MORTGAGE AND FIDUCIARY POLICY
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RENEW, OR'IN LIEU O'f-~ WP, .24.67&.............. C~OSES Bi..DER DATED.............,..
I " &;}INSURANCl COMPANY OF NORTH t.\MERICA, P~LADELPHIA. PENNSYLVANIA .
I . OPACIFIC EMPLOYERS INSURANCE COMPANY, LOS ANGELES, CALIFORNIA
I I~"m. DINA INSURANCE COMPANY OF ILLINOIS, CHICAGO, ILLINOIS
i lI~ir~. DINA INSURANCE COMPANY OF OHIO, LAKEWOOD. OHIO
Insurance is provided by the stock company designated by 00 and hereinafter called the Company.
MORTGAGEE AND FIDUCIARY POLICY
DECLARATIONS
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Named U. S. HOME MORTGAGE CORP. &
Insured
U. S. HOME ACCEPTANCE CORP. &
Address U. S. HOME FINANCE CORP.
P. O. BOX 2863
L HOUSTON, TEXAS 77001
t
MFP 183 67
PREMIUM
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Coverage A .. .. .. $ 770.
Coverage B . . . . .. $
Coverage C .. . . .. $
Estimated Total Premium. If paid 770
in full at inception, $ .
Increase in premium
if paid annually. .. $
Estimated total premium
If paid annually. .. $
First Installment
payable at inception, .. $
ALL PREMIUMS ARE SUBJECT TO
ANNUAL ADJUSTMENT
Policy Period: From December 27, 1981 To December 27, 1982 Noon standard time at Insured's address
Insurance applies only to those Coverages for which a limit is shown, or referred to elsewhere herein, and the Company's liability shall not exceed such limit.
1. COVERAGES LIMITS OF LIABILITY
A. MORTGAGEE ERRORS AND OMISSIONS (Applicable only to mortgages on
which the I nsured retains the original of the hazard policy). . . . . , . . . . . , . . . . . . . $ 1,000 , 000
Applicable to: &J Residential buildings, (1-4 family habitationall
o Commercial buildings only when initial loan amount
is greater than or equa1 to $
Anyone occurrence
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B. MORTGAGE IMPAIRMENT including errors and omissions (Insured need not retain
original of hazard policy) , . . . . . . . . . . . . . . . . '. . , . . . . . . . . . . . . . . , . . .
Coverage on commercial buildings applicable only when initial loan amount is less than
$
With respect to Coverage A and B combined, the limit for all loss insured against shall
not exceed. . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mortgage Information
a. Total number of mortgages to which Coverage A applies ] 0,610
b. Total number of mortgages to which Coverage B applies nnf' t"nVPTPr!
c. Total number of mortgages in which the Insured has an interest (a+b) 10) 610
d, The types or classes of mortgages to which toverage B applies are nnf' t"nvp,.pr!
$ not covered
$ not covered
$ not covered
Anyone residential bldg,
Anyone commercial bldg,
Anyone occurrence
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$ 1,000,000
Anyone occurrence
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I -C;OlJnlerSigned At
~o PIa,," U ,A,
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C. FIDUCIARY ERRORS AND OMISSIONS. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . .. .. $ not Co17~t~d '-;',
...':<','.,-, /
$ nrrl", ,'('~'~~rE'a:: / ::<\~ ..
Total number of units of real and/or personalproperty to which ..-<<1, ' :,~' _ . .<:" ',;:"
~~~:lraC~a;il~::I~e:r~:' 0 YES ~N~.: I'f :che'cke'd' YES' th~ ~~rds "Obligated\~, P~Y'::;;;~;;;I;,"~'~~ra, ~.~'ci~e~~Plj,' 'e erl,.with!~e'W~r~:'::I~gaIlY
obligated to pay by reason of the liability Imposed upon the Insured by law," ,", ,..:.- W, '
2, PERILS
The perils that shall apply under Coverages A and B are only those designated by OO::~.;;.:, \:. /~:J'> ....
OCX All perils against which the Insured customarily requires its mortgagors to provicf8'ii1~uranc 0 ng tfTe mortgaged property, except as
excluded herein, ~~, '...'
o Fire, lightning, Extended Coverage Endorsement and vandalism and malicious mischief endorsement perils, as provided by standard fire
insurance policies and extended coverage and vandalism and malicious mischief endorsements approved for use in the states where the
property is located.
Under Coverage C, only Fire,lightning, and Extended Coverage and vandalism and malicious mischief endorsement perils, as provided by standard
fire insurance policies and extended coverage and vandalism and malicious mischief endorsem~~~,r'i1~[f!~st!n.~ ~:jj~~:w~ft!;t:he property
islocated,shallapply, .: _ ,__ I_~
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Date
PLEASE NOTE: This docume,nt is mer~ly for the ~onvenience of the Insured and is only a ,memorandum of the terms of the policy
IN~
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MORTGAGEE INTEREST' POLltlv
Flood'lnclusion Endorsement (Coverage A)
Named Insured
Effectivl!
Issued by
Policy No,
(!lame of Insurlnce Compall)l)
The above is required to be completed only when this endorsement is issued subsequent to the preparation 6f the policy.
In consideration of the premium at which this policy is written, It is understood and agreed such flood insurance as is provided by Coverage A and
Extension A of this policy is subject to the following provisions:
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1. Flood is defined IS In the flood Insurance policy issued by members
of the National Flood Insurers Association.
2. The mortgaged property is located in an area identified by the
United States Department of Housing and Urban Development as
having special flood hazards and where flood insurance has been
made available under the National Flood Insurance Act of 1968
including amendments thereto, Coverage will continue under this
poliCY only for such length of time as flood insurance is available
under the National Flood Insurance Program.
S, The following is added as paragraph l.d. to Item A, Limits of
Liability, under Part IV Other Conditions.
d, Under Coverage A, the amount of the actual direct loss to the
property damaged or destrored, determined in accordance with
the conditions and limits 0 liability of the flood policy(ies) of
insurance which would have covered the loss had no error or
accidental omission occurred, less the amount due the insured
under all other insurance on such property.
4. The Insured warrants to review all loans closed between March 2,
1974 (or such later date as when flood insurance became available
under the National Flood Insurance Program) and the date of
this endorsement to verify such loans comply with the insurance
purchase requirements of the Flood Disaster Protection Act of 1973
Including amendments thereto; Coverage is excluded hereunder
for any such loans made during the above time period that do not
comply with the insurance purChase requirements of said Act.
F,f,-3.479 PrInted In U.S.A.
S. The Insured warrants to review each loan application to determine
whether such loan is subject to the insurance purchase require-
ments of the Flood Disaster Protection Act of 1973 including
amendments thereto, Each loan file shall contain sufficient records
to indicate the method(s) used by the Insured to make such
determination.
6, With respect to mortgages to which the insurance purChase re-
quirements of the Flood Disaster Protection Act of 1973 including
amendments thereto apply, the Insured warrants to have in effect
and observe the following procedures:
(al Will require and include, with the Insured named as mortgagee
therein, in its loan contract, mortgage, deed of trust or con-
tract for sale, that flood insurance be maintained for the amount
of the mortgage balance, the replacement value of the im-
provements, or the maximum amount available under the
National Flood Insurance Program, whichever is the least
amount;
(b) Will at the closing or disbursement of funds on a loan contract,
mortgage, deed of trust, or contract for sale, obtain and retain
the original (not a copy) of the flood insurance policy. It is
understood a copy of the flood insurance policy application
which indicates that full ,premium has been paid is sufficient
evidence of the purchase of flood insurance provided the
Insured, within 30 days, obtains and retains the original (not
a copy) of the flood insurance policy;
(c) Will at the time of each renewal, obtain and retain the original
(not a copy) of the renewal flood insurance policy.
r-R 0 ~ I r-XAN'""....'
ALEXANDt.' C!. r\_=- ': 'Li::'l\
OJ- TE:x2:S, llie.
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INLAND MARINE ,
EFFECTIVE TIME ENDORSEMENT
Named Insured
Effect ive
T Policy Number
Issued By (Name of Insurance Company)
The above is required to be completed only when this endorsement is issued subsequent to the preparation of the pOlicy.
The time of inception and the time of expiration or termination of this policy and of any schedule or endorsement attached
shall be 12:01 A,M, standard time.
To the extent that coverage in this policy replaces coverage in other policies terminating noon standard time on the inception
date of this policy. coverage under this policy shall not become effective until such other coverage has terminated.
ALEXANDER &( /'\LcM\i\U~K
of Texas, Inc.
B~tar 1'~ ~
" ,I' Jllvut etlt.Kl Agent
KK.l E40
Ptd. In U.s.A. 6/78
IN!\.
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Named Insured
Endorsement Number
Policy Symbol Policy Number
Policy Period
Effective Date of Endorsement
Issued By (Name of Insurance Company)
Insert the policy number. The remainder of the information is to be completed only when this endorsement is issued subsequent to the preparation of the policy.
CANCELLATION AMENDMENT
It is agreed that General Conditions-Cancellation, Page 12
is amended as follows:
The policy may be cancelled by the insured by
surrender thereof to the company or any of its
authorized agents or by mailing to the company
written notice stating when thereafter cancella-
tion shall be effective. This policy may be
cancelled by the company by mailing to the
insured at the address shown in This Policy,
written notice stating when not less than 30
(thirty) days (Ten days for non-payment of
premium) such cancellation shall be effective.
The mailing of notice as aforesaid shall be
sufficient proof of notice. The time of
surrender, or the effective date and hour of
cancellation stated in the notice shall become
the end of the policy period. Delivery of
such written notice either by the insured or
by the company shall be equivalent to mailing.
ALEXAf\~DER & ALEXANDER
of Tex2s, In.:.
CC-1E15 Ptd. In US.A.
ORIGINAL
[~' P~'C~
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INSURANCE COMPANY OF NORTH AMERICA, PHILADELPHIA, PENNSYLVANIA
MORTGAGEE AND FIDUCIARY POLICY
A Stock Insurance Company, herein called the Company
In consideration of the premium and the statements in the Declarations, the Company aarees to provide insurance as set forth In the followlna poUcy condltiDll5.
POLICY CONDITIONS
Part I Coveraaes
COVERAGE A-lThis coverage applies only to mortgages for which the insured mortgagee
retains the original of the hazard policy covering the mortgaged property,) The Company shall
indemnify the Insured for loss to its mortgagee interest arising out of loss or damage to real
property and personal property mortgaged in connection therewith, which results from a lack or
insufficiency of insurance covering such loss or damage by a peril designated in the Declara-
tions, because of error or accidental omission by the Insured or by those representing the Insured
, in connection with its mortgage operations,
COVERAGE B- The Company shall indemnify the Insured for loss to its mortgagee interest
arising out of loss or damage to real property and personal property mortgaged in connection
therewith, which results from a lack or insufficiency of insurance covering such loss or damage
by a peril designated in the Declarations,
COVERAGE C....,..The Company shall pay on behalf ofthe Insured all sums which the Insured shall
become obligated to pay because of loss to real and personal property held in trust by the
Insured which results from a lack or insufficiency of insurance covering such loss or damage by
a peril designated in the Declarations, because of error or omission by the Insured to effect and
maintain insurance against the perils insured against under this policy in amounts customarily
required by the Insured and under terms and conditions customarily accepted by the Insured,
Coverage hereunder shall apply only to real and personal property of which the Insured is or may
become administrator and/or executor and/or trustee and/or guardian and/or committee and/or
receiver and/or agent. but not to include the mortgagee interest of the Insured in any such
capacity,
Part II Extensions
A. L The Company shall pay on behalf on the Insured all sums which the Insured shall
become legally obligated to pay because of failure through error or accidental omission
to procure or maintain insurance for the benefit of the mortgagor covering perils
customarily provided for such mortgaged property, This extension may apply under
Coverage A or Coverage B; however the liability of the Company for any one occurrence,
whether involving insurance under the applicable coverage, this extension or both,
shall not exceed the limit designated in the Declarations under the applicable coverage,
2, With respect to Coverage C and Extension A. 1.. the Company shall:
a, Defend any suit against the Insured alleging such liability as covered hereunder and
seeking damages on account thereof. even if such suit is groundless. false, or
fraudulent; but the Company may make such investigation. negotiation. and
settlement of, any claim or suit as it deems expedient;
b, Pay all premiums on bonds to release attachments for an amount not in excess of
the applicable limit of liability as respects any one loss or occurrence stated herein,
all premiums on appeal bonds required in any such defended suit. but without any
obligation to apply for or furnish any such bonds;
c, Pay all expenses incurred by the Company, all costs taxed against the Insured in any
such suit, and all interest accruing after entry of judgment until the Company has
paid or tendered or deposited in court such part of such judgment as does not
exceed the limit of the Company's liability thereon;
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d, Reimburse the Insured for all reasonable expenses, other than loss of earnings,
incurred at the Company's request;
e, The amounts incurred hereunder, except settlement of claims and suits, are payable
in addition to the applicable limit of liability in anyone occurrence,
8, Coverage also applies to the interest ofthe Insured in participation loans, and to mortgages
serviced by the Insured under a written contract or agreement as though the Insured owned
the mortgage, provided however. that such mortgages are included and stated in the
Declarations. Loss payment shall be made jointly to the Insured and the owner of the
mortgage,
C, Coverages A and/or 8 shall also apply during and after foreclosure or when such property is
sold under a conditional sales agreement or other instrument where title remains with the
Insured, Coverage commences when such property is acquired by the Insured and termi-
nates sixty (60) days therefrom or on the date hazard policies are obtained. whichever first
occurs.
D, The Company agrees to pay on behalf of the Insured any sum up to a limit of ten thousand
dollars (SIO,DOO) percccurrence, which the Insured shall become legally obligated to pay as
a result of any claim made against the Insured for failure to pay real estate taxes on
mortgaged property because of any error or accidental omission of the Insured.
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Alexander & Alexander
of Texas, Inc.
Diamond Shamrock Tower
19th Floor - Lock Box # 8
Dallas, Texas 75201
Telephone 214 741-5171
.AJ~xander
&AJexander
.It
~aid
!!da
tlaid
[, The Company agrees to indemnify the Insured for loss resulting from the Insured's failure
through any error or accidental omission to notify the Veteran's Administralion or Federal
Housing Administration as guaranteeing agency, of mortgage payments that are in arrears
within the notice period required by each agency, Coverage shall apply only to loss
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inception date thereof, on behalf of this Company there be filed with .
accepted by the insurance supervisory authorities, in conformity with la
endorsements, rules or regulations by which the insurance provided under thi
be extended or broadened, without additional premium charge, byendorseme
tion of form, then such extended or broadened insurance shall inure to the
Insured as though such endorsement or substitution of form has been m
$, Warranty Clause
'PI,..~_ __I~_. _"'_lJ r... ____.._~ ----' ,_ _~ ............. ~_'---""~.
sustained when the mortgagee sells the property, but in no event shall the Company's
liability exceed 75% of the difference between the guarantee value and the proceeds of the
sale, This extension shall not increase the applicable limit of liability under thiS policy but
shall be considered as part thereof.
This policy does not apply:
Part III Exclusions
E. To loss customarily insured against which occurs more than sixty (60) days after the Insured
or those representing the Insured in connection with its mortgage operations has had
knowledge that an error or omission has OCCU"ed;
A, To loss resulting from any risk or peril covered by policies of tille, life, sickness or accident
insurance nor any policy covering the legal liability ofthe mortgagor;
B, To loss of accounts, bills, currency, deeds, evidences of debt, money, securities, bullion or
manuscripts by reason of the Insured's liability as covered hereunder;
C, To loss from nuclear reaction or nuclear radiation or radioactive contamination, all whether
controlled or uncontrolled, and whether such loss be direct or indirect, proximate or remote,
or be in whole or in part caused by, contributed to, or aggravated by the perils insured
against under this policy;
D, To property at:
1. Nuclear reactor power plants including all auxiliary property on the site, or
2, Any other nuclear reactor installation, including laboratories handling radioactive
materials in connection with reactor installations, and "critical facilities" as such, or
3, InstallationS for fabricating complete fuel elements or for processing substantial
quantities of "special nuclear material", and for reprocessing, salvaging, chemically
separating, storing or disposing of "spent" nuclear fuel or waste materials, or
4. Installations other than those listed above using substantial quantities of radioactive
isotopes or other products of nuclear fission; ,
F, With respect to Coverages A and B, to loss resulting from any perils other than those against
which the Insured customarily requires its mortgagors to provide insurance to protect the
Insured's mortgagee interest;
G, With respect to Coverage B, to loss resulting from failure or insolvency of an insurance
company providing direct coverage on mortgaged property;
H, With respect to Coverage B, to loss resulting from earthquake, landslide, subsidence or
other earth movement; flood, surface waters, waves, tidal water or tidal wave, overflow of
str~ams or other bodies of water or spray from any of the foregoing, all whether driven by
wind or not. or whether caused by or attributable to earthquake, landslide or other earth
movement; but if fire or explosion ensues as a result of the foregoing excluded perils, then
this Company shall be liable for only such ensuing loss;
I. With respect to Coverage C, to loss resulting from error in judgment as to amount, form or
terms of insurance ca"ied or obtained on the property described under Coverage C,
Part IV Definitions
A, "Mortgage" shall mean a security or conveyance of real property for debt and shall include
deed of trust. contract for deed, loan cORlract or contract for sale,
B, "Mortgagee interest" shall mean the interest of the Insured in the unpaid balance of the
principal of a valid mortgage or deed of trust, including accrued interest thereon,
C, "Personal property mortgaged in connection therewith" shall mean only the mortgagor's
contents of a building that may be mortgaged with real property.
D, "Lack or insufficiency of insurance" shall mean inadequacy, invalidity, or uncollectibility of
such insurance, except uncollectibility due to insolvency of an insurer and shall also include
failure of the policy to specify the interest of the Insured as mortgagee,
[, The unqualified word "Insured" means the named Insured and any executive' officer,
director, or trustee all ;while acting within the scope of their duties as such,
F, "Loss Occurrence" shall mean the total loss by any peril or combination of perils insured
against arising out of a single event. When the term applies to loss or losses from
windstorm, hail. riot, riot attending a strike or civil commotion, it shall be held to include
those losses occu"ing or commencing during a period of 72 consecutive hours, When filing
proof of loss, the Insured may elect the moment which the 72-hour periOd shall be deemed to
have commenced,
Part V Other Conditions
A, Umits of Uability
1. With respect to Coverages A, Band C and Extensions Band C, the liability of the
Company shall not exceed the least of the following:
a, The amount of the actual direct loss to the property damaged or destroyed that
would be payable as determined in accordance with the conditions and limits of
liability of the policy of insurance customarily required or a"anged by the Insured,
less the amount due the Insured under all other insurance on such property;
b, Under Coverages A and B, the amount of the Insured's mortgagee interest;
c, The applicable limit of liability stated in tl1l' Declarations,
2, The inclusion herein of more than one Insured shall oot ooerate to increase the limit of
the Company's liability,
3, Any loss paid under this policy shall not reduce the limit of liability,
B. Insurance afforded under Coveralle A or Coveralle B shall only apply provided:
1. That the mortgagor does not make tbe customarv mortgage payment on the due date
and;
2, That the Insured has promptly undertaken all its customary procedures other than
foreclosure or sale, to collect the unpaid balance of the mortgage debt and;
3, That the Insured has not released the mortgagor or other party from payment of the
unpaid balance because of loss or damage to the mortgaged property,
C. With respect to morlialles to which Coveralle B applies, the Insured warrants to have in
effect and obsene the followinll procedures:
1. Will require and include in its loan contract, mortgage, deed of trust or contract for sale,
that at least fire and extended coverage insurance be maintained by the mortgagor for
the amount of the mortgage balance, or the replacement value of the improvements
whichever is the lesser, with the Insured named as mortgagee therein;
2, Will at the closing and disbursement of funds on' a loan contract, mortgage, deed of
trust. or contract for sale hereafter, affirm the actual existence of valid insurance as
required by the Insured and record the amount. name of insurance company, policy
number, and agent for the same;
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3', Will not. af!er being granted insurance hereunder, termin., its practice of escrowing
and paying insurance premiums for mortgagors without,otifying the Company; .
, 4, Will not in any way inform or imply to any person that hazaril insurance, as required by
the mortgage, deed of trust, or contract for sale is not needed, necessary, or is not to be
maintained, Rather the Insured shall hold out to all parties that such insurance shall be
maintained in lorce as required by the mortgage;
5. Will upon receipt of any information that hazard insurance maintained by the
mortgagor will for any cause terminate, the Insured will procure, within 60 days, such
coverage insurance for the account of the mortgagor for at least the minimum
requirements of the loan and pay the premium therefor, so as to prevent lapse in
protection as is required by the loan contract, mortgage, or contract for sale on the
property involved;
6, Will distribute, at least annually, reminder memorandums to the borrower that he
should maintain his hazard insurance,
D, When the Insured desires to purchase Coverage A on some commercial mortgages and
Coverage B on other commercial mortgages, the Insured shall specify the amount of
mortgage loan that the Insured wishes to be the criterion for determination of coverage, On
initial loan amounts above such amount specified in the Declarations, the Insured shall
retain the hazard policy and Coverage A shall apply, On initial loan amounts below the
amount stated in the Declarations, Coverage B shall apply,
[, Premiums
1. Applicable only if this policy is written for a term of one year,
The premium for the policy term set forth in the Declarations may be adjusted at the
conclusion of the pOlicy period if the number of mortgages for Coverages A and B or
number of units for Coverage C actually existent in the policy year differed by 10% or
more from the number initially provided by the Insured and used to caloulate the
premium stated in the Declarations,
2, Applicable only if this policy is written for a policy term of three years,
a, Annual Payment of Premium: If the premium for this policy is made payable in
annual installments, in consideration of an increase in premium, and the Insured is
in default in the payment of any installment. the amount previously paid shall be
regarded as having been earned by this Company, and this policy may then be
cancelled in accordance with its terms,
b, Adjustment of Premium: This policy covers for a policy term of three years subject to
the cancellation provisions contained herein,
(1) If the premium is paid in full at inception, the amount set forth in the
Declarations is an estimated premium, The premium for the second and third
policy years shall be adjusted by the Company based upon a statement of
mortgages for Coverages A and B and a statement of units of Real and lor
Personal Property for Coverage C, Such statements to be submitted by the
Insured 90 days prior to each annual anniversary,
(2) If the premium is paid in annual installments. the first installment is as set
forth in the Declarations, The premium for the second and third policy years
shall be computed by the Company based upon a statement of mortgages for
Coverages A and B and a statement of units of Real and/or Personal Property
for Coverage C, Such statements to be submitted by the Insured 90 days prior
to each annual anniversary, The first installment and each subsequent annual
installment may be modified at the conclusion of the respective policy year if
the number of mortgages or units actually existent in that year varied by 10%
or more from the number used in calculating the installment premium,
F. When loss Occurs:
1. Applicable To Coverages A and B:
a. Requirements Of the Insured When loss Occurs: The Insured shall give written
notice to this Company of any loss which may be covered by this policy as soon as
practicable after notice thereof has been received by the Insured, Such notice shall
contain particulars regarding the time, place and circumstances of the loss as are
available at the time, Within 60 days after the Insured has knowledge of loss or
damage to the property by a peril insured against unless such time is extended in
writing by this Company, the Insured shall render to this Company a proof of loss,
signed and sworn to by the Insured, stating the knowledge and belief of the Insured
as to the following: the time and origin of the loss, the interest of the Insured and of
all others in the property, the actual cash value of each item thereof and the amount
of loss thereto, all encumbrances thereon, all contracts of insurance, whether valid
or not, covering any of said property, by whom and for what purpose the damaged or
destroyed building was occupied at the time of loss, The Insured, as often as may be
reasonably required, shall produce for examination all books of account, bills,
invoices and other vouchers. or certified copies thereof if originals be lost, at such
reasonable time and place as may be designated by the Company or its representa-
tive, and shall permit extracts and copies thereof to be made,
b, Appraisal: In case the Insured and the Company shall fail to agree as to the amount
of loss, then on the written demand of either, each shall select a competent and
disinterested appraiser and notify the other of the appraiser selected within twenty
days of such demand, The appraisers shall first select a competent and disin-
terested umpire; and failing for fTTteen days to agree upon such umpire. then, on
request of the Insured or this Company, such umpire shall be selected by a judge of
a court of record in the state in which the Insured is located, The appraisers shall
then appraise the loss, stating separately the loss to each item; and failing to agree,
shall submit their differences. only, to the umpire, An award in writing, so itemized,
.
· of any two, when file~ith this Company shall determine the ailount of lo~s, Each
appraiser shall be pai by the party selecting him and the expenses of appraisal and
umpire shall be paid y the parties equally,
c, When loss Payable: The amount of loss for which this Company may be liable shall
be payable sixty days after proof of loss, as herein provided, is received by this
Company and ascertainment of the loss is made either by agreement between the
Insured and this Company expressed in writing or by the filing with this Company of
an award as herein provided,
d, Subrogation: Whenever the payment to the Insured by this Company and other
companies equals the balance due under the mortgage, or when the payment of this
Company and other companies is less than such balance due under the mortgage
and this Company by itself, or with others, elects to pay the Insured the balance due
on the mortgage (after deducting any amount recoverable from this and other
insurance!, the Company shall be subrogated to all the Insured's rights of recovery
therefor against any person or organization, It is a condition of this insurance that
the companies having the exercising subrogation rights shall, as their interest may
appear, thereupon receive full assignment of the mortgage and all securities held
as collateral for the mortgage debt.
e, Abandonment: There can be no abandonment to this Company of any property,
2, Applicable To Coverage C and Extension A
a, Notice of Claim or Suit: If claim is made or suit is brought against the Insured, the
Insured shall immediately forward to the Company every demand, notice or sum-
mons or other process received by him or his representative,
b, Cooperation of the Insured: It is a condition of this insurance that the Insured shall
cooperate with the Company and. upon the Company's request. shall attend
hearings and trials and shall assist in effecting settlement.. securing and giving
evidence, obtaining the attendance of witnesses and in the conduct of suits, but the
Insured shall not. except at his own cost. voluntarily make any payment, assume any
obligation or incur any expense, Upon the Company's request. the Insured shall give
to the Company a signed statement of facts containing all available information
deemed necessary by the Company to determine and define its liability and rights
under this policy,
c. Subrogation: In the event of any payment under this policy the Company shall be
subrogated to all the Insured's rights of recovery therefor against any person or
organization and the Insured shall execute and deliver instruments and papers and
do whatever else is necessary to secure such rights. The Insured shall do nothing
after loss to prejudice such rights,
G. Action Against Company
L With respect to Coverages A and B, no suit or action on this policy for the recovery 01 any
claim shall be sustainable in any court of law or equity unless all the requirements of
this policy shall have been complied with, and unless commenced within twelve months
next after inception of the loss, except that such suit or action must be commenced
within 24 months in the states 01 Massachusetts and Minnesota, 36 months in the
state of North Dakota, and 60 months in the state of Kansas,
2, With respect to Coverage C and Extension A, no action shall lie against the Company
unless, as a condition precedent thereto, the Insured shall have fully complied with all
applicable conditions, nor until the amount olthe Insured's obligation to pay shall have
been finally determined either by judgment against the Insured after actual trial or by
written agreement of the Insured, the claimant and the Company, Any person or
organization or the legal representative thereof who has secured such judgment or
written agreement shall thereafter be entitled to recover under this policy to the extent
of the insurance afforded by this policy, Nothing contained in this pOlicy shall give any
person or organization any right to join the Company as a co-defendant in any action
against the Insured to determine the Insured's liability,
Bankruptcy or insolvency of the Insured or the Insured's estate shall not relieve the
Company of any of its obligations hereunder.
H, Territory
This policy applies only with respect to insurance pertaining to property in which the Insured
has a mortgagee interest or acts in a mortgage servicing agency capacity, or held in trust by
the Insured, and which is located in the United States of America Qr Puerto Rico,
I, Exterrt of Coverage
This policy applies only when the event which should have been insured against occurs
within the policy period,
1. Inspection and Audit: The Company shall be permitted but not obligated to inspect the
Insured's property and operations at any time, Neither the Company's right to make
inspections nor the making thereof nor any report thereon shall constitute an undertaking.
on behalf of or for the benelit of the Insured or others, to determine or warrant that such
property or operations are safe,
The Company may examine and audit the Insured's books and records at any time during the
policy period and extensions thereof and within three years after the final termination of this
policy, as far as they relate to the subject matter 01 this insurance,
K. Concealmerrt-Fraud: This entire policy shall be void if, whether before or after a loss, the
Insured has wilfully concealed or misrepresented any material lact or circumstance
concerning this insurance or the subject thereof or the interest of the Insured therein, or in
.case of any fraud or false swearing by the Insured relating thereto,
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L Due,Care: With respect to Coverage A. Coverage C, and Extension tthl! Insured shall make
~very reasonat~e effort to prevent errors and omissions against tich this polity insures
and with respect to Coverage e, due care shall be exercised as specified in Part V C, of the
Policy Conditions. or amendment thereof by endorsement.
II. Other Insurance: If there is any other valid and collectible insurance which would attach if
this insurance had not been effected, this insurance shall apply only as excess and in no
event as contributing insurance. and then only after all other insurance has been
exhausted..
I, Conformance: The terms of this policy which are in conflict with the terms of any applicable
mandatory statute are hereby amended to conform to such statute,
0, Assil11ment: This policy shall be void if assigned or transferred without the written consent
of this Company, whether such transfer be voluntary or involuntary,
p, Cancellation
1. The policy may be cancelled at any time at the request of the Insured. in which case the
Company shall. upon demand and surrender of the policy, refund the excess of paid
premium above the pro rata premium for the expired period of CllVerage..
2, The policy may be cancelled at any time by the Company:
a, With respect to Coverage A. Coverage C and Extension A by giving to the Insured a
thirty days written notice of cancellation. with or without tender of the excess of paid
premium above the pro rata premium for the expired time;
, b. With respect to Coverage e by giving to the Insured written notice by registered mail
which shall fil a date not less than 365 days after the date of mailing. which date
shall be the effective date on and after which Coverage e shall be deemed cancelled
and of no further effect
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,
Notice of cancellation shall late that the excess of paid premium '!bove the pro rata
premium for the expired ptod of coverage. if not tendered. shall be refunded on
demand..
Q. loti" Of Intent lot to Renew Coy.rap B
The Company agrees that it will give the Insured at least 365 days written notice should'it
not intend to renew Coverage e. Furthermore, if such notice is given after the beginning of
the last year of the policy period. the term of Coverage e shall thereby be automatically
eltended by the number of days required to allow the Insured 365 days coverage from the
date such notice is given, It is understood and agreed. however. that the Insured shall pay
the pro rata premium charge for the period thus extended beyond the normal expiration
date.
R. Ub.ralization Clause
If during the period that insurance is in force under this policy. or within 45 days prior to the
inception date thereof. on behalf of this Company there be filed with and approved or
accepted by the insurance superviSOry authorities, in conformity with law, any forms.
endorsements, rules or regulations by which the insurance provided under this policy could
be eltended or broadened, without additional premium charge. by endorsement or substitu-
tion of form, then such extended or broadened insurance shall inure to the benefit of the
Insured as though such endorsement or substitution of form has been made,
$, Warranty Clause
This policy shall be suspended and/or restricted should the Insured fail to comply with any
of the warranties contained herein.. It shall be held that such breach. during its continuance
suspends or restricts this policy, only so far as it applies to the specific property on which
the breach occurs.
.
IN W1fflESS WHEREOF. the INSURANCE COMPANY OF NORTH AMERICA has caused this policy to be signed by its President and Secretary at Philadelphia, Pa,;and countersigned by a duly authorized
agent 01 th~ Company..
~t:,JM&
BERTRAM t, DEDMAN, Secretary
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