South County Ventures, LLC (3)
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CHICAGO Tt"TL.;: , ... ~ rl1_
DOCUMENT: 19584167
Pages:
5
RECORDING REQUESTED BY AND
WHEN RECORDED MAIL TO:
U 111111111111111111 ~
Fees. .
Taxes.
Copies.
AMT PAID
* No Fees
City of Gilroy
7351 Rosanna St.
Gilroy, CA 95020
Attention; - Shawn a Freels) City Clerk
RECORD WImOUT FEE UNDER SECTION 27383
GOVERNMENT CODE OF STATE OF
CALIFORNIA
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
Chicago Title
ROE ** 014
9/13/2007
8:00 AM
SPACE ABOVE THIS LINE FOR RECORDER'S USE
Mail Tax Statements to:
City of Gilroy
7351 Rosanna Street
Gilroy, CA 95020
Portion of APN: 841-18-051
GRANT DEED
:-J pv~t{aa:
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, SOUTH COUNTY
VENTURES, LLC, a California limited liability company, hereby GRANT(S) in fee to the CITY OF
GILROY, CALIFORNIA, a California municipal corporation, all that certain real property in the City of
Gilroy, County of Santa Clara, State of California, more particularly described as follows:
See descriptions attached hereto as Exhibits A-I and A-2.
Dated:
4)~b JD\
SOUTH COUNTY VENTURES, LLC, a California
limited liability company
By:
Name:
Its:
j'1/t/1 p,~ 5f?;f-Cl1vnfr a.1 J1/~-lej .ApGt/e
CALlFORNIA ALL-PURPOSE ACKNOWLEDGMENT
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acknowledged to me t he/ he/they executed
the same in is/ er/their authorized
capacity(ies), and that by ~er/their
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OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent
fraudulent removal and reattachment of this form to another document.
Description of Attached Document
Title or Type of Document: G ~A t..J'I ~6 e D
Document Date: ~\ ~ \ 01
Number of Pages:
Signer(s) Other Than Named Above:
NONE
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@1999NationaINotaryAssociation.9350 De Soto Ave., P.O. Box 2402. Chatsworth, CA 91313-2402. www.nationalnotary.org
Prod. No. 5907
Reorder: Call ToU-Free 1-800-876-6827
EXHIBIT A-1
REAL PROPERTY in the City of Gilroy, County of Santa Clara, State of Callfomla, described
as follows:
A strip of land 110 feet in width, being a portion of Parcel 1 as shown upon that certain Parcel
Map filed for record November 25,1992 in Book 642 of Maps at page 14, Santa Clara County
Records, extending from the northwesterty line of said Parcel1lo the northerly line of Parcel A
8S described in the Oeed recorded February 14, 1991 in Book L616 Official Records Page
0184 Santa Clara County, the centerline of said 110 fool wide strip is more particulerty
described as follows:
BEGINNING at a City Monument, at the intersection of centerline of the Camino Arroyo Road
with the northwesterly right of way line of Gilman Road 'as shown on said map;
Thence South 31-26'55" East, 106.98 feet to the southeasterly right of way line of Gilman
Road, also being the northwesterly of line of said Parcel 1, being the True Point of Beginning;
Thence South 31-26'55" East, 269.65 feet to the northerly line of said Parcel A.
Containing 0.68 acres. more or less.
.
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CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
Certificate of Acceptance of Conveyance to the City of Gilroy by
South County Ventures, LLC on April 30, 2007
This is to certify that the interest in real property conveyed by the grant deed dated
April 30, 2007 from South County Ventures, LLC", to the City of Gilroy, a municipal
corporation of the State of California, is hereby accepted by the undersigned officer or agent on
behalf of the City of Gilroy pursuant to authority conferred by Resolution No. 2004-20 of the
City of Gilroy adopted March 15,2004, a certified copy of which resolution is on record in the
office of the County Recorder of the County of Santa Clara, State of California, document
#17703402, dated April 6, 2004 and the grantee consents to recordation thereof by its duly
authorized officer.
In witness whereof, I have hereunto set my hand on July 24, 2007.
I:\CTYCLERK\FORMS\ACCEPT ANCE.DOC
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Chicago Title Insurance Company
4
OCT 2007
CITY ClERKS OFFICE
GILROY, CA
POLICY NO.: CACTI7743-7743-2987-0098700992-CTIC-2007-01-0
CL T A STANDARD COVERAGE POLICY OF TITLE INSURANCE
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN
SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE INSURANCE COMPANY, a
Missouri 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 the insured by reason of
1. Title to the estate or interest described in Schedule A being vested other than as stated therein;
2. Any defect in or lien or encumbrance on the title;
3. Unmarketability of the title;
4. Lack of a right of access to and from the land;
and, in addition, as to an insured lender only:
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in
Schedule B in the order of its priority;
7, The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown
in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the
named insured assignee free and clear of all liens.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the
insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations.
IN WITNESS WHEREOF, CHICA GO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed by
its du~y authorized officers.
~~~~
Chicago Title Insurance Company
,u I v~ BY f1 /7_} M(L-L--
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A:::tr C
CL T A Standard Coverage Policy.. 1990
SCHEDULE A
Policy No,: CACTI7743-7743-2987-0098700992-CTIC-2007-01-0
Amount of Insurance:
Premium:
Date of Policy: September 13, 2007 at 08:00 AM
1. Name of Insured:
City of Gilroy, California, a California municipal corporation
2. The estate or interest in the land which is covered by this policy is:
A Fee
3. Title to the estate or interest in the land is vested in:
City of Gilroy, California, a California municipal corporation
4. The land referred to in this policy is described as follows:
SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF
THIS POLICY VALID ONLY IF SCHEDULE B IS ATTACHED
1
$ 306,600.00
$ 1,210.00
CLTA Standard Coverage Policy - 1990
Policy No. CACTI7743-7743-2987-0098700992-CTIC-2007-01-0
LEGAL DESCRIPTION
EXHIBIT "A"
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GILROY, COUNn OF SANTA CLARA,
STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS:
Parcel One, as shown on that certain Parcel Map filed for record on November 25, 1992 in Book 642 of Maps
at Page 14, Santa Clara County Records.
Excepting therefrom that portion thereof described as Parcel A in that certain Final Order of Condemnation
filed in the Superior Court County of Santa Clara entitled, "Santa Clara Valley Water District, Plaintiff, vs Joe
R. Smolen, et ai, Defendants", Case No. 568873, recorded February 14, 1991 in Book L618 Page 0184 of
Official Records, described as follows:
Being a portion of the lands described in the deed recorded in Book 1319 of Official Records at Page 684 in
the Office of the Recorder, County of Santa Clara, State of California, to wit:
Parcel "A"
Beginning at the most Easterly corner of the lands of Santa Clara Valley Water District as said lands are
described in the deed recorded in Book 9231 of Official Records at Page 455, Santa Clara County Records;
thence along the Northeasterly line of last said lands N 310 26' 55" W 175.60 feet to the true point of
beginning; thence along the general Northerly line of last said lands S 85030' 00" W. 453.15 feet; thence S.
81046' 51" W. 200.42 feet; thence S 850 30' 00" W 772.03 feet; thence along a curve to the right, having a
radius of 883.00 feet, through a central angle of 110 04' 07", for an arc distance of 170.58 feet to the
Northwesterly corner of last said lands; thence N 31026' 55" W 19.29 feet to the general Southeasterly line of
Gilman Road; thence along said line N 700 38' 12" E 41.59 feet; thence leaving said line along a curve to the
left from a tangent which bears S 850 09' 07" E. having a radius of 850.00 feet, through a central angle of 90
20' 53", for an arc distance of 138.68 feet; thence N, 850 30' 00" E 1,415.01 feet to the Northeasterly line of
first said lands; thence along said line S 310 26' 55" E 22.44 feet to the true
point of beginning.
APN: 841-18-051
2
CLTA Standard Coverage Policy - 1990
Policy No. CACTI774 3-7743- 2987-0098700992-CnC - 2007 -01-0
SCHEDULE B
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or
expenses) which arise by reason of:
PART I
All matters set forth in paragraphs 1 through 5 inclusive on the cover of this policy under the caption Part Iof
Schedule B.
PART II
1. Property taxes, which are a lien not yet due and payable, including any assessments collected with
taxes to be levied for the fiscal year 2007-2008.
2. Special Tax for Santa Clara County Library District Joint Powers Authority Community Facilities District
No. 2005-1, under the Mello-Roos Community Facilities Act of 1982 as disclosed by a Notice of
Special Tax Lien Recorded June 24, 2005, Instrument No. 18438576, Official Records, payable in
continuing installments collected with the real property taxes.
3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5
(Commencing with Section 75) of the Revenue and Taxation code of the State of California.
4. An easement affecting the portion of said land, the exact location thereof cannot be ascertained of
record, and for the purposes stated herein, and incidental purposes,
In Favor Of:
For:
Recorded:
Sierra and San Francisco Power Company
Electric transmission line
August 26, 1912 in Book 388 of Deeds at Page 566
5. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a
document.
Granted to:
Purpose:
Recorded:
Affects:
City of Gilroy, A Municipal Corporation
Storm Drainage Easement
June 16, 1982, Book G844, Page 506, of Official Records
Parcel One, as follows:
3
CL TA Standard Coverage Policy - 1990
SCHEDULE B - PART II (continued)
Policy No. CACn7743-7743-2987-0098700992-CnC-2007-01-0
Being a portion of Lot 4 as shown on "Map of the Elizabeth H. Martin Tract", which Map was filed for
record on October 20, 1894 in Book "F" of Maps at page 31, Records of Santa Clara County,
California, and being a non-exclusive easement for the installation and maintenance of an
underground storm drain under, over, on and across a strip of land 20,00 feet in width, the centerline
of which is more particularly described as follows:
Beginning at a point in the Southeasterly line of Gilman Road distance thereon S. 550 02' 47" W.
197.74 feet from the most Easterly corner of that certain parcel of land described in deed recorded
February 25, 1971 in Book 9231 at page 165, Official Records of Santa Clara County; and running
thence S. 310 20' 52" E. 335.20 feet to a point in the Northerly line of that certain parcel of land
conveyed to Santa Clara Valley Water District, from which the most Northerly corner of said parcel
bears N. 850 30' E. 25.64 feet, N. 81046' 51" E. 200.42 feet and N. 850 30' E. 453.15 feet.
6. Matters contained in that certain document entitled" Agreement for Easement and Dedication"
dated December 13, 2000, executed by Leland B. Evans and Mary K. Filice, as; Sole Trustee of the
Survivor's Trust, and as Co-Trustee of the Marital Deduction Trust, and as Co-Trustee of the
Exemption Trust, et al. recorded December 19, 2000, Instrument No. 15499518, of Official Records,
which document, among other things, contains or provides for: Agreement for Easement and
Dedication.
Reference is hereby made to said document for full particulars.
7. A Temporary Construction Easement dated August 16, 2007, by and between South County
Ventures, LLC, A California Limited Liability Company, and the City of Gilroy, a municipal corporation
of the State of California Agreement, affecting said land, for the purposes, stated herein, upon the
terms, covenants and conditions referred to therein, between the parties named herein
Recorded:
September 13, 2007 Instrument No: 19584168 of Official Records
END OF SCHEDULE B
4
CL TA Standard Coverage Policy - 1990
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EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or
expenses which arise by reason of:
I. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting,
regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any
improvement 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 the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental
regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting 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 notice of the exercise thereof or a notice of a defect, lien or
encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.
2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from
coverage any taking which has occurred prior to Date 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) whether or not recorded in the public records at Date of Policy, but 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 not disclosed in writing
to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss 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 insured mortgage or for the estate
or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any
subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured
mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim. which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest
of the insured lender, by reason of the operation offederal bankruptcy, state insolvency, or similar creditors' rights laws.
l. DEFINITION OF TERMS
The following tenns when used in this 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 to the interest of
the named insured by operation of law as distinguished from
purchase inc luding. but not limited to. heirs. distributes,
devisees. survivors. personal representatives, next of kin, or
corporafe or fiduciary successors, The tenn "insured" also
includes
(i) the owner of the indebtedness secured by the
insured mortgage and each successor in ownership of the
indebtedness except a successor who is an obligor under the
provisions of Secfion 12( c) of these Conditions and Stipulations
(reserving. however, all rights and de tenses as to any successor
that the Company would have had against any predecessor
insured. unless the successor acquired the indebtedness as a
purchaser tor value without knowledge of the asserted defect.
lien. encumbrance. adverse claim or other matter insured a!,'llinst
by this policy as affecting title to the estate or interest in the
I"nd),
(ii) any governmenfal agency or governmental
instrumentality which is an insurer or guarantor under an
insurance contract or guaranty insuring or guaranteeing the
indebtedness secured by the insured mortgage. or any part
thereot: whether named as an insured herein or not
(iii) the parties designated in Section 2(a) of these
Conditions and Stipulations,
(b) "insured claimant": an insured claiming loss or
damage.
(c) "insured lender": the owner of an insured mortgage,
(d) "insured mortgage": a mortgage shown in Schedule B.
the owner of which is named as an insured in Schedule A,
(e) "knowledge" or "known", actual knowledge. not
constructive knowledge or notice which may be imputed to an
insured by reason of the public records as defined in this policy
or any other records which impart constructive notice of matters
aflecting the land,
(I) "land": the land described, or referred to in
Schedule A. and improvements affixed thereto which by law
constitute real property, The tenn "land" does not include any
property beyond the lines of the area described or reterred to in
Schedule A. nor any right. title. interest. estate or easement in
abutting streets. roads. avenues, alleys, lanes, ways or
watelWays. but nothing herein shall modiJY or limit the extent to
which a right of access fo and from the land is insured by this
policy.
CONDITIONS AND STIPULATIONS
(g) "mortgage": mortgage. deed of trust, trust deed, or
other security instrument.
(h) "public records": records established under state
statutes at Date of Policy for the purpose of imparting
constructive notice of matters relating to real property to
purchasers for value and without knowledge,
(i) "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 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 requiring the delivery of marketable title,
2. CONTINUA TlON OF INSURANCE
(a) After Acquisition of Title by Insured Lender. If this
policy insures the owner of the indebtedness secured by the
insured mortgage. the coverage of this policy shall continue in
force as of Date of Policy in favor of (i) such insured lender who
acquires all of any part of the estate or interest in the land by
foreclosures. trustee' s sale. conveyance in lieu offoreclosure, or
other legal manner which discharges the lien of the insured
mortgage: (ii) a transferee of the estate or interest so acquired
from an insured corporation. provided the transferee is the
parent or wholly-owned subsidiary of the insured corporation.
and their corporate successors by operation of law and not by
purchase. subject to any rights or delenses the Company may
have against any predecessor insureds: and (iii) any
governmental agency or governmental instrumentality which
acquires all or any part of the estate or interest pursuant to a
contract of insurance or guaranty insuring or guaranteeing the
indebtedness secured by the insured mortgage,
(b) After Conveyance of Title by an Insured, The
coverage of this policy shall continue in force as of Date of
Policy in favor of an insured only so long as the insured retains
an 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 or warranty made by the insured in any
transfer or conveyance of the estate or interest. This policy shall
not continue in force in favor of any purchaser from an insured
of either (I) an estate or interest in the land, or (ii) an
indebtedness secured by a purchase money mortgage given to an
insured.
(c) Amount of Insurance. The amount of insurance afler
the acquisition or after the conveyance by an insured lender shall
in neither event exceed the least of,
(i) the amount of insurance stated in Schedule A:
(ii) the amount of the principal of the indebtedness
secured by the insured mortgage as of Date of Policy, interest
thereon. expenses offoreclosure, amounts advanced pursuant to
the insured mortgage to assure compliance with laws or to
protect the lien of the insured mortgage prior to the time of
acquisition of the estate or interest in the land and secured
thereby and reasonable amounts expended to prevent
deterioration of improvements, but reduced by the amount of all
payments made; or
(iii) the amount paid by any governmental agency or
governmental instrumentality, if the agency or instrumentality is
the insured claimant, in the acquisition of the estate or interest in
satisfaction of its insurance contract or guaranty,
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED
CLAIMANT
An insured shall notiJY the Company promptly in writing
(i) in case of any litigation as set forth in 4(a) below. (ii) in case
knowledge shall come to an insured hereunder of any claim of
title or interest which is adverse to the title to the estate or
interest or the lien of the insured mortgage. as insured. and
which might cause loss or damage for whicb the Company may
be liable by virtue of this policy. or (iii) if title to the estate or
interest or the lien of the insured mortgage. as insured, is
rejected as unmarketable, If prompt notice shall not be given to
the Company. then as to that insured all liability ofthe Company
shall terminate with regard to the matter or matters for which
prompt notice is required: provided. however. that failure fo
notiJY the Company shall in no case prejudice the rights of any
insured under this policy unless the Company shall be
prejudiced by the tailure and then only to the extent of the
prejudice,
4. DEFENSE AND PROSECUTION OF ACTIONS;
DUTY OF INSURED CLAIMANT TO COOPERATE
(a) Upon written request by an insured and subject to the
options contained in Section 6 of these Conditions and
Stipulations, the Company. at its own cost and without
unreasonable delay. shall provide for the defense of such 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 defect, lien or encumbrance or other matter
insured against by this policy, The Company shall have the right
to select counsel of its choice (subject to the right of such
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 an insured in the
CL T A Standard Coverage Policy - 1990
defense of 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 may be necessary or desirable to
establish the title to the estate or interest or the lien of the
insured mortgage, as insured. or to prevent or reduce loss or
damage to an insured, The Company may take any appropriate
action under the tenns 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) Whcnever the 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 detennination by a court of competent jurisdiction and
expressly reserves the right. in its sole discretion, to appeal from
any adverse judgment or order.
(d) In all cases where this policy pennits or requires the
Company to prosecute or provide for the defense of any action
or proceeding, an insured shall secure to the Company the right
to so prosecute or provide defense in the action or proceeding,
and all appeals therein, and pennit the Company to use, at its
option, the name of such insured for this purpose, Whenever
requested by the Company, an insured. at 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 Ihe opinion
of the Company may be necessary or desirable to establish the
title to thc estate or interest or the lien of the insured mortgage,
as insured, If the Company is prejudiced by the failure of an
insured to furnish the required cooperation, the Company's
obligations to such insured under the policy shall tenninate.
including any liability or obligation to defend, prosecute. or
continue any Iitigafion, with regard to the matter or matters
requiring such cooperation.
5. PROOF OF LOSS OR DAMAGE
In addifion to and after the notices required under Section 3
of these Conditions and Stipulations have been provided the
Company. a proof of loss or damage signed and sworn to by
each insured claimant shall be fumished to the Company within
90 days after fhe insured claimant shall ascertain the facts giving
rise to the loss or damage, The proof of loss or damage shall
describe the defecf in, or lien or encumbrance on the title, or
other matter insured against by this policy which constitutes the
basis of loss or damage and shall state. to the extent possible,
the basis of calculafing the amount of the loss or damage, If the
Company is prejudiced by the lailure of an insured claimant to
provide the required proof of loss or damage, the Company's
obligations to such insured under the policy shall tenninate.
including any liability or obligation to defend, prosecute, or
confinue any litigation. with regard to the matter or matters
requiring such proof of loss or damage,
In addition. an insured claimant may reasonably be required
to submif to examinafion under oath by any authorized
representative of the Company and shall 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 after 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 grant
its pennission. in writing, tor any authorized representative of
the Company to examine. inspect and copy all records, books.
ledgers, checks, correspondence and memoranda in the cusfody
or confrol of a third party, which reasonably pertain to the loss
or damage, All inlonnation designated as confidential by an
insured claimanf provided to the Company pursuant to this
Section shall not be disclosed to others unless, in the reasonable
judgment of the Company. it is necessary in the administration
of the claim, Failure of an insured claimant to submit for
examination under oath. produce other reasonably requested
infonnation or grant pennission to secure reasonably necessary
infonnation from third parties as required in this paragraph.
unless prohibited by law or governmental regulation, shall
tenninafe any liability of the Company under this policy as to
t"af insured t(,r 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 lollowing additional options:
(aJ To Payor Tender Payment of the Amount of
Insurance or 10 Purchase the Indebtedness.
(i) fo payor tender payment of the amount of
insurance under this policy together with any costs, attomeys'
fees and expenses incurred by the insured claimant, which were
authorized by the Company, up to the time of payment or tender
of payment and which the Company is obligated to pay; or
(ii) in case loss or damage is claimed under this
policy by the owner ofthe indebtedness secured by the insured
mortgage, to purchase the indebtedness secured by the insured
mortgage for the amount owing thereon together with any costs,
attorneys' fees and expenses incurred by the insured claimant
which were authorized by the Company up to the time of
purchase and which the Company is obligated to pay,
If the Company offers to purchase the indebtedness as
herein provided, the owner of the indebtedness shall transfer,
assign, and convey the indebtedness and the insured mortgage.
together with any collateral security, to the Company upon
payment therefore,
Upon the exercise by the Company of the option provided
for in paragraph a(i). all liability and obligations to the insured
under this policy, other than to make the payment required in
that paragraph. shall tenninate. including any liability or
obligation to defend, prosecute, or continue any litigation, and
the policy shall be surrendered to the Company for cancellation.
Upon the exercise by the Company ofthe option provided
for in paragraph a(ii) the Company's obligation to an insured
Lender under this policy for the claimed loss or damage. other
than the payment required to be made, shall tenninate, including
any liability or obligation to defend, prosecufe or continue any
litigation,
(b) To Payor Otherwise Settle With Parties Other
than tbe Insured or With the Insured Claimant.
(i) to payor otherwise settle with other parties for or
in the name of an insured claimant any claim insured against
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: or
(ii) to payor otherwise settle with the insured
claimant 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 of the options
provided for in paragraphs b(i) or b(ii), the Company's
obligations to the insured under this policy for the claimed loss
or damage, other than the payments required to be made, shall
tenninate, including any liability or obligation to defend.
prosecute or continue any litigation,
7, DETERMINATION AND EXTENT OF LIABILITY
This policy is a contract of indemnity against actual
monetary loss or damage sustained or incurred by the insured
claimant who has suffered 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 to an
insured lender shall not exceed the least of:
(i) the Amount oflnsurance stated in Schedule A, or,
if applicable, the amount of insurance as defined in Section 2(c)
of these Conditions and Stipulations:
(ii) the amount of the unpaid principal indebtedness
secured by the insured mortgage as limited or provided under
Section 8 of these Conditions and Stipulations or as reduced
under Section 9 of these Conditions and Stipulations, at the time
the loss or damage insured against by this policy occurs,
together with interest thereon; or
(iii) the difference between the value of the insured
estate or interest as insured and the value ofthe insured estate or
interest subject to the defect, lien or encumbrance insured
againsf by this policy,
(b) In the event the insured lender has acquired the estate
or interest in the manner described in Section 2(a) of these
Conditions and Stipulations or has conveyed the title, then the
liability of the Company shall continue as set forth in
Section 7(a) of these Conditions and Stipulations,
(cJ The liability of the Company under this policy to an
insured owner of the estate or interest in the land described in
Schedule A shall not exceed the least of:
(i) the Amount of the Insurance stated in
Schedule A: or.
(ii) the difference between the value of the insured
estate or interest as insured and the value ofthe insured estate or
interest subject to the defect, lien or encumbrance insured
against by this policy,
(d) The Company will pay only those costs, attorneys'
fees and expenses incurred in accordance with Section 4 of
these Condifions and Stipulations,
8. LIMITATION OF LIABILITY
(a) If the Company establishes the title. 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
unmarketability of title, or otherwise establishes the lien of the
insured mortgage, all as insured. in a reasonably diligent manner
by any method, including litigation and the completion of any
appeals there from, it shall have fully perfonned its obligations
with respect to that matter and shall not be liable tor any loss or
damage caused thereby,
(b) In 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 damage until there has been a final
determination by a court of competent jurisdiction, and
disposition of all appeals there from. adverse to the title. or, if
applicable. to the lien of the insured mortgage. 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 the prior written consent ofthe
Company,
(d) The Company shall not be liable to an insured lender
for: (i) any indebtedness created subsequent to Date of Policy
except for advances made to protect the lien of the insured
mortgage and secured thereby and reasonable amounts expended
to prevent deterioration of improvements; or (ii) construction
loan advances made subsequent to Date of Policy, except
construction loan advances made subsequent to Date of Policy
for the purpose of financing in whole or in part the construction
of an improvement to the land which at Date of Policy were
secured by the insured mortgage and which the insured was and
continued to be obligated to advance at and after Date of Policy.
9. REDUCTION OF INSURANCE; REDUCTION OR
TERMINATION OF LIABILITY
(a) All payments under this policy, except payments made
for costs, attorneys' fees and expenses, shall reduce the amount
of insurance pro tanto, However. as to an insured lender, any
payments made prior to the acquisition of title to the estate or
interest as provided in Section 2(a) of these Conditions and
Stipulations shall not reduce pro tanto the amount of insurance
afforded under this policy as to any such insured, except to the
extent that the payments reduce the amount ofthe indebtedness
secured by the insured mortgage,
(b) Payment in part by any person of the principal of the
indebtedness, or any other obligation secured by the insured
mortgage, or any voluntary partial satisfaction or release of the
insured mortgage, to the extent of the payment, satisfaction or
release, shall reduce the amount of insurance pro tanto, The
amount of insurance may thereafter be increased by accruing
interest and advances made to protect the lien of the insured
mortgage and secured thereby, with interest thereon. provided in
no event shall the amount of insurance be greater than the
Amount of Insurance stated in Schedule A,
(c) Payment in full by any person or the voluntary
satisfaction or release of the insured mortgage shall tenninatc all
liability of the Company to an insured lender except as provided
in Section 2(a) of these Conditions and Stipulations,
10, 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.
The provisions of this Section shall not apply to an insured
lender, unless such insured acquires title to said estate or interesf
in satisfaction of the indebtedness secured by an insured
mortgage,
11, PAYMENT OF LOSS
(a) No payment shall be made without producing this
policy for endorsement of the payment unless the policy has
been lost or destroyed. in which case proof ofloss 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,
12, 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 fo all
rights and remedies which the insured claimant would have had
againsf any person or property in respect to the claim had this
CLT A Standard Coverage Policy - 1990
policy not been issued, If requested by the Company. the insured
claimant sha II 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 pennit 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 thc insured claimant. the Company shall be subrogated
(i) as to an insured owner. to all rights and remedies in the
proportion which the Company's payment bears to the whole
amount of the loss: and (ii) as to an insured lender. to all rights
and remedies of the insured claimant after the insured claimant
shall have recovered its principal. interest, and costs of
collection,
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 the
amount. ifany. lost to the Company by reason of the impainnent
by the insured claimant offhe Company's right of subrogation,
(b) The Insured's Rights and Limitations.
Notwithsfanding fhc foregoing. the owner of the
indebtedness secured by an insured mortgage, provided the
priority of the lien ofthe insured mortgage or its enforceability is
not affected, may release or substitute the personal liability of
any debfor or guarantor, or extend or otherwise modifY the tenns
of payment. or release a portion offhe estate or interest from the
lien of the insured mortgage, or release any collateral security
tor the indebtedness,
When the pennitted acts of the insured claimant occur and
the insured has knowledge of any claim of title or interest
adverse to the title to the estate or interest or the priority or
entorceability ofthe lien of an insured mortgage. as insured. the
Company shall be required to pay only that part of any losses
insured against by this policy which shall exceed the amount. if
any. lost fo the Company by reason of the impainnent by the
insured claimant ofthe Company's right of subrogation,
(c) 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 ofthe insured to indemnities. guaranties. other policies of
insurance or bonds, notwithstanding any tenns or conditions
contained in those instruments which provide for subrogation
rights by reason of this policy,
The Company's right of subrogation shall not be avoided
by acquisition of an insured mortgage by an obligor (except an
obligor described in Section 1 (a)(ii) of these Conditions and
Stipulalions) who acquires the insured mortgage as a result of an
indemnity. guarantee. other policy of insurance, or bond and the
obligor will not bean insured under this policy, notwithstanding
Section I(a)(i) of these Conditions and Stipulations,
13. ARBITRATION
Unless prohibited by applicable law, eitller 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
to, any controversy or claim between the Company and the
insured arising out of or relating to this policy. any service onhe
Company in connection with its issuance or the breach of a
policy provision or other obligation, All arbitrable matters when
the Amount oflnsurance is $1.000,000 or less shall be arllitrated
at the option of either the Company or the insured, All arllitrable
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 this policy and
under the Rules in effect on the date the demand for arbitration
is made or. at the option of the insured, the Rules in effect at
Date of Policy shall be binding upon the parties, The award may
include attorneys' fees only ifthe 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.
SCHEDULE B
EXCEPTIONS FROM COVERAGE
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.
14. 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 not based on
negligence, and which arises out of the status of the lien of the
insured mortgage or 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 except by a writing endorsed hereon or attached hereto
signed by either the President. a Vice President. the Secretary,
and Assistant Secretary. or validating officer or authorized
signatory of the Company.
15. 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 provision and all other provisions shall remain
in full force and effect.
16. NOTICES, WHERE SENT
All notices required to be given the Company and any
statement in writing required to be furnished the Company shall
include the number of this policy and shall be addressed to the
Company at:
FNF - Southwest Claims Center
17911 Von Karman A venueSuite 300
Irvine, CA 92614
Attn: Claims Administration
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:
PART I
I, Taxes or assessments 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.
2. 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 thereof.
3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are
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) water rights, claims or title to
water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
CLT A Standard Coverage Policy - 1990