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LENDER'S LOSS PAYABLE ENDORSEMENT
<br />I. Loss or damage, if any, under this policy, shall be paid to the Payee named on the first page of this policy, its successors and assigns,
<br />hereinafter referred to as "the Lender", in whatever form or capacity its interests may appear and whether said interest be vested in said
<br />Lender in its individual or in its disclosed or undisclosed fiduciary or representative capacity, or otherwise, or vested in a nominee or trustee
<br />of said Lender.
<br />2. The insurance under this policy, or any rider or endorsement attached thereto, as to the interest only of the Lender, its successors and
<br />assigns, shall not be invalidated nor suspended. (a) by any error, omission, or change respecting the ownership, description, possession, or
<br />location of the subject of the insurance or the interest therein, or the title thereto; (b) by the commencement of foreclosure proceedings or
<br />the giving of notice of sale of any of the property covered by this policy by virtue of any mortgage or trust deed; (c) by any breach of
<br />warranty, act, omission, neglect, or non-compliance with any of the provisions of this policy, including any and all riders now or hereafter
<br />attached thereto, by the named insured, the borrower, mortgagor, buster, vendee, owner, tenant, warehouseman, custodian, occupant, or by
<br />the agents of either or any of them or by the happening of any event permitted by them or either of them, or their agents, or which they
<br />failed to prevent, whether occurring before or after the attachment of this endorsement, or whether before or after a loss, which under the
<br />provisions of this policy of insurance or of any rider or endorsement attached thereto would invalidate or suspend the insurance as to the
<br />named insured, excluding herefrom, however, any acts or emissions of the Lender while exercising active control and management of the
<br />property.
<br />3. In the event of failure of the insured to pay any premium or additional premium which shall be or become due under the terms of this policy
<br />or on account of any change in occupancy or increase in hazard not permitted by this policy, this Company agrees to give written notice to
<br />the Lender of such non-payment of premium, after sixty (60) days from and within one hundred and twenty (120) days after due date of such
<br />premium and it is a condition of the continuance of the rights of the Lender hereunder that the Lender when so notified in writing by this
<br />Company of the failure of the insured to pay such premium shall pay or cause to be paid the premium due within ten (10) days following
<br />receipt of the Company's demand in writing therefor, If the Lender shall decline to pay said premium or additional premium, the rights of
<br />the Lender under this Lender's Loss Payable Endorsement shall not be terminated before ten (10) days after receipt of said written notice by
<br />the Lender.
<br />4. Whenever this Company shall pay to the Lender any sum for loss or damage ander this policy and shall claim that as to the insured no
<br />liability therefor exists, this Company, at its option, may pay to the Lender the whole principal sum and interest and other indebtedness due
<br />or to become due from the insured, whether secured or unsecured, (with refund of all interest not accrued), and this Company, to the extent
<br />of such payment, shall thereupon receive a full assignment and transfer, without recourse, of the debt and all rights mid securities held as
<br />collateral thereto.
<br />5. If there be any other insurance upon the within described property, this Company shall be liable under this policy as to the Lender for the
<br />proportion of such loss or damage that the sum hereby insured bears to the entire insurance of similar character on said property under
<br />policies held by, payable to and expressly consented to by the Lender. Any Contribution Clause included in any Fallen Building Clause
<br />Waiver or any Extended Coverage Endorsement attached to this contract of insurance is hereby nullified, and also any Contribution Clause
<br />in any other endorsement or rider attached to this contract of insurance is hereby nullified except Contribution Clauses for the compliance
<br />with which the insured has received reduction in the rate charged or has received extension of the coverage to include hazards other than
<br />fire and compliance with such Contribution Clause is made a part of the consideration for insuring such other hazards. The Lender upon the
<br />payment to it of the full amount of its claim, will subrogme this Company (pro rata with all other insurers contributing to said payment) to
<br />all of the Lender's rights of contribution under said other insurance.
<br />6. This Company reserves the right to cancel this policy at any nine, as provided by its terms, but in such case this policy shall continue in
<br />force for the benefit of the Lender for ten (10) days after written notice of such cancellation is received by the Lender and shall then cease.
<br />7. This policy shall remain in full force and effect as to the interest of the Lender for a period of ten (10) days after its expiration unless an
<br />acceptable policy in renewal thereof with loss thereunder payable to the Lender in accordance with the terms of this lender's Loss Payable
<br />Endorsement, shall have been issued by some insurance company and accepted by the Lender.
<br />8. Should legal title to and beneficial ownership of any of the property covered under this policy become vested in tine Lender or its agents,
<br />insurance under this policy shall continue for the term thereof for the benefit of the Lender but, in such event, any privileges granted by this
<br />Lender's Loss Payable Endorsement which are not also granted the insured under the terms and conditions of this policy and/or under other
<br />riders or endorsements attached thereto shall not apply to the insurance hereunder as respects such property.
<br />9. All notices herein provided to be give by the Company to the Lender in connection with this policy and this Lender's Loss Payable
<br />Endorsement shall be mailed to or delivered to the Lender at its office or branch described on the first page of the policy.
<br />Approved:
<br />Board of Fire Underwriters of the Pacific,
<br />California Bankers' Association
<br />Committee on Insurance.
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