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Policy# : 5011300-1677452e EXCLUSIONS FROM COVERAGE(Continued)
<br /> 3. Defects,liens,encumbrances,adverse claims,or other matters business laws of the state where the Land is situated.
<br /> (a) created,suffered,assumed,or agreed to by the Insured 5. Invalidity or unenforceability in whole or in part of the lien of the
<br /> Claimant; Insured Mortgage that arises out of the transaction evidenced by the
<br /> (b) not Known to the Company,not recorded in the Public Insured Mortgage and is based upon usury or any consumer credit
<br /> Records at Date of Policy,but Known to the Insured Claimant and not protection or truth-in-lending law.
<br /> disclosed in writing to the Company by the Insured Claimant prior to the 6. Any claim,by reason of the operation of federal bankruptcy,state
<br /> date the Insured Claimant became an Insured under this policy; insolvency,or similar creditors'rights laws,that the transaction creating
<br /> (c) resulting in no loss or damage to the Insured Claimant; the lien of the Insured Mortgage,is
<br /> (d) attaching or created subsequent to Date of Policy(however, (a) a fraudulent conveyance or fraudulent transfer,or
<br /> this does not modify or limit the coverage provided under Covered Risk (b) a preferential transfer for any reason not stated in Covered
<br /> 11, 13,or 14);or Risk 13(b)of this policy.
<br /> (e) resulting in loss or damage that would not have been 7. Any lien on the Title for real estate taxes or assessments imposed
<br /> sustained if the Insured Claimant had paid value for the Insured by governmental authority and created or attaching between Date of
<br /> Mortgage. Policy and the date of recording of the Insured Mortgage in the Public
<br /> 4. Unenforceability of the lien of the Insured Mortgage because of the Records. This Exclusion does not modify or limit the coverage provided
<br /> inability or failure of an Insured to comply with applicable doing- under Covered Risk 11 (b).
<br /> CONDITIONS
<br /> 1. DEFINITION OF TERMS electronic transactions law;
<br /> The following terms when used in this policy mean: (C) successors to an Insured by dissolution,merger,
<br /> (a) "Amount of Insurance":The amount stated in Schedule A,as consolidation,distribution,or reorganization;
<br /> may be increased or decreased by endorsement to this policy,increased (D) successors to an Insured by its conversion to
<br /> by Section 8(b)or decreased by Section 10 of these Conditions. another kind of Entity;
<br /> (b) "Date of Policy":The date designated as"Date of Policy"in (E) a grantee of an Insured under a deed delivered
<br /> Schedule A. without payment of actual valuable consideration conveying
<br /> (c) "Entity":A corporation,partnership,trust,limited liability the Title
<br /> company,or other similar legal entity. (1)if the stock,shares,memberships,or other equity
<br /> (d) "Indebtedness":The obligation secured by the Insured interests of the grantee are wholly-owned by the named
<br /> Mortgage including one evidenced by electronic means authorized by Insured,
<br /> law,and if that obligation is the payment of a debt,the Indebtedness is (2)if the grantee wholly owns the named Insured,or
<br /> the sum of (3)if the grantee is wholly-owned by an affiliated
<br /> (i) the amount of the principal disbursed as of Date of Policy; Entity of the named Insured,provided the affiliated Entity
<br /> (ii) the amount of the principal disbursed subsequent to Date and the named Insured are both wholly-owned by the
<br /> of Policy; same person or Entity;
<br /> (iii) the construction loan advances made subsequent to Date (F) any government agency or instrumentality that is an
<br /> of Policy for the purpose of financing in whole or in part the insurer or guarantor under an insurance contract or guaranty
<br /> construction of an improvement to the Land or related to the Land insuring or guaranteeing the Indebtedness secured by the
<br /> that the Insured was and continued to be obligated to advance at Insured Mortgage,or any part of it,whether named as an
<br /> Date of Policy and at the date of the advance; Insured or not;
<br /> (iv) interest on the loan: (ii) With regard to(A),(B),(C),(D),and(E)reserving,
<br /> (v) the prepayment premiums,exit fees,and other similar however,all rights and defenses as to any successor that the
<br /> fees or penalties allowed by law; Company would have had against any predecessor Insured,unless
<br /> (vi) the expenses of foreclosure and any other costs of the successor acquired the Indebtedness as a purchaser for value
<br /> enforcement; without Knowledge of the asserted defect,lien,encumbrance,or
<br /> (vii) the amounts advanced to assure compliance with laws or other matter insured against by this policy.
<br /> to protect the lien or the priority of the lien of the Insured Mortgage (f) "Insured Claimant":An Insured claiming loss or damage.
<br /> before the acquisition of the estate or interest in the Title; (g) "Insured Mortgage":The Mortgage described in paragraph 4 of
<br /> (viii)the amounts to pay taxes and insurance;and Schedule A.
<br /> (ix) the reasonable amounts expended to prevent (h) "Knowledge"or"Known":Actual knowledge,not constructive
<br /> deterioration of improvements; knowledge or notice that may be imputed to an Insured by reason of the
<br /> But the Indebtedness is reduced by the total of all payments and by Public Records or any other records that impart constructive notice of
<br /> any amount forgiven by an Insured. matters affecting the Title.
<br /> (e) "Insured":The Insured named in Schedule A. (i) "Land":The land described in Schedule A,and affixed
<br /> (i) The term"Insured"also includes improvements that by law constitute real property. The term"Land"does
<br /> (A) the owner of the Indebtedness and each successor not include any property beyond the lines of the area described in
<br /> in ownership of the Indebtedness,whether the owner or Schedule A,nor any right,title,interest,estate,or easement in abutting
<br /> successor owns the Indebtedness for its own account or as a streets,roads,avenues,alleys,lanes,ways,or waterways,but this does
<br /> trustee or other fiduciary,except a successor who is obligor not modify or limit the extent that a right of access to and from the Land
<br /> under the provisions of Section 12(c)of these Conditions; is insured by this policy.
<br /> (B) the person or Entity who has"control"of the U) "Mortgage":Mortgage,deed of trust,trust deed,or other
<br /> "transferable record,"if the Indebtedness is evidenced by a security instrument,including one evidenced by electronic means
<br /> "transferable record,"as these terms are defined by applicable authorized by law.
<br /> Form 5011300(7-1-14) Page 3 of 6 ALTA Loan Policy of Title Insurance(6-17-06)
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