Hill, Lynette Marie, TrusteeRECORDING REQUESTED BY:
Old Republic Title Company
Escrow No.: 0621005661
APN: 841-06-001
When Recorded Mail Document and Tax Statements to:
City of Gilroy, a California municipal corporation
7351 Rosanna Street
Gilroy, CA 95,020
DOCUMENT: 23466579
1
REGINA ALCOMENDRAS
SANTA CLARA COUNTY RECORDER
Recorded at the request of
Title Company
Pages: 4
Fees ... 44.02
Taxes...
Copies.
AMT PAID 44,00
' FRACEASDVE Mr- UNE IS' FOR R5WROEWS USE
RIDE # 026
10/14/2016
1:47 PM
RECORD WITHOUT FEE UNDER SECTION Grant Deed
27383 GOV. CODE OF STATE OF CALIF.
The undersigned grantor(s) dedare(s):
Documentary Transfer Tax is EXEMPT X Nancy Piraro/ORTC(Declarant)
(X) computed on full value of property conveyed, or
computed on full value less of liens and encumbrances remaining at time of sale.
Unincorporated area: (X) City of Gilroy
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
Lynette Marie Hill, Trustee of Eugene Francis Sachara 2005 Trust dated Janurary 3, 2005
hereby GRANT(S) to
City of Gilroy, a California municipal corporation
that property in City of Gilroy, Santa Clara County, State of California, described as:
* " * See "Exhibit A" attached hereto and made a part hereof. * * *
****See "Certificate of Acceptance" attached hereto and made a part hereof***
Date: September 27, 20 6
Eugene Francis Sachara 2005 Trust dated Janurary 3,
2005
By.
I - -yrotbe Marie Hill, Successor Trustee
Grant Deed MAIL TAX STATEMENTS AS DIRECTED ABOVE Paw- 1 of 2
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of
County of S6 n
On 01 -411 L., — before me, 0-� r 4.5b c° -o e- 6 a Notary Public, personally
appeared ale ��r6(>. �� It I who
proved to me on the ba is of satisfactory evidence to be the person s" whose names) @ja;e subscribed to the within
instrument and acknowledged to me that he,"/they executed the same in -is he /ili� r authorized capacity(*t), and
that by his he -/their signatures) on the instrument the persono, or the entity upon behalf of which the perso#) acted,
executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and
correct.
W17NESS my hand and official seal.
Signaturek"
V
Name: -Tgje
Cryped or Printed)
INGE CHRIS riZNE MAHL S
A
Notary Public - California
San BUndirdino County
C011"Milision it 2157156
Z t— . EIAWU JW 2 2020
(Seal)
Grant Deed Order No. 0621005661 Page 2 of 2
ORDER NO.: 0621005661
EXHIBIT A
The land referred to is situated in the County of Santa Clara, City of Gilroy, State of California,
and is described as follows:
Portion of Lot 12 in Block 1 North, Range 1 East, as-shown upon Map No. 6 accompanying the
Report of the Commissioners in Henry Miller, et al, Plaintiffs vs Massey Thomas, et al,
Defendants, in the Superior Court of the Sate of California, in and for the County of Santa
Clara, and more particularly described as follows:
Beginning at the point of intersection of the Southerly line of Martin Street with the Westerly
line of Railroad Street in the City of Gilroy, County of Santa Clara, and running thence Southerly
and along the Westerly line of Railroad street, 100 fee; thence at right angles Westerly 61 feet,
to the Easterly line of land of Southern Pacific Company; thence Northerly and along the
Easterly line of land of Southern Pacific Company, 100 feet to the Southerly line of Martin
Street, and thence Easterly on and along the Southerly lone of Martin Street, 61 feet to the
place of beginning.
APN: 841 -06 -001
Page 1 of 1
CERTIFICATE OF ACCEPTANCE
(Government Code Section 27281)
Certificate of Acceptance of Conveyance to the City of Gilroy by
Lynnette Marie Hill, Successor Trustee of the Eugene Francis Sachara 2005 Trust
dated January 3, 2005
This is to certify that the interest in real property conveyed by the Grant Deed from
Lynnette Marie Hill, Successor Trustee of the Eugene Francis Sachara 2005 Trust, dated
September 27, 2016 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. 2015 -55 of the City of Gilroy adopted October 26, 2015, 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 #23133758, dated November 3, 2015 and
the grantee consents to recordation thereof by its duly authorized officer.
In witness whereof, I have hereunto set my hand on October 13, 2016
By:
Gabriel A Gonzalez, City Administrat
City of Gilroy
*OLD REPUBLIC
TITLE COMPANY
To: City of Gilroy, a California municipal corporation
7351 Rosanna Street
Gilroy, CA 95020
224 Airport Parkway, Suite 170
San Jose, CA 95110
408) 296.4500 Fax: (408) 2442925
Date : November 16, 2016
Order No. : 0621005661 -3W
In acoordance with instructions contained in the above Order, we are enclosing the documents indicated
below. Recorded documents will be mailed to you by the County Recorder after processing.
We are pleased to have had the opportunity to handle this transaction for you, and would appreciate
your requesting the services of Old Republic Title Company on all your future tide and escrow needs.
Enclosures:
Policy of Title Insurance
Yours Truly,
Old Republic Title Company
Enclosures
CLTA Standard Coverage Policy of Title Insurance
CLTA Standard Coverage 1990 (Rev. 04- 08 -14)
Policy Number A04016 -F1YA- 252732
Issued by Old Republic National Title Insurance Company
* * SUBJECT TO THE EXCLUSIONS FROM COV92ACF, THE EXCEPTIONS FROM CIDA RAGE GD TAINED
* * IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, OLD REPUBLIC NATIONAL Tf R.E
* INSURANCE COMPANY, a Florida 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. True 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, attomeys' 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.
Issued through the office of
Old Republic Title Company
224 Airport Parkway, Suite 170
San Jose, CA 95110
Authorized Signature
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1102
Old Republic National Trite Insurance Company
400 Second Avenue South
Minneapolis, Minnesota 55401
By
s /
Attest s,y
n:F
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss ordamage, costs,
attorneys' fees or expenses which arise by reason of:
1. (a) Any law, ordinance or governmental regulations (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 a 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.
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 (mown 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 the 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 of interest insured by this policy or the transaction
creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors'
rights laws.
Page 2 of 7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1102
SCHEDULE A
Premium: $ 550.00 File No: 0621005661 -]W
Date of Policy: October 14th, 2016 at 1:48:00 PM
1. Name of Insured:
City of Gilroy, a California municipal corporation
2. The estate or interest in the land which is covered by this policy is:
Fee
3. Title to the estate or interest in the land is vested in:
City of Gilroy, a California municipal corporation
Page7_of 7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1301A
Policy No: A04016 -FTYA- 252732
Amount of insurance: $ 75,000.00
Policy No A04016 -FTYA- 252732
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
1. 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.
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 tide to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.
Any lien or right to a lien for services, labor or material not shown by the public records.
(Continued on Next Page)
Page 4 of 7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1301BI
Policy No A04016 -FrYA- 252732
SCHEDULE B (Continued)
Part II
1. Taxes and assessments, general and special, for the fiscal year 2016 - 2017, a lien, but not
yet due or payable.
2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et
seq., of the Revenue and Taxation Code of the State of California.
PAID CURRENT TO THE DATE OF THIS POLICY
3. Any special tax which is now a lien and that may be levied within the Santa Clara County
Library District, notice(s) for which having been recorded.
NOTE: Among other things, there are provisions in said notice(s) for a special tax to be
levied annually, the amounts of which are to be added to and collected with the property
taxes.
NOTE: The current annual amount levied against this land is $35.34.
NOTE: Further information on said assessment or special tax can be obtained by contacting:
Name Fiscal Agent of the Santa Clara County Library District, Joint Powers
Authority
Address 14600 Winchester Blvd., Los Gatos, CA 95032
Telephone No. (408) 293 -2326, Ext. 3004
4. Matters as contained or referred to in an instrument,
Entitled Certificate Pursuant To City Of Gilroy Ordinance No. 2006 -19, The
Unreinforced Masonry Building Ordinance
Executed By City of Gilroy
Dated May 14, 2008
Recorded May .16, 2008 in Official Records under Recorder's Serial Number
19856474
Note: Reference is made to said instrument for full particulars.
5. Matters as contained or referred to in an instrument,
Entitled Easement Deed By Court Order In Settlement Of Landowner Action
Recorded August 16, 2013 in Official Records under Recorder's Serial Number
22355191
Page 5 of -7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1301BII
Policy No A04016 -FTYA- 252732
6. Matters as contained or referred to in an instrument,
Entitled Easement Deed By Court Order In Settlement Of Landowner Action
Recorded December 11, 2013 in Official Records under Recorder's Serial
Number 22469243
7. Matters as contained or referred to in an instrument,
Entitled Easement Deed By Court Order In Settlement Of Landowner Action
Recorded February 13, 2014 in Official Records under Recorder's Serial Number
22518872
Page 6 of 7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04- 08 -14)
ORT Form No. 1301BII
Policy No A04016 -FTYA- 252732
SCHEDULE C
The land referred to in this Policy is situated in the County Of Santa Clara, City of Gilroy, State of California, and is
described as follows:
Portion of Lot 12 in Block 1 North, Range 1 East, as shown upon Map No. 6 accompanying the Report of the
Commissioners in Henry Miller, et al, Plaintiffs vs Massey Thomas, et al, Defendants, in the Superior Court of
the Sate of California, in and for the County of Santa Clara, and more particularly described as follows:
Beginning at the point of intersection of the Southerly line of Martin Street with the Westerly line of Railroad
Street in the City of Gilroy, County of Santa Clara, and running thence Southerly and along the Westerly line of
Railroad street, 100 fee; thence at right angles Westerly 61 feet, to the Easterly line of land of Southern Pacific
Company; thence Northerly and along the Easterly line of land of Southern Pacific Company, 100 feet to the
Southerly line of Martin Street, and thence Easterly on and along the Southerly lone of Martin Street, 61 feet
to the place of beginning.
APN: 841 -06 -001
Page-7–of 7 Pages
CLTA Standard Coverage Policy 1990 (Rev. 04 -0 8-14)
ORT form No. 1301C
ENDORSEMENT Policy ��04016 -F1YA- 252732
Order No: 0621005661 -]W
# ** OLD REPUBLIC NATIONAL
* TITLE INSURANCE COMPANY
'f * a Corporation, of Minneapolis, Minnesota
* 4C
The Company hereby assures the insured that the Company will not deny liability under the policy or any endorsements
issued therewith solely on the grounds that the policy and /or endorsements were issued electronically and /or lack
signatures in accordance with paragraph 14(c) of the Conditions and Stipulations.
This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and
provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of
Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of
this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of
the policy and of any prior endorsements.
Countersigned:
BY
Validating Officer
Page 1 of 1 Pages
OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
400 Second Avenue South, Minneapolis, Minnesota 55401
(612) 371 -1111
/da ,
W
Attest Sae�ry
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
1. Definition of Terms
The following terms 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
including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or
fiduciary successors. The term "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 Section 12(c) of these Conditions and Stipulations (reserving,
however, all rights and defenses as to any successor that the Company would have had against any predecessor insured,
unless the successor acquired the indebtedness as a purchaser for value without knowledge of the asserted defect, lien,
encumbrance, adverse claim or other matter insured against by this policy as affecting title to the estate or interest in the
land);
(ii) any governmental 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 thereof, whether
named as an insured herein or not;
(iii) the parties designated in Section 2(a) of these Conditions and Stipulations.
(iv) Subject to any rights or defenses the Company would have had against the named insured, (A) the spouse of an insured
who receives title to the land because of dissolution of marriage, (B) the trustee or successor trustee of a trust or any
estate planning entity created for the insured to whom or to which the insured transfers title to the land after the Date of
Policy or (C) the beneficiaries of such a trust upon the death of the insured.
(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 affecting
the land.
(f) "land ": the land described or referred to in Schedule C, and improvements 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 C,
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 this policy.
(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. Continuation 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 or any part of the estate or interest in the land by foreclosure, trustee's sale, conveyance in lieu of foreclosure, 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 defenses 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.
CLTA Standard Coverage Polity 1990 — Conditions and Stipulations (Rev. 04708 -14)
ORT Form No. 1102
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
(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 of 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 after 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 of foreclosure, 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 an governmental agency or governmental instrumentality, if the agency or the 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 notify 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 which 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 of the Company shall
terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the
Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the
failure 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 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 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.
(c) Whenever 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 determination by a court of competent jurisdiction and expressly
reserves the right, in its sole discretion, to appeal from any adverse judgement or order.
(d) In all cases where this policy permits 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 permit 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 the opinion of the Company may be necessary or desirable to establish the
title to the 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 terminate,
including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters
requiring such cooperation.
CLTA Standard Coverage Policy 1990 — Conditions and Stipulations (Rev. 04- 08 -14)
ORT Form No. 1102
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
5. Proof of Loss or Damage
In addition 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 swom to by each insured claimant shall be furnished to the Company within 90
days after the insured claimant shall ascertain the 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 this policy which constitutes the
basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the
Company is prejudiced by the failure of an insured claimant to provide the required proof of loss or damage, the Company's
obligations to such insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue
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 submit to examination 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 permission, in writing, for any
authorized representative of the Company to 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 an insured claimant 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 information or grant permission to secure reasonably
necessary information from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall
terminate any liability of the Company under this policy as to that insured for 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 or to Purchase the Indebtedness.
(i) to pay or tender payment of the amount of insurance 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 or bender
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 of the indebtedness secured by the insured mortgage, to
purchase the indebtedness secured by the insured mortgage for the amount owning 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 therefor.
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 terminate, 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 of the 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 terminate, including any
liability or obligation to defend, prosecute or continue any litigation.
(b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insured Claimant.
(i) to pay or 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 pay or 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 terminate,
including any liability or obligation to defend, prosecute or continue any litigation.
CLTA Standard Coverage Policy 1990 — Conditions and Stipulations (Rev. 0408 -14)
ORT Form No. 1102
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
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 of Insurance 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 of the insured estate or
interest subject to the defect, lien or encumbrance insured against 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.
(c) 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 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.
(d) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these
Conditions 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 unmarketabiliity 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 therefrom, it
shall have fully performed its obligations with respect to that matter and shall not be liable for any Ices 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 therefrom, 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 of the 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 of the
indebtedness secured by the insured mortgage.
CLTA Standard Coverage Policy 1990 — Conditions and Stipulations (Rev. 04- 08 -14)
ORT Form No. 1102
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
(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 terminate 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 interest 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 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.
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 to all rights and remedies which the insured claimant would have had against
any person or property in respect to the daim 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 (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, if
any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation.
(b) The Insured's Rights and Limitations.
Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of
the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or
guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the
insured mortgage, or release any collateral security for the indebtedness.
When the permitted 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 enforceability of the 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 to the
Company by reason of the impairment by the insured claimant of the Company's right of subrogation.
CLTA Standard Coverage Policy 1990 — Conditions and Stipulations (Rev. 04- 08 -14)
ORT Form No. 1102
CONDITIONS AND STIPULATIONS (Rev. 04- 08 -14)
(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 of the
insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms 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 Stipulations) who acquires the insured mortgage as a result of an indemnity,
guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section
1(a)(i) of these Conditions and Stipulations.
13. 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 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 less 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 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 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 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, an 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 400 Second Avenue South, Minneapolis, MN 55401 -2499,
(612) 371 -1111.
CLTA Standard Coverage Policy 1990 — Conditions and Stipulations (Rev. 04- 08 -14)
ORT Form No. 1102