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HomeMy WebLinkAboutTitle InsuranceOWNER'S POLICY OF TITLE INSURANCE Issued by Lawyers Title Insurance Corporation SCHEDULE A Name and Address of Title Insurance Company: LAWYERS TITLE INSURANCE CORPORATION P. O. Boa 45023, Jacksonville, Florida 32232 -5023 File No.: 531969 Policy No.: 8239843 - 79995809 Address for Reference only: Earl Rudder Freeway S, College Station, TX 77845 Amount of Insurance: $217,500.00 Premium: $1,470.00 Date of Policy: February 12, 2010, at 3:59 pm 1. Name of Insured: RSCS Enterprises, LP 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is insured as vested in: RSCS Enterprises, LP 4. The Land referred to in this policy is described as follows: All that certain lot, tract or parcel of land being 0.86 of one acre situated in the ROBERT STEVENSON LEAGUE, ABSTRACT No. 54, Brazos County, Texas, and being a part of that certain called 7.2 acre tract in deed from Oleta Chaney to Edward Dopslaui; recorded in Volume 1135, Page 632, Official Records of Brazos County, Texas, said 7.2 acre tract being a part of that certain called 19.31 acre tract as described in deed from Paul S. Wahlberg, Trustee, to Edward E. Dopslauf recorded in Volume 363, Page 730, Deed Records of Brazos County, Texas, said 0.86 of one acre tract being more particularly described by metes and bounds as follows: BEGINNING at a 1/2" iron rod found for the most northerly corner, said corner being S 45 36' 53 E a distance of 24.28 feet from a 5/8" Iron rod found for the occupied most northerly comer of said called 7.2 acre tract and the occupied most easterly comer of a 2.14 acre tract which is the remainder of a called 2.76 acre tract described in Volume 443, Page 804, said comer also being located on the southwest line of the remainder of a called 71.52 acre tract described in Volume 3007, Page 341; THENCE S 45 36' 53 E, along the northeast line of said called 7.2 acre tract a distance of 107.51 feet to a 1/2" iron rod found for the most easterly comer, said comer being the most northerly corner of a 400 acre tract described in Volume 3166, Page 274; THENCE S 47 49' 52" W, along the northwest line of said 4.00 acre tract a distance of 350.69 feet to a 1/2" Iron rod found in the northeast right -of -way line of State Higbway No. 6 described in Volume 1057, Page 385 for the most southerly comer; THENCE along the northeast rigbt -of -way line of said State Highway No. 6, the following calls: N 47° 19' 43" W, a distance of 50.19 feet to a concrete R.O.W. Monument found, and; N 40 22' 50" W, a distance of 57.36 feet to a 1/2" iron rod found for the most westerly comer, said comer being the occupied most southerly comer of said 2.14 acre tract; THENCE N 47 49' 52" E, along the occupied common line between said called 2.76 acre tract and said called 7.2 acre tract a distance of 346.95 feet to the PLACE OF BEGINNING, and containing an area of 0.86 of one acre of land, more or less. NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any statement in the above legal description of the area or quantity of land is not a representation that such are or quantity is correct, but is made only for informational and/or identification purposes and does not override Item 2 of Schedule B hereof FORM T -1: Owner's Policy of Title Insurance Page 1 OWNER'S POLICY OF TITLE INSURANCE Issued by Lawyers Title Insurance Corporation SCHEDULE B File No.: S31%9 Policy No.: 8239843- 79995809 EXCEPTIONS FROM COVERAGE 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 terms and conditions of leases and easements, if any, shown in Schedule A, and the following matters: The following restrictive covenants of record itemized below (the Company must either insert specific recording data or delete this exception): VOLUME 115, PAGE 569, DEED RECORDS OF BRAZOS COUNTY, TEXAS. NOTE: TO THE EXTENT THAT THESE RESTRICTIONS VIOLATE 42 USC 3604 (c) BY INDICATING A PREFERENCE, LIMITATION OR DISCRIMINATION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN, SUCH RESTRICTIONS ARE HEREBY OMITTED. 2. Any discrepancies, conflicts, or shortages in area or boundary lines, or any encroachments or protrusions, or any overlapping of improvements. Homestead or community property or survivorship rights, if any, of any spouse of any Insured. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities, a. to tidelands, or lands comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs or oceans, or b. to lands beyond the line of harbor or bulkhead lines as established or changed by any government, or c. to filled -in lands, or artificial islands, or d. to statutory water rights, including riparian rights, or e. to the area extending from the line of mean low ride to the line of vegetation, or the right of access to that area or easement along and across that area. 5. Standby fees, taxes and assessments by any taxing authority for the year 2010, 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. 6. The following matters and all terms of the documents creating or offering evidence of the matters (The Company must insert matters or delete this exception.): a. Survey dated September 30,1996 and updated on April 27,1998, prepared by H. Curtis Strong, R.P.I..S. No. 4961, shows the following matters, the existence of which are not insured against loss by this policy: 1. Mobile Home protrudes into the adjacent tract. 2. Sewer field lines along the southeasterly side of the property. FORM T -1: Owner's Policy of Title Insurance Page 2 Continuation of Schedule B Policy No. 8239843- 79995809 3. Barb wire fencing not on property lines 4. Satellite dish along the northwesterly lot line.. b. Easement executed by Edward Dopslauf to The City of Bryan, Texas, dated July 30, 1979, recorded in Volume 430, Page 51, Deed Records of Brazos County, Texas, and as shown on a survey dated September 30, 1996 and updated on April 27,1998, prepared by H. Curtis Strong, R.P.L.S. No. 4961 C. Easement executed by Edward E. Dopslauf and wife, Oleta F. Dopslauf, to The City of College Station, Texas, dated February 7, 1985, recorded in Volume 765, Page 250, Official Records of Brazos County, Texas, and as shown on a survey dated September 30, 1996 and updated on April 27,1998, prepared by H. Curtis Strong, R.P.L.S. No. 4961. d. Easement executed by Edward E. Dopslauf and wife, Oleta F. Dopslauf, to The City of College Station, Texas, dated March 20,1986, recorded in Volume %1, Page 715, Official Records of Brazos County, Texas, and as shown on a survey dated September 30,19% and updated on April 27, 1998, prepared by H. Curtis Strong, R.P.L.S. No. 4%1. e. Terms, conditions and stipulations contained in that certain Grant of Access Easement by and between Ronald Smith and Claudia Smith, and Stephen W. Vaughan, dated March 17, 2003, recorded in Volume 5169, Page 126, Official Records of Brazos County, Texas. f. *Terms, conditions and stipulations contained in Oil, Gas and Mineral Lease executed by Eugene M. White to Malcolm Gresham, dated February 17,1958, recorded in Volume 14, Page 527, Oil, Gas and Mineral Lease Records of Brazos County, Texas. g. *Terms, conditions and stipulations contained in Oil, Gas and Mineral Lease executed by Edward E. Dopslauf & Oleta F. Dopslauf, husband and wife, to Jordan Engineering, Inc. dated November 29,1978, recorded in Volume 33, Page 817, Oil, Gas and Mineral Lease Records of Brazos County, Texas. h. *Terms, conditions and stipulations contained in Oil, Gas and Mineral Lease executed by Keith James Dopslauf, Independent Executor of the Estate of Edward Emory Dopslauf, Deceased, to Sage Energy Company, dated September 30, 1990, recorded in Volume 1641, Page 79, Official Records of Brazos County, Texas. i. *Mineral and/or Royalty interest contained in instrument dated November 30, 1976, from Paul S. Wahlberg, Trustee, to Edward E. Dopslauf, recorded in Volume 363, Page 730, Deed Records of Brazos County, Texas. j. *Mineral and/or Royalty interest contained in instrument dated September 27,1993, from Keith James Dopslauf, Independent Executor of the Estate of Edward Emory Dopslauf, Deceased, to Union Royalty Company, recorded in Volume 1943, Page 257, Official Records of Brazos County, Texas. *Title to said interest has not been investigated subsequent to the date of the aforementioned instrument. k. This policy does not insure the title to, nor encumbrances against, the mobile home or manufactured housing unit which is situated on the herein described land, as shown on a survey made under the supervision of H. Curtis Strong, R.P.L.S. No. 4961, dated September 30,19% and updated on April 27,1998. 1. Rights of parties in possession. Countersigned La4ed le Company o razos County 4r By - Countersignature FORM T -1: Owner's Policy of Title Insurance Page 4 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: P.O. Box 45023 Jacksonville, FL 32232 -5023 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: Con su merProtection(cD-td i.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. Form 8222243 Reorder 1191 -224 AVISO IMPORTANTE Para obtener informacion o para someter una queja: Usted puede Ilamar al numero de telefono gratis de Lawyers Title Insurance Corporation's para informacion o para someter una queja al: 1- 800 -442 -7067 Usted tambien puede escribir a to Lawyers Title Insurance Corporation: P.O. Box 45023 Jacksonville, FL 32232 -5023 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: htto: //www.tdi.state.tx.us E -mail: Con su merProtectionO-tdi.state.tx. us DISPUTES 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. T -2 Texas Loan Policy (Rev. W1108) 4. S. 6. 7. PROOF OF LOSS. In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. DEFENSE AND PROSECUTION OFACTIONS. (a) Upon written request by the Insured, and subject to the options contained in Sections 3 and 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Sections 3 and 7, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction and it expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. DUTY OF INSURED CLAIMANT TO COOPERATE. (a) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. (b) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, emails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY, 8239843(2/10) In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. 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. Upon the exercise by the Company of this option, all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) 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 (bxi) 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. & 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 lesser of (i) the Amount of Insurance; or (ii) 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. (b) If the Company pursues its rights under Section 3 or 5 and is unsuccessful in establishing the Title, as insured: (i) the Amount of Insurance shall be increased by 10 %; and (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 addition to the extent of liability under (a) and (b), the Company will also pay those costs, attorneys' fees and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the Title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the Land, 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 shall 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, 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. 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. 11. LIABILITY NONCUMULATIVE. The Amount of Insurance shall be reduced by any amount the Company pays under any policy insuring a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject or which is executed by an Insured after Date of Policy and which is a charge or lien on the Title, and the amount so paid shall be deemed a payment to the Insured under this policy. IL PAYMENTOFLOSS. When liability and the extent of loss or damage have been definitely fixed in Owner's Policy of Title Insurance T -1 (2/01/10) 13. 14. 15. accordance with these Conditions, the payment shall be made within 30 days. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT. (a) 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 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, attomeys' 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. 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 Company's right of subrogation includes 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. 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 shall 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. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (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. (b) Any claim of loss or damage that arises out of the status of the Title 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 ofthe policy, (ii) 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 term 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. 16. SEVERABE TTY. 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. 17. 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 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. 1R 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 National Claims Administration, PO..Box 45023, Jacksonville, Florida 32232- 5023. 8239843 (2110) Owner's Policy of Title Insurance T -1 (2101110) 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 I . (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 I (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 8. 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 ofPolicy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10), or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws that the transaction vesting the Title as shown in Schedule A is: (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. 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 deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. 6. 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. The following terms when used in this policy mean: (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 de- creased by Sections 10 and 11 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) "Insured ": the Insured named in Schedule A.. (i) The term "Insured" also includes: (A) successors to the Title of the Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives or next of kin; (B) successors to an Insured by dissolution, merger, consolidation, distribution or reorganization; (C) successors to an Insured by its conversion to another kind of Entity; (D) 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, (3) If the grantee is wholly -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, or (4) If the grantee is a trustee or beneficiary of a trust created by a written instrument established by the Insured named in Schedule A for estate planning purposes. (ii) With regard to (A), (B), (C) and (D) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant ": an Insured claiming loss or damage. (f) "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. (g) "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. (h) "Mortgage ": mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (i) "Public Records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matter 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 8239843(2/10) clerk of the United States District Court for the district where the Land is located. (j) "Title ": the estate or interest described in Schedule A. (k) "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 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, 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 hereunder of any claim of title or interest that is adverse to the Title, 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. 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 not excluded or excepted from the coverage of this policy, the Company shall promptly investigate the charge to determine whether the lien, encumbrance, adverse claim or defect or other matter 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 determination. If the Company concludes that the lien, encumbrance, adverse claim or defect is valid, the Company shall take one of the following actions: (i) institute the necessary proceedings to clear the lien, encumbrance, adverse claim or defect from the Title as insured; (ii) indemnify the Insured as provided in this policy; (iii) upon payment of appropriate premium and charges therefor, issue to the Insured Claimant or to a subsequent owner, mortgagee or holder of the estate or interest in the Land insured by this policy, a policy of 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 Land or, if a loan policy, the amount of the loan; (iv) 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; (v) secure a release or other document discharging the lien, encumbrance, adverse claim or defect; or (vi) undertake a combination of (i) through (v) herein. Owner's Policy of Title Insurance T -1 (2/01/10)