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CITY OF CLEARWATERAny notice of claim and any other notice or statement in writing required to be given to the Company under this policy must b� given to the Company at the address shown in Section 17 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the "Company") insures as of Date of Polir.:y, against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified, expired, or otherwise invalid power of attorney; (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by ari accurate and complete land survey of the Land. The term "encroachment" includes encroachments of existing improvements located or� the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. (Covered Risks Continued cm Page 2) � In Witness Whereof, First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company _.._.....,,,,�, � Q�/y �� '''S�1 L E I HS'U 11�1�, . /' / .�/li = Q,� ,,...., q9 �, �� r ,'� ' ���P oA9� �y�,,II�'; Dennis J. Gilmore �. r ° � ' President N �, SEPTEMBER 24, � � ' , d� •. 1968 '• ? C���'�Gv ��/ I,I,�'4*�A( I F O RH�p*� / 11,���������..� � Timothy Kemp Secretary (This Policy is valid only when Schedules A and B are attached) Copyright 2006-2009 American Land Title Assxiation. All rights resarved. The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of uses. All other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5011312 (2-1-11) Page 1 of 6 � ALTA Loan Policy of Title Insurance (6-17-06) (with Florida modifications) 5. 6. 7. 8. 9. 10 11 12. 13. 14 COVERED RISKS (Continued) The violation or enforcement of any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or Iocation of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection if a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of the violation or enforcement referred to in that notice. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Records. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. This Covered Risk includes but is not limited to insurance against loss from any of the following impairing the lien of the Insured Mortgage (a) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (b) failure of any person or Entity to have authorized a transfer or conveyance; (c) the Insured Mortgage not being properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (d) failure to perform those acts necessary to create a document by electronic means authorized by law; (e) a document executed under a falsified, expired, or otherwise invalid power of attorney; (fl a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or (g) a defective judicial or administrative proceeding. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance. The lack of priority of the lien of the Insured Mortgage upon the Title as security for each and every advance of proceeds of the loan secured by the Insured Mortgage over any statutory lien for services, labor, or material arising from construction of an improvement or work related to the Land when the improvement or work is either (a) contracted for or commenced on or before Date of Policy; or (b) contracted for, commenced, or continued after Date of Policy if the construction is financed, in whole or in part, by proceeds of the loan secured by the Insured Mortgage that the Insured has advanced or is obligated on Date of Policy to advance. The invalidity or unenforceability of any assignment of the Insured Mortgage, provided the assignment is shown in Schedule A, or the failure of the assignment shown in Schedule A to vest title to the Insured Mortgage in the named Insured assignee free and clear of all liens. The invalidity, unenforceability, lack of priority, or avoidance of the lien of the Insured Mortgage upon the Title (a) resulting from the avoidance in whole or in part, or from a court order providing an alternative remedy, of any transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction creating the lien of the Insured Mortgage because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws; or (b) because the Insured Mortgage constitutes a preferential transfer under federal bankruptcy, state insolvency, or similar creditors' rights laws by reason of the failure of its recording in the Public Records (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 13 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the Insured Mortgage in the Public Records. The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Pdicy, but only to the extent provided in the Conditions. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided untler Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy; or Form�5011312 (2-1-11) Page 2 of 6 I ALTA Loan Policy of Title Insurance (6-17-06) (with Florida modifications} EXCLUSIONS FROM COVERAGE (Continued) (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing- business laws of the state where the Land is situated. 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 Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the lransaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or as;>essments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Nlortgage in the Public Records. CONDITIONS 1. DEFINITION OF TERMS The foliowing terms when used in this policy mean: (a) "Amount of Insurance": The amount stated in Schedule A, as may be increased or decreased by endorsement to this policy, increased by Section 8(b) or decreased by Section 10 of these Conditions. (b) "Date of Policy": The date designated as "Date of Policy" in Schedule A. (c) "Entity": A corporation, partnership, trust, limited liability company, or other similar legal entity. (d) "Indebtedness": The obligation secured by the Insuretl Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of (i) the amount of the principal disbursed as of Date of Policy; (ii) the amount of the principal disbursed subsequent to Date of Policy; (iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated to advance at Date of Policy and at the date of the advance; (iv) interest on the loan; (v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law; (vi) the expenses of foreclosure and any other costs of enforcement; (vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acquisition of the estate or interest in the Title; (viii) the amounts to pay taxes and insurance; and (ix) the reasonable amounts expended to prevent deterioration of improvements; but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured. (e) "Insured": The Insured named in Schedule A. (i) The term "Insured" also includes (A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Section 12(c) of these Conditions; (B) the person or Entity who has °control" of the "transferable record," if the Indebtedness is evidE;nced by a "transferable record," as these terms are defined by applicable electronic transactions law; (C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization; (D) successors to an Insured by its conversion to another kind of Entity; (E) a grantee of an Insured under a deecf delivered without payment of actual valuable corisideration conveying the Title (1) if the stock, shares, memberships, or other equity interests of the grantee are wholly•owned by the named Insured, (2) if the grantee wholly owns the namE:d Insured, or (3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided thr;� affiliated Entity and the named Insured are both whnlly-owned by the same person or Entity; (F) any government agency or instrument:dity that is an insurer or guarantor under an insurance c;ontract or guaranty insuring or guaranteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not; (ii) With regard to (A), (B), (C), (D), and (E) reserving, however, all rights and defenses as to any successc�r that the Company would have had against any predecessc�r Insured, unless the successor acquired the Indebtedness as a purchaser for value without Knowledge of the asserted dE;fect, lien, encumbrance, or other matter insured against by this �aolicy. (fl "Insured Claimant": An Insured claiming loss or damage. (g) "Insured Mortgage": The Mortgage described in paragraph 4 of Schedule A. (h) "Knowledge" or "Known°: Actual knowledge, not constructive knowledge or notice that may be imputed to �3n Insured by reason of the Public Records or any other records 1:hat impart constructive notice of matters affecting the Title. Form 5011312 (2-1-11) Page 3 of 6 � ALTA Loan Policy of Title Insurance (6-17-06) (with Florida madifications) CONDITIONS (Continued) (i) "Land": The land described in Schedule A, and a�xed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. Q) "Mortgage": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law. (k) "Public Records": Records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. With respect to Covered Risk 5(d), "Public Records" shall also include environmental protection liens filed in the records of the clerk of the United States District Court for the district where the Land is located. (I) "Title": The estate or interest described in Schedule A. (m) "Unmarketable Title": Title affected by an alleged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title or a prospective purchaser of the Insured Mortgage to be released from the obligation to purchase, lease, or lend if there is a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insuretl, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured of any claim of title or interest that is adverse to the Title or the lien of the Insured Mortgage, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title or the lien of the Insured Mortgage, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. 4. PROOF OF LOSS In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this policy that constitutes the basis of toss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 5. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging mattE;rs insured against by this policy. The Company shall have the righil to select counsel of its choice (subject to the right of the Insured ta object for reasonable cause) to represent the insured as to th<�se stated causes of action. It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. (b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its oavn cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to es�tablish the Title or the lien of the Insured Mortgage, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this policy, whethe�r or not it shall be liable to the Insured. The exercise of these righls shall not be an admission of liability or waiver of any provision of thi:s policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Corripany may pursue the litigation to a final determination by a court of rompetent jurisdiction, and it expressly reserves the right, in its sole ��iscretion, to appeal any adverse judgment or order. 6. DUTY OF INSURED CLAIMANT TO COOPERATE (a) In all cases where this policy permits or re�quires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the n�:ime of the Insured for this purpose. Whenever requested by the Company, the Insured, at the Company's expense, shall give the Cc�mpany all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defentling the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opiriion of the Company may be necessary or desirable to establish thr:� Title, the lien of the Insured Mortgage, or any other matter as insured. If the Company is prejudiced by the failure of the Insured to �furnish the required cooperation, the Company's obligations to the Ins�ured under the policy shall terminate, including any liability or oE�ligation to defend, prosecute, or continue any litigation, with reg.ard to the matter or matters requiring such cooperation. (b) The Company may reasonably require th�e Insured Claimant to submit to examination under oath by any ;authorized representative of the Company and to produce for e�:amination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, report;�, e-mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Cornpany, the Insured Claimant shall grant its permission, in writin,�, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a thircl party that reasonably pertain to the loss or damage. All information ciesignated as confidential by the Insured Claimant provided to the Company Form 5011312,(2-1-11) Page 4 of 6 I ALTA Loan Policy of Title Insurance (6-17-06) (with Florida mcrdifications) CONDITIONS (Continued) pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim. 7. OPTIONS TO PAY OR OTHERWISE SETTLE CIAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness. (i) To pay or tender payment of the Amount of Insurance under this policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or (ii) To purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay. When the Company purchases the Indebtedness, the Insured shall transfer, assign, and convey to the Company the Indebtedness and the Insured Mortgage, together with any collateral security. Upon the exercise by the Company of either of the options provided for in subsections (a)(i) or (ii), all liability and obligations of the Company to the Insured under this policy, other than to make the payment required in those subsections, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this policy. In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liability of the Company for loss or damage under this policy shall not exceed the least of (ij the Amount of Insurance, (ii) the Indebtedness, (iii) the difference beiween the value of the Title as insured and the value of the Title subject to the risk insured against by this policy, or (iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty. (b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured, (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid. (c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions. (d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured. (c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy, except payments made for costs, attorneys' fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment. However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this policy except to the extent that the payments reduce the Indebtedness. (b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Conditions. 11. PAYMENT OF LOSS When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days. Form 5011312 (2-1-11) Page 5 of 6 � ALTA Loan Policy of Title Insurance (6-17-06) (with Florida modifications) CONDITIONS (Continued) 12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT (a) The Company's Right to Recover Whenever the Company shall have settled and paid a claim under this policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. if requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies. The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Insured's Rights and Limitations (i) The owner of the Indebtedness may release or substitute the personal liability of any debtor or guarantor, extend or otherwise modify the terms of payment, release a portion of the Title from the lien of the Insured Mortgage, or release any collateral security for the Indebtedness, if it does not affect the enforceability or priority of the lien of the Insured Mortgage. (ii) If the Insured exercises a right provided in (b)(i), but has Knowledge of any claim adverse to the Title or the lien of the Insured Mortgage insured against by this policy, the Company shall be required to pay only that part of any losses insured against by this policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Ctaimant of the Company's right of subrogation. (c) The Company's Rights Against Non-insured Obligors The Company's right of subrogation includes the Insured's rights against non-insured obligors including the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights. The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section 1(e)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obligor will not be an Insured under this policy. 13. ARBITRATION Unless prohibited by applicable law, arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association may be demanded if agreed to by both the Company and the Insured at the time of controversy or claim. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the Insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the Land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT (a) This policy together with all endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises out of the status of the Title or lien of the Insured Mortgage or by any action asserting such claim whether or not based on negligence shall be restricted to this policy. (c) Any amendment of or endorsement to this policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to all of its terms and provisions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 15. SEVERABILITY In the event any provision of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 16. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured acknowledges the Company has undennrritten the risks covered by this policy and determined the premium charged therefor in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law. (b) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of America or its territories having appropriate jurisdiction. 17. NOTICES, WHERE SENT Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at First American Title Insurance Company, Attn: Claims National Intake Center,1 First American Way, Santa Ana, California 92707. Phone: 888-632-1642. Form 5011312 (2-1-11) Page 6 of 6 I ALTA Loan Policy of Title Insurance (6-17-06) (with Florida modifications) , s� ����� .� �'� �. , .� �� ' Schedule A Owner's Policy of Title Insurance ISSUED BY First American Title Insurance Company POLICY NUMBER 5011412-23317 Name and Address of Title Insurance Company: FIRST AMERICAN TITLE INSURANCE COMPANY, 1 First American Way, Santa Ana, California 92707 Agent File Number: 921370-14 FAST File Number: 2061-2818330 Address Reference:409 Cleveland Street, Clearwater, Florida Amount of Insurance: $190,000.00 Date of Policy: September 24, 2012 at 11:24 a.m. 1. 2. Name of Insured: City of Clearwater, Florida, a Florida municipality Premium: $600.00 The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is vested in: City of Clearwater, Florida, a Florida municipality 4. The Land referred to in this policy is described as follows: See Exhibit "A" attached hereto and made a part hereof MacFarlane Ferguson & McMullen By: J. tthew Marquardt, s., Authorized Countersignature (This Schedule A valid y when Schedule B is attached) Form 5011412 (2-1-11) Page 1 of 4 ALTA Owner's Policy of Title Insurance (6-17-06) (with Florida modificatir�ns) ,�� r.�e�i� �.`� ��•� � L,�,:� Exhibit A Agent File Number: 921370-14 FAST File Number: 2061-2818330 ISSUED BY First American Title Insurance Company POLICY NUMBER 5011412-23317 The land referred to herein below is situated in the County of Pinellas, State of FL, and described as follows: That part of the East nineteen and three-quarters (19 3/4) feet of Lot Six (6), in Block "B" of JOHN R. DAVEY, E'T ALS RESUBDIVISION OF EARLL MUMFORD ROSS & STARR'S SUBDIVISION, IN CLEARWATER HARBOR, according to the plat of said Re-Subdivision as recorded in Plat Book 1, Page 87, of the Public Records of Hillsborough County, Florida, of which Pinellas was once a part thereof, described as follows: Beginning at a point in the North boundary of said Lot 6, wlhich is five (5) feet and eight and one-eighth (8 1/8) inches West of its Northeast corner; run thence West along the North boundary of said Lot 6, to the Northwest corner of the East nineteen and three-quarters (19 3/4) feet of said LGt; run thence South to the Southwest corner of the East nineteen and three-quarters (19 3/4) feet of said Lot 6; run thence East to a point in the South boundary of said Lot 6, which is eight feet and eight inches West of its Southeast corner; arod run thence Northerly to the POINT OF BEGINNING. Form 5011412 (2-1-11) Page 2 of 4 ALTA Owner's Policy of Title Insurance (6-ll-06) (with Florida modifications) `��� �1U�R/�7 ti � .� � Schedule 6 Agent File Number: 921370-14 FAST File Number: 2061-2818330 Owner's Policy of Title Insurance ISSUED BY First American Title Insurance Company POLICY NUMBER 5011412-23317 EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees, or expenses that arise by reason of: 1. 2. 3. 4. 5. 6. 7. Any rights, interests, or claims of parties in possession of the land not shown by the public records. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the land. Any lien, for services, labor, or materials in connection with improvements, repairs or renovations provided before, on, or after Date of Policy, not shown by the public records. Any dispute as to the boundaries caused by a change in the location of any water body within or adjacent to the land prior to Date of Policy, and any adverse claim to all or part of the land that is, at Date of Policy, or was previously under water. Taxes or special assessments not shown as liens in the public records or in the records of the local tax collecting authority, at Date of Policy. Any minerals or mineral rights leased, granted or retained by current or prior owners. Taxes and assessments for the year 2012 and subsequent years, which are not yet due and payable. 8. Declaration of Covenants, Conditions and Restrictions recorded in Deed Book 709, Page 179, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 USC 3604(c). 9. Terms and conditions of any existing unrecorded lease(s), and all rights of lessee(s) and any parties claiming through the lessee(s) under the lease(s). NOTE: Exception(s) numbered 1, 3 and 4 above is/are hereby deleted. Form 5011412 (2-1-11) Paqe 3 of 4 ALTA Owner's Policy of Title Insurance (6-17-06) (with Florida modifications) Agent File Number:921370-14 Issuing Office File Number: 2061-2818330 Note: All of the recording information contained herein refers to the Public Records of Pinellas County, Florida , unless otherwise indicated. Any reference herein to a Book and Page is a reference to the Official Record Books of said county, unless indicated to the contrary. Notices - Where Sent All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company, Attention: Ciaims Department, 1 First American Way, Santa Ana, CA 92707. Service, Qualitv and Availabilitx First American Title Insurance Company cares about its customers and their ability to obtain information and service on a convenient, timely and accurate basis. A qualified staff of service representatives is dedicated to serving you. A toll-free number is available for your convenience in obtaining information about coverage and to provide assistance in resolving complaints at 1-800-929-7186. Office hours are from 8:30 a.m. through 5:30 p.m. Monday through Friday. Form 5011412 (2-1-11) Paqe 4 of 4 ALTA Owner's Policy of Title Insurance (6-17-06) (with Florida modificatiGns) Loan Policy of Title Insurance it Florid a modifications) ISSUED BY it American Title Insurance Company POLICY NUMBER Loan Policy 501 1 312- 23317 Any notice of claim and any other notice ors to ent in writing required toe given tote any under this policy must be given to the Company at the address shown in Section 17 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation (the"Company")insures as of Date of Policy,against loss or damage,not exceeding the Amount of Insurance,sustained or incurred by the Insured by reason of: 1. Tide being vested other than asst in Schedule A. 2. Any defect in or lien or encumbrance on the Title. This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (1) forgery,fraud,undue influence,duress,incompetency,incapacity,or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (Iii) a document affecting Title not properly created,executed,witnessed,sealed,acknowledged,notarized,or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified,expired,or otherwise invalid power of attorney; (A) a document not properly filed, recorded,or indexed in the Public Records including failure to perform those acts by electronic means authorized by law;or (vii) a defective judicial or administrative proceeding, (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable,but unpaid. (c) Any encroachment, encumbrance,violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land. The term"encroachment"includes encroachments of existing improvements located on the Land onto adjoining land,and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Tide. 4. No right of access to and from the Land. (Covered Risks Continued on Page 2) In Witness Whereof, First American Title Insurance Company has used its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Tiffe Insurance Company %11LE 1APS, V'P alp Dennis J.Gilmore < President SEPTEMBER 24, 1968 a J, 40 11, Timothy Kemp Secretary (This Policy is valid only when Schedules A and B are attached) Copyright 2006-2009 AnteFican Land soclatlam All rIghla reserved.The use of this form is reat&1ed to ALTA licensees and ALTA members In goad standing as of the date of use. All other uses are prohibited.Reprinted under license Imm the American Land Title Association. Form 5011312(2-1-11) Page 1 of 6 ALTA Loan Policy of Title Insurance(6-17-06)(with Florida modifications) Owner's I i Title Insurance I55UED BY First Schedule A POLICY NUMBER E -- _--, -__.. ...... .. Name and Address of Title Insurance Company: FIRST AMERICAN TITLE , 1 First American ,Santa Ana,California 92707 Agent File Number: 921370-14 FAST File Number: 2061-2818330 Address Reference:409 Cleveland Street, Clearwater, Florida Amount of Insurance: $190,000.00 Premium: $600.00 Date of Policy: September 24, 2012 at 11:24 a.m. 1. Name of Insured: City of Clearwater, Florida, a Florida municipality 2. The estate or interest in the Land that is insured by this policy is: Fee Simple 3. Title is vested in: City of Clearwater, Florida, a Florida municipality 4. The Land referred to in this policy is described as follows: See Exhibit" " attached hereto e a part hereof MacFarlane Ferguson &McMullen By: ,. i J. tthew Marquardt, s .,Authorized Countersignature (This Schedule A valid y when Schedule B is attached) Form 5011412(2-1-11) Page 1 of 4 ALTA owner's Policy of Title Insurance(6-17-06)(with Florida modifications) - r ISSUED BY -- First American it Insurance Company POLICY NUMBER Exhibit A Agent File Number: 921370-14 FAST File Number: 2061-2818330 The land referred to herein below is situated in the County of Pinellas, State of FL, and described as follows: That part of the East nineteen and th -qua rs (19 3/4) feet of Lot Six (6), in Block " " of JOHN R. DAVEY, E-ALS RESUBDIVISION OF EARLL MU FORD ROSS & STARR!S SUBDIVISION, IN CLEARWATER HARBOR, according to the plat of said Re-Subdivislon as recorded in Plat Book 1, Page 87, of the Public Records of Hillsborough County, Florida, of which Pinellas was once a part thereof, described as follows: Beginning at a point in the North boundary of said Lot 6, which is five (5) feet and eight and one-eighth (8 118) inches West of its Northeast corner; run thence West along the North boundary of said Lot 6, to the Northwest corner of the East nineteen and three-quarters (19 3/4) feet of said Lot; run thence South to the Southwest corner of the East nineteen and three-quarters (19 /4)feet of said Lot 6; run thence East to a point in the South boundary of said Lot 6, which is eight feet and eight inches West of its Southeast corner; and run thence Northerly to the POINT OF BEGINNING. Form 5011412(2-1-11) Paqe 2 of 4 ALTA Owner's Policy of Title Insurance(6-17-06)(with Florida modifications) :.�. &MM r� , - Owner's Policy Title Insurance (ISSUED BY First American Title Insurance I Company POLICY NUMBER X5011412-23317 Agent File Number: 921370-14 FAST File umber: 2061-2818330 COVERAGE EXCEPTIONS FROM This policy does not insure against loss or damage and the Company will not pay costs, attorneys' fees, or expenses that arise by reason of: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the land. 3. Any lien, for services, labor, or materials in connection with improvements, repairs or renovations provided before, on, or after Date of Policy, not shown by the public records. 4. Any dispute as to the boundaries caused by a change in the location of any water body within or adjacent to the land prior to Date of Policy, and any adverse claim to all or part of the land that is, at Date of Policy, or was previously under water. 5. Taxes or special assessments not shown as liens in the public records or in the records of the local tax collecting authority, at Date of Policy. 6. Any minerals or mineral rights leased, granted or retained by current or prior owners. 7. Taxes and assessments for the year 2012 and subsequent years, which are not yet due and payable. 8. Declaration of Covenants, Conditions and Restrictions recorded in Deed Book 709, Page 179, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, handicap, familial status or national origin to the extent such covenants, conditions or restrictions violate 42 USC 36O4(c). 9. Terms and conditions of any existing unrecorded lease(s), and all rights of lessee(s) and any parties claiming through the lessee(s) under the lease(s). NOTE: Exception(s) numbered 1, 3 and above is/are hereby deleted. Form 5011412(2-1-11) Paqe 3 of 4 ALTA owner's Policy of Tide Insurance(6-17-06)(with Florida modifications) Agent File Number:921370-14 Issuing Office File Number: 2061-2818330 Note: All of the recording information contained herein refers to the Public Records of Pinellas County, Florida , unless otherwise indicated. Any reference herein to a Book and Page is a reference to the Official Record Books of said county, unless indicated to the contrary. Notices- Where Sent All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company, Attention: Claims Department, I First American Way, Santa Ana, CA 92707. Service, Quality and wit ill First American Title Insurance Company cares about its customers and their ability to obtain information and service on a convenient, timely and accurate basis. A qualified staff of service representatives is dedicated to serving you. A toll-free number is available for your convenience in obtaining information about coverage and to provide assistance in resolving complaints at 1-800-929-7186. Office hours are from 8:30 a.m. through 5:30 p.m. Monday through Friday. Form 5011412(2-1-11) Paqe 4 of 4 ALTA Owner's Policy of Title Insurance(6-17-06)(with Florida modifications)