Loan Policy No. 5011300-1677452e, Insured OC Public Facilities Company, for 4801 West Ten Rd., Efland, NC

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Policy#: 5011300-1677452e CONDITIONS(Continued) (k) "Public Records":Records established under state statutes at the Insured Mortgage,as insured,or to prevent or reduce loss or damage Date of Policy for the purpose of imparting constructive notice of matters to the Insured. relating to real property to purchasers for value and without Knowledge. The Company may take any appropriate action under the terms of With respect to Covered Risk 5(d),"Public Records"shall also include this policy,whether or not it shall be liable to the Insured. The exercise of environmental protection liens filed in the records of the clerk of the these rights shall not be an admission of liability or waiver of any provision United States District Court for the district where the Land is located. of this policy. If the Company exercises its rights under this subsection,it (1) "Title":The estate or interest described in Schedule A. must do so diligently. (m) "Unmarketable Title":Title affected by an alleged or apparent (c) Whenever the Company brings an action or asserts a defense matter that would permit a prospective purchaser or lessee of the Title or as required or permitted by this policy,the Company may pursue the lender on the Title or a prospective purchaser of the Insured Mortgage to litigation to a final determination by a court of competent jurisdiction,and be released from the obligation to purchase,lease,or lend if there is a it expressly reserves the right,in its sole discretion,to appeal any adverse contractual condition requiring the delivery of marketable title. judgment or order. 2. CONTINUATION OF INSURANCE 6. DUTY OF INSURED CLAIMANT TO COOPERATE The coverage of this policy shall continue in force as of Date of (a) In all cases where this policy permits or requires the Company Policy in favor of an Insured after acquisition of the Title by an Insured or to prosecute or provide for the defense of any action or proceeding and after conveyance by an Insured,but only so long as the Insured retains any appeals,the Insured shall secure to the Company the right to so an estate or interest in the Land,or holds an obligation secured by a prosecute or provide defense in the action or proceeding,including the purchase money Mortgage given by a purchaser from the Insured,or right to use,at its option,the name of the Insured for this purpose. only so long as the Insured shall have liability by reason of warranties in Whenever requested by the Company,the Insured,at the Company's any transfer or conveyance of the Title. This policy shall not continue in expense,shall give the Company all reasonable aid(i)in securing force in favor of any purchaser from the Insured of either(i)an estate or evidence,obtaining witnesses,prosecuting or defending the action or interest in the Land,or(ii)an obligation secured by a purchase money proceeding,or effecting settlement,and(ii)in any other lawful act that in Mortgage given to the Insured. the opinion of the Company may be necessary or desirable to establish 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT the Title,the lien of the Insured Mortgage,or any other matter as insured. The Insured shall notify the Company promptly in writing(i)in case If the Company is prejudiced by the failure of the Insured to furnish the of any litigation as set forth in Section 5(a)of these Conditions,(ii)in required cooperation,the Company's obligations to the Insured under the case Knowledge shall come to an Insured of any claim of title or interest policy shall terminate,including any liability or obligation to defend, that is adverse to the Title or the lien of the Insured Mortgage,as prosecute,or continue any litigation,with regard to the matter or matters insured,and that might cause loss or damage for which the Company requiring such cooperation. may be liable by virtue of this policy,or(iii)if the Title or the lien of the (b) The Company may reasonably require the Insured Claimant to Insured Mortgage,as insured,is rejected as Unmarketable Title. If the submit to examination under oath by any authorized representative of the Company is prejudiced by the failure of the Insured Claimant to provide Company and to produce for examination,inspection,and copying,at prompt notice,the Company's liability to the Insured Claimant under the such reasonable times and places as may be designated by the policy shall be reduced to the extent of the prejudice. authorized representative of the Company,all records,in whatever 4. PROOF OF LOSS medium maintained,including books,ledgers,checks,memoranda, In the event the Company is unable to determine the amount of loss correspondence,reports,e-mails,disks,tapes,and videos whether or damage,the Company may,at its option,require as a condition of bearing a date before or after Date of Policy,that reasonably pertain to payment that the Insured Claimant furnish a signed proof of loss. The the loss or damage. Further,if requested by any authorized proof of loss must describe the defect,lien,encumbrance,or other representative of the Company,the Insured Claimant shall grant its matter insured against by this policy that constitutes the basis of loss or permission,in writing,for any authorized representative of the Company damage and shall state,to the extent possible,the basis of calculating to examine,inspect,and copy all of these records in the custody or the amount of the loss or damage. control of a third party that reasonably pertain to the loss or damage. All 5. DEFENSE AND PROSECUTION OF ACTIONS information designated as confidential by the Insured Claimant provided (a) Upon written request by the Insured,and subject to the options to the Company pursuant to this Section shall not be disclosed to others contained in Section 7 of these Conditions,the Company,at its own cost unless,in the reasonable judgment of the Company,it is necessary in the and without unreasonable delay,shall provide for the defense of an administration of the claim. Failure of the Insured Claimant to submit for Insured in litigation in which any third party asserts a claim covered by examination under oath,produce any reasonably requested information, this policy adverse to the Insured.This obligation is limited to only those or grant permission to secure reasonably necessary information from third stated causes of action alleging matters insured against by this policy. parties as required in this subsection,unless prohibited by law or The Company shall have the right to select counsel of its choice(subject governmental regulation,shall terminate any liability of the Company to the right of the Insured to object for reasonable cause)to represent under this policy as to that claim. the Insured as to those stated causes of action. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; It shall not be liable for and will not pay the fees of any other TERMINATION OF LIABILITY counsel. The Company will not pay any fees,costs,or expenses In case of a claim under this policy,the Company shall have the incurred by the Insured in the defense of those causes of action that following additional options: allege matters not insured against by this policy. (a) To Pay or Tender Payment of the Amount of Insurance or to (b) The Company shall have the right,in addition to the options Purchase the Indebtedness. contained in Section 7 of these Conditions,at its own cost,to institute (i) To pay or tender payment of the Amount of Insurance under and prosecute any action or proceeding or to do any other act that in its this policy together with any costs,attorneys'fees,and expenses incurred opinion may be necessary or desirable to establish the Title or the lien of by the Insured Claimant that were authorized by the Company up to the Form 5011300(7-1-14) Page 4 of 6 ALTA Loan Policy of Title Insurance(6-17-06)