HomeMy WebLinkAbout10-00500080- 00075112JAY DO.. WATSON /tll
j
Issued b Lawyers Title Insuran Corporation
R r POLICY DUMBER
LandAmerica Lawyers Title insurance Corporation is member of the G 8 2 ` 0 4 0 4 4 � 6.
Lawyers Title LandAmerica family of title insurance underwriters.
S301 1 7
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND
STIPULATIONS, Lawyers Title Insurance Corporation, a Nebraska 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 as 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 dear 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
extent provided in the Conditions and Stipulations.
IN WITNESS WHEREOF, LAWYERS TITLE INSURANCE CORPORATION has caused Its corporate name and seal to be hereunto affixed by its duly authorized
officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company.
LAWYERS TITLE INSURANCE CORPORATION
Attest: Ew= SEAI, ` By:
Secrete ryg„roFBaAwKP A� s� President
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, attorneys' fees or expenses that
arise by reason of:
t. (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 Indebtedness, 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 malerialman'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 stale or federal creditors' rights laws that is based on either
(f) the transaction creating the Interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer or a voidable distribution or
voidable dividend,
(It) 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 of 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.
Roan 1179 -21 A
ORIGINAL
Valid only if Schedules A and S are attached
MORTGAGEE POLICY OF TITLE INSURANCE
SCHEDULE A
G.P. No. S30117
Policy No. G82- 0404476
Amount of Insurance: $1,000,000.00
Premium: $5,699.00
Date of Policy: August 27,2007,10:29 am
1. Name of Insured: The Brenham National Bank
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: 60 -Jones Associates, Ltd.
4. The insured mortgage and assignments thereof, if any, are described as follows:
Third Lien Deed of Trust executed by 60 -Jones Associates, Ltd., a Texas limited partnership, acting by and through its
general partner 60- Jones, L.L.C. to Michael R. Rudloff, Trustee, dated August 14, 2007; securing the payment of one
note of even date therewith in the principal sum of $1,000,000.00, payable to The Brenham National Bank, said Deed of
Trust filed for record with the Office of the County Clerk of Brazos County, Texas on August 27, 2007, recorded in
Volume 8204, Page 229, Official Records of Brazos County, Texas.
The land referred to in this policy is described as follows:
TRACT ONE Metes and bound description of all that certain tract or parcel of land lying and being situated in the J. H.
JONES SURVEY, ABSTRACT NO. 26, Brazos County, Texas. Said tract being a portion of the remainder of a called
175 acre tract as described by a deed to Steve Hudetts recorded in Volume 63, Page 182 of the Deed Records of Brazos
County, Texas.
Said tract being more particularly described by metes and bounds as follows:
COMMENCING at a 1/2 inch iron rod found marking the west corner of a called 5.394 acre tract as described by a deed
to Frank Fields and wife, Betty J. Fields, recorded in Volume 4352, Page 15 of the Official Public Records of Brazos
County, Texas, and a southwest corner of said remainder of 175 acre tract, said iron rod found being on the northeast
line of a called 1.896 acre tract as described by a deed to Thomas Moore recorded in Volume 1116, Page 583 of the
Official Records of Brazos County, Texas, marking the west corner of said 5.394 acre tract;
THENCE: N 44 49'40" W along the common line of said remainder of 175 acre tract and said 1.896 acre tract for a
distance of 192.94 feet to a 5/8 inch iron rod set marking the POINT OF BEGINNING of this herein described tract;
THENCE: N 44 40" W continuing along the common line of said remainder of 175 acre tract and said 1.896 acre
tract for a distance of 1657.90 feet to a 1/2 inch iron rod found marking the north corner of a called 4.4949 acre tract.as
described by a deed to Charles Edward Ottaway, Jr. and wife, Cynthia Ann Ottaway, recorded in Volume 1237, Page
295 of the Official Public Records of Brazos County, Texas, said iron rod found being on the southeast line of a called
1.00 acre tract as described by a deed to James L. Harris recorded in Volume 923, Page 337 of the Official Public
Records of Brazos County, Texas;
THENCE: N 43 44' 23" E along the common line of said remainder of 175 acre tract and said 1.00 acre tract for a
distance of 126.40 feet to a 1/2 inch ron rod found marking the east corner of said 1.0 acre tract;
Lawyers Title Insurance Corporation page I
Continuation of Schedule A
Policy No. G82- 0404476
THENCE: N 47 31'46" W continuing along the common line of said remainder of 175 acre tract and said 1.00 acre tract
for a distance of 934.59 feet to a 1/2 inch iron rod found marking the north corner of a called 7.922 acre tract as
described by a deed to Gloster Jefferson recorded in Volume 836, Page 129 of the Official Records of Brazos County,
Texas, said iron rod found marking the east corner of a called 7.922 acre tract as described by a deed to Bennie Wilson,
Jr. and wife, Gloria M. Wilson, recorded in Volume 2915, Page 242 of the Official Public Records of Brazos County,
Texas, and the south corner of a called 6.5 acre tract as described by a deed to Fred Jefferson and wife, Ruby Jefferson,
recorded In Volume 122, Page 45 of the Deed Records of Brazos County, Texas;
THENCE: N 44 10" E along the common line of said remainder of 175 acre tract and said 6.5 acre tract for a
distance of 426.31 feet to a 5/8 inch iron rod set on the south line of Jones Road marking the east corner of said 6.5 acre
tract and the west corner of a called 0.744 acre tract as described by a Quit Claim Deed from Brazos County to Lucy
Hudetts Walker signed and dated October 8, 1990 (not filed for record);
THENCE: N 62 01 11 E along the occupied south line of Jones Road, same being the south line of said 0.744 acre tract,
for a distance of 292.47 feet to an angle point in said line;
THENCE: N 81 02' 30" E continuing along the occupied south line of Jones Road, same being the south line of said
0.744 acre tract, for a distance of 486.30 feet to a point marking the east corner of said 0.744 acre tract;
THENCE: N 89 59' 18" E continuing along the south line- of Jones Road for a distance of 47.38 feet to a 5/8 inch iron rod
set marking the beginning of a clockwise curve having a radius of 904.93 feet;
THENCE: along said curve through a central angle of 42 21' 41" for an are distance of 669.05 feet (cliord bears: S 68
49' 52" E - 653.92 feet) to a point in an existing fence line marking the ending point of said curve;
THENCE: S 47 39' 02" E along the southwest line of Jones Road and along said fence line for a distance of 1502.88 feet
to a 518 inch iron rod set marking the east corner of this herein described tract;
THENCE: S 44 11 W through said remainder of 175 acre tract and along the centerline of an existing 60.00 foot
wide electrical easement for a distance of 397.21 feet to an existing power pole;
THENCE: S 40° 58'09" W continuing through said remainder of 175 acre tract and along the centerline of said electrical
easement for a distance of 1160.87 feet to the POINT OF BEGINNING containing 79.169 acres of land, more or less.
TRACT TWO Metes and bounds description of all that certain tract or parcel of land lying and being situated in the J.
H. JONES SURVEY, ABSTRACT NO. 26, Brazos County, Texas. Said tract being a portion of the remainder of a called
175 acre tract as described by a deed to Steve Hudetts recorded in Volume 63, Page 182 of the Deed Records of Brazos
County, Texas.
Said tract being more particularly described by metes and bounds as follows:
BEGINNING at a 518 inch iron rod found at the intersection of the southwest line of Jones Road (a county maintained
public road) and the existing northwest line of F.M. 60 (Raymond Stotzer Parkway), for reference a concrete right -of-
way marker found bears: N 40 59" E for a distance of 14.45 feet;
THENCE: S 40 W along the northwest line of F.M. 60 for a distance of 472.53 feet to a concrete right -of -way
marker found marking an angle point in said line;
THENCE: S 41 56" W continuing along the northwest line of F.M. 60 for a distance of 597.43 feet to a 518 inch iron
rod set on the northeast fine of a called 1.328 acre tract as described by a deed to Betty Lynn Trcalek Suehs, Carol Ann
Trcalek Petty, Susan Denise Trcalek Skrabanek and Donna Ruth Trcalek Jones, recorded in Volume 4818, Page 285 of
the Official Public Records of Brazos County, Texas, marking the south corner of this herein described tract, for
reference a 318 inch iron rod found marking the east corner of said 1.328 acre tract bears: S 44 43' 07" E for a distance
of 0.53 feet;
Lawyers Title Insurance Corporation Page 2
Continuation of Schedule A
Policy No. G82- 0404476
THENCE: N 44 43' 07" W along the common line of said remainder of 175 acre tract and said 1.328 acre tract for a
distance of 415.67 feet to a cross -tie fence corner post found marking the north corner of said 1.328 acre tract;
THENCE: S 42 50' 02" W continuing along the common fine of said remainder of 175 acre tract and said 1.328 acre
tract for a distance of 139.10 feet to a 3/8 inch iron rod found marking the west corner of said 1.328 acre tract and the
most easterly north corner of a called 5.394 acre tract as described by a deed to Frank Fields and wife, Betty J. Fields,
recorded in Volume 4352, Page 15 of the Official Public Records of Brazos County, Texas;
THENCE: S 43 16'54: W along the common line of said remainder of 175 acre tract and said 5.394 acre tract for a
distance of 125.56 feet to a cross -tie fence corner post found marking an interior corner of said 5.394 acre tract;
THENCE: N 46 53' 11" W continuing along the common line of said remainder of 175 acre tract and said 5.394 acre
tract for a distance of 679.90 feet to a cross -tie fence corner post found marking the north corner of said 5.394 acre tract;
THENCE: S 44 55" W continuing along the common line of said remainder of 175 acre tract and said 5.394 acre
tract for a distance of 263.23 feet to a 1/2 inch iron rod found on the northeast line of a called 1.896 acre tract as
described by a deed to Thomas Moore recorded in Volume 1116, Page 583 of the Official Records of Brazos County,
Texas, marking the west corner of said 5.394 acre tract:
THENCE: N 44 40" W along the common line of said remainder of 175 acre tract and said 1.896 acre tract for a
distance of 192.94 feet to a 5/8 inch iron rod set marking the west corner of this herein described tract, for reference a 1/2
inch iron rod found marking the north corner of a called 4.4949 acre tract as described by a deed to Charles Edward
Ottaway, Jr. and wife, Cynthia Ann Ottaway, recorded in Volume 1237, Page 295 of the Official Public Records of
Brazos County, Texas, on the southeast line of a called 1.00 acre tract as described by a deed to James L. Harries recorded
in Volume 923, Page 337 of the Official Records of Brazos County, Texas, marking a west corner of said remainder of
175 acre tract bears: N 44 49' 40" W for a distance of 1657.90 feet;
THENCE: N 40 58' 09" E through said remainder of 175 acre and along the centerline of an existing 60.00 foot wide
electrical easement for a distance of 1160.87 feet to an existing power pole;
THENCE: N 44 11' 15" E continuing through said remainder of 175 acre tract and along the centerline of said electrical
easement for a distance of 397.21 feet to a 5/8 inch iron rod set in the southwest fenced line of Jones Road marking the
north corner of this herein described tract;
THENCE: S 47 02" E along the southwest line of Jones Road and along said fence line for a distance of 565.64 feet to
a 60d nail found in the top of a fence post marking the north corner of a called 1.00 acre tract as described by a deed to
Steve Hudetts and wife, Barbara D. Hudetts, recorded In Volume 366, Page 8 of the Deed Records of Brazos County,
Texas;
THENCE: S 42 24' 01 W through said remainder of 175 acre tract and along the northwest line of said 1.00 acre
Hudetts tract for a distance of 284.90 feet to a 5/8 inch iron rod set marking the west corner of said 1.00 acre tract;
THENCE: S 47° 35'59" E continuing through said remainder of 175 acre tract and along the southwest line of said 1.00
acre Hudetts tract for a distance of 145.20 feet to a 5/8 inch iron rod set marking the south corner of said 1.00 acre tract;
THENCE: N 42 01" E continuing through said remainder of 175 acre tract and along the southeast line of said 1.00
acre Hudetts tract for a distance of 285.03 feet to a 5/8 inch iron rod set on the southwest line of Jones Road marking the
east corner of said 1.00 acre tract;
THENCE: S 47 39' 02" E along the southwest line of Jones Road for a distance of 588.53 feet to the POINT OF
BEGINNING, containing 37.658 acres of land, more or less.
Lawyers Title Insurance Corporation Page 3
Continuation of Schedule A
Policy No. G82- 0404476
TRACT THREE Metes and bounds description of all that certain tract of land lying and being situated in the J. R.
JONES SURVEY, ABSTRACT NO. 26, Brazos County, Texas. Said tract being the same tract of land as described by a
Quitclaim Deed to Lucy Hudetts Walker recorded In Volume 2455, Page 43 of the Official Records of Brazos County,
Texas.
Said tract being more particularly described by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod found in the existing south fenced line of Jones Road, same being the northerly line of
the remainder of a called 175 acre tract as described by a Deed to Steve Hudetts recorded in Volume 63, Page 182 of the
Deed Records of Brazos County, Texas, said iron rod found marking the east corner of a called 6.5 acre tract as
described by a Deed to Fred Jefferson and wife, Ruby Jefferson, recorded in Volume 122, Page 45 of the Deed Records of
Brazos County, Texas;
THENCE: through the existing right -of -way of Jones Road and along the northerly lines of said 0.744 acre tract for the
following calls:
N 44 39' 18" E for a distance of 254.37 feet to a 5/8 inch iron rod found;
N 76 02" E for a distance of 119.31 feet to a 518 inch iron rod found;
N 89 59' 18" E for a distance of 445.95 feet to a point in the existing south fenced tine of Jones Road marking the east
corner of this herein described tract;
THENCE: along the existing south fenced line of Jones Road, same being the northerly line of said remainder of 175 acre
tract, for the following calls:
S 81 02' 30" W for a distance of 486.30 feet to a point;
S 62 54' 01" W for a distance of 292.47 feet to the POINT OF BEGINNING, containing 0.744 of an acre of land, more or
less.
TRACT FOUR Metes and bounds description of all that certain tract or parcel of land lying and being situated in the J.
H. JONES SURVEY, ABSTRACT NO. 26, Brazos County, Texas. Said tract being the remainder of a called 1.00 acre
tract as described by a Deed to Steve Hudetts and wife, Barbara D. Hudetts, recorded in Volume 366, Page 8 of the Deed
Records of Brazos County, Texas.
Said tract being more particularly described by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod found on the southwest line of Jones Road (variable width R.O.W.) marking the east
corner of said remainder of 1.00 acre tract and a northerly corner of the remainder of a called 175 acre tract as
described by a Deed to Steve Hudetts recorded in Volume 63, Page 182 of the Deed Records of Brazos County, Texas, for
reference a 5/8 inch iron rod found on the northwest line of FM 60 marking the east corner of said remainder of 175 acre
tract bears: S 47 02" E for a distance of 588.53 feet;
THENCE: S 42° 24' 01" W along the common line of said remainder of 1.00 acre tract and said remainder of 175 acre
tract for a distance of 285.00 feet to a 5/8 inch iron rod found marking the south corner of said remainder of 1.00 acre
tract;
THENCE: N 47 35' 59" W continuing along the common line of said remainder of 1.00 acre tract and said remainder of
175 acre tract for a distance of 145.20 feet to a 5/8 inch iron rod found marking the west corner of said remainder of 1.00
acre tract;
Lawyers Title Insurance Corporation Page 4
Endorsement Serial Number
Premium Amount
Rate Rule(s)
Property Type
N/A
$50.00
R -11f
Residential 1-4
G.F. No.: S30117
REVOLVING CREDIT ENDORSEMENT
Attached to and made part of LAWYERS TITLE INSURANCE CORPORATION Mortgagee Policy
Number G$2- 0404476, dated 27th day of August, 2007.
Notwithstanding anything to the contrary contained in this policy, the following terms and provisions shall
control and apply:
This policy insures only to, and liability hereunder is thereby limited to, the extent of the amount of
proceeds of the loan secured by the lien instrument set forth under Schedule A hereof actually disbursed
as of the date of this policy, but increases as each subsequent advance or disbursement of loan proceeds
is made and decreases as repayment of all or a portion of the amount of loan proceeds disbursed is made
from time to time, so that any loss payable hereunder shall be limited to the aggregate amount of loan
proceeds actually disbursed less the aggregate of all repayments thereof existing at the time a loss occurs
hereunder; provided, however, that each disbursement of loan proceeds is made in good faith and
without knowledge of any defects in, or objections to, title; and further provided that in no event shall
the liability of the Company hereunder exceed the face amount of this policy.
2. The Company hereby insures the Insured that any disbursements of such loan proceeds made subsequent
to the date of this policy shall be deemed to have been made as of the date of this policy and shall have
the same priority as any advances made as of the date of this policy, except as to (i) bankruptcies
affecting the estate or interest described on Schedule "A" hereof prior to the date of any such advance or
disbursement; and, (ii) taxes, costs, charges, damages and other obligations to the government secured
by statutory liens arising or recorded subsequent to the date of the policy.
This endorsement when countersigned below by an Authorized Countersignature is made a part of said
policy. Except as expressly modified by the provisions hereof, this endorsement is subject to the following policy
matters: (i) Insuring Provisions; (ii) Exclusions from Coverage; (iii) Schedule 'B" Exceptions; (iv) the Conditions and
Stipulations; and (v) any prior endorsements. Except as stated herein, this endorsement does not: (i) extend the
effective date of the policy and /or any prior endorsements; or, (ii) increase the face amount of the policy.
LAWYERS TITLE INSURANCE CORPORATION
by:
Lawyers Title Company Brazos County
Authorized Countersignature 7
ENDORSEMENT FORM T -35: Revolving Credit
IMPORTANT NOTICE
To obtain information or make a complaint:
You may call Lawyers Title Insurance
Corporation's toll -free telephone number for
information or to make a complaint at:
1- 800 -447 -7067
AVISO iMPORTANTE
Para obtener informacion o para someter una.
queja:
Usted puede Ilamar al numero de telefono
gratis de Lawyers Title Insurance
Corporation's pars informacion o para someter
una queja al:
1- 800 - 447 -7067
You may also write to Lawyers Title Insurance Usted tambien puede escribir a to Lawyers
Corporation at: Title Insurance Corporation:
5600 Cox Road
Glen Allen, VA 23060 -9266
5600 Cox Road
Glen Allen, VA 23060 -9266
You may contact the Texas Department of
Insurance to obtain information on companies,
coverages, rights or complaints at:
1- 800 -252 -3439
You may write to the Texas Department of
insurance:
P. O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www.tdi.state.tx.us
E -mail: ConsumerProtection (cD,tdi.state.tx.us
PREMIiUM OR CLAIM DISPUTES:
Should you have a dispute concerning your
premium or about a claim you should contact
the company first. If the dispute is not
resolved, you may contact the Texas
Department of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not
become a part or condition of the attached
document.
FORM 3391 -12
Puede comunicarse con el Departamento de
Seguros de Texas para obtener informacion
acerca de companias, coberturas, derechos o
quejas al:
1- 800 -252 -3439
Puede escribir al Departmento de Seguros de
Texas:
P. O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www.tdi.state.tx.us
E -mail: ConsumerProtection .tdi.state.tx.us
DISPUTAS SOBRE PRIMAS O RECLAMOS:
Si tiene una disputa concerniente a su prima o
a un reclamo, debe comunicarse con la
compania primero. Si no se resuelve la
disputa, puede entonces comunicarse con el
departamento (TDI).
UNA ESTE AVISO A SU POLiZA:
Este aviso es solo para proposito de
informacion y no se convierte en parte o
condicion del documento adjunto.
Page I
LOAN POLICY OF TITLE INSURANCE (T -2)
Issued by Lawyers Title Insurance Corporation
POLICY NUMBER
LandAmerica
Lawyers Title Lawyers Title insurance Corporation is a member of the L 8 5— Z 0 0 7 3 6 9
LandAmedca family off& insurance underwriters.
Any notice of claim and any other notice or statement in writing required to be given the Company under this Policy must be given to
the Company at the address shown in Section 17 of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE
CONDITIONS, LAWYERS TITLE INSURANCE CORPORATION, a Nebraska corporation (the 'Company ") insures, as of Date of Policy and, tc
the extent stated In Covered Risks 11, 13 and 14, after Date of Policy, against loss or damage, not exceeding the Amount of Insurance,
sustained or incurred by the Insured by reason of:
1. Title being vested other than as stated in Schedule A.
2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from:
(a) A defect in the Title caused by:
(1) forgery, fraud, undue influence, duress, Incompetency, incapacity or impersonation;
(ii) failure of any person or Entity to have authorized a transfer or conveyance;
(iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized or delivered;
(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;
(v) a document executed under a falsified, expired or otherwise invalid power of attorney;
(vi) a document not properly filed, recorded or indexed in the Public Records including failure to perform those acts by electronic
means authorized by law; or
(vii) a defective judicial or administrative proceeding.
(b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid.
(c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an
accurate and complete land survey of the Land. The tern "encroachment" includes encroachments of existing improvements located
on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land.
3. Lack of good and indefeasible Title.
4. No right of access to and from the Land.
5. The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning)
restricting, regulating, prohibiting or relating to:
(a) the occupancy, use or enjoyment of the Land;
(b) the character, dimensions or location of any improvement erected on the Land;
(c) subdivision of land; or
(d) environmental protection
if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only
to the extent of the violation or enforcement referred to in that notice.
6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement
action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice.
7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records.
8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9. The invalidity or unenforceabllity of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not limited to
insurance against loss from any of the following impairing the lien of the Insured Mortgage:
(a) forgery, fraud, undue influence, duress, incompetency, incapacity or Impersonation;
(b) failure of any person or Entity to have authorized a transfer or conveyance;
(c) 'the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized or delivered;
(d) failure to perform those acts necessary to create a document by electronic means authorized by law;
(e) a document executed under a falsified, expired or otherwise invalid power of attorney;
(1) a document not property filed, recorded or indexed in the Public Records including failure to perform those acts by electronic means
authorized by taw; or
(g) defective judicial or administrative proceeding.
IN WITNESS WHEREOF, the Company has caused this Policy to be signed with the facsimile signatures of its President and Secretary and
sealed as required by its By -Laws.
,a��NSURAN�;�
Attest: f � ' ..o
:9=
g w
'SEAL v
Secretary
. ,yEltAASKP
LAWYERS TITLE INSURANCE CORPORATION
President
T -2 Texas Loan Policy (Rev. 5 /l /08)
Form 1191 - 2242 ORIGINAL
Valid only if Schedules A and B are attached
LOAN POLICY OF TITLE INSURANCE
Issued by
Lawyers Title Insurance Corporation
SCHEDULE A
Name and Address of Title Insurance Company:
LAWYERS TITLE INSURANCE CORPORATION
5600 Cog Road, Glen Allen, Virginia 23060
File No.: 530761 Policy No.: L85- 2007369
Loan No.:
Address for Reference only: 6198 Imperial Loop, College Station, TX 77845
Amount of Insurance: $538,000.00 Premium: $3,187.00
Date of Policy: June 10, 2008, at 4:00 pm
1. Name of Insured: WELLS FARGO BANK, NATIONAL ASSOCIATION
2. The estate or interest in the Land that is encumbered by the Insured Mortgage is: Fee Simple
3. Title is insured as vested in: 60 -JONES ASSOCIATES, LTD.
4. The Insured Mortgage, and its assignments, if any, are described as follows:
Deed of Trust executed by 60 -JONES ASSOCIATES, LTD. to STEPHEN F. NIARQUART, Trustee, dated June 3,2008;
securing the payment of one note of even date therewith in the principal sum of $538,000.00, payable to WELLS FARGO
BANK, NATIONAL ASSOCIATION, said Deed of Trust filed for record with the Office of the County Clerk of Brazos
County, Texas on June 10, 2008, recorded in Volume 8642, Page 31, Official Records of Brazos County, Texas.
5. The Land referred to in this policy is described as follows:
LOT NINETEEN (19), BLOCK THREE (3), AGGIELAND BUSINESS PARK, PHASE 1, an addition to Brazos County,
Texas, according to plat recorded in Volume 8562, Page 146, Official Records of Brazos County, Texas.
6. This policy incorporates by reference those endorsements selected below:
❑ T -5 (Leasehold Mortgagee Policy Endorsement)
❑ T -17 (Planned Unit Development) The following subparagraph(s) of this endorsement are deleted:
❑ T -19 (Restrictions, Encroachments, Minerals) The following subparagraph(s) of this endorsement are deleted:
❑ T -28 (Condominium) The following subparagraph(s) of this endorsement are deleted:
❑ T -30 (Tax Deletion)
❑ T -31 (Manufactured Housing) referring to manufactured housing unit serial number:
❑ T -31.1 (Supplemental Coverage Manufactured Housing Unit)
❑ T -33 (Variable Rate)
❑ T -33.1 (Variable Rate -- Negative Amortization)
❑ T35 (Revolving Credit/Future Advance)
❑ T -36 (Environmental Protection Lien) Paraeraoh b refers to the following state statute(s): TEX, JUALTH &
❑ T -39 (Balloon Mortgage)
❑ T42 Equi Loan Mortgage) and subparagraph 2(f) of the Equity Loan Mortgage Endorsement set forth in Procedural Rule P- 44.C(2)
n] is � is not added. The following subparagraph(s) of this endorsement are deleted:
❑ T-42.1 (Supplemental Coverage Equity Loan Mortgage) The following subparagraph(s) of this endorsement are deleted:
❑ T-43 (Texas Reverse Mortgage) The following subparagraph(s) of this endorsement are deleted:
❑ Section 13 of the Conditions of this policy, which relates to Arbitration, is hereby deleted.
FORM T -2: Loan Policy of Title Insurance Page I
LOAN POLICY OF TITLE INSURANCE
Issued by
Lawyers Title Insurance Corporation
SCHEDULE B
File No.: 530761
EXCEPTIONS FROM COVERAGE
Policy No.: L85- 2007369
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by
reason of the terns and conditions of leases and easements, if any, shown in Schedule A, and the following matters:
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 future violation thereof will not affect, the validity or priority of the Insured Mortgage
(insert specific recording data or delete this exception):
PLAT: VOLUME 8562, PAGE 146, OFFICIAL RECORDS OF BRAZOS COUNTY, TEXAS.
RESTRICTIONS: VOLUME 7959, PAGE 1, OFFICIAL RECORDS OF BRAZOS COUNTY, TEXAS.
NOTE: TO THE EXTENT THAT THESE RESTRICTIONS VIOLATE 42 USC 3604 (c) BY INDICATING A
PREFERENCE, LIMITATION OR DISCREWWATION BASED ON RACE, COLOR, RELIGION, SEX,
HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN, SUCH RESTRICTIONS ARE HEREBY OMITTED.
Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping
of improvements.
Item 2 of Schedule B is hereby amended to read: "shortages in area ".
Standby fees, taxes and assessments by any taxing authority for the year 2008, and subsequent years; and subsequent taxes
and assessments by any taxing authority for prior years due to change in land usage or ownership, 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.
[] Item 3 of Schedule B is hereby amended to delete: "and subsequent taxes and assessments by any taxing authority for prior
years due to change in land usage or ownership,"
® Item 3 of Schedule B is hereby to add the following: "Company insures that standby fees, taxes and assessments by any
taxing authority for the year 2008 are not yet due and payable."
Liens and leases that affect the Title, but that are subordinate to the lien of the Insured Mortgage.
(Insert here all other specific exceptions as to superior liens, easements, outstanding mineral and royalty interests, etc.)
a. Building lines, and any and all easements as set out and noted on plat recorded in Volume 8562, Page 146,
Official Records of Brazos County, Texas.
b. Building lines, and any and all easements as set out in restrictions recorded in Volume 7959, Page 1, Official
Records of Brazos County, Texas.
C. This policy does not insure title to any oil, gas and/or minerals, in, on and under the property herein
described.
d. Blanket Easement executed by Lucy Iludetts Walker, et vir to Brushy Water Supply, dated November 28,
1966, recorded in Volume 259, Page 272, Deed Records of Brazos County, Texas; assigned to Wellborn
FORM T -2: Loan Policy of Title Insurance page 2
Continuation of Schedule B Policy No, L85- 7007369
Special Utility District in Volume 6379, Page 287, Official Records of Brazos County, Texas.
e. Blanket Easement executed by Steve Hudetts, et ux to City of Bryan, dated April 21, 1937, recorded in
Volume 98, Page 299, Deed Records of Brazos County, Texas.
L Easement executed by Lucy Hudetts Walker to City of Bryan, dated September 23, 1993, recorded in Volume
1935, Page 279, Official Records of Brazos County, Texas.
g. Easement executed by Steven Hudetts and wife, Barbara D. Hudetts to City of Bryan, dated September 16,
1993, recorded in Volume 1935, Page 283, Official Records of Brazos County, Texas.
h. Affidavit of Certification of On -Site Sewage Facility (OSSF) Maintenance executed by 60 -Jones LLC, dated
December 28, 2007, recorded in Volume 8412, Page 263, Official Records of Brazos County, Texas.
i. Royalty Gift Deed executed by Lucy Hudetts Walker to Steve Hudetts, Jr., Francis Armstrong, Cecil Ann
Armstrong, Rosie Brown, Lucille McLarty and Elva Jane Lightsey, dated February 21, 1992, recorded in
Volume 1432, Page 80, Official Records of Brazos County, Texas.
j. *Mineral reservation contained in Deed executed by Rosie Brown, et al to 60 -Jones Associates, Ltd., dated
November 10, 2005, recorded in Volume 7020, Page 244, Official Records of Brazos County, Texas.
k. *Oil, Gas and Mineral Lease executed by Lucy Hudetts Walker, et al to Union Pacific Resources Company,
dated June 28, 2000, recorded in Volume 3856, Page 164, Official Records of Brazos County, Texas.
1. *Oil, Gas and Mineral Lease executed by Steve Hudetts, Jr. to Union Pacific Resources Company, dated June
28, 2000, recorded in Volume 3856, Page 170, Official Records of Brazos County, Texas.
*Title to said interest has not been investigated subsequent to the date of the aforementioned instrument.
Countersigned
Lawyers Title Company o Brazos County
Authorized Countersignature
FORM T -2: Loan Policy of Title Insurance Page 3
IMPORTANT NOTICE
To obtain information or make a complaint:
You may call Lawyers Title Insurance
Corporation's toll -free telephone number for
information or to make a complaint at
1- 800 -442 -7067
You may also write to Lawyers Title Insurance
Corporation at:
5600 Cox Road
Glen Allen, VA 23060 -9266
You may contact the Texas Department of
insurance to obtain information on companies,
coverages, rights or complaints at:
1- 800 -252 -3439
You may write to the Texas Department of
Insurance:
P. O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www..tdi.state.tx.us
E -mail: ConsumerProtection @tdi.state.tx.us
PREMIUM OR CLAIM DISPUTES:
Should you have a dispute concerning your
premium or about a claim you should contact the
company first. 'If the dispute is not resolved, you
may contact the Texas Department of Insurance.
ATTACH THIS NOTICE TO YOUR POLICY:
This notice is for information only and does not
become a part or condition of the attached
document.
AVISO IMPORTANTE
Para obtener informacion o para someter
una queja:
Listed puede Ilamar al numero de telefono
gratis de Lawyers Title Insurance
Corporation's para informacion o para
someter una queja al:
1- 800442 -7067
Usted tambien puede escribir a to Lawyers
Title Insurance Corporation:
5600 Cox Road
Glen Allen, VA 23060 -9266
Puede comunicarse con el Departamento de
Seguros de Texas para obtener informacion
acerca de companias, coberturas, derechos
o quejas al:
1-800- 252 -3439
Puede escribir al Departmento de Seguros
de Texas:
P. O. Box 149104
Austin, TX 78714 -9104
Fax: (512) 475 -1771
Web: http: / /www.tdi.state.tx.us
E -mail: ConsumerProtection @tdi.state.tx.us
DISPUTAS SOBRE PRIMAS O
RECLAMOS:
Si tiene una disputa concerniente a su prima
o a un reclamo, debe comunicarse con la
compania primero. Si no se resuelve la
disputa, puede entonces comunicarse con el
departamento (TDI).
UNA ESTE "ISO A SU POLIZA:
Este aviso es solo para proposito de
informacion y no se convierte en parte o
condicion del documento adjunto.
10, The lack of priority of the lien of the insured Mortgage over any other lien or encumbrance,
11, The lack of priority of the lien of the Insured Mortgage
(a) as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory or constitutional
mechanic's, contractor's, or materialman's lien for services, labor or material having its inception on or before Date of Policy ; and
(b) over the lien of any assessments for street improvements under construction or completed at Date of Policy.
12. 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 dear of all liens.
13. The invalidity, unenforceability, lack of priority or avoidance of the lien of the Insured Mortgage:
(a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part
of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior
transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights laws; or
(b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency or similar creditors' rights
laws by reason of the failure of its recording In the Public Records:
(t) to be timely, or
(ii) to impart notice of Its existence to a purchaser for value or a judgment or lien creditor.
14. Any defect in or lien or encumbrance on the Title or other matter included In Covered Risks 1 through 13 that has been created or attached
or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the
Public Records.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of any matter insured against by this Policy, but only to
the extent provided in the Conditions.
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, attorneys'
fees or expenses that arise by reason of:
1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,
prohibiting or relating to;
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions or location of any improvement erected on the Land;
(iii) subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances or governmental regulations. This Exclusion 1(a) does not modify or limit the
coverage provided under Covered Risk 5.
(b) Any governmental police power, This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or B.
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 (however, this does not modify or limit the coverage provided under Covered Risk
11, 13 or 14); 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 an Insured to comply with applicable doing business
laws of the state where the Land is situated.
5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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 claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating
the lien of the Insured Mortgage, Is;
(a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.
7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of
Policy and the date of recording of the Insured Mortgage in the Public Records. This exclusion does not modify or limit the coverage
provided under Covered Risk 11(b).
8. 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 Unmarketable Title.
CONDITIONS
1. DEFINITION OF TERMS.
(a) "Amount of Insurance ": the amount stated in Schedule A, as
may be increased or decreased by endorsement to this
policy, Increased by Section 8(b), or decreased by Section
10 of these Conditions.
(b) "Date of Policy ": The date designated as "Date of Policy" in
Schedule A.
(c) "Entity ": A corporation, partnership, trust, limited liability
company or other similar legal entity.
(d) "Indebtedness ": The obligation secured by the Insured
Mortgage including one evidenced by electronic means
authorized by law, and if that obligation is the payment of a
debt, the Indebtedness is the sum of:
(i) the amount of the principal disbursed as of Date of
Policy;
(ii) the amount of the principal disbursed subsequent to
Date of Policy;
(iii) 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 or
related to the Land that the Insured was and continued
to be obligated to advance at Date of Policy and at the
date of the advance;
(iv) interest on the
(v) prepayment premiums, exit fees and other similar fees
or penalties allowed by law;
(vi) expenses of foreclosure and any other costs of
enforcement;
(vii) amounts advanced to assure compliance with laws or
to protect the lien or the priority of the lien of the
Insured Mortgage before the acquisition of the estate or
interest in the Title;
(viii) amounts to pay taxes and insurance; and,
(ix) reasonable amounts expended to prevent deterioration
of improvements; but reduced by the total of all
payments and by any amount forgiven by an Insured.
(e) 'insured ", the Insured named in Schedule A.
(i) The term 'Insured" also includes:
(A) the owner of the Indebtedness and each
successor in ownership of the Indebtedness;
whether the owner or successor owns the
Indebtedness for its own account or as a trustee
or other fiduciary, except a successor who is an
obligor under the provisions of Section 12(c) of
these Conditions;
(B) if the Indebtedness is evidenced by a
"transferable record," the person or Entity who
has "control" 'of the 'transferable record," as
these terms are defined by applicable electronic
transactions law;
(C) successors to an Insured by dissolution,
merger, consolidation, distribution or
reorganization;
(D) successors to an Insured by its conversion to
another kind of Entity;
(E) a grantee of an Insured under a deed delivered
without payment of actual valuable
consideration conveying the Title:
(1) If the stock, shares, memberships, or other
equity interests of the grantee are wholly-
owned by the named Insured,
(2) If the grantee wholly owns the named
Insured, or
(3) if the grantee is wholty -owned by an
affiliated Entity of the named insured,
provided the affiliated Entity and the
named insured are both wholly -owned by
the same person or Entity;
(F) any government agency or 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 of it, whether named as
an Insured or not
(ii) With regard to (A), (B), (C), (D) and (E) 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 Indebtedness as a purchaser for value without
Knowledge of the asserted defect, lien, encumbrance or
other matter insured against by this policy.
(f) "Insured Claimant ": an Insured claiming loss or damage.
(g) "Insured Mortgage ": the Mortgage described in paragraph 4
of Schedule A.
(h) "Knowledge" or "Known ": actual knowledge, not constructive
knowledge or notice that may be imputed to an Insured by
reason of the Public Records or any other records that
impart constructive notice of matters affecting the Title.
n "Land ": the land described in Schedule A, and affixed
improvements that by law constitute real property. The term
"Land" does not include any property beyond the lines of the
area described in Schedule A, nor any right, title, interest,
estate or easement in abutting streets, roads, avenues,
alleys, lanes, ways or waterways, but this does not modify or
limit the extent that a right of access to and from the Land is
insured by this policy,
6) "Mortgage ": mortgage, deed of trust, trust deed, or other
security instrument, including one evidenced by electronic
means authorized by law.
(k) "Public Records ". records established under state statutes 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 Covered Risk
5(d), "Public Records" shall also include environmental
protection liens filed in the records of the clerk of the United
States District Court for the district where the Land is
located.
(1) "Title ": the estate or interest described in Schedule A.
(m) "Unmarketable Title ": Title affected by an alleged or apparent
matter that would permit a prospective purchaser or lessee
of the 'title or lender on the Title or a prospective purchaser
of the Insured Mortgage to be released from the obligation to
purchase, lease or lend if there is a contractual condition
requiring the delivery of marketable title.
2. CONTINUATION OF INSURANCE.
The coverage of this policy shall continue in force as of Date of
Policy in favor of an Insured after acquisition of the Title by an
Insured or after conveyance by an Insured, but only so long as
the Insured retains an estate or interest in the Land, or holds an
obligation 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 warranties in any transfer or
conveyance of the Title. This policy shall not continue in force in
favor of any purchaser from the Insured of either (i) an estate or
interest in the Land, or (ii) an obligation secured by a purchase
money Mortgage given to the Insured.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
The Insured shall notify the Company promptly in writing (i) in
case of any litigation as set forth in Section 5(a) below, or (ii) In
case Knowledge shall come to an Insured of any claim of title or
interest that is adverse to the Title 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 the
Company is prejudiced by the failure of the Insured Claimant to
provide prompt notice, the Company's liability to the Insured
Claimant under the policy shall be reduced to the extent of the
prejudice.
Subject to the provisions of this policy, upon acquisition of all or
any part of the Title pursuant to the provisions of Section 2 of
these Conditions, 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 insured by this policy that is
CONDITIONS CONTINUED
not excluded or excepted from the coverage of this policy, the
by a court of competent jurisdiction and it expressly
Company shall promptly investigate the charge to determine
reserves the right, in its sole discretion, to appeal from any
whether the lien, encumbrance, adverse claim or defect or other
adverse judgment or order. When the Company has
matter is valid and not barred by law or statute. The Company
reasonable grounds to dispute coverage under this policy,
shall notify the Insured in writing, within a reasonable time, of its
the Company may reserve its rights to pay the claim and
determination as to the validity or invalidity of the Insured's claim
the costs of defense and seek reimbursement from the
or charge under the policy. If the Company concludes that the
Insured for all amounts paid for which there was no
lien, encumbrance, adverse claim or defect Is not covered by this
coverage.
policy, or was otherwise addressed in the closing of the
transaction in connection with which this policy was Issued, the
6. DUTY OF INSURED CLAIMANT TO COOPERATE
Company shall specifically advise the Insured of the reasons for
(a) In all cases where this policy permits or requires the
its determination. if the Company concludes that the lien,
Company to prosecute or provide for the defense of any
encumbrance, adverse claim or defect is valid, the Company shall
action or proceeding and any appeals, the Insured shall
take one of the following actions: () institute the necessary
secure to the Company the right to so prosecute or
proceedings to clear the lien, encumbrance, adverse claim or
provide defense in the action or proceeding, including the
defect from the Title as Insured; (€€) indemnify the Insured as
right to use, at its option, the name of the Insured for this
provided in this policy; (€€€) upon payment of appropriate premium
purpose. Whenever requested by the Company, the
and charges therefor, issue to the Insured Claimant or to a
Insured, at the Company's expense, shall give the
subsequent owner, mortgagee or holder of the estate or interest
Company all reasonable aid (I) in securing evidence,
in the Land insured by this policy, a policy of title insurance
obtaining witnesses, prosecuting or defending the action
without exception for the lien, encumbrance, adverse claim or
or proceeding, or effecting settlement, and (€€) in any other
defect, said policy to be in an amount equal to the current value of
lawful act that in the opinion of the Company may be
the Land or, If a mortgagee policy, the amount of the loan; (iv)
necessary or desirable to establish the Title, the lien of the
indemnify another title insurance company in connection with its
Insured Mortgage, or any other matter as insured. If the
issuance of a policy(ies) of title insurance without exception for
Company Is prejudiced by the failure of the Insured to
the lien, encumbrance, adverse claim or defect; (v) secure a
furnish the required cooperation, the Company's
release or other document discharging the lien, encumbrance,
obligations to the Insured under the policy shall terminate,
adverse claim or defect; or (vi) undertake a combination of (€)
including any liability or obligation to defend, prosecute, or
through (v) herein,
continue any litigation, with regard to the matter or matters
4. PROOF OF LOS&
requiring such cooperation.
(b) The Company may reasonably require the Insured
In the event the Company is unable to determine the amount of
Claimant to submit to examination under oath by any
loss or damage, the Company may, at its option, require as a
authorized representative of the Company and to produce
condition of payment that the insured Claimant furnish a signed
for examination, inspection and copying, at such
proof of loss. The proof of loss must describe the defect, lien,
reasonable times and places as may be designated by the
encumbrance or other matter insured against by this policy that
authorized representative of the Company, all records, in
constitutes the basis of loss or damage and shall state, to the
whatever medium maintained, including books, ledgers,
extent possible, the basis of calculating the amount of the loss or
checks, memoranda, correspondence, reports, e- malls,
damage,
disks, tapes, and videos whether bearing a date before or
S. DEFENSE AND PROSECUTION OF ACTIONS.
after Date of Policy, that reasonably pertain to the loss or
damage. Further, if requested by any authorized
(a) Upon written request by the Insured, and subject to the
representative of the Company, the Insured Claimant shall
options contained in Sections 3 and 7 of these Conditions,
grant its permission, in writing, for any authorized
the Company, at its own cost and without unreasonable
representative of the Company to examine, inspect and
delay, shall provide for the defense of an insured in
copy all of these records in the custody or control of a
litigation in which any third party asserts a claim covered
third party that reasonably pertain to the loss or damage.
by this policy adverse to the insured. This obligation Is
All information designated as confidential by the Insured
limited to only those stated causes of action alleging
Claimant provided to the Company pursuant to this
matters insured against by this policy. The Company shall
Section shall not be disclosed to others unless, in the
have the right to select counsel of its choice (subject to
reasonable judgment of the Company, it Is necessary in
the right of the Insured to object for reasonable cause) to
the administration of the claim. Failure of the Insured
represent the Insured as to those stated causes of action.
Claimant to submit for examination under oath, produce
It shall not be liable for and will not pay the fees of any
any reasonably requested information or grant permission
other counsel. The Company will not pay any fees, costs
to secure reasonably necessary information from third
or expenses incurred by the insured in the defense of
parties as required in this subsection, unless prohibited by
those causes of action that allege matters not insured
law or governmental regulation, shalt terminate any
against by this policy.
liability of the Company under this policy as to that claim.
(b) The Company shall have the right, in addition to the
(c) If the Insured demands that the Company accept a
options contained in Sections 3 and 7, at Its own cost, to
settlement offer that is not greater than the Amount of
institute and prosecute any action or proceeding or to do
Insurance or if the Insured expressly agrees that a
any other act that in its opinion may be necessary or
settlement offer should be accepted, the Company has a
desirable to establish the Title or the lien of the Insured
right to be reimbursed if it has timely asserted its
Mortgage, as insured, or to prevent or reduce loss or
reservation of rights and notified the insured that it Intends
damage to the Insured. The Company may take any
to seek reimbursement If it pays to settle or defend a claim
appropriate action under the terms of this policy, whether
that is not covered by the policy.
or not it shall be liable to the Insured. The exercise of
these rights shall not be an admission of liability or waiver
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS;
of any provision of this policy. if the Company exercises
TERMINATION OF LIABILITY.
Its rights under this subsection, it must do so diligently.
In case of a claim under this policy, the Company shall have the
(c) Whenever the Company brings an action or asserts a
following additional options:
defense as required or permitted by this policy, the
(a) To Pay or Tender Payment of the Amount of Insurance or
Company may pursue the litigation to a final determination
to Purchase the Indebtedness.
CONDITIONS CONTINUED
(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 that were authorized by the
Company up to the time of payment or tender of
payment and that the Company is obligated to
pay; or
(ii) to purchase the Indebtedness for the amount of
the Indebtedness on the date of purchase,
together with any costs, attorneys' fees and
expenses incurred by the Insured Claimant that
were authorized by the Company up to the time of
purchase and that the Company Is obligated to
pay.
(ii) the Insured Claimant shall have the right to have
the loss or damage determined either as of the
date the claim was made by the Insured Claimant
or as of the date it is settled and paid,
(c) In the event the Insured has acquired the Title in the
manner described In Section 2 of these Conditions or has
conveyed the Title, then the extent of liability of the
Company shall continue as set forth in Section 8(a) of
these Conditions.
(d) in addition to the extent of liability under (a), (b) and (c),
the Company will also pay those costs, attorneys' fees
and expenses incurred in accordance with Sections 5 and
7 of these Conditions.
8. LIMITATION OF LIABILITY.
When the Company purchases the Indebtedness,
the insured shall transfer, assign, and convey to
the Company the Indebtedness and the Insured
Mortgage, together with any collateral security.
Upon the exercise by the Company of either of the options
provided for in subsections (a)(i) or (it), all liability and
obligations of the Company to the Insured under this
policy, other than to make the payment required In those
subsections, shall terminate, Including any liability or
obligation to defend, prosecute, or continue any hNation.
(b) To Pay or Otherwise Settle With Parties Other than the
Insured or With the Insured Claimant.
(t) to pay or otherwise settle with other parties for or
in the name of an Insured Claimant any claim
insured against under this policy. In addition, the
Company will pay any costs, attorneys' fees and
expenses incurred by the Insured Claimant that
were authorized by the Company up to the time of
payment and that 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 costs, attorneys' fees
and expenses incurred by the Insured Claimant
that were authorized by the Company up to the
time of payment and that the Company is
obligated to pay.
Upon the exercise by the Company of either of the options
provided for in subsections (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.
8. 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.
(a) The extent of liability of the Company for loss or damage
under this policy shall not exceed the least of.
(i) the Amount of Insurance;
(ii) the Indebtedness;
(iii) the difference between the value of the Title as
insured and the value of the Title subject to the
risk insured against by this policy; or
(iv) if a government agency or instrumentality is the
Insured Claimant, the amount it paid in the
acquisition of the Title or the Insured Mortgage in
satisfaction of its insurance contract or guaranty.
(b) If the Company pursues its rights under Section 3 or 5 and
is unsuccessful in establishing the Title or the lien of the
insured Mortgage, as insured,
(i) the Amount of Insurance shall be increased by
10 %, and
(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 establishes the lien
of the Insured Mortgage, all as Insured, or takes action In
accordance with Section 3 or 7, in a reasonably diligent
manner by any method, Including litigation and the
completion of any appeals, it shall have fully performed its
obligations with respect to that matter and shalt not be
liable for any loss or damage caused to the Insured.
(b) in the event of any litigation, including 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, 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 the
Insured for liability voluntarily assumed by the insured in
settling any claim or suit without the prior written consent
of the Company.
10. 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 Insurance by the amount of the payment.
However, any payments made prior to the acquisition of
Title as provided in Section 2 of these Conditions shall not
reduce the Amount of Insurance afforded under this policy
except to the extent that the payments reduce the
Indebtedness.
(b) The voluntary satisfaction or release of the insured
Mortgage shall terminate all liability of the Company
except as provided in Section 2 of these Conditions.
11, PAYMENT OF LOSS.
When liability and the extent of loss or damage have been
definitely fixed in accordance with these Conditions, the payment
shall be made within 30 days.
12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT.
(a) The Company's Right to Recover.
Whenever the Company shall have settled and paid a
claim under this policy, it shall be subrogated and entitled
to the rights of the insured Claimant in the Title or Insured
Mortgage and all other rights and remedies in respect to
the claim that the Insured Claimant has against any
person or property, to the extent of the amount of any
loss, costs, attorneys' fees and expenses paid by the
Company. If requested by the Company, the Insured
Claimant shall execute documents to evidence the
transfer to the Company of these rights and remedies,
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 and
remedies.
CONDITIONS CONTINUED
if a payment on account of a claim does not fully cover the
loss of the Insured Claimant, the Company shall defer the
exercise of its right to recover until after the Insured
Claimant shall have recovered its loss.
(b) The Insured's Rights and Limitations.
(i) The owner of the Indebtedness may release or
substitute the personal liability of any debtor or
guarantor, extend or otherwise modify the terns of
payment, release a portion of the Title from the
lien of the Insured Mortgage, or release any
collateral security for the Indebtedness, if it does
not affect the enforceability or priority of the lien of
the insured Mortgage.
(f) If the Insured exercises a right provided in (b)(i),
but has Knowledge of any claim adverse to the
Title or the lien of the Insured Mortgage insured
against by this. policy, the Company shall be
required to pay only that part of any losses insured
against by this policy that shall exceed the
amount, if any, lost to the Company by reason of
the impairment by the Insured Claimant of the
Company's right of subrogation.
(c) The Company's Rights Against Non - insured Obligors
The Company's right of subrogation includes the Insured's
rights against non - insured obligors including the rights of
the Insured to indemnities, guaranties, other policies of
insurance or bonds, notwithstanding any terms or
conditions contained in those instruments that address
subrogation rights.
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(e)(1)(F) of these
Conditions) 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.
13. ARBITRATION.
Either the Company or the insured may demand that the claim or
controversy shall be submitted to arbitration pursuant to the Title
Insurance Arbitration Rules of the American Land Title
Association ( "Rules "). Except as provided in the Rules, there shalt
be no joinder or consolidation with claims or controversies of
other persons. Arbitrable matters may include, but are not limited
to, any controversy or claim between the Company and the
Insured arising out of or relating to this policy, any service in
connection with its issuance or the breach of a policy provision, or
to any other controversy or claim arising out of the transaction
giving rise to this policy. All arbitrable matters when the Amount of
Insurance is $2,000,000'or less shall be arbitrated at the option of
either the Company or the Insured, unless the Insured is an
individual person (as distinguished from an Entity). All arbitrable
matters when the Amount of Insurance is in excess of $2,000,000
shall be arbitrated only when agreed to by both the Company and
the Insured. Arbitration pursuant to this policy and under the
Rules shall be binding upon the parties. Judgment upon the
award rendered by the Arbitrator(s) may be entered in any court
of competent jurisdiction.
14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE
CONTRACT.
(b) Any claim of loss or damage that arises out of the status
of the Title or lien of the insured Mortgage or by any
action asserting such claim, shall be restricted to this
policy.
(c) Any amendment of or endorsement to this policy must be
in writing and authenticated by an authorized person, or
expressly incorporated by Schedule A of this policy.
(d) Each endorsement to this policy issued at any time Is
made a part of this policy and is subject to all of its terms
and provisions. Except as the endorsement expressly
states, it does not (i) modify any of the terms and
provisions of the policy, (it) modify any prior endorsement,
(iii) extend the Date of Policy or (iv) increase the Amount
of Insurance. Each Commitment, endorsement or other
form, or provision in the Schedules to this policy that
refers to a term defined In Section 1 of the Conditions
shall be deemed to refer to the term regardless of whether
the tern is capitalized in the Commitment, endorsement
or other form, or Schedule. Each Commitment,
endorsement or other form, or provision in the Schedules
that refers to the Conditions and Stipulations shall be
deemed to refer to the Conditions of this policy.
15. SEVERABILITY.
In the event any provision of this policy, in whole or in part, is held
invalid or unenforceable under applicable law, the policy shall be
deemed not to include that provision or such part held to be
invalid and all other provisions shall remain in full force and effect.
16. CHOICE OF LAW; FORUM.
(a) Choice of Law: The Insured acknowledges the Company
has underwritten the risks covered by this policy and
determined the premium charged therefor in reliance upon
the law affecting interests in real property and applicable
to the Interpretation, rights, remedies or enforcement of
policies of title insurance of the jurisdiction where the Land
is located.
Therefore, the court or an arbitrator shall apply the law of
the jurisdiction where the Land is located to determine the
validity of claims against the Title or the lien of the Insured
Mortgage that are adverse to the Insured, and in
interpreting and enforcing the terms of this policy. In
neither case shall the court or arbitrator apply its conflicts
of laws principles to determine the applicable law.
(b) Choice of Forum: Any litigation or other proceeding
brought by the Insured against the Company must be filed
only in a state or federal court within the United States of
America or its territories having appropriate jurisdiction.
17. NOTICES, WHERE SENT.
Any notice of claim and any other notice or statement in writing
required to be given the Company under this Policy must be given
to the Company at: Consumer Affairs Department PO Box 27567
Richmond, Virginia 23261 -7567.
(a) This policy together with all endorsements, if any,
attached to it by the Company is the entire policy and
contract between the Insured and the Company. In
interpreting any provision of this policy, this policy shall be
construed as a whole.
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