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HomeMy WebLinkAboutWarranty Deed~' LandArr~~rita RECEIVED Transnation r DEC 2 9 2003 /~®r"p ~rD ~ / w~.~~~r C ty Clerk C3dfan TO: City of Meridian DATE: 12/23/03 ESCROW NO.: 0300015173 33 E. Idaho Meridian, ID 83642 BORROWER: City of Meridian ADDRESS: 0000 W. Cherry Ave. Meridian ID 83642 In connection with the above transaction, we enclose the following: (XX) Title Insurance Policy (XX) Original Warranty Deed Thank you for this opportunity to serve you. If we may be of any further assistance, please do not hesitate to contact our office. Cordially, TRANSNATION TITL & ESCROW, INC. BY ~ -~~i~ -_ Fred Muldcyr'Y/ Title Office (208) 377-3190 Enclosures 1750 Front St, Suite 120 8665 W Emerald, Suite 200 Boise, ID 83702 Boise, ID 83704 (2081342-2222: Fax (2081 3 88-061 5 (2081377-3190. Fax (2081377-0946 847 Pazkcentre Way, Suite 3 Nampa, ID 83651 (208) 466-6422. Fax (2081 466-6520 ISSUED EY TRANSNATION TITLE INSURANCE COMPANY OWNERS POLICY OF TITLE INSURANCE Transnation A LANDANNlERR6A COMPANY SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, TRANSNATION TITLE INSURANCE COMPANY, an Arizona 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 [he insured by reason of: 1. Title [o the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on [he title; 3. Unmarketability of the title; 4. Lack of a right of access to and From [he land. The Company will also pay [he costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to [he extent provided in [he Conditions and Stipulations. IN WITNESS WHEREOF, TRANSNATION TITLE INSURANCE COMPANY 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. TRANSNATION TITLE INSURANCE COMPANY Attest: ~ ~~,~~~ Secretary By; ~,1 w~+-I u ' U /Ury President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from [he coverage of [his policy and [he Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited [o building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of [he land; (ii) [he character, dimensions or location of any improve- ment 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 [he land is or was a par[; or (iv) environmental protection, or [he affect of any violation of these laws, ordinances or governmental regula- tions, excepC [o the extent [hat a notice of the enforcement [hereof or a notice of a defect, lien or encumbrance resulting From a violation or alleged violation affecting the land has been recorded in [he public records at Dale of Policy. (b) Any governmental police power no[ excluded by (a) above, except to [he 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 [he land has been recorded in [he public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise [hereof has been recorded in the public records at Dale of Policy, but not excluding from coverage any taking which has occurred prior [o Dale 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 [he public records al Date of Policy, but known to the insured claimant and no[ disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under [his policy; (c) resulting in no loss or damage to the insured claimant; - (d) attaching or created subsequent ro Da[e of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for [he estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of [he operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (b) the transaction creating the estate or interest insured by [his policy being deemed a preferential transfer except where the preferential transfer results from the failure: (i) ro timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. NM 1 PA10 Valid only if Schedules A and B and Cover are attached ALTA OwnePs Policy (10/17/82) Face Page Form 1190-56A ORIGINAL CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in [his policy mean (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed [o the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary suceessors. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice which may be imputed [o an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "]and": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does no[ include any property beyond the lines of the area described or referred [o in Schedule A, nor any right ,title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by [his policy. (e) "mortgage": mortgage, deed of [rust, trust deed, or other security instrument. (~ "public records": records established under state statutes al Date of Policy for the purpose of imparting constructive notice of matters relating [o real property to purchasers for value and without knowledge. With respect to Section 1(a) (iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United Slates district court (or the district in which the land is located. (g) "unmarketability of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of [he estate or interest described in Schedule A [o be released From the obligation to purchase by virtue of a contractual condition requiring [he delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of [his policy shall continue in force as of Date of Policy in favor of an insured only so long as [he insured retains xn estate or interest in the land, or holds an indebtedness 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 covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall no[ continue in force in favor of any purchaser from the insured of either (i) an estate or interest in [he land, or (ii) xn indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The insured shall notify [he Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse [o [he title ro the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, dr (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given [o the Cnmpany, [hen as [o [he insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, Thai failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall 6e prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTV OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section b of these Conditions and Stipulations, 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 adverse to the title or interest as insured, but only as to those stated causes of action alleging a defeM, lien or encumbrance or other matter insured against by [his policy. The Company shall have [he right to select counsel of its choice (subject m the right of [he insured to object for reasonable cause) to represent the insured as to those stated causes of action and 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 which allege matters not insured against by [his policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish [he title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any apppropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (e) Whenever [he Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves [he right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where [his policy permits or requires the Company to Prosecute or provide (or the defense of any action or proceeding, the insured shall secure to the Company [he right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the, name of the insured for this purpose. Whenever requested by [he Company, the insured, xt the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in [he opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If [he Company is prejudiced by the (allure of the insured to furnish the required cooperation, [he Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any ]itigalion, with regard to [he matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In addition [o and after the notices required under Section 3 of these Conditions and Stipulations have been provided [he Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain [he facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by [his policy which constitutes [he basis of loss or damage and shall state, to [he extent possible, the basis of calculating [he amount of [he loss or damage. if the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, wish regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shalt produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or aRer Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company ,the insured claimant shall gran[ ifs permission, in writing, for any authorized representative of the Company [o examine ,inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to [his Section shall not be disclosed to others unless, in the reasonable judgement of the Company, it is necessxq~ in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably req ues[ed information or grant permission [o secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. 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 [ender payment of the amount of insurance under dris policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorizzd by [he Company, up to the time of payment or tender of payment and which the Company is obhgated to pay. Upon the exercise by [he Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability ar obligation [o defend, prosecute, or continue any litigafion, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With [he Insured Claimant. (i) [o pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under [his policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to time of payment and which the Company is obligated [o pay; or (ii) [o pay or otherwise settle with [he insured dximant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either oC the options provided for in paragraphs (b)(i) or (ii), [he Company's obligations [o the insured under this policy for [he 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. Conditions and Stipulations Continued Ioside Corer B 1190.56A nnxirnni xin A ~ 1 - fl fl Ll 1 L 1 L. Issued with Policy No.: POLICY OF TITLE INSURANCE SCHEDULE A Amount of Insurance: $243,200.00 Date of Policy: December 17, 2003 at 4:35 p.m. 1. Name of Insured: CITY OF MERIDIAN, an Idaho municipal corporation Policy No.: A37-0047616 File No.: 0300015173 2. The estate or interest in the land described herein and which is covered by this policy is fee simple and is at date of policy veated,in: CITY OF MERIDIAN, an Idaho municipal corporation 3. The land referred to in this policy is described in the said instrument, ie situated in the County of Ada, State of Idaho, and is identified as follows: SEE EXHIBIT "A" ATTACHED (Continued) Countersigned: This Policy Ia Valid Only If Schedule B is Attached American Land Title Association Owner's Policy (10/17/92) Schedule A sak File No.: 0300015173 Policy No.: A37-0047616 SCHSDULB A (continued) LBGAL DBSCRIPTION (continued) EXHIBIT "A" A parcel of land located in the Southwest quarter of the Southwest quarter of Section 4, Township 3 North, Range,l West, Boise Meridian, Ada County,Idaho, more particularly described as follows: Commencing at the Southwest corner of said Section 4, marked by a 3.5 inch MVD brass cap; thence South 89°47'09" East coincident with the South line of said Section 4 a distance of 925.02 feet to a 5/8 inch rebarwith 2 inch aluminum cap PLS 5461 and the POINT OF BEGINNING; thence continuing South 89°47'09" East coincident with the South line of saidSection 4 a distance of 400.42 feet to the Southeast corner of the Southwest quarter of the Southwest quarter of said Section 4 and a 5/8 inch rebar with 2 inch aluminum cap PL55461; thence North 00°19'25" East coincident with the East line of the Southwest quarter of the Southwest quarter of said Section 4 a distance of 1322.67 feet to the Northeast corner of the Southwest quarter of the Southwest quarter of said Section 4, marked by a 5/B inch rebar with a 2 inch aluminum cap PLS 5461; thence North 89°49'38" West coincident with the North line of the Southwest quarter of the Southwest quarter of said Section 4 a distance of 400.42 feet to a 5/B inch rebar with aluminum cap PLS 5461; thence South 00°19'25" West parallel with the East line of the Southwest quarter of the Southwest quarter of said Section 4 a distance of 1322.38 feet to the POINT OF BEGINNING. File No.: 0300015173 Policy No.: A37-0047616 SCHEDULB B This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) which arise by reason of: GENERAL (STANDARD) EXCEPTIONS 1. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession, or claiming to be in possession, thereof. 2-. Easements, liens, encumbrances, or claims thereof, which are not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey of the land would disclose, and which are not shown by the public records. 4. Any lien, or right to a lien, imposed by the law for services, labor, or material heretofore or hereafter furnished, which lien, or right to a lien, is not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) waterrights, claims or title to water, whether or not the matters excepted under (a), (b), (c) or (d) are shown by the public records. 6. Taxes or assessments which are not now payable or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 7. Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal or other utilities unless shown as an existing lien by the public records. SPECIAL EXCEPTIONS: 8. Sewer charges and special assessment powers of the CITY OF MERIDIAN. 9. Liens and assessments of the NAMPA MERIDIAN IRRIGATION DISTRICT, and the rights, powers, and easements of said district as by law provided. (Continued) ALTA Owner's/Loan Policy Schedule 8 File No.: 0300015173 SCH8DIIL8 B (continued) EXCEPTIONS (continued) Policy No.: A37-0047616 10. Ditch, road and public utility easements as same may exist over said premises. 11. Rights and claims in and to that portion of said premises lying within the Cherry Lane right of way. 12. An easement fOr power lines and incidental purposes in favor of IDAHO POWER COMPANY, recorded April 21, 1949, as Instrument No. 285969, of Official Records. 13. Terms, conditions, provisions and obligations set forth in that certain Right of Way Contract between THEODORA EDWARD LINK AND CHRISTINA LINK, his wife and PACIFIC NORTHWEST PIPELINE CORPORATION, a Delaware corporation, recorded. December 5, 1955, as Instrument No. 386915, of Official Records. Amendment to Right of Way Contract recorded January 9, 1980, as Instrument No. 8001439, of Official Records. 14. An easement for Cherry Lane right of way granted to COUNTY OF ADA, recorded April 7, 1961, as Instrument No. 500276, of Official Records. 15. Terms, conditions, provisions and obligations set forth in that certain Encroachment Agreement between RONNIE T. HOPPINS AND GAYLA R. HOPPINS, husband and wife and MICHAEL L. ANDERSON AND DONNA J. ANDERSON, recorded April 7, 1978, as Instrument No. 7817929, of Official Records. 16. Matters as disclosed by Record of Survey No. 5177, recorded November 3, 2000 as Instrument No. 100088601, of Official Records. 17. Matters as disclosed by Record of Survey No. 6077, recorded February 20, 2003 as Instrument No. 103028071, of Official Records. *s e`* i ~~ '°~ c~ o '~ "so n~ W e °6 N a 2 p: ~M a O WWs 3 N W p O ~ qua 4 W N O ~ o ~~: W/~~ 3 O N O W N F ~ ~ Y d K 'W. Y a` z 0 0 W 2 Q 2 W a '^ 1,69'1Zf 41 ~°n` 09'f zfl 36Z, FZ e6W =o ~I ~N $o Y2 f,lZ'C061 I,LZ'Le9Zl e ' ~ ~ 169Z 1,02'001 ZI - .9Z f,59'F2C 11 ~ ,YZ'0012 69'fZfl Sro M, oz, shoos M,oz,v ,oas im u2 O _ ' ~ - ~ ZZFtI 4!9 r ,69'ZZ!! ` +0 3.fiZ,6{ Jl6N ~ W h -_ m _a P __ ,19'22[! 3.52, 6 t„OON __.~.___ . S _ c° -~ ,BF 22[1 3. FZ, 61 pON W /~ WO .~ 60 1 9 o~ a''c M • 6 je ~ e p ° a E` i -a ~ c ~ @'~'` ` Du //~ .56'6£1 j` t`~ ~ - .. ~ -.{_~ M, 6L, 2Is005 ~0 ~ Ppe" ,!6.099 , ,86'099 V ~ // [~ °a / / s ~. $ ~ • ~ .ZL'f2ft Me62. CL DOL i n ~m ~'z@° i. W l8 ~ W N ¢0 W uq Zm (,59'FZF 11 u2 . F9'fZfl M.02,F1 005 // aron uana3ww I _ F W N Z ~i Q 4 9: ~ pw C O (~ N z- w -aV_ ~ "`^ - W i .a N ~b °a i g z o m ~.. sum a n ~.`a 9N1tlY3a Ja 916Y9 G ~ 2 ~ o N 2 0~ ~ O Z w m W ~ .n u o m u y w o ~ e 1 1 p x 1 ~0• ® d k 1 x 1 W 0 ~a ~o w~ 2 e~ W. a 2QJ~ 02 WW Ni jW ¢~ ~~. ~Yw ~_ °m i Irvrv rv~ W ~~ m.. ..nm2Fo W 2222222~V a ~~uu WW ¢OQ p '¢NI~~~ZWy ZaQp o `aozi?iizi`gY ap~WO ^wxz ¢¢¢ooooooW¢i ~I @W ~~~ ~~~W: 4 ~ .~ ~~~~° : e °u . i 0 ~ ~ ~` W „ z63 O ZN u9 ~ 2 ~ ~ @'wae t W i'o r4'. ~S ~W a U S'S~ po WV ~W ~~ ~ ~ FN; W ~_ >~ o N `e~ j ~FY ~n ~ U l ~ ' ~O a ~ N ~W 2 ~ ~W y7 i O ti § F'y C V 4 O 6 F Ou62K WI N U 4 ~ o a a U H~~~oo W ~ ~ l•'~ e u¢ ~ our tt ~o¢3°i ~ a § z m._ -__ _- LLI -., 5 3 F i F~ ~ Ca a: e i FI: 3 j 01567 CONDITIONS AND STIPULATIONS 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or inntrred by the insured claimant who has sulTered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance staled in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and [he value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the even[ [he Amount of Insurance stated in Schedule A at•lhe Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Dale of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount oC Insurance staled in Schedule A, then [his Policy is subject to [he following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance al Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of [he Amount of Insurance staled in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended For the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance slated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. ]f the land described in Schedule A consists oC two or more parcels which are not used as a single Bile, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Dale of Policy of each separate parcel to [he whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the rifle, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketabilily of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) ]n 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 dama3e unlit there has been a final determination by a court of competent junsdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without Ne prior written consent oC the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs, at[omeys' fees and expenses, shall reduce [he amount of the insurance pro Canto. 11. LIABILITY NONCUMULATIVE It is expressty understood that the amount of insurance under Nis policy shall be reduced fry any amount Ne Company may pay under any policy Insuring a mortgage [o whlch exception is taken in Schedule 8 or to which Ne insured has agreed, assumed, or taken subject, or which is hereafter executed by an Insured and which Is a charge or Ilan on Ne estate or interest described or refereed to In Schedule A, and Ne amount sc paid shall be deemed a payment under this policy to Ne insured owner. (CosOStred) (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever [he Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated [o and be entitled [o all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy no[ been issued. If requested by the Company, the insured claimant shall transfer to the Company al] rights and remedies against any person or property necessary in order to perfect Ihis right of subrogation. The insured claimant shall ~ermil the Company to sue, compromise or settle in the name of [he insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as slated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only Ihal part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company 6y reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwilhsWnding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited lo, any controversy or claim between the Company and the insured arising out of or relating to [his policy, any service of the Company in connection with its issuance or the breach of a policy provtston or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated a[ the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to Ihis policy and under the Rules in effect on the dace the demand for arbi[mlion is made or, a[ the option of the insured, the Rules in elfecl a[ Date of Policy shall be binding upon [he parties. The award may include attorneys' fees only if [he laws of [he state in which the land is located permit a court to award attorneys' fees to a prevailing party. Sudgmen[ upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto 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, whether or no[ based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (e) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the Prestdenl, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of [he Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provi- sion and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT. 12. PAYMENT OF LOSS. - All notices requiredto be given the Company andany statement in writing (a)No paymentshall be made without producing this policy for endorsement required to be famished the Company shall include [he number of this of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company, policy and shall be addressed to: Consumer Affairs Deparhrten[, P.O. Box nue . on , r, 275fi7. Richmond Vireinia 23261-7567. C .~O m C CI- ~ = N m C ~L O !6 .W C ~ O L ~ ~ d 0 ~f f0 ~ O ~~C U S N N N p ° O 0 _ ~ ~ 0 . N . O n Nt N ~ a M omm O E $o. U1 N £~ y E ~ N n~ Y o;,- m fwd y ~~•~ ~ e p ~o Q roc ~ ~= N~ ~°m3 a p V nam O_rij N N~ ~ C ~ ° ~ ~ ~N r = N a:? aEi ~ S o + E c c W V cnv .m_ H a ~~~ a > ~a 01 o ~ .N ~~ ~ C N C x ~ o ~~ m ~~ m O ~ aY ~ cam, m` {0 7 Q~~ Z . O N O ~ .~ _~ a Ul U ? F N O. 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