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Order No. 00185550-994-LT2-lTW Guarantee No. CA-FBSC-IMP-72G28-1-22-00185550
<br />GUARANTEE EXCLUSIONS AND CONDITIONS (06-05-14)
<br />EXCLUSIONS FROM COVERAGE
<br />Except as expressly provided by the assurances In Schedule A, the Company assumes no liability for loss or damage by reason of the following:
<br />(a) Defects, liens, encumbrances, adverse claims or other matters affecting the title to any property beyond the lines of the Land.
<br />(b) Defects, liens, encumbrances, adverse claims or other matters, whether or not shown by the Public Records (1) that are created, suffered,
<br />assumed or agreed to by one or more of the Assureds; or (2) that result In no loss to the Assured.
<br />(c) Defects, liens, encumbrances, adverse claims or other matters not shown by the Public Records.
<br />(d) The Identity of any party shown or referred to in any of the schedules of this Guarantee.
<br />(a) The validity, legal effect or priority of any matter shown or referred to In any of the schedules of this Guarantee.
<br />(f) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property; or, (2) proceedings by a public agency
<br />which may result In taxes or assessments, or notices of such proceedings, whether or not the matters excluded under (1) or (2) are shown by the
<br />records of the taxing authority or by the Public Records.
<br />(g) (1) Unpatented mining claims; (2) reservations or exceptions in patents or In Acts authorizing the issuance thereof; (3) water rights, claims or
<br />title to water, whether or not the matters excluded under (1), (2) or (3) are shown by the Public Records.
<br />GUARANTEE CONDITIONS
<br />1. Definition of Terms.
<br />The following terms when used in the Guarantee mean:
<br />(a) the "Assured": the party or parties named as the Assured in
<br />Schedule A, or on a supplemental writing executed by the Company.,
<br />(b) "Land": the Land described or referred to In Schedule A, and
<br />Improvements affixed thereto which by law constitute real property. The
<br />term "Land" does not include any property beyond the lines of the area
<br />described or referred to in Schedule A, nor any right, title, Interest, estate
<br />or easement in abutting streets, roads, avenues, alleys, lanes, ways or
<br />waterways.
<br />(c) "Mortgage": mortgage, deed of trust, trust deed, or other
<br />security instrument.
<br />(d) "Public Records": those records established under California
<br />statutes at Date of Guarantee for the purpose of Imparting constructive
<br />notice of matters relating to real property to purchasers for value and
<br />without knowledge.
<br />(a) "Date of Guarantee": the Date of Guarantee set forth in
<br />Schedule A.
<br />(f) "Amount of Liability": the Amount of Liability as stated In
<br />Schedule A.
<br />2. Notice of Claim to be Given by Assured.
<br />The Assured shall notify the Company promptly In writing in case
<br />knowledge shall come to the Assured of any assertion of facts, or claim of
<br />title or interest that Is contrary to the assurances set forth in Schedule A
<br />and that might cause loss or damage for which the Company may be
<br />liable under this Guarantee. If prompt notice shall not be given to the
<br />Company, then all liability of the Company shall terminate with regard to
<br />the matter or matters for which prompt notice is required; provided,
<br />however, that failure to notify the Company shall in no case prejudice the
<br />rights of the Assured under this Guarantee unless the Company shall be
<br />prejudiced by the failure and then only to the extent of the prejudice.
<br />3. No Duty to Defend or Prosecute.
<br />The Company shall have no duty to defend or prosecute any action
<br />or proceeding to which the Assured is a party, notwithstanding the nature
<br />of any allegation in such action or proceeding.
<br />4. Company's Option to Defend or Prosecute Actions; Duty of
<br />Assured to Cooperate.
<br />Even though the Company has no duty to defend or prosecute as set
<br />forth in Paragraph 3 above:
<br />(a) The Company shall have the right, at its sale option and cast, to
<br />institute and prosecute any action or proceeding, interpose a defense, as
<br />limited in Paragraph 4 (b), or to do any other act which in its opinion may
<br />be necessary or desirable to establish the correctness of the assurances
<br />set forth in Schedule A or to prevent or reduce loss or damage to the
<br />Assured. The Company may take any appropriate action under the terms
<br />of this Guarantee, whether or not it shall be liable hereunder, and shall not
<br />thereby concede liability or waive any provision of this Guarantee. If the
<br />Company shall exercise its rights under this paragraph, it shall do so
<br />diligently.
<br />(b) If the Company elects to exercise Its options as stated In
<br />Paragraph 4(a) the Company shall have the right to select counsel of Its
<br />choice (subject to the right of the Assured to object for reasonable cause)
<br />to represent the Assured and shall not be liable for and will not pay the
<br />fees of any other counsel, nor will the Company pay any fees, costs or
<br />expenses incurred by an Assured In the defense of those causes of action
<br />which allege matters not covered by this Guarantee.
<br />(c) Whenever the Company shall have brought an action or
<br />interposed a defense as permitted by the provisions of this Guarantee, the
<br />Company may pursue any litigation to final determination by a court of
<br />competent jurisdiction and expressly reserves the right, In its sole
<br />discretion, to appeal from an adverse judgment or order.
<br />(d) In all cases where this Guarantee permits the Company to
<br />prosecute or provide for the defense of any action or proceeding, the
<br />Assured shall secure to the Company the right to so prosecute or provide
<br />for the defense of any action or proceeding, and all appeals therein, and
<br />permit the Company to use, at its option, the name of the Assured for this
<br />purpose. Whenever requested by the Company, the Assured, at the
<br />Company's expense, shall give the Company all reasonable aid In any
<br />action or proceeding, securing evidence, obtaining witnesses, prosecuting
<br />or defending the action or lawful act which in the opinion of the Company
<br />may be necessary or desirable to establish the correctness of the
<br />assurances set forth in Schedule A or to prevent or reduce loss or
<br />damage to the Assured. If the Company is prejudiced by the failure of the
<br />Assured to furnish the required cooperation, the Company's obligations to
<br />the Assured under the Guarantee shall terminate.
<br />5. Proof of Loss or Damage.
<br />(a) In the event the Company is unable to determine the amount of
<br />loss or damage, the Company may, at its option, require as a condition of
<br />payment that the Assured furnish a signed proof of loss. The proof of loss
<br />must describe the defect, Ilan, encumbrance, or other matter that
<br />constitutes the basis of loss or damage and shall state, to the extent
<br />possible, the basis of calculating the amount of the loss or damage.
<br />(b) In addition, the Assured may reasonably be required to submit
<br />to examination under oath by any authorized representative of the
<br />Company and shall produce for examination, inspection and copying, at
<br />such reasonable times and places as may be designated by any
<br />authorized representative of the Company, all records, books, ledgers,
<br />checks, correspondence and memoranda, whether bearing a date before
<br />or after Date of Guarantee, which reasonably pertain to the loss or
<br />damage. Further, if requested by any authorized representative of the
<br />Company, the Assured shall grant its permission, In writing, for any
<br />authorized representative of the Company to examine, inspect and copy
<br />all records, books, ledgers, checks, correspondence and memoranda in
<br />the custody or control of a third party, which reasonably pertain to the loss
<br />or damage. All information designated as confidential by the Assured
<br />provided to the Company pursuant to this paragraph shall not be
<br />disclosed to others unless, in the reasonable judgment of the Company, It
<br />is necessary in the administration of the claim. Failure of the Assured to
<br />submit for examination under oath, produce other reasonably requested
<br />CLTA Guarantee Exclusions and Conditions (06-05-14) Pape 2
<br />© California Land Title Association. All rights reserved.
<br />The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or
<br />express permission from the California Land Title Association.
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