HomeMy WebLinkAboutD-1674 Bishop Tank, Water Tank Site - APN 073-371-004 Recorded 12/23/2005*
JULIE ROOM 1
MEN
RECORDING REQUES*D
� San Luis -Obis „ Co ClerklRecorder
12j2312005
TITLE COMPANY
8 :00 AM
CUESTA
i Recorded at the request of
'
tuesta Title Company
Doc # : 2005106845 Tines: 1
Pages: 11
- and
Fees
0.00
when recorded return to:
Taxes
0.00
Others
Hamner, Jewell & Associates
i PAID p
$0.00
Government Real Estate Services
P.O. Box 3086
Shell Beach, CA 93448
A.P. No. 073 -371 -004 (SLO County)
SPACE ABOVE THIS LINE FOR RECORDER'S USE
No recording fee per Government Code 6103
No Documentary Transfer Tax per Revenue & .Taxation
Code11922
FILED FEE PAI EX® oUTCF
City of San Luis Obispo
STATE
WATER TANK SITE EASEMENT DEED
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
THE COUNTY OF SAN LUIS OBISPO, A POLITICAL CORPORATION AND ONE
OF THE COUNTIES OF THE STATE OF CALIFORNIA ( "GRANTOR ")
does hereby GRANT to the
CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION AND A CHARTER
CITY IN THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA ( "CITY ")
the following interests in real property:
A. A Permanent and Exclusive Easement for the construction, operation, maintenance
and repair of a water storage reservoir and related appurtenances, including associated utilities,
pipelines, and related facilities, and ingress and egress rights associated therewith. This
exclusive easement shall be in, over, on, through, within, under, and across the Easement Area of
the Real Property as defined in this paragraph. The "Real Property" is in the County of San Luis
Obispo, State of California and is described in Exhibit "A" attached hereto and incorporated by
reference herein. The "Exclusive Easement Area" which comprises the Permanent Exclusive
Easement is described in Exhibit `B and depicted in Exhibit "D" (labeled the "Permanent
Easement" therein), each attached hereto and incorporated by reference herein.
Page 1/4
-Dl�q4
The Permanent Exclusive Easement described herein shall be SUBJECT TO THE FOLLOWING
TERMS AND CONDITIONS:
i
1. The facilities and improvements installed in the Exclusive Easement Area collectively
are referred to herein as "City Facilities." Plans for City Facilities as they exist from time to time
shall be maintained at the City's principal offices.
2. City shall have and hold all rights to the exclusive use of the Permanent Exclusive
Easement Area. City may restrict the rights of others to enter the Exclusive Easement Area and
may erect perimeter fencing around the Exclusive Easement Area and maintain locked gates in
order to protect City Facilities and prohibit access and use by others.
3. City shall have the right of ingress and egress for personnel, vehicles, and construction
equipment to, from, and along the Exclusive Easement Area at any time, without prior notice.
4. Subsequent to the grant of this Exclusive Easement, Grantor shall not grant any
easements of any kind whatsoever to others in, over, on, through, within, under, and across the
Exclusive Easement Area without prior written consent of the City.
Together with:
B. A Temporary Construction Easement for the purposes of facilitating construction
of City Facilities, including the right to place equipment and vehicles, pile earth thereon, erect
and operate temporary water storage tanks, and utilize said Temporary Construction Easement
for all other related activities and purposes associated with facilitating the construction of City
Facilities upon the Permanent Exclusive Easement Area described hereinabove, in, on, over,
under, through, and across that certain parcel of land described in Exhibit "C" and depicted in
Exhibit "D ", attached hereto and incorporated herein. This Temporary Construction Easement
shall commence thirty (30) days following the issuance of a Notice of Construction
Commencement issued by City to Grantor via U.S. Mail, and shall terminate within twenty -four
(24) months after commencement, or upon completion of construction, whichever occurs first;
however, City shall have the right to extend the Temporary Construction Easement term in
additional three (3) month increments if City determines that additional time beyond the twenty
four month period is necessary for construction completion. In such case, City shall have the
unilateral right to extend the Temporary Construction Easement period through construction
completion and agrees to compensate Grantor Twelve Hundred Dollars ($1,200.00) for each
three -month extension term exercised. Payment for any such extensions shall be paid by City to
Grantor concurrent with City's written notice to Grantor of City's intent to exercise such
extension provisions. In any event, this Temporary Construction Easement shall terminate on or
before June 30, 2008.
Upon completion of construction of City's Facilities, the Temporary Construction
Easement area shall be generally restored to the condition that existed prior to construction, to
the extent reasonably practical, subject to any grading done in conjunction with the construction
of City Facilities provided that such grading does not detrimentally affect County's adjacent
property.
Page 2/4
APPROVED AS TO FORM AND LEGAL EFFECT:
JAMES B. LINDHOLM, JR.
County Counsel
By:
Deputy ounty Co 6 sel
Date: 10 � 7e ifs,
GRANTOR: COUNTY OF SAN LUIS OBISPO
By: SHIRLEY BIMCLn
Chairperson of the Board of Supervisors
��1Qpproved by the _Boar�.of Supervisors on
YJ� 2005
ATTEST:
By: JULE L. RODE �VALD
Clerk of the Board of Su erv,� s
®y: VIC, s E.� �r
Deb my Cle -lk
State of C,
County of
On
before me,
appeared
, personally
known to me (or proved to me on the bas of satisfactory evidence) to be the person(s) whose
name(s) is /are subscribed to the within ins ent and acknowledged to me that he /she /they
executed the same in his/her /their authorized ca city(ies) and that by his/her /their signature(s)
on the instrument the person(s), or the entity upon alf of which the person(s) acted, executed
the instrument.
WITNESS my hand and official seal
Signature (Seal)
Page 3/4
9 •
00
I
CERTIFICATE OF ACCEPTANCE
* * * * * * * * * * * * * * * * * **
THIS IS TO CERTIFY that the interest in real property conveyed by the
Water Tank Site Easement Deed dated , 2005, from The Countv of
San Luis Obispo to the City of San Luis Obispo (Grantee), is hereby accepted by the
undersigned officer on behalf of Grantee, and the Grantee consents to the recordation
thereof by its duly authorized officer or agent.
Date:
Approved as to form:
J&addh Lowell, City Attorney
The City of San Luis Obispo
By
Dave Romero, Mayor
Page 4/4
...
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00
STATE OF CALIFORNIA )
) ss.
COUNTY OF SAN LUIS OBISPO)
Is
On November 15, 2005 before me, Vicki M. Shelby, Deputy County Clerk- Recorder, County
of San Luis Obispo, State of California, personally appeared Shirley Bianchi personally known to
me to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacities, and that by his signature on the instrument the
person or the entity upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
a N �• If.�
(SEAL �,� •�.,,
JULIE L. RODEWALD, County Clerk -
Recorder and Ex- Officio Clerk of
the Board of Supervisors
By. lmcnm M)"A
Deputy ounty Clerk- order
APPROVED AS TO FORM AND LEGAL EFFECT:
JAMES B. LINDHOLM, JR.
County Counsel
By;
Deputy ounty Co el
Date: 101 7 e i nr
GRANTO C UNTY F SAN LUIS OBISP
B: ,
Chairperson of the oard of Supervisors
Approved by the Board of Supervisors on
.2005
ATTEST:
By: JULM L. RODFKALD
Clerk of the Board of Supervisors
epty Clerk
State California
County o
On
before me,
appeared
personally
known to me (or proved to on the basis of satisfactory evidence) to be the person(s) whose
name(s) is /are subscribed to the \ahorized ment and acknowledged to me that he /she /they
executed the same in his/her /th capacity(ies) and that by hi s/her /their signature(s)
on the instrument the person(s) upon behalf of which the person(s) acted, executed
the instrument.
WITNESS my hand and official seal
Signature
Page 3/4
•
STATE OF CALIFORNIA )
) SS.
COUNTY OF SAN LUIS OBISPO)
•
On November 15, 2005 before me, Vicki M. Shelby, Deputy County Clerk- Recorder, County
of San Luis Obispo, State of California, personally appeared Shirley Bianchi personally known to
me to be the person whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his authorized capacities, and that by his signature on the instrument the
person or the entity upon behalf of which the person acted, executed the instrument.
WITNESS my hand and official seal.
JULIE L. RODEWALD, County Clerk -
Recorder and Ex- Officio Clerk of
the Board of Supervisors
By:Ur 'WV r�h t "I
Deputy unty Clerk- corder
L+ IN ..
L :7
• v (Sk"
Order No. 808445
Exhibit A
The "Remainder Parcel' of Parcel Map SLOAL 89 -191, in the City of San Luis Obispo,
County of San Luis Obispo, State of California, according to map recorded October 18,
1991, in Book 48, Page 81 of Parcel Maps.
40•
EXHIBIT B
Water Tank Site Easement
Legal Description
Permanent Easement
A portion of Lot 13 of the Deleissiguez Tract as shown on map filed in Book A of Maps at Page
95, records of San Luis Obispo County, California, described as follows:
BEGINNING at a 1" iron pipe at the intersection of the northwest line of Bishop Street with the
southwest line of Laurel Street, said point designated "S -3" as shown on the map of the Goldtree
Vineyard Tract, filed in Book 1 of Licensed Surveys at Page 14, records of said County; thence
1) along the said northwest line of Bishop Street, South 390 42' 40" West 68.500 meters
(224.74 feet); thence
2) at right angles, North 50° 17' 20" West 46.000 meters (150.92 feet); thence
3) at right angles, North 39° 42' 40" East 57.567 meters (188.87 feet), more or less, to the
said southwest line of Laurel Street; thence
4) along last said line, South 63° 39' 32" East 47.281 meters (155.12 feet) to the POINT OF
BEGINNING.
The above - described parcel contains 2817 square meters (30322 square feet), more or less.
The above - described parcel is graphically shown on Exhibit D attached hereto and made a part
hereof.
J. Randy Ellis6n, LS7065
?-Du`
Date
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!•
EXHIBIT C
Water Tank Site Easement
Legal Description
Temporary Easement
* 9
A portion of Lot 13 of the Deleissiguez Tract as shown on map filed in Book A of Maps at Page
95, records of San Luis Obispo County, California, described as follows:
Commencing at a 1" iron pipe at the intersection of the northwest line of Bishop Street with the
southwest line of Laurel Street, said point designated "S -3" as shown on the map of the Goldtree
Vineyard Tract, filed in Book 1 of Licensed Surveys at Page 14, records of said County;
thence along the said northwest line of Bishop Street, South 39° 42' 40" West 68.500 meters
(224.74 feet) to the TRUE POINT OF BEGINNING; thence
1) continuing along said line of Bishop Street, South 391 42' 40" West 15.000 meters
(49.21 feet); thence,
2) at right angles, North 500 17' 20" West 61.000 meters (200.13 feet); thence
3) at right angles, North 39° 42' 40" East 45.000 meters (147.64 feet); thence
4) at right angles, North 50° 17' 20" West 40.000 meters (131.23 feet); thence
3) at right angles, North 39° 42' 40" East 14.494 meters (47.55 feet), more or less, to the
said southwest line of Laurel Street; thence
4) along last said line, South 63° 39' 32" East 56.532 meters (185.47 feet), more or less, to a
line that is parallel with and 46.000 meters (150.92 feet) northwesterly of said northwest
line of Bishop Street; thence
5) along said parallel line South 39° 42' 40" West 57.567 meters (188.87 feet), more or less,
to a point that bears North 50° 17' 20" West 46.000 meters (150.92 feet) from the true
point of beginning; thence
6) South 50° 17' 20" East 46.000 meters (150.92 feet) to the TRUE POINT OF
BEGINNING.
The above - described parcel contains 2522 square meters (27146 square feet), more or less.
The above- described parcel is graphically shown on Exhibit D attached A N p S�
hereto and made a part hereof. �,� �PNDk 'S'G
tyzoeh
J. Randy Ellis6n, LS7065
Date
EA2004 Survey \1704022 Bishop Tank Site\Product \TEMP TANK ESMT.doc
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TANK EASEMENT
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HIBIT B
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EXAMIT C
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GRAPHICC SCALE
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E.\2004 Survley \1704022 Bishop Tank Site\ Product\ Drawings \tanksite - exhibit- metdwg, 3: 23pm, rlselllson
40 501
RRM DESIGN GROUP PLAT
OF
csmmf 9"iO/ihZeA& P Jot TEMPORARY AND PERMANENT
3765 South Higuwa Street. Suite 102 - San Lute Obispo„ California 93401 EASEMENTS
Phone: 805/''.x13 -1794 - Fcc 805/543 -4609 - www.mmdesign.com PAGE 1 OF 1
wa Mantgarnam Arrhlted CA 11M-Jwykichad, RCE 36895. LS 6376 • Nkhod B. Stanton, PLS 5702 DATE. Oct 1 Z 2005 SCALE- 1. 1000 nA
END OF DMIMl =1jt
tiAZ�T►1AR, JEWELL & ASS&IA%S
Government Real Estate Services
a division of Beacon Integrated Professional Resources, Inc.
Ventura County Office: 3639 Harbor Boulevard, Suite 210, Ventura, California 93001
Tel. (805) 658 -8844 Fax: (805) 658 -8859
[X� San Luis Obispo County Office: 340 James Way, Suite 150, Pismo Beach, Califomia 93449
Tel: (805) 773 -1459 Fax: (805) 773 -2418
DOCUMENT TRANSMITTAL
V Personally delivered
TO: City of San Luis Obispo DATE: January 20, 2001
Matt Horn, Civil Engineer,
Public Works Dept
955 Morro
San Luis Obispo, CA 93401
FROM: David M. Jewell
Hamner, Jewell &. Associates
SUBJECT: City of San Luis Obispo — Bishop Tank Project
DOCUMENT ➢ 1 Original of the Bishop Tank, Water Tank Site
ENCLOSED: Easement Deed, Recorded.
MESSAGE:
Dear Matt, Enclosed is the Original Recorded Bishop Tank, Water Tank Site Easement Deed
that was forwarded to us by The County Recorder's Office. Please be sure that this document is
maintained in a permanent City File for future reference. We are pleased to see that the City
and County were able to work out an agreement for this project. Please feel free to call Lillian or
me if we can be of any further assistance to you or the City.
Best,
David M.
RECEIPT
By:
Print Name:
Date I Time
qUESTA
3
FEB 7 2006
I ITI
TLE
COMPANY 715 Tank Farm Road, #120 • San Luis Obispo, CA 93401 o (805) 544-1860 • FAX(805)'541'_'1769
February 2, 2006
City of San Luis Obispo
955 Morro
San Luis Obispo, CA 93401
RE: Escrow Officer Sharon Snyder-Miller / Cheryl Chalukian
Escrow Number 513585
Property Address
We enclose herewith the following in connection with the above referenced escrow:
Original Owners Policy
We appreciate having had this opportunity to be of service to you.
Sincerely,
Cuesta Title Company
Sharon Snyder-Miller / Cheryl Chalukian
Escrow Officers
enclosures
CLTA STANDARD COVERAGE POLICY - 1990
If you want information about coverage or need a lance to resolve complaints, please call our toll free nu 1- 800 - 729 -1902. If you make a claim underyour policy,
you must furnish written notice in accordance wit ion 3 of the Conditions and Stipulations.
Visit our World -Wide Web site at: http: / /www- steWom
POLICY OF TITLE INSURANCE ISSUED BY
S T EWART TITLE
GUARANTY COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN
SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, STEWART TITLE GUARANTY COMPANY, a Texas
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.
Signed under seal for the Company, but this Policy is to be valid only when it bears an authorized countersignature.
Srrnr7iq NI (`on!ra.t
STEWAI2T TITLE
GUARANTY COMPANY
Chairman The Boar
WC ers gn d by:
at,c-06 449" �
Authorized Signatory If Mn
CUESTA TITLE COMPANY
Company
SAN LUIS OBISPO, CA. 93401
City, State
151 (Rev. 1- 19 -91)
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se9a;NoCNJP -1597-8110401
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39 MOD WON SNOISf1UX3
CALIFORNIA LAND TIPASSOCIATION
STANDARD COVERAGE - 1990
SCHEDULE A,
Order No.: 513585
Amount of Insurance: $60,500.00
Date of Policy: December 23, 2005 at 8:00 AM
•Order Number: 513585
Policy No: CNJP -1597-
811040
Policy No.: CNJP- 1597- 811040
Premium: $233.00
1. Name of Insured:
The City of San Luis Obispo, a Municipal Corporation and a Charter City in the County of San
Luis Obispo, State of California
2. The estate or interest in the land which is covered by this policy is:
An Easement
3. Title to the estate or interest in the land is vested in:
The City of San Luis Obispo, a Municipal Corporation and a Charter City in the County of San
Luis Obispo, State of California
4. The land referred to in this policy is described as follows:
SEE ATTACHED LEGAL DESCRIPTION
Page l of 4
CALIFORNIA LAND TAASSOCIATION
•Order Number. 513585
STANDARD COVERAGE - 1990 Policy No: CNJP -1597-
811040
LEGAL DESCRIPTION
The land referred to herein is situated in the State of California, County of San Luis Obispo, and
described as follows:
The "Remainder Parcel' of Parcel Map SLOAL 89 -191, in the City of San Luis Obispo, County of San
Luis Obispo, State of California, according to the map recorded October 18, 1991 in Book 48, Page 81 of
Parcel Maps.
APN: 073,371,004
End of Legal Description
Page 2 of 4
CALIFORNIA LAND TIPASSOCIATION •Order Number: 513585
STANDARD COVERAGE - 1990 Policy No: CNJP -1597-
811040
SCHEDULE B
PART I
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-
Taxes or assessments which are not shown as existing liens by the records of the taxing authority
that levies taxes or assessments on real property or by the public records.
2. Proceeding 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 by malting inquiry of persons in possession thereof.
4. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.
5. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or other facts which a
correct survey would disclose, and which are not shown by the public records..
6. (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.
Page 3 of 4
CALIFORNIA LAND TIOASSOCIATION
STANDARD COVERAGE - 1990
SCHEDULE B
PART II
*Order Number: 513585
Policy No: CNJP -1597-
811040
1. Any and all leases, recorded or unrecorded, upon the terms, covenants, conditions, and
stipulations contained therein, and the rights of tenants in possession, including but not limited
to, those as disclosed by San Luis Obispo Assessor's Roll.
2. An easement for the purpose shown below and rights incidental thereto as set forth in a
document:
Grant To: City of San Luis Obispo, a municipal corporation
Purpose: Water storage tank
Recorded: July 10, 1956, as Instrument/File No. 8125,
Book 852, Page 271, of Official Records.
Affects: 40' x 40' portion of said land
No representation is made as to the present ownership of said easement.
3. An easement for the purpose shown below and rights incidental thereto as reserved in a
document:
Purpose: Public utilities and drainage and water lines
in favor of Pacific Gas and Electric Company,
Southern California Gas Company; Pacific Bell
Telephone Company, and the City of San Luis Obispo
Recorded: July 30, 1997, as Instrument/File No. 1997 - 040132
of Official Records
Affects: Portion of said land formerly within Bishop Street
END OF EXCEPTIONS
Typist Initials: JIM
Print Date: February 2, 2006
Page 4 of 4
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CONDITIONS AND STIPULATIONS Continued 1
• (continued from
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 appropriote 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 b the provisions of this policy, the Company
may pursue any litigation to final determination by a court of competent juris-
diction and expressly reserves the right, in its sole discretion, to appeal from any
adverse judgment or order.
(d) In all cases where this policy permits or requires the Company to prose-
cute 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 set-
tlement, 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 liabil-
ity or obligation to defend, prosecute, or continue any litigation, with regard to
the matter or matters requiring such cooperation.
5. PROOF OF LOSS OR DAMAGE.
In addition to and after the notices required under Section 3 of these Con-
ditions and Stipulations have been provided the Company, a proof of loss or
damage signed and sworn 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 an
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 per-
tain to the loss or damage. Further, if requested by any authorized representa-
tive 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 cus-
tody 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 termi-
nate 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 Pur-
chase 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 tender of payment and which the Company is obligated to pay; or
reverse side of Policy Face)•
(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 indebted-
ness secured by the insured mortgage for the amount owing thereon together
with any costs, attorneys' fees and expenses incurred by the insured claimant
which werer 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 indebted-
ness 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 para-
graph a(i), all liability and obligations to the insured under this policy, other
than to make the payment required in that paragraph, shall terminate, includ-
ing 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 porag ra h
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.
7. DETERMINATION AND EXTENT OF LIABILITY.
This policy is a contract of indemnity against actual monetary loss or dam-
age 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 Stipula-
tions, 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 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 therefrom, it
shall have fully performed its obligations with respect to that matter and shall not
be liable for any loss or damage caused thereby.
itions and stipulations continued and concluded •
(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 Dote 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, attor-
neys' fees and expenses, shall reduce the amount of insurance pro tonto. How-
ever, as to an insured lender, any payments made prior to the acquisition of
title to the estate or interest as provided in Section 21a) of these Conditions and
Stipulations shall not reduce pro tonto 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.
(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 tonto. The
amount of insurance may thereafter be increased by accruing interest and
advances made to protect the lien of the insured mortgage and secured there-
by, 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 insur-
ing 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 endorse-
ment of the payment unless the Policy has been lost or destroyed, in which case
proof of loss or destruction shall be furnished to the satisfaction of the
Company.
(b) When liability and the extent of loss or damage has been definitely
fixed in accordance with these Conditions and Stipulations, the loss or damage
shall be payable within 30 days thereafter.
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 claim had this policy not been issued. If requested by
the Company, the insured claimant shall transfer to the Company all rights and
remedies against any person or property necessary in order to perfect this right
of subrogation. The insured claimant shall permit the Company to sue, com-
promise 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 (i) as to an insured lender, to all rights
and remedies of the insured claimant after the insured claimant shall have re-
covered 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 impair-
ment 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 lia-
bility 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.
(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 on obligor described in Section
1(o)(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(o)(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 aris-
ing 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 arbi-
trated 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 Arbitrotor(s) may be entered in any court having jurisdiction thereof.
The law off the situs of the land shall apply to an arbitration under the Title
Insurance Arbitration Rules.
A copy of the Rules mayy 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 P.O. Box 2029, Houston, Texas
77252 -2029, and identify this policy by its printed policy serial number which
appears on the bottom of the front of the first page of this policy.