEDULE B GF No.:00081425 Policy No.:2710143-75677301 This policy does not insure against loss or damage(and the Company will not pay costs,attorney's fees or expenses)that arise by reason of the terms and conditions of the leases or easements insured, if any, shown in Schedule A and the following matters: 1. The following restrictive covenants of record itemized below, but the Company insures that any such restrictive covenants have not been violated so as to affect, and that a future violation thereof will not affect, the validity or priority of the mortgage hereby insured(insert specific recording data or delete this exception): Item No, 1,Schedule B,is hereby deleted. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. Ct 3. Standby fees, taxes and assessments by any taxing authority for the year 2008, and subsequent years, but not those taxes or assessments for prior years because of an exemption granted to a previous owner of the property under Section 11.13, Texas Tax Code, or because of improvements not assessed for a previous tax year. Company insures that standby fees,taxes and assessments by any taxing authority for the year 2008 are not yet due and payable. 4. Liens and leases that affect the title to the estate or interest,but that are subordinate to the lien of the insured mortgage. 5. (INSERT HERE ALL OTHER SPECIFIC EXCEPTIONS AS TO SUPERIOR LIENS, EASEMENTS, OUTSTANDING MINERAL AND ROYALTY INTERESTS,ETC.) a. Easement reserved in Deed: From: Jimmie Steele Walston Cernin To: DDBV,Ltd. Dated: January 5,1999 Recorded: Volume 3362,Page 339,Official Records,Brazos County,Texas. b. Easement: From: 200 University Drive,LLC To: City of College Station Dated: July 10,2006 Recorded: Volume 7462,Page 242,Official Records,Brazos County,Texas. c. Financing Statement: Debtor: Shotzi's Ltd. Secured Party: Lubbock National Bank Dated: October 7,2005 Recorded: Volume 6966,Page 202,Official Records,Brazos County,Texas. d. The following language contained in Deed from Jimmie Steele Waltson Cernin to DDBV,Ltd.,dated January 5,1999,recorded in Volume 3362,Page 339,Official Records,Brazos County,Texas,to wit: "All oil,gas and other minerals in and under the herein described property,together with any rights of ingress and egress,mining or drilling privileges heretofore reserved or conveyed by predecessors in title,and not referenced above as an exception to conveyance and warranty." CT e. Section 13 of the Conditions and Stipulations of this policy is hereby deleted. University Title Company Fidelity National Title Insurance Company Texas Mortgagee Policy T-2(Rev. 1-1-93)-Schedule 13 Valid Only if Schedule A and Cover are attached SCHEDULE B GF No.:00081425 Policy No.:2710143-75677301 University Title Company By: c9v......t.„:,_, Authorized Countersignature (cbl) University Title Company Fidelity National Title Insurance Company Texas Mortgagee Policy T-2(Rev. 1-1-93)-Schedule B Valid Only if Schedule A and Cover are attached • IMPORTANT NOTiiCE AVISO IMPORTANTE To obtain information or make a complaint Para obtener information o para song una qui You may.call Fidelity National Title Insurance Usted puede hamar al numeto de telefono . Company's toil-free telephone number for gratis Campania de Seguros de Titulo de information or to make a complaint at Fidelity National para informacion o para • someter una queja al: 1-800-292-5320 or 1.800-29220 or 1-800-654-7041 1500-654-7041 You may also write to Fidelity National Title Usted tarnbien puede escribir a Compania Insurance Company at Seguros da Tltulo de Fidelity National 10010 San Pedro,Suite 630 101110 San Pedro,Suite 630 San Antonio,Texas 78216 San Antonio,Texas 78216 You may contact the Texas Department of Puede comunicarse con el Departamento de Insurance to obtain information on companies, Seguros de Texas para obtener information coverages, rights or complaints at acerca de companias,coberturas, derechos o quejas at 1-800-252-3439 • 1-800-252-3439 You may write the Texas Department of Puede escribir al Departamento de Seguros de Insurance: Texas: - P.O. Box 149104 P.O. Box 149104 Austin,TX 78714-9104 Austin,TX 73714-9104 Fax(512)475-1771 Fax (512)475-1771 Web:http:/lwww.tdi.state_tx_us Web:httoJ/www.tdi.stats.txus E-mail: ConsumerProtection antdi.state.txus E-mail:COnsumerProtectionn.tdistate.txus PREMIUM OR CLAiM DISPUTES: DISPUTAS • SOBRE PRIMAS O.' RECLAMOS: Si tone uric disputa concemiente a su prima a Should you have a dispute concerning your a un reclamo, debe comunicarse con el la prerrilum or about a claim you should contact Compania) primero. Si no se resuelve la the company first_ if the dispute is not disputa, puede entonces comunicarse con el resolved, you may contact the Texas departamenta(TDI). Department of Insurance. ATTACH THIS NOTICE TO YOUR POLICY: UNA ESTE AVISO A SU POUZA: Este aviso This notice is for information only and does not es solo para proposito de information y no se become a part or condition of the attached convierte en parte o condition del document° document adjunto. Texas Form B-0023-07 Important Notice EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage,costs,attorney's fees or expenses that arise by reason of: I. (a) Any law,ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to(i)the occupancy,use or enjoyment of the land;(ii)the character,dimensions or location of any improvement now or hereafter erected on the land;(iii)a separation in 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 of these laws,ordinances or governmental regulations,except to the extent that a notice of the enforcement thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or a notice of a defect,lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy,but not excluding from coverage any taking that has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3, Defects,liens,encumbrances,adverse claims or other matters: (a) created,suffered,assumed or agreed to by the insured claimant; (b) not known to the Company,not recorded in the public records at Date of Policy,but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy(except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services,labor or material);or (e) resulting in loss or damage that would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy,or the inability or failure of any subsequent owner of the indebted ness,to comply with applicable doing business laws of the state in which the land is situated, 5. Invalidity or unenforceability of the lien of the insured mortgage,or claim thereof,which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory or constitutional mechanic's,contractor's,or materialman's lien for labor or material having its inception subsequent to Date of Policy. 7. The refusal of any person to purchase,lease or lend money on the estate or interest covered hereby in the land described in Schedule A because of unmarketability of the title. 8. Any claim which arises out of the transaction creating the interest of the mortgagee insured by this policy,by reason of the operation of federal bankruptcy,state insolvency,or other state or federal creditors'rights laws that is based on either(i)the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or voidable dividend,(ii)the subordination or recharacterization of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination or(iii)the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure to the Company or its issuing agent to timely file for record the instrument of transfer to the insured after delivery or the failure of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS The following terms when used in this policy mean: (a) "insured": the insured name In Schedule A.The term"insured"also includes (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c)of these Conditions and Stipulations(reserving,however,all rights and defenses as to any successor that the Company would have had against any predecessor insured,unless the successor acquired the indebted ness as a purchase for value without knowledge of the asserted defect,lien,encumbrance adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the land); (ii) any governmental agency or governmental instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage,or any part thereof,whether named as an insured herein or not; (ill) the parties designated in Section 2(a)of these Conditions and Stipulations. (b) "insured claimant":an insured claiming loss or damage. (c) "knowledge:or"known":actual knowledge,not constructive knowledge or notice that may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto that by law constitute real property. The term"land' does not include any property beyond the lines of the area described or referred to in Schedule A,nor any right,title interest,estate or easement in abutting streets,roads,avenues,alleys,lanes,ways or waterways,but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage": mortgage,deed of trust,trust deed,or other security instrument. (1) "public records":records established under state status at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge.With respect to Section 1(a)(iv)of the Exclusions From Coverage,"public records"also shall Include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land Is located. (g) "access": legal right of access to the land and not the physical condition of access. The coverage provided as to access does not assure the adequacy of access for the use intended. 2. CONTINUATION OF INSURANCE (a) After Acquisition of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of(i)an insured who acquires all or any part of the estate or interest in the land by foreclosure,trustee's sale,conveyance in lieu of foreclosure or their legal manner which discharges the lien of the insure mortgage;(ii)a transferee of the estate or interest so acquired from an insured corporation,provided the transferee is the parent or wholly-owned subsidiary of the insured corporation, and their corporate successors by operation of law and not by purchase, subject to any rights or defenses the Company may have against any predecessor insureds;and(iii)arty governmental agency or governmental instrumentality that acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage. (b) After Conveyance of Title. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land,or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insure in any transfer or conveyance of the estate or interest. This policy shall not continue In force in favor of any purchaser from the insured of either(i)art estate or interest in the land, (ii)an indebtedness secured by a purchase money mortgage given to the insured. (c) Amount of Insurance. The amount of insurance after the acquisition or after the conveyance shall in neither event exceed the least of: (i) the Amount of Insurance stated in Schedule A; (ii) the amount of the principal of the indebtedness secured by the insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to advanced pursuant to the insure mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest • in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements,but reduced by the amount of at payments made;or (iii) the amount paid by any governmental agency or governmental instrumentality,if the agency or instrumentality is the insured claimant,in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The insured shall notice the Company promptly in writing(i)in case of any litigation as set forth in Section 4(a)below,or(ii)in case knowledge shall come to an insured hereunder of any claim of title or interest that is adverse to the title to the estate or Interest or the lien of the insured mortgage,as insured,and that might cause loss or damage for which the Company may be liable by virtue of this policy. If prompt notice shall not be given to the Company,then as to the insured all liability of the company shall terminate with regard to the matter or matters for which prompt notice is required; provided,however,that failure to notify the Company shall In no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. Subject to the provisions of this policy,upon acquisition of all or any part of the estate or interest in the land pursuant to the provisions of Section 2 of these Conditions and Stipulations, when, after the date of the policy, the insured notifies the Company as required herein of a lien, encumbrance, adverse claim or other defect in title to the estate or interest in the land insured by this policy that is not excluded or excepted form the coverage of this policy,the company shall promptly investigate the charge to determine whether the lien,encumbrance,adverse claim or defect is valid and not barred by law or statute. The Company shall notify the insured in writing,within a reasonable time,of its determination as to the validity or invalidity of the insured's claim or charge under the policy. If the Company concludes that the lien,encumbrance,adverse claim or detect is not covered by this policy, or was otherwise addressed in the closing of the transaction in connection with which this policy was issued,the Company shall specifically advise the insured of the reason for its determination. If the Company concludes that the lien,encumbrance,adverse claim or defect is valid,the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien,encumbrance,adverse claim or defect from the title to the estate as insured;(ii)indemnify the insured as provided in this policy, (iii)upon payment of appropriate premium and charges therefore, issue to the Insured claimant or to a subsequent owner,mortgagee or holder of the estate or interest in the land insured by this policy,a policy of the title insurance without exception for the lien, encumbrance, adverse claim or defect; (v) secure a release or other document discharging the lien, encumbrance, adverse claim or defect;or(vi)undertake a combination of(I)through(v)herein. 4. DEFENSE AND PROSECUTION OF ACTIONS: DUTY OF INSURED CLAIMANT TO COOPERATE (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions,and Stipulations,the Company,at its own cost and without unreasonable delay,shall provide for the defense of an insured in litigation In which any third party asserts a claim adverse to the title or interest as insured,but only as to those stated causes of action alleging a defect,lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice(subject to the right of the insured to object for reasonable cause to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees,costs or expenses incurred by the insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right,at its own cost,to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage,as insured,or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy,whether or not It shall be liable hereunder, an shall not thereby concede liability or waive any provisions of this policy. If the Company shall exercise its rights under this paragraph,it shall do so diligently. (c) Whenever the Company shall have brought an 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. (d) 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 shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use,at its option the name of the insured for that purpose. Whenever requested by the Company,the insured,at the Company's expense, shall give the company all reasonable aid (I) In any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding,or effecting settlement,and(ii)in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest or the lien of the Insured mortgage,as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation,the Company's obligations to the insured under the policy shall terminate,including any liability or obligation to defend,prosecute,or continue any litigation,with regard to the matters requiring such cooperation. 5. pROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company,a proof of loss or damage signed and sworn to by the Insured claimant shall be furnished to the Company within 91 days after the insured claimant shall describe the defect in,or lien or encumbrance on the title,or other matter insured against by this policy that constitutes the basis of loss or damage and shall state,to the extent possible,the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage,the Company's obligation to defend, prosecute, or continue any litigation,with regard to the matter or matters requiring such proof of loss or damage. In addition,the Insured claimant may reasonably be required to submit to examination under oath by an authorized representative of the Company and shall produce for examination,inspection and copying,at such reasonable times and places as may be designated by an authorized representative of the Company, all records, books, ledgers, checks, correspondence, and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the toss or damage. Further, if requested by an authorized representative of the Company,the Insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party,which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Company,it is necessary in the administration of the claim.Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph,unless prohibited by law or governmental regulation,shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABIUTY In case of a claim under this policy,the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase Indebtedness. (i) To pay or tender payment of the amount of insurance under this policy together with any costs,attorneys'fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay;or (ii) to purchase the indebtedness secured by the insured mortgage for the amount owing thereon together with any costs,attorneys'fees and expenses incurred by the insured claimant,which were authorized by the Company up to the time of purchase and which the Company is obligated to pay. If the Company offers to purchase the indebtedness as herein provided, the owner of the indebtedness shall transfer, assign,and convey the indebtedness and the insured mortgage together with any collateral security,to the Company upon payment therefore. Upon the exercise by the Company of either of the options provided for in paragraphs a(i)or(ii), all liability and obligations to the insured under this policy,other than to make the payment required in those paragraphs,or continue any litigation,and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. () to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured by the insured claimant,which were authorized by the Company up to the time of payment and which the Company is obligated to pay;or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy,together with any cost,attorneys'fees and expenses incurred by the insured claimant,which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs b(i)or(ii),the Company's obligations to the insured under this policy for the claimed loss or damage,other than the payments required to be made,shall terminate,Including any liability or obligation to defend,prosecute or continue any litigation. 7. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described, (a) the liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A,or,if applicable,the amount of insurance as defined in Section 2(c)of these Conditions and Stipulations; (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of these Conditions and Stipulations,at the time the loss or damage insured against by this policy occurs,together with interest thereon;or (iii) the difference between the value of the insured estate or interest as Insured and the value of the insured estate or interest subject to the defect,lien or encumbrance insured against by this policy at the date the Insured claimant is required to furnish to Company a proof of loss or damage in accordance with Section 5 of these Conditions and Stipulations. (b) In the event the insured has acquired the estate or interest in the manner described in Section 2(a)of these Conditions and Stipulations or has conveyed the title,then the liability of the Company shall continue as set forth in Section 7(a)of these Conditions and Stipulations. (c) The company will pay only those costs,attorneys'fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. LIMITATION OF LIABILITY (a) If the Company establishes the title,or removes the alleged defect,lien or encumbrance,or cures the lack of a right of access to or from the land, or otherwise establishes the lien of the insured mortgage,all as insured,or takes action In accordance with Section 3 or Section 6,in a reasonably diligent manner by any method,including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation by the Company or with the Company's consent,the Company shall have no liability for loss or damage 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. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. (d) The Company shall not be liable for.(1)any indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the Insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements; or (II) construction loan advances made subsequent to Date of Policy,except construction loan advances made subsequent to Date of Policy,except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land,which at Date of Policy were secured by the insured mortgage an which the insured was continued to be obligated to advance at and after Date of Policy. 9. REDUCTION OF INSURANCE: REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy,except payments made for costs,attorneys'fees and expenses,shall reduce the amount of the insurance pro tanto. However, any payments made prior to the acquisitions of the title to the estate or interest as provided in Section 2(a)of these Conditions and Stipulations shall not reduce pro tanto the amount of the insurance afforded under this policy except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage. (b) Payment in part by any person of the principal of the indebtedness, or any other obligation secured by the insured mortgage, or any voluntary partial satisfaction or release of the insured mortgage,to the extent of the payment,satisfaction or release,shall reduce the amount of insurance pro tanto. The amount of Insurance may thereafter be Increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby,with interest thereon,provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A. (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company except as provided in Section 2(a)of these Conditions and Stipulations. 10. JJABILITY NONCUMULATIVE If the insured acquires title to the estate or interest in satisfaction of the indebtedness secured by the insured mortgage, or any part thereof, It Is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken on Schedule B or to which the insured and 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. 11. PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed,in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations,the loss or damage shall be payable within 30 days thereafter. 12. SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy,all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies that the insured claimant would have had against any person or property in respect to the claim had this policy not been Issued. If requested by the Company,the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue,compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant,the Company shall be subrogated to all rights and remedies of the insured claimant shall have recovered its principal,interest,and costs of collection. (b) The insured's Rights and Limitations. Notwithstanding the foregoing,the owner of the indebtedness secured by the Insured mortgage, provided the property of the lien of the insured mortgage or its enforceability is not affected, 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 lien of the insured mortgage,or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of the insured mortgage,as Insured the Company shall exceed the amount,if any,lost to the Company by reason of the impairment by the insured claimant of the Company's rights of subrogation. (c) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities,guaranties,other policies of insurance or bonds,notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of the insured mortgage by an obligor(except an obligor described in Section 1(a)(ii)of these Conditions and Stipulations)who acquires the insured mortgage as a result of an indemnity,guarantee,other policy of insurance,or bond and the obligor will not be an insured under this policy,notwithstanding Section 1(a)(i)of these Conditions and Stipulations. 13. ARBITRATION Unless prohibited by applicable law or unless this arbitration section is deleted by specific provision in Schedule B of this policy,either the Company or the insured may demand arbitration pursuant to the Title Arbitration Rules or the American Arbitration Association. Arbitrable matters may include,but are not limited to,any controversy or daim between the Company and the Insured arising out of or relating to this policy,any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is$1,000,000 or less SHALL BE arbitrated at the request of either the Company or the Insured, unless the insured is an individual person(as distinguished from a corporation,trust,partnership,association or other legal entity). All arbitrable matters when the Amount of Insurance is in excess of$1,000,000 shall be arbitrated only when agreed to by both the Company and the Insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or,at the option of the insured,the rules in effect at Date of Policy shall be binding upon the parties. The award may Include attorneys'fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s)may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LIMITED TO THIS POLICY: POLICY ENTIRE CONTRACT (a) This policy together with all endorsements,if any,attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provisions of this policy,this policy shall be construed as a whole. (b) any claim of loss or damage,whether or not based on negligence,and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim,shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President,a Vice President,the Secretary,an Assistant Secretary,or validating officer or authorized signatory of the Company. 15. $EVERABIITY In the event any provision of this policy is held invalid or unenforceable under applicable law,the policy shall be deemed not to include that provisions an all other provisions shall remain in full force and effect. 16. NOTICES,WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall include that provision and shall be addressed to the Company at Fidelity National Title Insurance Company, National Claims Administration, P.O. Box 45023, Jacksonville, Florida 32232-5023. COMPLAINT NOTICE Should any dispute arise about your premium or about a claim that you have filed,contact the agent or write to the Company that Issued the policy. If the problem is not resolved,you also may write the Texas Department of Insurance,P.O. Box 149091,Austin,TX 78714-9091,Fax No. (512)475-1771. This notice of complaint procedure Is for Information only and does not become part or condition of this policy. �r�rrr BUSINESS ORGANIZATIONS INQUIRY-VIE\, iNTITY https://direct.sos.state.tx.tWcorp_inquiry/corp_inquiry-entity.asp?sp... ` c a$ w.1c cre1-ar f,r State 14l0Jkz ,:VIt(i1-.Iddc' UCC I Business Organizations I Trademarks I Notary I Account I Help/Fees I Briefcase I Logout BUSINESS ORGANIZATIONS INQUIRY-VIEW ENTITY Filing Number: 800528657 Entity Type: Domestic Limited Liability Company(LLC) Original Date of Filing: August 8,2005 Entity Status: In existence Formation Date: N/A Tax ID: 32017951396 FEIN: Duration: Perpetual Name: 200 University Drive,LLC Address: 3350 MCCUE RD APT 1504 HOUSTON,TX 770567111 USA REGISTERED ASSOCIATED AGENT FILING HISTORY NAMES MANAGEMENT ASSUMED NAMES ENTITIES Last Update Name Title Address August 8,2005 Leslie Garb Managing Member 4928 Laurel Street Bellaire,TX 77401 USA IOrder I Return to Search Instructions: a To place an order for additional information about a filing press the'Order'button. I of 1 04/28/2009 5:32 PM Form 205 I Filed in the Office of the ;`h r_r0!. Secretary of State of Texas ��`pFiling#: 800528657 08/08/2005 `,-` '+r'' ' 1 Document#: 99949140002 Secretary of State ;�. P.O. Box 13697 - Image Generated Electronically Austin,TX 78711-3697 for Web Filing FAX: 512/463-5709 Articles of Organization Pursuant to Article Filing Fee: $200 1528n, Texas Limited Liability Company Act Article 1 Name he name of the limited liability company is as set forth below: ; 200 University Drive, LLC - _ he name of the entity must contain the words"Limited Liability Company"or Limited Company,"or an accepted abbreviation of such terms.The name must not be the same as,deceptively similar to or similar to that of an existing corporate,limited liability company,or limited partnership rhe on file with the secretary of state.A preliminary check for the"name availability"is recommended. Article 2— Registered Agent and Registered Office(Select and complete either A or B and complete C) A.The initial registered agent is an organization(cannot be company named above) by the name of: OR MB.The initial registered agent is an individual resident of the state whose name is set forth below: Name: Leslie Garb C.The business address of the registered agent and the registered office address is: Street Address: 4928 Laurel Street Bellaire TX 77401 1 Article 3 -Management(Complete items A or B) A.The limited liability company is to be managed by managers. OR iMB.The limited liability company will not have managers. Management of the company is reserved to the members. The names and addresses of the initial members are set forth below: Managing Member 1 Leslie Garb !Title: Managing Member 'Street Address. 4928 Laurel Street Bellaire TX, USA 77401 Article 4- Duration II he period of duration is perpetual. Article 5-Purpose The purpose for which the company is organized is for the transaction of any and all lawful business for which limited liability companies may be organized. Supplemental Provisions/Information • [The attached addendum,if any,is incorporated herein by reference.] • Organizer The name and address of the organizer is set forth below. J. Fred Bayliss 1305 West Villa Maria, Bryan, Texas 77801 Effective Date of Filing Y A.This document will become effective when the document Is filed by the secretary of state. • OR I _ . B.This document will become effective at a later date,which is not more than ninety(90)days from the date of its filing by the secretary of tate.The delayed effective date is: Name Reservation Document Number EXECUTION The undersigned organizer signs these articles of organization subject to the penalties imposed by law for the submission of a false or fraudulent ': [document. J. Fred Bayliss ;Signature of Organizer FILING OFFICE COPY ���^ • BUSINESS ORGANIZATIONS INQUIRY-VIEVt ,.14TITY https://direct.sos.state.tx.us/carp_inquiry/corp_inquiry-entity.asp?:Sfi... Tali--a S. e t C'' .. e ". -&-[.r g Hi. State UCC, Business Organizations i Trademarks I Notary I Account I Help/Fees i Briefcase I Logout BUSINESS ORGANIZATIONS INQUIRY-VIEW ENTITY Filing Number: 800528657 Entity Type: Domestic Limited Liability Company(LLC) Original Date of Filing: August 8,2005 Entity Status: In existence Formation Date: N/A Tax ID: 32017951396 FEIN: Duration: Perpetual Name: 200 University Drive,LLC Address: 3350 MCCUE RD APT 1504 HOUSTON,TX 770567111 USA REGISTERED ASSOCIATED AGENT FILING HISTORY NAMES MANAGEMENT ASSUMED NAMES ENTI IINS j Name Address Inactive Date Leslie Garb 4928 Laurel Street Bellaire,TX 77401 USA Order I Return to Search Instructions: G To place an order for additional information about a filing press the'Order'button. 1 of 1 04/28/2009 5:32 PM