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GUARArMH COA'DITIONS AA'D S i7P( . i IONS
<br />FOR USE WITH FORMS Vi'.345 AND VI.352
<br />GUARANTEE CONDITIONS AND STIPULATIONS
<br />I. DEFINITION OF TERMS
<br />The following terms when used in this Guarantee mean:
<br />(a) "land": The land described, specifically or by reference, in this
<br />Guarantee and improvements affixed thereto which by law on.
<br />stitute teal propeftyt
<br />(b) "Public records': Thou records which impart constructive net.
<br />tire of matters reining to mid land;
<br />(c) "date': The effective date;
<br />(d) "the Assured": The parry or parties named as the Assured in
<br />this Guarantee, or in a supplemental writing executed by the
<br />Company;
<br />(q "mortgage": Mortgage, deed of trust, trust deed, or Other wur-
<br />ity instrument.
<br />2. EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE
<br />The Company assumes no liability for loss or d mage by reason of
<br />the following:
<br />(a) Taxes or assessments which arc not shown as existing liens by
<br />- the records of any taxing authoriry that levies taxes or &$was.
<br />merits on real property or by the public records.
<br />(b) Unpatented mining claims; reservations or exception in patois
<br />or in Acts authorizing the issuance thereof; water rights, claims
<br />or title to water.
<br />(c) Title to any yroperty beyond the lines of the land expressly
<br />described in the description w forth in the Guarantee. or tide
<br />to streets, cads, avenues, lanes, ways or waterways on which
<br />such land abuts, or the right to maintain therein vaults, tunnels,
<br />ramps or any other structure or improvement: or any rights or
<br />easements therein unless such property, rights or nsements arc
<br />expressly and specifically set forth in said description.
<br />(d) Defects, liens, encumbrances, adverse claims aggainst the tide as
<br />guaranteed or other marten ( I ) created, suRered, assumed or
<br />agreed to by one or more of the Assured; or (2) resulting in no
<br />Ion to the Assured.
<br />3. PROSECUTION OF ACTIONS
<br />(a) The Company shall hate the right At its own cost to institute
<br />and prosecute any action or proceeding or do any other act which
<br />in its opinion may be ne[esur'Or
<br />desirable to establish or con-
<br />firm the matters herein guaranteed; and the Company may lake
<br />any appropriate action under the terms of this Guarantee whether
<br />or not it shall be liable thereunder sod shall net thereby concede
<br />liability or waive any provision hereof.
<br />(b) In all cases where the Company does so institute and prosecute
<br />any action or proceeding, the Assured shall permit the Company
<br />to use, at its option, the name of the Assured for such purpose.
<br />Whenever requested by the Company, the Assured shift give the
<br />Company all reasonable mid in prosecuting such action at pro-
<br />ceeding, and the Company shall reimburse the Assured for any
<br />expense sat incurred.
<br />4. NOTICE OF LOSS — LIMITATION 0" ACTION
<br />A statement in writing of any loss or %.smige for which it is claimed
<br />the Company is liable under this Gu,rantee shall be furnished to the
<br />Company within sixty days after sun loss or damage shall have been
<br />determined, and no right of action shall accrue to the Assured under this
<br />Guarantee until thirty days after such statement shall have been fur.
<br />nished, and no recovery shall be had by the Assured under this Guarantee
<br />unless action shall be commenced thereon within two yarn after expira-
<br />tion of said thirty day period. Failure to furnish such statement of loss
<br />or damage or to commence such action within the time heirinbefore
<br />specified, shall be a conclusive bar against maintenance by the Assured
<br />of any action under this Guarantee.
<br />5. OPTION TO PAY, SETTLE OR COMPROMISE CLAIMS
<br />The Company shall have the option to pay or settle arm r?ml.R for
<br />or in the name of the Assured any claim which could molt in loss to
<br />the fssured within the coverage of this Guarantee, or to pay the full
<br />Form No. W.353 7.15-91
<br />amount of this Guarantee or, if this Guarantee is issued for the benefit
<br />of a holder of a mortgage, the Company shall have the opption to purchase
<br />the indebtedness secured by said mortgage. Such purclwse, payment or
<br />tender of payment of the full amount of the Guarantee shall terminate
<br />all liability of the Company hereunder. In the event after notice of claim
<br />has been Risen to the Company by the Assured the Company offers topurchase said indebtedness, the owner of such indebtedness shall transfer
<br />and cosign said indebtedness and the mortgage securing the woe to the
<br />Company upon payment of the purchase price.
<br />LIMITATION OF LIABILITY —PAYMENT OF LOSS
<br />(a) The liability of the Company under this Guarantee shall be lim•
<br />ited to the amount of actual Ion sustained by the Assured because
<br />of reliance upon the assurances herein set forth, but in no event
<br />shill such liability exceed the amount of the liability stated on
<br />the face page hereof.
<br />(b) The Company wi say all costs imposed upon the Assured in
<br />litigation carried on by the Company for the Assured, and all
<br />costs and attorney's fees in litigation carried on by the Assured
<br />with the written authorization of the Company.
<br />(c) No claim for damages shall arise or be maintainable under this
<br />Guarantee (1) if the Company after having received notice of
<br />an alleged defect, lien or encumbrance not shown as an Excep•
<br />tion or excluded herein removes sulh defect, lien or enc unbrsnce
<br />within a reasonable time after receipt of such notice, or (2) for
<br />liability voluntarily assumed by the Assured in settling any claim
<br />or suit without written consent of the Company.
<br />(d) All payments under this Guarantee, except for attomeyi fat as
<br />provided for in paragraph 6(b) hereof, shall reduce the amount
<br />of the liability hereunder pro unto, and no payment shall be
<br />made without producing this Guaranty for indorsement of such
<br />payment unless the Guarantee be lost or destroyed, in which
<br />case proof of such loss or destruction shall be furnished to the
<br />satisfaction of the Company.
<br />(e) When liability has been definitely fixed in accordance with the
<br />conditions of this Guarantee, the Ion or damage shall be payable
<br />within thirty do). thereafter.
<br />SUBROGATION UPON PAYMENT OR SETTLEMENT
<br />Whenever the Company shall have settled a claim under this Guarantor,
<br />all right of subrogation shall vest in the Companyy unaffected by any act
<br />of the Assured, and it shall be subrogated to and be entitled to all rights
<br />and remedies which the Assured would have had sgaiat any person or
<br />property in respect to such claim had this Guarani" not been issued.
<br />If the payment does not cover the Ion of the Assured, the Company shall
<br />be subrogared to such rights and remedies in the proportion which said
<br />payment bean to the amount of said loss. The Assured if requested by
<br />the Company, shall transfer to the Company all rights and remedies
<br />against any person or property necessary in order to perfect such right
<br />of subrogation, and shall permit the Company to use the mine of the
<br />Assured in any transaction or litigation involving such rights or nmedin.
<br />If. GUARANTEE ENTIRE CONTRACT
<br />Any action or actions or rights of sctinn that the Assured may have or
<br />may briny, against the Company wising out of the subject matter hereof
<br />must be based on the provisions of this Guarantee.
<br />No provision or condition of this Guarantee can be waived or changed
<br />except by a writing endorsed or attached hereto signed by the President,
<br />a Vice President, the Secretary, at, Assistant Secretary or other validating
<br />officer of the Company.
<br />9. NOTICES, WHERE SENT
<br />All notices required to be given the Company and any statement in
<br />writing required to be furnished the Company shall be addressed to it,
<br />at the office which issued this Guarantee.
<br />10. The fee specified on the face of this Guarantee is the total fee for title
<br />starch and examination ants for this Guarantee.
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