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Owner) P olicy of Title Insuran ce -----------------
Fide lity Sational Title Insurance Company
A Sr!J.Ck CG'Tip-.:ny
Po l icy Number 131 2 -198027
OWNER'S POLI CY OF TITLt I\'SURAN CE
SUBJECT TO THE EXCLUSIONS FROM COVERAGE_. T H E E X CEPTIO N S FRO AI C O\T RA GE
CONTAINED IN SCHEDULE BAND THE CONDITIONS A.1'.'D STIP[L ,J,,TJO.VS, FIDELID'NATIO X 4L
TITLE INSURANCE COMPANY, a California co rp ormion , herein cail ed !he Comp an y, insures , as of D ate
of Policy shown in Schedule A, against los s or damage, noi e:•.-c eedin g rhe Amount of Insurance smred in
Schedule A, sustained or incurred by th e in s ured by rea son of
1. Title to the estate or interest described in S chedule A bein g vested other than as stated therein ;
2. Any defect in or lien or encumbrance on th e title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title , as
insured, but only to the extent provided in the Conditions and Stipulations .
IN 'WITNESS WHEREOF, FIDELITY NATIONAL TITLE INSURANCE COMPANY has caused this p olicy
to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A
FORM 1312
R e printed (02/00)
Fidelity Nationa Title Insurance Company
ALTA Owner 's Policy (10-17-92 )
The following matters are expres.sly excluded from the co ;·eragt: of ;..'ii s pe:icy and the Compan y "iil1 nGt pay [o;s or c>~--g-: .. ~:,:.;;. :<.:::-:-::;··~ ·~ 1'1"
expenses which arise by reason of:
1. (a) Any law, ordinance or goyernmental regulation (including but not limited to building and zoning law;, oniin=cc-.;. e r ::=:;:::~:: ;=.:: --=--::
ing, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the: character. ciracrsic.:::s :~ ::::~:::.:. · .. :..::-,.
improvement now or hereafter erected on the land; (iii) a separation in o"'"'llership or a change in the d.ime.w"i ons or ~e.z -~: :.:~ ~.r:::::. -"' ;.~
parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any v iolati on of these: i a ..-5, :-:-£'...: .. L~ ':;.-., ..
governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect. lirn Gr er.c='::~:::~ -~·;;:,·~:.·.c
from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
(b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise therco: or a r:0 ::::~ :: ~ ::· -:.-.... "-:
or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public ro-cc•::ds .1: :'.::':..:~ :'. : . -"~
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at D ate of P o '.'.cy. ~r~t :F:<: n :..::. :.: :;r ·:-· ::::
coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for 1·.:<:'..:e wi~h:;::: ~ · .... ~::.::"-
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 n ot C.L~:-~: = •:-:·:-.::::
to the Company by the insured claimant prior to the date the insured claimant became an insured under this po licy:
(c) resulting in no Joss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the e5'!2it: or in;e:-.:s: 0 -=::~;:. <
this policy
4. Any claim which arises out of the t ransaction vesting in the Insured the estate or interest by this policy, by reason of the oper~:::= ~: :·o:.,-·:_
bankruptcy, state insolvency, or similar creditors' rights laws, that is based on:
(a) the transaction creating the est ate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent r.r;;.::.;:-:::-: : -
(b) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where t ilE ;::e:-:::=::.:.:.
transfer results from the failu r e:
(i) to timely record the instru ment of transfer; or
(ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor.
CONDITIONSA1'\1D STIPULATIQ::-.;-S
1. DEF11"1TION OF TERMS
The following terms when us ed in this policy mean:
(a) "insured": the insured named in Schedule A , and, s ubject to any rights or
defenses the Company would have had against the named insured, those who
s ucceed to the interest of the named insured by operation of law as di sti nguished
from purchase including, but not limited to, heirs, distributees, devisees , survi,·o rs,
personal representatives , next of kin, or corporate or fiduciary successors.
(b) "i nsured claimant": an insured claiming loss or damage .
(c) "knowledge" or "known": actual knowledge, not constructive knowl-
edge or notice which may be imputed to an in s ured by reason of the public records
as defined in this policy or any other records which i mpart constructive notice of
matters affecting the land.
(d) "land": the land described or referred lO in Schedule A, and improve-
ments affixed thereto which by law constitute real property. The term "land" does
not include any property beyond the lines of the area described or referred to 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 e x tent to which a right of access to and from the land is insured by this
po licy.
( e) "mortgage": mortgage, deed of trust, trust deed, or other security instru-
me nt.
(f) ''public records ": records established under state statutes at Dare of
Policy for the purpose of imparting constructive notice of matters relating to real
property to purchasers for va lue and without knowledge. With respect to Section
l(aJ(iv) o f the E xclusions From Coverage, "publi c records" shall also include
environmental protection liens filed in the records of the clerk of the United States
d istrict court for 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 entii:le
J purchaser of the estate or interest described in Schedule A or the insured mortgage
to be released from the obligation to purchase by virtue of a contractual condition
iequiring the delivery of marketable title.
2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE
The coverage of this policy shall continue in force as of Date of Policy in
:avor of an insured only so long as the insured retains an estate or interest in the
:md, or holds an indebtedness secured by a purchase money mortgage given by a
nirchaser from the insured, or only so long as the insured shall have liability by
·eason of covenants of warranty made by the insured in any transfer or convey-
mce of the estate or interest. This policy shall not continue in force in favor of
my purchaser from the insured of either (i) an estate or interest in the land, or (ii)
rn indebtedness secured by a purchase money mortgage given t~ the i!lsur~d."
3. :\'OTICE OF C LAI:\I TO BE GIYE:\' BY INSURED CLAL\l.\?'.1
The irrsured shail norify t..'ie Company promptly in writing (i) in ~~e :.-: :.:.::
litigation as set fort.Ii in Section 4(a) below, (ii) in case knowledge shall ;:-:== c:: :;::
insured hereunder of any claim of title or intere st "'hich is adverse 10 the j:le t.o :!":.:-:
estate or interest, as insured, and which might cause loss or <kmage for ·xi::h ±~
Company may be liable by virtue of this policy. o: t iii ) if ri:ie to th= esu:;; .:;r
interest, as insured, is rejected as unmarketable . If pro:::;:: ::-:j..-:,;-s:-.:.J net ce p·.-e:.
to the Company, then as to the insured all liability o:· :::.= C:=;:;:::; ;~ :e::-...i.'"J:.:e
with regard to the matter or matters for which prou:.pt r:::i:e :s :e~·~::e.:.: ;::(··. :::=::.
however, that failure to notify the Company shail in no c~e ;::::::=-::: :=: :-'.~':::; ::
any insured under this policy unless the Company shali be: prej::.:.::'!:: :::.-:.-:.: ::.:.·.:::-:
and then only to the extent of the prejudice.
4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF ~5 1..""RED
CLAIMANT TO COOPERATE
(a) Upon written request by the insured and s ubject to the opti ons .::c:.:.::.::::
in Section 6 of these Conditions and Stipulations, the Company, at its own c..-:s: 2-::.;'.
without unreasonable delay, shall provide for the defense of an insured in !i li p:i::.
in which any third party asserts a claim adverse to the title or interest as insu=L
but only as to those stated causes of action alleging a defect, lien or encumbra=.::e
or other matter insured against by this policy. The Company shall have the righ:
to select counsel of its choice (subject to the right of the insured to object :ic :
reasonable cause) to represent the insured as to those stated causes of a cti on and
shall not be liable for and will not pay the fees of any other counsel. The Company
will nor pay any fees , costs or expenses incurred by the insured in the defen se o:·
those causes of action which allege matters not insured against by this 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 mzy
be necessary or desirable to establish the title to the estate or interest, as insured. or
to prevent or reduce loss or damage to the insured. The Company may take any
appropriate action under the term 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.
(c) Whenever the Company shall have brought an action or interposed a
defense as required or pennitted by the provisions of this policy, the Company may
pursue any litigation to final determination by a court of competent jurisdiction
and expressly reserves the right, in its sole discretion, to appeal from any ad,·ers~
judgment or order.
(d) In all cases where this policy permits or requires the Company to pros-
ecute or provide for the defense of any action or proceeding, the insured sh:;L
secure to the Company the right to so prosecute or provide defense in the act:oc
~;c:. .::: ·= ~ !:-L :::..;:.:..~ ".:r: ~ :;==;~·s e . V.i::ene ver requested by the
C:::-" .;;= · ':"""-' :::.. :;::-;,::. ....: ::::! :::.::~:.=;:".; :::~~cse, s h a ll give the Company all
~-.i;:.,~J;.:. -.... :::. :::: ~ ... ~z :.:: ?-=:ii:ec.,4'~~-securing e vidence, obtaining wit-
~-,;.:;. ?' ·<=:::::.....:=.:; 7 :.:>:'-!:" • -_:: :':;.:: ~=fr:-.::i or proceeding, or effecting settlement,
-·· _ _ :::.. •· ..:·•' :._ .;..-: "'~ ::. i r: th e opinion of the Company may be
~~'' .• :;.,.-::: :.=::::::.:.: .! '.: :;:--i: . .;.:;: -'-.• ::~e to th e estate or interest, as insured. If
-~ .. :Z-::':.t::' :: ::-:··.:..:::::-.:. :::. == f,'i l.lfe o f the insured to furnish the required
_ .. ''" .•• ::., ~ :·.:::.;~..:. s : ::.:~~uon s to rhe insured under the policy shall
..:;·-:.::..:..:= :: •. -:..:.:::; :.=.. ':..;;..:-:...:.:y ,J; ob ligation to defend, prosecute, or continue
-· ·-'--_ ;.··:..:. :=.: .. -:: :.: :.;;;; m:mer or matters requiring such cooperation .
.::: :.:.:..::.:c: :: l::.: ~.er th e notices required under Section 3 of these Condi-
:c::::-. ~-~=-?-.:::.:;::::..; ~ve been provided the Company, a proof of loss or damage
-'-f::.:: :0.::..: : ;. = :.J by the insured claimant shall be furnished to the Company
·•· ::.::.:.: :.: ~:.;; "-"'=·=' the insured claimant shall ascertain the facts giving rise to the
·,:c ... ::-~. -, _:::. 7"::e proof of loss or damage shall describe the defect in, or lien or
.::-:; -·=·~=::=~= ::: t he title, or other matter insured against by this policy which
::~::.:::..:=: ::::: '.:-.,sis o f loss or damage and shall state, to the extent possible, the =·-:·: ::.:..: "~''"g the amount of the loss or damage. If the Company is prejudiced
·.::.:: :"::..;:~:-e of the insured claimant to provide the required proof of loss or
:.:.-:'.".:;=. ::-.:: Company's obligations to the insured under the policy shall terminate,
:: : . .:.:~ ~:· lia bility or obligation to defend, prosecute, or contin ue any litiga-:: ::-:. • ·-= 7e g:u-d to the matter or matters requiring such proof of loss or damage.
~= '".:ditio n , the insured claimant may reasonably be required to submit to
='=.::;:ion under oath by any authorized representative of the Company and
;::.:..:.: ;·;;::.ju ce for examination , inspection and copying, at such reasonable times
0 -" -;: ::;.:es as ma y be designated by any authorized representative of the Company,
C :,:-..:'"rds. books, ledgers, checks, correspondence and memoranda, whethe r b ear-
.:; 2 6't:: before or after Date of Policy, which reasonably pertain to the loss or
=~-:-..i~e. F urther, if requested by any authorized representative of the Company,
.::e ::.sred c lai m ant shall grant its permission, in writing, for any authorized
·:;::c:;e :i t2tive o f the Company to examine. inspect and copy all records, books,
e.:;::rs. che cks , c orrespondence and memoranda in the custody or control o f a
..:::.: p:;ny. which reasonably pertain to the loss or damage. All information
:::;:~=.:n::d as confident ia l by the insured claimant provided to the Company pursu-
'::: ;,: tbis Sec ti on shall n ot be disclosed to others unless, in the reasonable judg-
:::.::: cf Liie C ompan y, it i; neces sary in the administration of the claim. Failure of
::e '.n;ured clai man t to su bmit for examination under oath, produce other reason-
.::.::· :equeste d information or grant permission to secure reasonably necessary
.::·0rmation from thi r d parties as required iu this paragraph shall termiua te any
:~:::;i :} o f the Company unde r this policy as to that claim.
OPTIO:\S TO PAY OR OTHERWISE SETTLE CLAIMS; TER...\!I NA-
TIO :\ OF LL\BILITY
i:: ~~;-:: c :' a cia'.m under thi s pol icy. the Company shall ha ve the fo llowing
r 2:0 To Pay or Tender Pay ment of the Amount of Insuran c e.
Tc p~y :);: :::::de r pa y ment of th e a mount of insuran c e und er th is policy
:§;e:te : ;•;ir:-. :::.::::.-c o sts . attorneys ' fe e s a nd expenses incurre d by th e insured
:~::-..:;:::. ·~·:::::: "·ere au thorized by the C o mp any. u p to the time of payment or
:::de: .::" ;::.:·::::e:n :<n d which the Company is obligated to pay.
:.·; ~= ::::= ::xc:d;e b y the Company of this option, all li a bility and obligations
: :i::: :..:.o-..:.:::i :.:r:C:er this policy, other than to make the payment required, shall
·:-:.::-.:.::::.:::. '.:.:11.!din g any li a bility or obligation to defend, prosecute , or continue
:!:· ::::~:o.=:.:. :sd the pol icy shall be surrendered to the Company for cancellation .
. ;;. To Pay or Otherwise Settle With P arties Other than the Insured
r W i t:::. ::ie Insured Claimant.
:c• pay or otherwise settle with other parties for or in the name of
: '.:..o .::-: ::-'c :::-.2.:1: :my cl aim insured against under this policy, together with any
:;.:;. :.::::-::.:::.-s · :";;es a nd expenses incurred by the insured claimant which were
.:.:.::-...:c;: '.:; :::;: Compa ny up to the time of payment and which the Company is
:: ;:::.:: o r o therwise settle with the insured claimant the loss or
'...':'.'.'.;:: ;:-:: .. ~.: :.:: ·x.:er thi s policy, together with any costs, attorneys' fees and
.;::~:::.::;; :::_-:::.: ·::.-:.::e ins ured claimant which were authorized by the Company
: :,:· ::::: :.:.::.~ : : ;::.:. ==m an d which the Company is obligated to pay.
:.::-:-: ::::: =··:=::'.se i::• the Company of either of the options provided for in
_-:;~::.-;:::..; ::. : ::-.:: . :.'le Comp a ny 's obligations to the insured under this policy
: ;..'::: ::.:.:.=::: ::;; ~= ,:'.3.Inage, other than the payments required to be made, shall
:::-.::::;:;; '.:.: __ .:_;::~ ::.:::: liabi lity or obligation to defend, prosecute or continue
DEITR'·E..'-'_-HIO:\, EXTENT OF LIABILITY AND COINSURANCE
F ..'..; :': '..:.::: '..; 2 : :::::ra=t of indemnity against actual monetary loss or damage
ouo.4.lu .. u v• 1U1.>w•cu uy u1t:: rnsun:u c1aimam wno nas sunered 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 stated in Schedule A; or,
(ii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect, lien or
encumbrance insured against by this policy.
(b) In the event the Amount of Insurance stated in Schedule A at the Date
of Policy is less than 80 percent of the value of the insured es tate or interest or if
subsequent to the Date 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 of Insurance stated in Schedule A, then this Policy is s ubject to the ·
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 at Date of Policy bears to the total value of th e insured esta te
or interest at Date of Policy; or
(ii) where a subsequent improvement has been made, as to 211y partial
loss, the Company shall only pay the loss pro rata in the p ropo:tion tb.:!t 120
percent of the Amount of Insurance sta ted in Sche d ule A be2rs to t!:e sum of th e
Amount of Insurance stated in Schedu le . .\ and the amount =~Ferrded fer the
improvement.
The provisions of this p ara~p2 s~!I =.;:~: 2~p ly :c :.?£~~ Z.!t.)rn e y s ~ fe es and
expenses for which the Comp2:.y is :izt'.-:: c ·::'..er .,.,, p-::;E;:y, .;.n d ;hall only apply to
that portion of an y loss ·xti::':: e :c~. ::; !'.:e :oggn:~:e . JO percent of the Amount
of lns uran ·::e St::!e.:± !.J 5::;.;;,.::~-; ~.:. ....
(c ) T::e C:·:::;::c:::· -;,~~: ;:;:.;.-;:;::;ly chose c osts , attorneys' fees and expenses
in curred:.:: a::.::z::: ·.:.::n Se;;tion ~o f thes e Conditions and Stipulations.
8. APPORTIO~,JE\T
!f ti::: :..,.:i ces::ribed in Schedule A consists of two or more parcels which are
not isec :.s a si r:gie si te, and a loss is established affecting one or more of the parcels
bu! nc: :::.!.:. th e loss shall be computed and settled on a pro rata basis as if the amount
of !nsur-cllce under this policy was divided pro rata as to the value on Date of Policy
cf each separate parcel to the whole, e xclusive of any improvements made subse-
que nt 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 th e iss uance o f thi s
policy and shown by an expres s statement or by an endors e mer:: ~mched to th.:s
policy .
9 . LIMITATION OF LIABILITY
(a) If the Company es tabl ishes ti:l e ti ::::. ::-: :::=::. ::; :.: .. = .:.....:!-i::-.: ~~.:.:.::.
or encumbrance, or cures the lac k of a ri gtt .;:;f ~= :.: ::: :'::::: :..:o .=.::. ~ :: .:-.=::
the claim of unmarketability of title, all as ins ured. ra :;, =-~:7.'"-::.:, ' -.::= =.:.::
by any method, including litigation and th e co m pi eti o n 0f ;,.:;;. a:;·;cL; ::.c::=.7:::..
it shall have fully performed its obliga tions with respec t t0 thzt ;::;;:::c :-.L._: ,~:...
not be liable for any loss or damage ca used thereby.
(b) In the event of any litigation, including litigation by the Company er
with the Company's consent, the Company shall have no liability for loss o r
damage until there has been a final determination by a court of competent jurisdic-
tion, 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 th e
prior written consent of the Company.
10. REDUCTION OF INSURA NCE; REDUCTION OR TERMINATION OF
LIABILITY
All payments under this policy, except payments made for costs, attorneys'
fees and ex penses, shall reduce the amount of the insurance pro tanto.
11. LIABILITY NONCUMULATIVE
It is expressly understood that the amount of insurance under this policy shall
be reduced by any amount the Company may pay 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 hereafter executed by an insured and
which is a charge or lien on the estate or interest described or referred to in Schedule
A, and the amount so paid shall be deemed a payment under this policy to the
insured owner.
12. PAYMENT OF LOSS
(a) No payment shall be made without producing this policy for endorse-
ment 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.
(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 the 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 to and be entitled to all rights and remedies
which the insured claimant would have had against any person or property in
respect to the claim had this policy not been issued. If requested by the Company,
the insured claimant shall transfer to the Company all rights and remedies against
any person or property necessary in order to perfect this right of subrogation. 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 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
pro portion 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 stated above , that
act shall not void this policy, but the Company, in that event, shall be required to
pay only that part of any losses insured against by this policy which shall exceed
rhe amount , if any, lost to the Company by reason of the impairment by the
insu red 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
:;:;:d shall include, without limitation, the rights of the insured to indemnities,
~u:nanties. other policies of insurance or bonds, notwithstanding any terms or
~0n ditions contained in those instruments which provide for subrogation rights by
r<0:;,son of this policy.
1-l. ARBITRATION
Unless prohibited by applicable la w, either the Company or the insured may
demand arbitration pursuant to the Title Insurance Arbitration Rules of the Ameri-
can Arbitration Association. 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 of the Company in connection with its
issuance or the breach of a policy provision or other obligation. All arbitrable
matters when the Amount of Insurance is $1,000,000 or Jess shall be arbitrated at
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 wher:
agreed to by both the Company and the insured. Arbitration pursuant to this polic:.-
and under the Rules in effect on the date the demand for arbitration is made or, :;1
the option of the insured, the Rules in effect at Date of Policy shall be binding upo n
the parties. The award may include attorneys' fees only if the laws of the state in
which the land is located permit a court to award attorneys' fees to a prevailing
party. Judgment upon the award rendered by the Arbitrator(s) may be entered in
any court having jurisdiction thereof.
The Jaw 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 Lil\HTED 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 Com-
pany. Jn interpreting any provision of this policy, this policy shall be construed as
a whole.
(b) Any claim of Joss or damage, whether or not 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.
( c) No amendment of or endorsement to this policy can be made excep t b~·
a writing endorsed hereon or attached hereto signed by either the President, a Vice
President, the Secretary, an Assistant Secretary. or validating officer or authorized
signatory of the Company.
16. SEVERABILITY
In the event any provision of the policy is held inval id or unenforceable under
applicable law, the policy shall be deemed not ro include that provision and a ll
other provisions shall remain in full force and effect.
17. NOTICES, WHERE SENT
All notices required to _be given the Company and an y statcmtnt ir: w r'.t :;ii
required to be furnished the Company shall include the number of uii;-po li::.-z:::
shall be addressed to the Company at 17911 Von Karman Avenue. Su:r= .O (;G
Irvine, CA 92614-6253
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SCHEDULE A-OWNER'S POLICY
CASE NUMBER
PCT14409C2
DATE OF POLICY
October 4, 1999 @ 4:05 PM
1. NAME OF INSURED:
AMOUNT OF INSURANCE
$2,650,000.00
CEDAR RIDGE FARM, L.L.C., AN ILLINOIS LIMITED LIABILITY COMPANY
POLICY NUMBER
1312-198027
2. THE ESTATE OR INTEREST IN THE LAND HEREIN AND WHICH IS COVERED BY THIS POLICY IS:
IN FEE SIMPLE
3. THE ESTATE OR INTEREST REFERRED TO HEREIN IS AT DATE OF POLICY VESTED IN:
CEDAR RIDGE FARM, L.L.C ., AN ILLINOIS LIMITED LIABILITY COMPANY
4 . THE LAND REFERRED TO IN THIS POLICY IS SITUATED IN THE COUNTY OF GARFIELD, STATE OF
COLORADO AND IS DESCRIBED AS FOLLOWS:
See Attached Exhibit "A"
PITKIN COUNTY TITLE, INC.
601 E. HOPKINS A VE.
ASPEN, COLORADO 81611
(9 70) 925-1766/(970)-925-6527 FAX
THE POLICY NUMBER SHOWN ON THIS SCHEDULE MUST AGREE WITH THE PREPRINTED NUMBER ON THE COVER SHEET.
EXHIBIT "A"
LEGAL DESCRIPTION
A parcel of land situated in the SW1/4 of Section 12 and the N1/2 of Section 13, Township 7 South, Range 88 West of the
Sixth Principal Meridian, described as follows:
Beginning at the Quarter Corner common to Sections 12 and 13 in said Township and Range;
thence S 84 °16'22" E along the Section line between said Sections 12 and 13, 210.00 feet to a point in the center of the
Park Ditch;
thence along the centerline of said ditch S 16°07'31" E 40.35 feet;
thence S 26°17'50" E 76.58 feet;
thence S 34 °58'50" W 179.02 feet;
thence S 21°25'52" W 97.27 feet ;
thence S 09°41'43" E 57 .78 feet;
thence S 14°07'35" E 322.35 feet ;
thence S 12°03'17" E 139.33 feet ;
thence S 73°54'25" W 138.94 feet;
thence S 01°31'14"E294.00 feet;
thence S 05°28'32" E 109.40 feet;
thence s 21°16'33" E 67.58 feet;
thence S 64 °12'36" E 116.10 feet;
thence S 52°13'39" E 95.46 feet;
thence S 10°49'10" E 116 .53 feet;
thence S 26°39'52" E 157.36 feet;
thence S 18 °20'39" E 70.39 feet;
thence S 27°01 '44" E 142.09 feet;
thence S 39°23'09" E 143.24 feet;
thence s 02°53'08" W 96 .14 feet to a point on the Northerly right-of-way line of County Road No. 103;
thence along said right-of-way line, 59.31 feet along the arc of a curve to the right, having a radius of 1044.57 feet, the chord
of which bears S 81°47'25" W 59.30 feet ;
thence S 83°25'00" W 115.08 feet ;
thence 116.32 feet along the arc of a curve to the left, having a radius of 7 41.22 feet, the chord of which bears s 78°55'16"
W 116.20 feet ;
thence 230.70 feet along the arc of a curve to the left, having a radius of 423.13 feet, the chord of which bears S 58°48'21"
W 227 .86 feet;
thence 90.93 feet along the arc of a curve to the left, having a radius of 408.67 feet, the chord of which bears S 36 °48'42" W
90.75 feet;
thence leaving said right-of-way line N 89°16'38" W 32 .34 feet;
thence S 01°06'40" W 492.34 feet to a point in the center of said Park Ditch;
thence s 79°54'59" W 105.66 feet along the center of said ditch;
thence N 06°38'19" W 240 .30 feet;
thence N 73°01 '11' W 409.45 feet;
thence N 54 °06'22" W 675 .91 feet;
thence N 10°48'08" W313.56 feet;
thence N 12 °35'49" W 1436.10 feet;
thence N 18°16'24" W 529 .17 feet ;
thence N 00°19'40" E 456.51 feet;
thence N 88°12'04' W 174.20 feet;
thence N 10°24'04" W 591.49 feet;
thence s 77°29'14" E 737.75 feet;
thence S 27°08'04" E 412.25 feet ;
thence S 01°18'01" E 122.39 feet;
thence S 03°51 '39" E 233.82 feet;
thence s 45°01 '08" E 273.91 feet;
thence S 03°42'58" W 76.44 feet;
thence N 87 °58'57" E 762.34 feet more or less to the Quarter Corner common to Section 12 and 13 in said Township and
Range, the point of beginning.
(Continued)
ALSO KNOWN AS PARCEL A ,
SMITH EXEMPTION ,
As shown on Plat recorded May 24 , 1989 as Reception No . 401671 and Amended Plat recorded March 12, 1991 as
Reception No. 421786 .
CASE NUMBER
PCT14409C2
SCHEDULE B-OWNERS
DATE OF POLICY
October 4, 1999 @ 4:05 PM
POLICY NUMBER
1312-198027
THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE BY REASON OF THE FOLLOWING:
1. Rights or claims of parties in possession not shown by the public records.
2. Easements, or claims of easements, not shown by the public records.
3. Discrepancies , conflicts in boundary lines, shortage in area, encroachments, any facts which a correct
survey and inspection of the premises would disclose and which are not shown by the public records.
4. Any lien, or right to a lien, for services, labor, or material heretofore or hereafter furnished , imposed by law
and not shown by the public records .
5. Water rights, claims or title to water.
6. Taxes for the year 2000 not yet due or payable.
7. Any portion of right of way for County Road No. 103 and a strip of land conveyed to the Board of County
Commissioners of Garfield County as set forth in instrument recorded October 5, 1965 in Book 370 at Page 179 .
8. Reservation of a perpetual non-participating royalty of 1/32 of all oil , gas and other minerals , as reserved in
instrument recorded in Book 375 at Page 50.
9. Easement and right of way for an electric transmission or distribution line or system, as granted to Holy Cross
Electric Association, Inc., in instrument recorded July 10, 1972 in Book 433 at Page 25 .
10. Easement and righ t of way for ingress and egress as set forth in instrument recorded June 14 , 1975 in Book 485 at
Page 883.
11. Garfield County road as it is now in place in Lot 8, Section 13 , T7S, R88W, as excepted in Warranty Deed recorded
August 17, 1976 in Book 487 at Page 850.
12. Terms , conditions, provisions and obligations as set forth in Easement Agreement recorded March 16 , 1990 in
Book 774 at Page 682.
13 . Easement and right of way for an electric transmission or distribution line or system, as granted to Holy Cross
Electric Association, Inc., in instrument recorded October 16, 1990 in Book 790 at Page 919.
14. Easement and right of way for an electric transmission or distribution line or system, as granted to Holy Cross
Electric Association , Inc., in instrument recorded November 5, 1990 in Book 792 at Page 599 .
15. Easements, rights of way and all matters as disclosed on Plat of subject property recorded May 24 , 1989 as
Reception No. 401671 and Amendmentthereto recorded March 12, 1991 as Reception No. 421786.
16. Deed of Trust from : CEDAR RIDGE FARM, L.L.C., AN ILLINOIS LIMITED LIABILITY COMPANY
To the Public Trustee of the County of GARFIELD
For the use of : AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO
Original Amount : $ 1, 162 ,500 .00
Dated : Septembe r 30 , 1999
Recorded : October 4, 1999 in Book 1153 at Page 783
Reception No . : 553215
EXCEPTIONS NUMBERED 1 , 2 , 3 AND 4 ARE HEREBY OMITTED .