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File No: 08026527 ATTACHMENT 1
<br />a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records;
<br />b. that are Known to You at the Policy Date, but not to Us, unless they are recorded In the Public Records at the Policy Date;
<br />c, that result in no loss to You; or
<br />d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28.
<br />5. Failure to pay value for Your Title.
<br />6. Lack of a right:
<br />a, to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and
<br />b. In streets, alleys, or waterways that touch the Land.
<br />This Exclusion does not limit the coverage described In Covered Risk 11 or 21.
<br />7. The transfer of the Title to You Is Invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy,
<br />state Insolvency, or similar creditors' rights laws.
<br />8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.
<br />9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.
<br />LIMITATIONS ON COVERED RISKS
<br />Your Insurance for the following Covered Risks Is limited on the Owner's Coverage Statement as follows:
<br />. For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.
<br />The deductible amounts and maximum dollar limits shown on Schedule A are as follows:
<br />Our Maximum Dollar
<br />Your Deductible Amount Limit of Liability
<br />1.00% of Policy Amount Shown in
<br />Schedule A
<br />or $2,500.00
<br />Covered Risk 16: (whichever is less) $ 10,000.00
<br />1.00% of Policy Amount Shown in
<br />Schedule A
<br />or $5,000.00
<br />Covered Risk 18: (whichever is less) $ 25,000.00
<br />1.00% of Policy Amount Shown in
<br />Schedule A
<br />or $5,000.00
<br />Covered Risk 19: (whichever is less) $25,000.00
<br />1.00% of Policy Amount Shown in
<br />Schedule A
<br />or $2,500.00
<br />Covered Risk 21: (whichever is less) $ 5,000.00
<br />2006 ALTA LOAN POLICY (06-17-06)
<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,
<br />attorneys' fees, or expenses that arise by reason of:
<br />1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,
<br />prohibiting, or relating to
<br />(1) the occupancy, use, or enjoyment of the Land;
<br />(ii) the character, dimensions, or location of any Improvement erected on the Land;
<br />(til) 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
<br />limit the coverage provided under Covered Risk 5.
<br />(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.
<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
<br />disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this
<br />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
<br />11, 13 or 14); 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 -
<br />business laws of 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
<br />Insured Mortgage and is based upon usury or any consumer credit protection or truth -in -lending law.
<br />6. Any claim, by reason of the operation of federal bankruptcy, state Insolvency, or similar creditors' rights laws, that the transaction creating
<br />the lien 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 13(b) of this policy.
<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
<br />license or express permission from the California Land Title Association.
<br />Page 10
<br />75F-16
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