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<br />Form No. 1402.70
<br />Owner's Policy (Amended 10-17-70)
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<br />Order Number: OSA-2317270
<br />Page Number: 6
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<br />5. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS
<br />The Company shall have the option to payor otherwise settle for or in the name of an insured claimant any claim insured against or to terminate all
<br />liability and obligations of the Company hereunder by paying or tendering payment of the amount of insurance under this policy together with any
<br />costs, attorneys' fees and expenses incurred up to the time of such payment or tender of payment, by the insured claimant and authorized by the
<br />Company.
<br />6. DETERMINATION AND PAYMENT OF LOSS
<br />(a) The liability of the Company under this policy shall in no case exceed the least of:
<br />(i) the actual loss of the insured claimant; or
<br />(ii) the amount of insurance stated in Schedule A.
<br />(b) The Company will pay, in addition to any loss insured against by this policy, all costs imposed upon an insured in litigation carried on by the
<br />Company for such insured, and all costs, attorneys' fees and expenses in litigation carried on by such insured with the written authorization of the
<br />Company.
<br />(c) When liability has been definitely fixed in accordance with the conditions of this policy, the loss or damage shall be payable within 30 days
<br />thereafter.
<br />7. LIMITATION OF LIABILITY
<br />No claim shall arise or be maintainable under this policy (a) if the Company, after having received notice of an alleged defect, lien or encumbrance
<br />insured against hereunder, by litigation or otherwise, removes such defect, lien or encumbrance or establishes the title, as insured, within a reasonable
<br />time after receipt of such notice; (b) in the event of litigation until there has been a final determination by a court of competent jurisdiction, and
<br />disposition of all appeals therefrom, adverse to the title as insured, as provided in paragraph 3 hereof; or (c) for liability voluntarily assumed by an
<br />insured in settling any claim or suit without prior written consent of the Company.
<br />8. REDUCTION OF LIABILITY
<br />All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. No
<br />payment shall be made without producing this policy for endorsement of such payment unless the policy be lost or destroyed, in which case proof of
<br />such loss or destruction shall be furnished to the satisfaction of the Company.
<br />9. LIABILITY NON-CUMULATIVE
<br />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
<br />insuring either (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or (b) a
<br />mortgage hereafter executed by an insured which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount
<br />so paid shall be deemed a payment under this policy. The Company shall have the option to apply to the payment of any such mortgages any amount
<br />that otherwise would be payable hereunder to the insured owner of the estate or interest covered by this policy and the amount so paid shall be
<br />deemed a payment under this policy to said insured owner.
<br />10. APPORTIONMENT
<br />If the land described in Schedule C consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more
<br />of said parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro
<br />rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a
<br />liability or value has otherwise been agreed upon .as to each such parcel by the Company and the insured at the time of the issuance of this policy and
<br />shown by an express statement herein or by an endorsement attached hereto.
<br />11. SUBROGATION UPON PAYMENT OR SETTLEMENT
<br />Wheneverthe Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the
<br />insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which such insured claimant would have had against
<br />any person or property in respect to such claim had this policy not been issued, and if requested by the Company, such insured claimant shall transfer
<br />to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation and shall permit the
<br />Company to use the name of such insured claimant in any transaction or litigation involving such rights or remedies. If the payment does not cover the
<br />loss of such insured claimant, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount
<br />of said loss. If loss should result from any act of such insured claimant, such act shall not void this policy, but the Company, in that event, shall be
<br />required to pay only that part of any losses insured against hereunder which shall exceed the amount, if any, lost to the Company by reason of the
<br />impairment of the right of subrogation.
<br />12. LIABILITY LIMITED TO THIS POLICY.
<br />This instrument together with all endorsements and other instruments, if any, attached hereto by the Company is the entire policy and contract
<br />between the insured and the Company.
<br />Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the title to the estate or interest covered
<br />hereby or any action asserting such claim, shall be restricted to the provisions and conditions and stipulations of this policy.
<br />No amendment of or endorsement to this policy can be made except by writing endorsed hereon or attached hereto signed by either the President, a
<br />Vice-President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company.
<br />13. NOTICES, WHERE SENT
<br />All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addres~d to it at its main
<br />office at 1 First American Way, Santa Ana, California 92707, or to the office which issued this policy. .
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<br />First American Title
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