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ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY — ASSESSMENTS PRIORITY (04-02-15)
<br />EXCLUSIONS FROM COVERAGE
<br />The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or
<br />expenses which arise by reason of:
<br />1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or
<br />relating to
<br />(i) the occupancy, use, or enjoyment of the Land;
<br />(ii) the character, dimensions, or location of any improvement erected on the Land;
<br />(iii) the subdivision of land; or
<br />(iv) environmental protection;
<br />or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage
<br />provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.
<br />(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14
<br />or 16.
<br />2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.
<br />3. Defects, liens, encumbrances, adverse claims, or other matters
<br />(a) created, suffered, assumed, or agreed to by the Insured Claimant;
<br />(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in
<br />writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
<br />(c) resulting in no loss or damage to the Insured Claimant;
<br />(d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16,
<br />17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or
<br />(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.
<br />4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of
<br />the state where the Land is situated.
<br />5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured
<br />Mortgage and is based upon usury, or any consumer credit protection or truth -in -lending law. This Exclusion does not modify or limit the coverage
<br />provided in Covered Risk 26.
<br />6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured
<br />has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not
<br />modify or limit the coverage provided in Covered Risk 11.
<br />7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of
<br />Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11 (b) or 25.
<br />8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable
<br />building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.
<br />9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien
<br />of the Insured Mortgage, is
<br />(a) a fraudulent conveyance or fraudulent transfer, or
<br />(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.
<br />10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
<br />11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
<br />Attachment One — CA (Rev. 05-06-16) Page 4
<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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