Warranty Deed & Owner's Policy of Title Insurance REBECCA SEEMAN
°`°`12EGISTER OF DEEDS SALINE COUNTY KANSAS
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WARRANTY DEED` Land Title Services,Inc.
(Kansas Statutory Form) TI15-1230'
This /2 day of /72 ,)/6-d
Dennis M. Fry, a/k/a Dennis Murray Fry, a single person
CONVEY(S)AND WARRANT(S) TO
The City of Salina, Kansas
all the following described REAL ESTATE in the County of Saline and the State of Kansas, to-wit:
See Exhibit A attached hereto and made a part hereof.
for the sum of One Dollar($1.00) and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged,
EXCEP • • D SUBJECT TO: :sements and Restrictions of Record, If Any
Dennis M. Fry
•
STATE OF KANSAS )
COUNTY OF SALINE )SS.
BE IT REMEMBERED, That on this /Z1'.(-- day of fta , 2, before me a Notary in and for the
County and State aforesaid, came Dennis M. Fry, a/k/a Dennis N4irray Fry who is/are personally known to me to be
the same person(s) who executed the within instrument of writing and such person(s) duly acknowledged the
execution of the same.
IN W TNESS WHER 41F, I have hereunto set my hand and affixed my seal, the day and year last above written.
Notary Public /,47/ ' 'Ptf•ac L. isio
Commission expires: d 2�9
V e° °
NOTARY ;
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PU3LIC
My Appt. Exp.
FOF ,(C‘>‘ _':
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Book : 1296 Page : 704
EXHIBIT A
Tract 1:
Lot Nine (9) except the East Fifteen (15) feet thereof in Surveyor's Plat Twelve (12), in the City of Salina,
Saline County, Kansas; and also except the following described tract, to-wit:
Commencing at an iron bar located at the Northeast corner of Lot Two(2) of said Surveyor's Plat Twelve(12)
and said iron bar also being Thirty-five (35) feet South of the centerline of Gypsum Avenue and Thirty-five
(35) feet West of the centerline of Ohio Street, thence South 1°39'58.3" East along the West right-of-way line
of Ohio Street a distance of Four Hundred Fourteen and Twenty-three Hundredths (414.23) feet to the North
line of said Lot Nine (9), thence South 88°06'17.4" West along the North line of said Lot Nine(9) a distance of
One Hundred Ninety-eight and Fifty-six Hundredths (198.56) feet to the point of beginning, thence South
53°56'02.5" West a distance of Eight-nine (89) feet, more or less, to the Southwest corner of said Lot Nine (9)
and said point also being on the centerline of the Smoky Hill River; thence in a Northerly direction along the
centerline of the Smoky Hill river a distance of Fifty-seven (57) feet, more or less, to the Northwest corner of
said Lot Nine (9); thence North 88°06'17.4" East along the North line of said Lot Nine (9) a distance of One
Hundred (100) feet, more or less, to the point of beginning.
Tract 2:
Lots Ten (10) and Eleven (11), in Surveyor's Plat Twelve (12), in the City of Salina, Saline County, Kansas.
(except that part taken for street)
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OWNER'S POLICY OF TITLE INSURANCE
Policy Issuer:
LAND TITLE SERVICES,INC.
136 N 7TH
SALINA,KS 67402-0922
PHONE:(785)823-7223
* * * * v�/
* * Policy Number OA-09780431 File Number: TI15-12308
* * Issued by Old Republic National Title Insurance Company
* * 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 the address shown in Section 18
of the Conditions.
COVERED RISKS
SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B,AND THE CONDITIONS,OLD
REPUBLIC NATIONAL TITLE INSURANCE COMPANY,a Florida corporation(the"Company")insures,as of Date of Policy and,to the extent stated in
Covered Risks 9 and 10,after Date of Policy,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 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 Title.
4.No right of access to and from the Land.
5.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 location 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.
Countersigned: OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY
A Stock Company
400 Second Avenue South,Minneapolis,Minnesota 55401
(612)371-1111
.1-�� "Alf By President
Authori -d Officer I tensed Age t 52 x ri T t�
r_ r,r
ORT Forth 9309 Attest {t Secretary
ALTA Owners Policy of Title Insurance 6-17-06 oa { .;'44
OWNER'S POLICY OF TITLE INSURANCE
SCHEDULE A
Name and Address of Title Insurance Company: Old Republic Title Insurance Co S. Central Div.
11960 Westline Industrial Dr, Suite 230
St. Louis, MO 63146
File Number: T115-12308 Policy Number: OX 09780431
Address Reference: 330 S. Ohio St/332 S. Ohio
Salina, KS 67401
Amount of Insurance: $ 175,000.00 Premium: $ 630.00
Date of Policy: May 15, 2015
1. Name of Insured:
The City of Salina, Kansas
2. The estate or interest in the Land that is insured by this policy is:
Fee Simple
3. Title is vested in:
The City of Salina, Kansas
4. The Land referred to in this policy is described as follows:
SEE EXHIBIT AATTACHED HERETO
Land Title Services, Inc.
-1)),V9p .a2412,,at".
By:
Kathy J. Chaput,Authorized Agent
ALTA Owner's Policy
Schedul e A(6/17/06) (TI 15-12308.PF D/T 115-12308/41)
Old Republic Title Insurance Co S. Central Div.
SCHEDULE B
File Number: TI15-12308 Policy Number: OX 09780431
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys'fees or
expenses which arise by reason of:
1. Any lien, or right to lien, for services, labor, or material heretofore or hereafter furnished, imposed by law
and not shown by Public Records.
2. Any encroachment, encumbrance, violation, variation or adverse circumstances affecting Title that would
be disclosed by an accurate and complete survey of the Land or that could be ascertained by an
inspection of the Land.
3. Easements, or claims of easements, not shown by the Public Records.
4. Right or claims of parties in possession not shown by the Public Records.
5. Taxes or special assessments, if any, not shown as existing liens by the Public Records.
6. General Taxes for all of the year 2015 and all subsequent years and all special assessments due and
payable therewith.
Tract 1
7. Restrictions and Easements, if any, as set out in Plat Book E-2, Page 64.
8. Permanent easement in favor of the City of Salina, Kansas as set out in Saline County Register of
Deeds Misc. Book 143, page 21.
Tract 2
9. Restrictions and Easements, if any, as set out in Plat Book E-2, Page 64.
10. Permanent easement in favor of the City of Salina as set out in Saline County Register of Deeds Misc.
Book 143, page 26.
11. Right-of-way in favor of the City of Salina as set out in Saline County Register of Deeds Misc. Book 143,
page 27.
NOTE: Any Provisions in the Conditions and Stipulations of the Policy Referring to Arbitration are Hereby
Deleted.
ALTA Owner's Policy (TI15-12308.PFD/TI15-12308/41)
Schedule B(6/17/06)
•
Old Republic Title Insurance Co S. Central Div.
EXHIBIT A
File Number: T115-12308 Policy Number: OX 09780431
The Land referred to in this policy is described as follows:
Tract 1:
Lot Nine (9) except the East Fifteen (15)feet thereof in Surveyor's Plat Twelve (12), in the City of Salina,
Saline County, Kansas; and also except the following described tract, to-wit:
Commencing at an iron bar located at the Northeast corner of Lot Two (2) of said Surveyor's Plat Twelve (12)
and said iron bar also being Thirty-five (35)feet South of the centerline of Gypsum Avenue and Thirty-five (35)
feet West of the centerline of Ohio Street, thence South 1°39'58.3" East along the West right-of-way line of
Ohio Street a distance of Four Hundred Fourteen and Twenty-three Hundredths (414.23)feet to the North line
of said Lot Nine (9), thence South 88°06'17.4" West along the North line of said Lot Nine (9) a distance of One
Hundred Ninety-eight and Fifty-six Hundredths(198.56)feet to the point of beginning, thence South
53°56'02.5"West a distance of Eight-nine (89)feet, more or less, to the Southwest corner of said Lot Nine (9)
and said point also being on the centerline of the Smoky Hill River; thence in a Northerly direction along the
centerline of the Smoky Hill river a distance of Fifty-seven (57)feet, more or less, to the Northwest corner of
said Lot Nine (9); thence North 88°06'17.4" East along the North line of said Lot Nine (9) a distance of One
Hundred (100)feet, more or less, to the point of beginning.
Tract 2:
Lots Ten (10) and Eleven (11), in Surveyor's Plat Twelve (12), in the City of Salina, Saline County, Kansas.
(except that part taken for street)
ALTA Owner's Policy
ExhibitA
(TI15-12308.PFD/TI15-12308/41)
•
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6.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.
7.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.
8.Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge.
9.Title being vested other than as stated in Schedule A or being defective
(a)as a result of the avoidance in whole or in part,or from a court order providing an alternative remedy,of a transfer of all or any part of
the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer
constituted a fraudulent or preferential transfer under federal bankruptcy,state insolvency,or similar creditors'rights laws;or
(b)because the instrument of transfer vesting Title as shown in Schedule A 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.
10.Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 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 deed or other instrument of transfer in the
Public Records that vests Title as shown in Schedule A.
The Company will also pay the costs,attorneys'fees,and expenses incurred in defense of any matter insured against by this Policy,but only to the
extent provided in the Conditions.
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of (b)not Known to the Company,not recorded in the Public
this policy,and the Company will not pay loss or damage,costs, Records at Date of Policy,but Known to the Insured Claimant
attorneys'fees,or expenses that arise by reason of: and not disclosed in writing to the Company by the Insured
Claimant prior to the date the Insured Claimant became an
1. (a)Any law,ordinance,permit,or governmental regulation Insured under this policy;
(including those relating to building and zoning)restricting, (c)resulting in no loss or damage to the Insured Claimant;
regulating,prohibiting,or relating to (d)attaching or created subsequent to Date of Policy
(however,this does not modify or limit the coverage provided
(i)the occupancy,use,or enjoyment of the Land; under Covered Risk 9 and 10);or
(ii)the character,dimensions,or location of any (e)resulting in loss or damage that would not have been
improvement erected on the Land; sustained if the Insured Claimant had paid value for the Title.
(iii)the subdivision of land;or
(iv)environmental protection; 4.Any claim,by reason of the operation of federal bankruptcy,state
insolvency,or similar creditors'rights laws,that the transaction
or the effect of any violation of these laws,ordinances,or govern- vesting the Title as shown in Schedule A,is
mental regulations. This Exclusion 1(a)does not modify or limit the
coverage provided under Covered Risk 5. (a)a fraudulent conveyance or fraudulent transfer;or
(b)Any governmental police power. This Exclusion 1(b)does not (b)a preferential transfer for any reason not stated in Covered
modify or limit the coverage provided under Covered Risk 6. Risk 9 of this policy.
2.Rights of eminent domain.This Exclusion does not modify or limit 5.Any lien on the Title for real estate taxes or assessments imposed
the coverage provided under Covered Risk 7 or 8. by governmental authority and created or attaching between Date
of Policy and the date of recording of the deed or other instrument
3.Defects, liens,encumbrances,adverse claims,or other matters of transfer in the Public Records that vests Title as shown in
Schedule A.
(a)created,suffered,assumed,or agreed to by the Insured
Claimant;
Page 2
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CONDITIONS
1.DEFINITION OF TERMS purchase, lease,or lend if there is a contractual condition requiring
The following terms when used in this policy mean: the delivery of marketable title.
(a)"Amount of Insurance": The amount stated in Schedule A,as may
be increased or decreased by endorsement to this policy, increased 2. CONTINUATION OF INSURANCE
by Section 8(b),or decreased by Sections 10 and 11 of these Conditions. The coverage of this policy shall continue in force as of Date of
(b)"Date of Policy": The date designated as"Date of Policy"in Policy in favor of an Insured,but only so long as the Insured retains
Schedule A. an estate or interest in the Land,or holds an obligation secured by
(c)"Entity": A corporation,partnership,trust,limited liability a purchase money Mortgage given by a purchaser from the Insured,
company,or other similar legal entity. or only so long as the Insured shall have liability by reason of
(d)"Insured": The Insured named in Schedule A. warranties in any transfer or conveyance of the Title. This policy
shall not continue in force in favor of any purchaser from the
(i)The term"Insured"also includes Insured of either(i)an estate or interest in the Land,or(ii)an
(A)successors to the Title of the Insured by operation of law as obligation secured by a purchase money Mortgage given to the
distinguished from purchase,including heirs,devisees,survivors, Insured.
personal representatives,or next of kin;
(B)successors to an Insured by dissolution,merger,consolidation, 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
distribution,or reorganization; The Insured shall notify the Company promptly in writing(i)in case
(C)successors to an Insured by its conversion to another kind of of any litigation as set forth in Section 5(a)of these Conditions,(ii)
Entity; in case Knowledge shall come to an Insured hereunder of any claim
(D)a grantee of an Insured under a deed delivered without of title or interest that is adverse to the Title,as insured,and that
payment of actual valuable consideration conveying the Title might cause loss or damage for which the Company may be liable
(1)if the stock,shares,memberships,or other equity by virtue of this policy,or(iii)if the Title,as insured,is rejected as
interests of the grantee are wholly owned by the Unmarketable Title. If the Company is prejudiced by the failure of
named Insured, the Insured Claimant to provide prompt notice,the Company's
liability to the Insured Claimant under the policy shall be reduced
(2)if the grantee wholly owns the named Insured, to the extent of the prejudice.
(3)if the grantee is wholly-owned by an affiliated
Entity of the named Insured,provided the affiliated 4. PROOF OF LOSS
Entity and the named Insured are both wholly-owned In the event the Company is unable to determine the amount of
by the same person or Entity,or loss or damage,the Company may,at its option,require as a condition
(4)if the grantee is a trustee or beneficiary of a trust of payment that the Insured Claimant furnish a signed proof of loss.
created by a written instrument established by the The proof of loss must describe the defect,lien,encumbrance,or
Insured named in Schedule A for estate planning other matter insured against by this policy that constitutes the
purposes. basis of loss or damage and shall state,to the extent possible,the
(ii)With regard to(A),(B),(C),and(D)reserving,however,all rights basis of calculating the amount of the loss or damage.
and defenses as to any successor that the Company would have had
against any predecessor Insured. 5. DEFENSE AND PROSECUTION OF ACTIONS
(e)"Insured Claimant": An Insured claiming loss or damage. (a)Upon written request by the Insured,and subject to the options
(f)°Knowledge"or"Known": Actual knowledge,not constructive contained in Section 7 of these Conditions,the Company,at its
knowledge or notice that may be imputed to an Insured by reason of own cost and without unreasonable delay,shall provide for the
the Public Records or any other records that impart constructive defense of an Insured in litigation in which any third party asserts
a claim covered by this policy adverse to the Insured.This obligation
notice of matters affecting the Title. is limited to only those stated causes of action alleging matters
(g)"Land": The land described in Schedule A,and affixed improvements insured against by this policy. The Company shall have the right to
that by law constitute real property. The term"Land"does not select counsel of its choice(subject to the right of the Insured to
include any property beyond the lines of the area described in object for reasonable cause)to represent the Insured as to those
Schedule A,nor any right,title,interest,estate,or easement in stated causes of action. It shall not be liable for and will not pay
abutting streets,roads,avenues,alleys, lanes,ways,or waterways, the fees of any other counsel. The Company will not pay any fees,
but this does not modify or limit the extent that a right of access to costs,or expenses incurred by the Insured in the defense of those
and from the Land is insured by this policy. causes of action that allege matters not insured against by this policy.
(h)"Mortgage": Mortgage,deed of trust,trust deed,or other security (b)The Company shall have the right,in addition to the options
instrument,including one evidenced by electronic means authorized contained in Section 7 of these Conditions,at its own cost,to
by law. institute and prosecute any action or proceeding or to do any
(i)"Public Records": Records established under state statutes at other act that in its opinion may be necessary or desirable to
Date of Policy for the purpose of imparting constructive notice of establish the Title,as insured,or to prevent or reduce loss or
matters relating to real property to purchasers for value and without damage to the Insured. The Company may take any appropriate
Knowledge. With respect to Covered Risk 5(d),"Public Records" action under the terms of this policy,whether or not it shall be
liable to the Insured. The exercise of these rights shall not be an
shall also include environmental protection liens filed in the records admission of liability or waiver of any provision of this policy.
of the clerk of the United States District Court for the district where If the Company exercises its rights under this subsection,it must
the Land is located. do so diligently.
(j)"Title": The estate or interest described in Schedule A. (c)Whenever the Company brings an action or asserts a defense
(k)"Unmarketable Title":Title affected by an alleged or apparent as required or permitted by this policy,the Company may pursue
matter that would permit a prospective purchaser or lessee of the the litigation to a final determination by a court of competent
Title or lender on the Title to be released from the obligation to jurisdiction,and it expressly reserves the right,in its sole
discretion,to appeal any adverse judgment or order.
Page 3
CONDITIONS(con't)
6. DUTY OF INSURED CLAIMANT TO COOPERATE
(a)In all cases where this policy permits or requires the Company policy. In addition,the Company will pay any costs,attorneys'fees,
and expenses incurred by the Insured Claimant that were authorized
to prosecute or provide for the defense of any action or proceeding by the Company up to the time of payment and that the Company is
and any appeals,the Insured shall secure to the Company the right obligated to pay;or
to so prosecute or provide defense in the action or proceeding, (ii) To pay or otherwise settle with the Insured Claimant the loss
including the right to use,at its option,the name of the Insured for or damage provided for under this policy,together with any costs,
this purpose. Whenever requested by the Company,the Insured, attorneys'fees,and expenses incurred by the Insured Claimant that
at the Company's expense,shall give the Company all reasonable were authorized by the Company up to the time of payment and that
aid(i)in securing evidence,obtaining witnesses,prosecuting or the Company is obligated to pay.
defending the action or proceeding,or effecting settlement,and •
(ii)in any other lawful act that in the opinion of the Company may Upon the exercise by the Company of either of the options provided
be necessary or desirable to establish the Title or any other matter for in subsections(b)(i)or(ii),the Company's obligations to the Insured
as insured. If the Company is prejudiced by the failure of the under this policy for the claimed loss or damage,other than the
Insured to furnish the required cooperation,the Company's obligations payments required to be made,shall terminate,including any liability
to the Insured under the policy shall terminate,including any or obligation to defend,prosecute,or continue any litigation.
liability or obligation to defend,prosecute,or continue any litigation,
with regard to the matter or matters requiring such cooperation. 8.DETERMINATION AND EXTENT OF LIABILITY
.(b)The Company may reasonably require the Insured Claimant to This policy is a contract of indemnity against actual monetary loss or
submit to examination under oath by any authorized representative damage sustained or incurred by the Insured Claimant who has suffered
of the Company and to produce for examination,inspection,and loss or damage by reason of matters insured against by this policy.
copying,at such reasonable times and places as may be designated (a)The extent of liability of the Company for loss or damage under
by the authorized representative of the Company,all records,in this policy shall not exceed the lesser of
whatever medium maintained,including books,ledgers,checks, (i)the Amount of Insurance;or
memoranda,correspondence,reports,e-mails,disks,tapes,and (ii)the difference between the value of the Title as insured and the
videos whether bearing a date before or after Date of Policy,that value of the Title subject to the risk insured against by this policy.
reasonably pertain to the loss or damage. Further, if requested by (b)If the Company pursues its rights under Section 5 of these
any authorized representative of the Company,the Insured Claimant Conditions and is unsuccessful in establishing the Title,as insured,
shall grant its permission,in writing,for any authorized representative (i)the Amount of Insurance shall be increased by 10%,and
of the Company to examine,inspect,and copy all of these records (ii)the Insured Claimant shall have the right to have the loss or
in the custody or control of a third party that reasonably pertain to damage determined either as of the date the claim was made by
the loss or damage. All information designated as confidential by the Insured Claimant or as of the date it is settled and paid.
the Insured Claimant provided to the Company pursuant to this (c)In addition to the extent of liability under(a)and(b),the Company
Section shall not be disclosed to others unless,in the reasonable will also pay those costs,attorneys'fees,and expenses incurred in
judgment of the Company, it is necessary in the administration of accordance with Sections 5 and 7 of these Conditions.
the claim. Failure of the Insured Claimant to submit for examination
under oath,produce any reasonably requested information,or g.LIMITATION OF LIABILITY
grant permission to secure reasonably necessary information from (a)If the Company establishes the Title,or removes the alleged
third parties as required in this subsection,unless prohibited by defect, lien,or encumbrance,or cures the lack of a right of access
law or governmental regulation,shall terminate any liability of the to or from the Land,or cures the claim of Unmarketable Title,all as
Company under this policy as to that claim. insured,in a reasonably diligent manner by any method,including
litigation and the completion of any appeals,it shall have fully
7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; performed its obligations with respect to that matter and shall not
TERMINATION OF LIABILITY be liable for any loss or damage caused to the Insured.
In case of a claim under this policy,the Company shall have the (b)In the event of any litigation,including litigation by the Company
following additional options: or with the Company's consent,the Company shall have no liability
(a)To Pay or Tender Payment of the Amount of Insurance. for loss or damage until there has been a final determination by a
To pay or tender payment of the Amount of Insurance under this court of competent jurisdiction,and disposition of all appeals,
policy together with any costs,attorneys'fees,and expenses adverse to the Title,as insured.
incurred by the Insured Claimant that were authorized by the (c)The Company shall not be liable for loss or damage to the
Company up to the time of payment or tender of payment and that Insured for liability voluntarily assumed by the Insured in settling
the Company is obligated to pay. any claim or suit without the prior written consent of the Company.
Upon the exercise by the Company of this option,all liability and
obligations of the Company to the Insured under this policy,other 10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION
than to make the payment required in this subsection,shall terminate, OF LIABILITY
including any liability or obligation to defend,prosecute,or contin- All payments under this policy,except payments made for costs,
ue any litigation. attorneys'fees,and expenses,shall reduce the Amount of Insurance
(b)To Pay or Otherwise Settle With Parties Other Than the Insured by the amount of the payment.
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
Page 4
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CONDITIONS(con't)
11.LIABILITY NONCUMULATIVE policy,this policy shall be construed as a whole.
The Amount of Insurance shall be reduced by any amount the Company (b)Any claim of loss or damage that arises out of the status of the
pays under any policy insuring a Mortgage to which exception is taken Title or by any action asserting such claim shall be restricted to this
in Schedule B or to which the Insured has agreed,assumed,or taken policy.
subject,or which is executed by an Insured after Date of Policy and (c)Any amendment of or endorsement to this policy must be in
which is a charge or lien on the Title,and the amount so paid shall be writing and authenticated by an authorized person,or expressly
deemed a payment to the Insured under this policy. incorporated by Schedule A of this policy.
12.PAYMENT OF LOSS (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.
When liability and the extent of loss or damage have been definitely Except as the endorsement expressly states,it does not(i)modify
fixed in accordance with these Conditions,the payment shall be made any of the terms and provisions of the policy,(ii)modify any prior
within 30 days. endorsement,(iii)extend the Date of Policy,or(iv)increase the
Amount of Insurance.
13.RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT
(a)Whenever the Company shall have settled and paid a claim 16.SEVERABILITY
under this policy,it shall be subrogated and entitled to the rights of In the event any provision of this policy,in whole or in part, is held
the Insured Claimant in the Title and all other rights and remedies invalid or unenforceable under applicable law,the policy shall be
in respect to the claim that the Insured Claimant has against any deemed not to include that provision or such part held to be invalid,but
person or property,to the extent of the amount of any loss,costs, all other provisions shall remain in full force and effect.
attorneys'fees,and expenses paid by the Company. If requested
by the Company,the Insured Claimant shall execute documents to 17. CHOICE OF LAW;FORUM
evidence the transfer to the Company of these rights and remedies. (a)Choice of Law: The Insured acknowledges the Company has
The Insured Claimant shall permit the Company to sue,compromise, underwritten the risks covered by this policy and determined the
or settle in the name of the Insured Claimant and to use the name premium charged therefor in reliance upon the law affecting interests
of the Insured Claimant in any transaction or litigation involving in real property and applicable to the interpretation,rights,remedies,
these rights and remedies. or enforcement of policies of title insurance of the jurisdiction
If a payment on account of a claim does not fully cover the loss of where the Land is located.
the Insured Claimant,the Company shall defer the exercise of its Therefore,the court or an arbitrator shall apply the law of the
right to recover until after the Insured Claimant shall have recovered jurisdiction where the Land is located to determine the validity of
its loss. claims against the Title that are adverse to the Insured and to
(b)The Company's right of subrogation includes the rights of the interpret and enforce the terms of this policy. In neither case shall
Insured to indemnities,guaranties,other policies of insurance,or the court or arbitrator apply its conflicts of law principles to deter-
bonds,notwithstanding any terms or conditions contained in those mine the applicable law.
instruments that address subrogation rights.
(b)Choice of Forum: Any litigation or other proceeding brought by
the Insured against the Company must be filed only in a state or
14.ARBITRATION federal court within the United States of America or its territories
. Either the Company or the Insured may demand that the claim or having appropriate jurisdiction.
controversy shall be submitted to arbitration pursuant to the Title
Insurance Arbitration Rules of the American Land Title Association 18.NOTICES,WHERE SENT
("Rules"). Except as provided in the Rules,there shall be no joinder Any notice of claim and any other notice or statement in writing
or consolidation with claims or controversies of other persons. required to be given to the Company under this policy must be given to
Arbitrable matters may include,but are not limited to,any controversy the Company at 400 Second Avenue South, Minneapolis,
or claim between the Company and the Insured arising out of or relating Minnesota 55401-2499.
to this policy,any service in connection with its issuance or the breach
of a policy provision,or to any other controversy or claim arising out of
the transaction giving rise to this policy. All arbitrable matters when
the Amount of Insurance is$2,000,000 or less shall be arbitrated at the
option of either the Company or the Insured. All arbitrable matters
when the Amount of Insurance is in excess of$2,000,000 shall be
arbitrated only when agreed to by both the Company and the Insured.
Arbitration pursuant to this policy and under the Rules shall be binding
upon the parties. Judgment upon the award rendered by the Arbitrator(s)
may be entered in any court of competent jurisdiction.
15.LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CON-
TRACT
(a)This policy together with all endorseinents,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
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