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HomeMy WebLinkAboutLegal documentsa ATTORNEYS: STEVEN ALLBRITTON J. HANS BARCUS WALTER S. CAMPBELL CARLTON BRYAN CANTRELL GARY I. CURRIER* REBECCA D.EPLEN MICHAEL H. GENTRY** LANCE T. LACKEY CHRISTOPHER W. PETERSON WAYNE T. RIFE CHRISTOPHER M. SEGREST MARK W.SHOMAKER JOHN C. WEBB, JR. GAINES WEST JULIE MAY YOUNG Hand Delivery Mr. David Neal College Station Independent School District 1812 Welsh Street College Station, Texas 77840 May 25, 1999 1515 EMERALD PLAZA COLLEGE STATION, TEXAS 77845-1515 TELEPHONE (409) 694-7000 TELECOPIER (409) 694-8000 EMAIL: wwag®tca.net WEB SITE: http://www.wwaglaw.com *BOARD CERTIFIED ESTATE PLANNING AND PROBATE LAW TEXAS BOARD OF LEGAL SPECIALIZATION **BOARD CERTIFIED COMMERCIAL REAL ESTATE LAW TEXAS BOARD OF LEGAL SPECIALIZATION Re: 10.000 acre tract, part of Lot 20, Sandstone Addition, College Station, Texas Dear David: Enclosed you will find an original Agreement in connection with the above referenced matter which needs to be executed by W. A. McKean and wife, Janice A. McKean, Tony Jones, and John Hencerling. Once the document has been executed by all parties, please return the original to me. If you have any questions or comments, you may call me. Si C. Webb, Jr. (JCW71)11402\LO Ldn/1 Enclosure WEST, WEBB, ALLBRITTON & GENTRY A PROFESSIONAL CORPORATION AGREEMENT WHEREAS, the College Station Independent School District is the owner of real estate in College Station, Brazos County, Texas, to-wit: All that certain lot, tract or parcel of land lying and being situated in Brazos County, Texas, and being a part of Lot Twenty (20), SANDSTONE ADDITION, an addition to the City of College Station, Brazos County, Texas, according to the plat recorded in Volume 389, Page 179 of the Deed Records of Brazos County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof; and WHEREAS, College Station Independent School District desires to enter into an Earnest Money Contract and convey the property to the highest bidder after proper notices are given; and WHEREAS, the bid process is complete and the highest bid was made by Tony Jones and John Hencerling; and WHEREAS, W. A. McKean and wife, Janice A. McKean, are adjacent landowners: NOW, THEREFORE, it is the desire of College Station Independent School District and Tony Jones and John Hencerling to finalize the Eamest Money Contract. Tony Jones and John Hencerling, prior to executing the contract, want the complete assurance of W. A. McKean and wife, Janice A. McKean, that they will cooperate in the platting process with the City of College Station, Tony Jones, and John Hencerling and execute any document necessary or required by the City of College Station in this process: /V/ J 1&'4~L~ i' lu ,I~CtC~~ w ~ L NOW, THEREFORE, W. A. McKean and wife, Janice A. McKean, state that they willfully cooperate in the platting of the above-described property if the City of College Station requires their agreement and state that they make no claim as to access regarding the above-described property and realize that Tony Jones and John Hencerling are relying on this representation in order to enter (JCW71)11402\Agree/1 1 Agreement into the Earnest Money Contract. EXECUTED this day of 1999. (JCW71)11402\Agree/1 2 Agreement W. A. MCKEAN ~ y EXHIBIT "A" Being a 10.0000-Acre tract or parcel of land lying and being a part,of Lot 20, Sandstone Addition, College Station, Texas, as platted and recorded in Volume 389, page 179, Deed Records, Brazos County, Texas, and said 10-Acre tract being more particularly described by metes and bounds as follows: BEGINNING at an iron rod found marking the easternmost corner of Lot 19, Sandstone Addition, said rod also marking the northernmost corner of Lot 20, same addition, and furthermore said rod also marking the northernmost corner of the subject 10-Acre tract described herein; THENCE S 37 degrees 52' 29" E along the common boundary between Lot 20 and Lots 5 and 6 of the referenced Sandstone Addition for a distance of 557.56' to an iron rod set for a corner; THENCE S 45 degrees 00' 00" W through Lot 20 for a distance of 755.01' to an iron rod set for a corner on the westerly boundary of the Sandstone Addition; THENCE N 44 degrees 32' 07" W along the westerly boundary of Lot 20, Sandstone Addition, said boundary also being the westerly boundary of said addition, for a distance of 553.27' to an iron rod found marking the western- most corner of Lot 20 and the southernmost corner of Lot 19, of the same addition; THENCE N 45 degrees 00' 00" E along the common boundary between said.Lots 20 and 19 for a distance of 819.68' to an iron rod for a corner which is also the POINT OF BEGINNING containing 10.0000 acres more or less, as surveyed on the ground by Christian A. Galindo, R.P.S. 114473, January 27, 1988. DATE: GRANTORS: TEMPORARY BLANKET UTIL 3 EMMETT HUBBARD KEN and MONTA KENNADY GRANTORS' MAILING ADDRESS: EASEMENT , III 8900 Sandstone Brazos County College Station, TX 77845 GRANTEE: CITY OF COLLEGE STATION, TEXAS GRANTEE'S MAILING ADDRESS: 1101 Texas Avenue Brazos County College Station, Texas 77842 CONSIDERATION: Ten Dollars ($10.00) and Other good and valuable consideration. PROPERTY: Being all that certain tract or parrcel of land, being Lot 9R-A of the Sandstone Addition in College Station Brazos County, Texas, according to the Replat of Lot 91t, Sand- stone Addition dated September 12 1996, and recorded in Volume 2685, gage 316-A, of the Official Records of Brazos County, Texas. ESTATE GRANTED: 1. GRANTORS grant to GRANTEE an undefined or "blanket"' easement for various utilities, to be restricted hereafter to the as-built area, 'and defined by subsequent survey or plat. 2. GRANTORS do hereby grant, bargai , sell and convey unto GRANTEE, its successors and assigns, an undefi ed easement in and to the above- described parcel. of land; GRANTEE to install, maintain, repair, rebuild, operate, inspect and remove all utilit t facilities, including conduits, duct lines, vaults, fittings, appliances and equipment, under the above- described property. RESERVATIONS AND RESTRICTIONS: 1. 2. 3. This conveyance is only of the right, pprivilege and easement for the afore- said purposes. GRANTORS, and thleir heirs, executors and administra- tors, shall have the right to use and t~ grant to others the right to use the easement area for any purpose whic will not unreasonably interfere with the safe and reasonable mamtenanc~ and operation of installations to be made by GRANTEE therein. GRANTEE covenants and agrees to ;nterfere as little as possible with the normal flow of°:vehicular and pedestri n traffic over and upon the site, and to restore the surface of the site, -whenever and wherever disturbed by GRANTEE, to as good a condition Es existed at the time of such distur- bance. GRANTEE hereby covenants and agrees that in the event the future develcpment or expansion of eithe. the site or adjacent land, or both, requires the relocation of the facilities already constructed and installed in the easement area, GRANTEE will relocate such facilities, at the request and expense of GRANTORS, prtovided such relocation is sound and feasible from an engineering standpoint as reasonably determined by GRANTEE, and provided further that GRANTORS shall grant to GRANTEE a substitute easements by instrument in recordable form ~ d to be temporaryC unless G~`NTr The easement tsterm nate b GRA 4. all no oved y 'hall E, aprd under PIP', ae P ties. Th ae Sur Y or e P. u►pmnt. an f cili Built, utility serv~~proposed permanent he delineate a airy rebuild, and operate NTEi= °f maintain, rep above, and GRA umber 2 recordable torn ranted heA- but the rights 9 final ~S shall delivehe lotion of 1~ TEE, shv 9 tor plat shall "As Built survey TEE to area to enable GRAN 3quipment described in Para its successorsesh9htsh Axis sting perfecting th graph n instrument 1" „ area execute an ~~As Built NTEE shall be but superior to those hereunder in and to the NT1, not otherwise. arrant that the right of G 5 GRANTORS w under or through G~ of all persons cla►m~n9 ~ ~(y NNA ,III EMME I *,BV M NT I • ENNAD STATE OF TEXAS § OF BRAZOS § ACKNOWLEDGMENT COUNTY ;e on the 1997, 'instrument was acknowledged before m, I.IUBBARD KENNEDY' III. This by EMMETT Y,u RICHARD D. tALSERt NOTARY PUBLIC N~* State of 12 23 98 Comm Ezp 1997, TEXAS § ACKNOWLEDGMENT STATE OF § COUNTY OF BRp,ZOS § theme-_ day of was acknowledged before me on / This instrument by MONTA KENNEDY l SCAV NOTAR PUB Od « * State of Texas Comm. ExD• 06.17.97 Pub is in an or Notary the State of Texas c /n -13 day ofa 1 UTC 88-0099 W.A. MCKEAN and wife, JANICE A. to COLLEGE STATION 10.00 acre tract being pt Lot 20, SANDSTONE. I.S.D., K CUUNTY CLERK USE ONLY 402588 WARRANTY DEED STATE OF TEXAS i CQ \ ran l KNOW ALL MEN BY THESE PRESENTS, THAT: COUNTY OF BRAZOS W.A. MCKEAN, joined herein by his wife, JANICE A. MCKEAN, of the County of Brazos and State of Texas, GRANTORS, for and in consideration of the sum of TEN DOLLARS ($10.00) and other good and valuable considerations, CASH, raid by COLLEGE STATION INDEPENDENT SCHOOL DISTRICT, GRANTEE, whose address is sufficiency of which is hereby acknowledged. the receipt and HAVE GRANTED, SOLD AND CONVEYED and by these presents do GRANT, SELL AND CONVEY unto the said COLLEGE STATION INDEPENDENT SCHOOL DISTRICT of the County of Brazos and State of Texas, all of the following described real property in Brazos County, Texas, together with all Grantors' improvements thereon, to-wit: All that certain 10.00 acre tract or parcel of land lying and being situated in Brazos County, Texas, and being a part of Lot 20, Sandstone Addition, College Station, Texas, as platted and recorded in Volume 389, apge 179, Deed Records, Brazos County, Texas, and said 10.00 acre tract being more particularly described by metes and bounds in Exhibit "A" attached hereto and made a part hereof for all purposes. SAVE AND EXCEPT, there is hereby reserved unto Grantor, his heirs and assigns, all of the oil, gas, and related gaseous or liquifiable hydrocarbons, in and under and that may be produced from the above described property, with no right of ingress and egress to the surface of the property described above. Any exploration for said oil or gas shall be conducted off the premises by directional drilling or unitization. Grantor herein expressly waives all rights to surface use of the property. IM5 P, 150 V.. • This conveyance is made subject to the following restrictions and exceptions: 1. Those of record in Volume 389, page 179, and Volume 391, page 586, and Volume 394, rage 601, Deed Records, Brazos County, Texas. 2. 1/2 non-participating royalty interest reserved in Deed dated June 7, 1977, executed by EMMA S. KRENEK et al to W.A. MCKEAN and recorded in Volume 376, page 171, Deed Records, Brazos County, Texas. 3. Oil, gas and mineral lease dated October 23, 1984, executed by W.A. MCKEAN et ux to W&W MINERALS, INC., recorded in Volume 745, page 139, O&G Lease Records, Brazos County, Texas. 4. Easement on plat of SANDSTONE ADDITION recorded in Volume 389, page 179, Deed Records, Brazos County, Texas, to-wit: 20' Public Utility Easement along the north, west, and east side of property lines, anchor wire along the west side of property line, all shown on survey prepared by Christian R. Galindo, RPS #4473 on January 27, 1988. TO HAVE AND TO HOLD the above described premises, together with all and singular the rights and appurtenances thereto in anywise belonging unto the said Grantee, its successors and assigns, forever; and we do hereby bind our- selves, our heirs and assigns, to WARRANT AND FOREVER DEFEND all and singular the said premises unto the said Grantee, its successors and assigns, against every person whomsoever law- fully claiming or to claim the same or any part thereof, sub- ject, however, to the exceptions and encumbrances hereinabove set forth. Ad valorem taxes for the current year have been pro- rated as of the date of delivery of this deed, and the Grantee by its acceptance hereof covenants and agrees to pay all ad valorem taxes upon the property from and including taxes for the year 1988. WITNESS our hands this the 9- day of February, 1988. W.A. cKean RT ST FF+,p TEXAS Janice A. McKean u t -COUNTY -OF RAZOS I o~ This instrument was acknowledged before me on the day..:of February, 1988, by W.A. McKean end Janice A. -McKean M..commission expires: No ry Public, State of Texas Notary's printed name: ~7_ c1 C 151 EXHIBIT "A" Being a 10.0000-Acre tract or parcel of land lying and being a part of Lot 20, Sandstone Addition, College Station, Texas, as platted and recorded in Volume 389, page 179, Deed Records, Brazos County, Texas, and said 10-Acre tract being more particularly described by metes and bounds as follows: BEGINNING at an iron rod found marking the easternmost corner of Lot 19, Sandstone Addition, said rod also marking the northernmost corner of Lot 20, same addition, and furthermore said rod also marking the northernmost corner of the subject 10-Acre tract described herein; THENCE S 37 degrees 52' 29" E along the common boundary between Lot 20 and Lots 5 and 6 of the referenced Sandstone Addition for a distance of 557.56' to an iron rod set for a corner; THENCE S 45 degrees 00' 00" W through Lot 20 for a distance of 755.01' to an iron rod set for a corner on the westerly boundary of the Sandstone Addition; THENCE N 44 degrees 32' 07" W along the westerly boundary of Lot 20, Sandstone Addition, said boundary also being the westerly boundary of said addition, for a distance of 553.27' to an iron rod found marking the western- most corner of Lot 20 and the southernmost corner of Lot 19, of the same addition; THENCE N 45 degrees 00' 00" E along the common boundary between said.Lots 20 and 19 for a distance of 819.68' to an iron rod for a corner which is also the POINT OF BEGINNING containing 10.0000 acres more or less, as surveyed on the ground by Christian A. Galindo, R.P.S. 114473, January 27, 1988. Von 1028PnE152 s~ i A S. Y~ • 41 CM1 C o ~r r ~ ~yt 114, J ~ s Ir k r\M } i; r~ 'a. ii C OWNER POLICY FORM PRESCRIBED BY STATE BOARD OF INSURANCE OF TEXAS 44 0274 50 001022 CHICAGO TITLE INSURANCE COMPANY a Missouri corporation, hereinafter called the Company, for value does hereby guarantee to the Insured (as herein defined) that as of the date hereof, the Insured has good and indefeasible title to the estate or interest in the land described or referred to in this policy. The Company shall not be liable in a greater amount than the actual monetary loss of the Insured, and in no event shall the Company be liable for more than the amount shown in Schedule A hereof, and shall, except as hereinafter stated, at its own cost defend the Insured in every action or proceeding on any claim against, or right to the estate or interest in the land, or any part thereof, adverse to the title to the estate or interest in the land as hereby guaranteed, but the Company shall not be required to defend against any claims based upon :natters in any manner excepted under this policy by the exceptions in Schedule B hereof or excluded by Paragraph 2, "Exclusions from Coverage of this Policy", of the Conditions and Stipulations hereof.,The party or parties entitled to such defense shall within a reasonable time after the commencement of such action or proceeding, and in ample time for defense therein, give the Company written notice of the pendency of the action or proceeding, and authority to defend. The Company shall not be liable until such adverse interest, claim, or right shall have been held valid by a court of last resort to which either litigant may spp!y, -nd if such adverse interest, claim, o- right so -stablishek! shall be for less than the whole of the estate or interest in the land, then the liability of the Company shall be only such part of the who'e l:abiliry limitrd above as shall bear the same ratio to the whole liability that the adverse interest, claim, or right staHished may bear to the whole estate or interest in the land, such ratio to be based on respecti•.c values determinable as of the date of this policy. In the absence of notice as aforesaid, the Company is relieved from all liability with respect to any such interest, claim or right; provided, however, that failure to notify shall not pre* udice the rights of the Insured if such Insured shall not be a party to such action or proceeding, nor be :raved with process therein, nor have any knowledge thereof, nor in any case, unless the Company shall be actually prejudiced by such failure. Upon sale of the estate or interest in the land, this policy automatically thereupon shall become a war- rator's policy and the Insured shall for a period of twenty-five years from the date hereof remain fully protected according to the terms hereof, by reason of the payment of any loss, he, they or it may sustain on account of any warranty of title contained in the transfer or conveyance executed by the Insured conveying the estate or interest in the land. The company shall be liable under said warranty only by reason of defects, liens or encumbrances existing prior to or at the date hereof and not excluded either by the exceptions or by the Conditions and Stipulations hereof, such liability not to exceed the amount of this policy. In Witness Hereof, CHICAGO 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 counter-signature, as of the date set forth in Schedule A. . Issued by: UNIVERSITY TITLE COMPANY 1021 University Street P. O. Drawer DT College Station, Texas 77840 (409) 260-9818 ATTEST: v Secretary. CHICAGO TITLE INSURANCE COMPANY By: resident. A.,Agent I.D. No.: 44 0274 B.`'Froperty Type: a County: 041 F. Simul.With No.: Unpd Bal. Prior C. Pol. or Lia. $ G. Prior Policy No.: D. Stat. Code:1000$ 936.00 Remarks: Code Gross Prem. E. Special DR/CR Code/s: $ $ $ $ Code Prem. Code Prem. Code Prem. Code Prem. AMOUNT: $150,000.00 GF OR FILE NO.:880099 OWNER POLICY NO.: 44 0274 50 001022 DATE OF POLICY:February 12, 1988 NAME OF INSURED: COLLEGE STATION INDEPENDENT SCHOOL DISTRICT 1. THE ESTATE OR INTEREST IN THE LAND INSURED BY THIS POLICY IS: (FEE SIMPLE, LEASEHOLD, EASEMENT, ETC.-IDENTIFY OR DESCRIBE) Fee Simple 2. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS: All that certain lot, tract or parcel of land lying and being situated in Brazos County, Texas, and being a part of Lot Twenty (20) , SANDSTONE ADDITION , an addition to the City of College Station, Brazos County, Texas, according to the plat recorded in Volume 389 Page 179 of the Deed Records of Brazos County, Texas, and being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. r UNIVERSITY TIT E COMPANY Authorized Signature Celia Stallings OWNER POLICY NO.: SCHEDULE B THIS POLICY IS SUBJECT TO THE CONDITIONS AND STIPULATIONS HEREOF, THE TERMS AND CONDITIONS OF THE LEASES OR EASEMENTS INSURED, IF ANY, SHOWN ON SCHEDULE A, AND TO THE FOLLOWING MATTERS WHICH ARE ADDITIONAL EXCEPTIONS FROM THE COVERAGE OF THIS POLICY. 1. THE FOLLOWING RESTRICTIVE COVENANTS OF RECORD ITEMIZED BELOW(THE COMPANY MUST EITHER INSERT SPECIFIC RECORDING DATA OR STATE "NONE OF RECORD"):None of record except in Volume 389, Page 179, Volume 391, Page 586 and Volume 394, Page 601, Deed Records, Brazos County, Texas. 2. ANY DISCREPANCIES, CONFLICTS OR SHORTAGES IN AREA OR BOUNDARY LINES, OR ANY ENCROACHMENTS, OR ANY OVERLAPPING OF IMPROVEMENTS. 3. TAXES FOR THE YEAR 1988 AND SUBSEQUENT YEARS, AND SUBSEQUENT ASSESSMENTS FOR PRIOR YEARS DUE TO CHANGE IN LAND USAGE OR OWNERSHIP. 1. THE FOLLOWING LIEN(S) AND ALL TERMS, PROVISIONS AND CONDITIONS OF THE INSTRUMENT(S) CREATING OR EVIDENCING SAID LIEN(S): 1/2 non participating Royalty Interest reserved in Deed dated June 7, 1977, executed by EMMA S. KRENEK, ETAL to W. A. MCKEAN and recorded in Volume 376, Page 171, Deed Records, Brazos County, Texas. Estate created by oil, gas and mineral lease granted to W&W MINERALS, INC. by W. A. MCKEAN, ET UX dated October 23, 1984, and recorded in Volume 745, Page 139 of the Oil & Gas Lease Records of Brazos County, Texas, and all terms, conditions and stipulations contained therein. Title to this lease has not been investigated subsequent to the date thereof. All oil, gas and other minerals in and under the herein described property,, together with the right of ingress and egress, mining and oil drilling privileges appurtenant thereof, heretofore reserved by Predecessors in title. There is expressly excluded from coverage hereunder, and this Company does not insure title to oil, gas and other minerals of every kind and character in, on or under the property herein described. All minerals reserved in Deed dated February 9, 1988, executed by W. A. McKean and wife, Janice A. McKean to College Station Independent School District, filed for record in the office of the County Clerk of Brazos County, Texas on February 12, 1988, under Clerk's File No. 402588. Easement on plat of SANDSTONE ADDITION recorded in Volume 389, Page 179, Deed Records, Brazos County, Texas, to wit: 20' Public Utility Easement along the North, West and East side of property lines, anchor wire along the West side of property. line., all shown on survey prepared by CHRISTIAN R. GALINDO, RPS. #4473 on January 27, 1988. EXHIBIT "A" Being a 10.0000-Acre tract or parcel of land lying and being a part of Lot 20, Sandstone Addition, College Station, Texas, as platted and recorded in Volume 389, page 179, Deed Records, Brazos County, Texas, and said 10-Acre tract being more particularly described by metes and bounds as follows: BEGINNING at an iron rod found marking the easternmost corner of Lot 19, Sandstone Addition, said rod also marking the northernmost corner of Lot 20, same addition, and furthermore said rod also marking the northernmost corner of the subject 10-Acre tract described herein; THENCE S 37 degrees 52' 29" E along the common boundary between Lot 20 and Lots 5 and 6 of the referenced Sandstone Addition for a distance of 557.56 to an iron rod set for a corner; THENCE S 45 degrees 00' 00" W through Lot 20 for a distance of 755.01' to an iron rod set for a corner on the westerly boundary of the Sandstone Addition; THENCE N 44 degrees 32' 07" W along the westerly boundary of Lot 20, Sandstone Addition, said boundary also being the westerly boundary of said addition, for a distance of 553.27' to an iron rod found marking the westFrn- most corner of Lot 20 and the southernmost corner of Lot 19, of the same addition; THENCE N 45 degrees 00' 00" E along the common boundary between said.Lots 20 and 19 for a distance of 819.68' to an iron rod for a corner which is also the POINT OF BEGINNING containing 10.0000 acres more or less, as surveyed on the ground by Christian A. Galindo, R.P.S. #4473, January 27, 1988. „ CONDITIONS AND STIPULATIONS 1. Definitions The following terms when used in this policy mean: (a) "land": The land described, specifically or by reference, in Schedule A, and improvements affixed thereto which by law constitute real property. (b) "public records": Those records which impart constructive notice of matters relating to the land. (c) "knowledge": Actual knowledge, not constructive knowledge or notice which may be imputed to the Insured by reason of any public records. (d) "date": The effective date, including hour if specified. (e) "insured": The Insured named in Schedule A and, subject to any rights or defenses the Company may have had against the named Insured or any person or entity who succeeds to the interest of such named Insured by operation of law as distinguished from purchase, any person or entity who succeeds to the interest of such named Insured by operation of law as distinguished from purchase including but not limited to the following: (i) heirs, devisees, distributees, executors and administrators; (ii) the successors in interest to a corporation resulting from merger or consolidation or the distribution of the assets of such corporation upon partial or complete liquidation; (iii) the partnership successors in interest to a general or limited partner- ship which dissolves but does not terminate; (iv) the successors in interest to a general or limited partnership resulting from the distribution of the assets of such general or limited partner- ship.upon partial or complete liquidation; (v) the successors in interest to a joint venture resulting from the distri- bution of the assets of such joint venture upon partial or complete liquidation; (vi) the successor or substitute trustee ofa trustee named in a written trust instrument; or (vii) the successors in ;merest to a trustee or trust resulting from the distribution of all or part of the assets of such trust to the beneficia- ries thereof. 2. Exclusions from the Coverage of this Policy THE POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE BY REASON OF THE FOLLOWING: (a) LACK OF ADEQUATE TITLE IN THE INSURED PROPERTY TO ALLOW IT TO BE USED, SOLD, TRANSFERRED, LEASED OR MORTGAGED FOR ANY PURPOSE INTENDED BY THE INSURED NOR LOSS OF OPPORTUNITY OR ECONOMIC EXPECTATION. (b) Governmental rights of police power or eminent domain unless notice of the exercise of such rights appears in the public records at the date hereof; and the consequences of any law, ordinance or governmental regulation including, but not limited to, building and zoning ordinances. (c) Any titles or rights asserted by anyone including, but not limited to, persons, corporations, governments or other entities to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or to any land extending from the line of mean low tide to the line of vegetation, or to lands beyond the line of the harbor orbulkhead lines as established or change by any government, or to filled-in lands, or artificial islands, or to riparian rights, or the rights or interests of the State of Texas or the public generally in the area extending from the line of mean low tide to the line of vegetation or their right of access thereto, or right of casement along and across the same. (d) Defects, liens, encumbrances, adverse claims, or other matters (1) created, suffered, assumed or agreed to by the Insured; (2) not known to the Company and not shown by the public records but known to the Insured either at the date of this policy or at the date the Insured acquiredan estate or interest insured by this policy and not disclosed in writing by the Insured to the Company prior to t c date such Insured became an Insured hereunder; (3) resulting in no loss or damage to the Insured; (4) attaching or created subsequent to the date of this policy; (5) resulting in loss or damage which would not have been sustained if the Insured had paid value for the estate or interest insured by this policy; or (6) the homestead or community property or survivorship rights, if any, of any spouse of any Insured. 3. Defense and Prosecution of Actions (a) In all cases where this policy provides for the defense of any action or proceeding, the Insured shall secure to the Company the right to so provide defense in such action or proceed;ng, and all appeals therein, and permit it to use, at its option, the name of the Insured for such purpose. (b) The Company shall have the right to select counsel of its own choice whenever it is required to defend any action or proceeding, and such counsel shall have complete control of said defense. ' (c) The Company shall have the right at its own Vest 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 as insured, and the Co r> v", np+y te'Ita irity A, +y~r, t 4k: hw the policy, *4=cher or raw ti shall be liablc'thrreunder, find shu(I not uicrrvy concede liability or waive any provision of this policy. When, after the date of the policy, the Insured notifies the Company as required herein of a lien, encum- brance, adverse claim or other defect in title to the estate or interest in the land insured by this policy which is not excluded or excepted from the coverage of this policy, the Company shall promptly investigate such 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 defect 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 reasons for its determina- tion. If the Company concludes that the lein, 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; (2) indemnify the Insured as provided in this policy; (3) upon payment of appropriate premium and charges therefor, issue to the current Insured or to a subsequent owner, mortgagee or holder of the estate or interest in the land insured by this policy, a policy of title insurance without exception for the lien, encumbrance, adverse claim or defect, said policy to be in an amount equal to the current value of the property or, if a mortgagee policy, the amount of the loan; (4) indemnify another title insurance company in connection with its issuance of a policy(ies) of title insurance without exception for the lien. encumbrance, adverse claim or defect; (5) secure a release or other document discharging the lien, encumbrance, adverse claim or defect; or (6) undertake a combination of 1. through 5. herein. (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 such 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. (e) Whenever requested by the Company, such insured shall give the Company all reasonable aid in any such action or proceeding, in effecting settle- ment, securing evidence, obtaining witnesses, or prosecuting or defending such action or proceeding, and the Company shal! reimburse such ins:,red for any expense so :ncurred. (f) Any action taken by the Company for the defense of the Insured or to establish the title as insured, or both, shall not be construed as an admission of liability, and the Company shall not thereby, be held to concede liability or •.vakc any provision of this policy. 4. Payment of Loss (a) No claim shall arise or be maintainable under this policy for liability voluntarily assumed by the Insured in settling any claim or suit without written consent of the Company. (b) All payments under this policy, except payments made for costs, attorney fees and expenses, shall reduce the amount of the insurance pro tanto; and the amount of this policy shall be reduced by any amount the Company may pay under any policy insuring the validity or priority of any lien excepted to herein or any instrument hereafter executed by the Insured which is a charge or lien on the land, and the amount so paid shall be deemed a payment to the Insured under this policy. (c) The Company shall have the option to pay or settle or compromise for or in the name of the Insured any claim insured against by this policy, and such payment or tender of payment, together with all costs, attorney fees and expenses which the Company is obligated hereunder to pay, shall terminate all liability of the Company hereunder as to such claim. Further, the payment or tender of payment of the full amount of this policy by the Company shall terminate all liability of the Company under this policy. (d) Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the Insured, and it shall be subrogated to and be entitled to all rights and remedies of the Insured against any person or property in respect to such claim. The Insured, if requested by the Company, shall transfer to the Company all rights and reme- dies against any person or property necessary in order to perfect such right of subrogation, and shall permit the Company to-use the name of the Insured in any transaction or litigation involving such rights'and remedies. 5. Policy Entire Contract Any action, actions or rights of action that the Insured may have, or may bring, against the Company, arising out of the status of the title insured hereunder, must be based on the provisions of this policy, and all notices required to be given the Company, and any statement in writing required to be furnished the Company, shall be addressed to it at the issuing office or to Chicago Title Insurance CComopany, Claims Department, 111 West Washington Street, Chicago, Illinois 6. This Polley Is Not Transferable. COMPLAINT NOTICE: Should any dispute arise about your premium or about a claim that you have riled, contact the agent or write to the company that issued the policy. If the problem is of resolved~n m,~' also write the Stat£ oard o(l suran *WM r~~trX+i~i 1~}!~~j`l~~~tlNt1►y~~cs)ISciiU4'f~`>rSi~~ftltt~j p policy. a U w N O 0 C) 00 0 z .0 Z I- C-4 0 a D ^ a h O H oU z 0 i6 0 z e d uio~ x D ~ c~ .~o . $J I N5v4 F~-, a U a V U _ 0 E~ v U Lt„ ' Alk .j, 1. 0