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Policy#:5011300-1677452e CONDITIONS(Continued)
<br /> time of payment or tender of payment and that the Company is (d) In addition to the extent of liability under(a),(b),and(c),the
<br /> obligated to pay;or Company will also pay those costs,attorneys'fees,and expenses
<br /> (ii) To purchase the Indebtedness for the amount of the incurred in accordance with Sections 5 and 7 of these Conditions.
<br /> Indebtedness on the date of purchase,together with any costs, 9. LIMITATION OF LIABILITY
<br /> attorneys'fees,and expenses incurred by the Insured Claimant that (a) If the Company establishes the Title,or removes the alleged
<br /> were authorized by the Company up to the time of purchase and defect,lien,or encumbrance,or cures the lack of a right of access to or
<br /> that the Company is obligated to pay. from the Land,or cures the claim of Unmarketable Title,or establishes
<br /> When the Company purchases the Indebtedness,the Insured shall the lien of the Insured Mortgage,all as insured,in a reasonably diligent
<br /> transfer,assign,and convey to the Company the Indebtedness and the manner by any method,including litigation and the completion of any
<br /> Insured Mortgage,together with any collateral security, appeals,it shall have fully performed its obligations with respect to that
<br /> Upon the exercise by the Company of either of the options provided matter and shall not be liable for any loss or damage caused to the
<br /> for in subsections(a)(i)or(ii),all liability and obligations of the Company Insured.
<br /> to the Insured under this policy,other than to make the payment (b) In the event of any litigation,including litigation by the
<br /> required in those subsections,shall terminate,including any liability or Company or with the Company's consent,the Company shall have no
<br /> obligation to defend,prosecute,or continue any litigation. liability for loss or damage until there has been a final determination by a
<br /> (b) To Pay or Otherwise Settle With Parties Other Than the court of competent jurisdiction,and disposition of all appeals,adverse to
<br /> Insured or With the Insured Claimant. the Title or to the lien of the Insured Mortgage,as insured.
<br /> (i) to pay or otherwise settle with other parties for or in the (c) The Company shall not be liable for loss or damage to the
<br /> name of an Insured Claimant any claim insured against under this Insured for liability voluntarily assumed by the Insured in settling any
<br /> policy. In addition,the Company will pay any costs,attorneys'fees, claim or suit without the prior written consent of the Company.
<br /> and expenses incurred by the Insured Claimant that were 10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION
<br /> authorized by the Company up to the time of payment and that the OF LIABILITY
<br /> Company is obligated to pay;or (a) All payments under this policy,except payments made for
<br /> (ii) to pay or otherwise settle with the Insured Claimant the costs,attorneys'fees,and expenses,shall reduce the Amount of
<br /> loss or damage provided for under this policy,together with any Insurance by the amount of the payment. However,any payments
<br /> costs,attorneys'fees,and expenses incurred by the Insured made prior to the acquisition of Title as provided in Section 2 of these
<br /> Claimant that were authorized by the Company up to the time of Conditions shall not reduce the Amount of Insurance afforded under this
<br /> payment and that the Company is obligated to pay. policy except to the extent that the payments reduce the Indebtedness.
<br /> Upon the exercise by the Company of either of the options provided (b) The voluntary satisfaction or release of the Insured Mortgage
<br /> for in subsections(b)(i)or(ii),the Company's obligations to the Insured shall terminate all liability of the Company except as provided in Section
<br /> under this policy for the claimed loss or damage,other than the 2 of these Conditions.
<br /> payments required to be made,shall terminate,including any liability or 11. PAYMENT OF LOSS
<br /> obligation to defend,prosecute,or continue any litigation. When liability and the extent of loss or damage have been definitely
<br /> 8. DETERMINATION AND EXTENT OF LIABILITY fixed in accordance with these Conditions,the payment shall be made
<br /> This policy is a contract of indemnity against actual monetary loss within 30 days.
<br /> or damage sustained or incurred by the Insured Claimant who has 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT
<br /> suffered loss or damage by reason of matters insured against by this (a) The Company's Right to Recover
<br /> policy. Whenever the Company shall have settled and paid a claim under this
<br /> (a) The extent of liability of the Company for loss or damage under policy,it shall be subrogated and entitled to the rights of the Insured
<br /> this policy shall not exceed the least of Claimant in the Title or Insured Mortgage and all other rights and
<br /> (i) the Amount of Insurance, remedies in respect to the claim that the Insured Claimant has against
<br /> (ii) the Indebtedness, any person or property,to the extent of the amount of any loss,costs,
<br /> (iii) the difference between the value of the Title as insured attorneys'fees,and expenses paid by the Company. If requested by the
<br /> and the value of the Title subject to the risk insured against by this Company,the Insured Claimant shall execute documents to evidence
<br /> policy,or the transfer to the Company of these rights and remedies. The Insured
<br /> (iv) If a government agency or instrumentality is the Insured Claimant shall permit the Company to sue,compromise,or settle in the
<br /> Claimant,the amount it paid in the acquisition of the Title or the name of the Insured Claimant and to use the name of the Insured
<br /> Insured Mortgage in satisfaction of its insurance contract or Claimant in any transaction or litigation involving these rights and
<br /> guaranty. remedies.
<br /> (b) If the Company pursues its rights under Section 5 of these If a payment on account of a claim does not fully cover the loss of the
<br /> Conditions and is unsuccessful in establishing the Title or the lien of the Insured Claimant,the Company shall defer the exercise of its right to
<br /> Insured Mortgage,as insured, recover until after the Insured Claimant shall have recovered its loss,
<br /> (i) the Amount of Insurance shall be increased by 10%,and (b) The Insured's Rights and Limitations
<br /> (ii) the Insured Claimant shall have the right to have the loss (i) The owner of the Indebtedness may release or substitute
<br /> or damage determined either as of the date the claim was made by the personal liability of any debtor or guarantor,extend or otherwise
<br /> the Insured Claimant or as of the date it is settled and paid. modify the terms of payment,release a portion of the Title from the lien
<br /> (c) In the event the Insured has acquired the Title in the manner of the Insured Mortgage,or release any collateral security for the
<br /> described in Section 2 of these Conditions or has conveyed the Title, Indebtedness,if it does not affect the enforceability or priority of the lien
<br /> then the extent of liability of the Company shall continue as set forth in of the Insured Mortgage.
<br /> Section 8(a)of these Conditions.
<br /> Form 5011300(7-1-14) Page 5 of 6 ALTA Loan Policy of Title Insurance(6-17-06)
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