Corporation Deed & Owner's Policy of Title Insurance REBECCA SEEMAN
N .. ....4.1EGISTER OF DEEDS SALINE COUNTY KANSAS
`0, • Book: 1303 Page: 719-722
�1, JeE95 r
k.
Recordin g Fee:ee: $36,00 i
,,, ° Recept : 105357
Pages Recorded: 9 p
Date Recorded: 10/6/2015 3:19:07 PM
Entered In Ti a fe��3 ,-z+; ��n•rny WA,Shis
r • Tr It
of R ,f~� `;It' A.S.20,��
CORPORATION DEED Land Title Services, Inc.
GENERAL WARRANTY TI15-12993 C,
THIS INDENTURE, Made this C, day of 6./C 4 r
c77.C/5 between
RD, LLC
a corporation duly incorporated and existing under and by virtue of the laws of the state of
KANSAS and having its principal place of business at SALINA, KANSAS, of the first part, and
THE CITY OF SALINA
of SALINE County, in the State of KANSAS, of the second part:
WITNESSETH, That said party of the first part, in consideration
of the sum of One ($1.00) and no/100 Dollars, and other good and valuable consideration,
the receipt of which is hereby acknowledged, does hereby grant, bargain, sell and convey unto said
party of the second part, their heirs and assigns, all the following described real estate situated in
the County of SALINE and the State of KANSAS, to-wit:
SEE ATTACHED EXHIBIT A
TO HAVE AND HOLD THE SAME, Together with all and singular the tenements, hereditaments
and appurtenances thereunto belonging or in any wise appertaining, forever;
And said party of the first part, for itself, its successors and assigns, does hereby covenant, promise
and agree to and with said party of the second part, that at the deliver of these presents it is lawfully
seized in its own right, of an absolute and indefeasible estate of inheritance, in fee simple, of and in
all and singular the above-described real estate with the appurtenances; that the same are free, clear,
discharged and unencumbered of and from all former and other grants, titles, charges, estates,
judgments, taxes, assessments and encumbrances, of what nature and kind soever except:
Easements and Restrictions of Record, If Any.
Book : 1303 Page : 720
and that it will warrant and forever defend the same, unto said party of the second part, their heirs
and assigns, against said party of the first part, its successors and assigns and all and every person
or persons whomsoever, lawfully claiming or to claim the same.
IN WITNESS WHEREOF, The said party of the first part has caused this Deed to be signed on its
behalf by its Members, thereunto duly authorized so to do, the day and year first above written.
RD, LLC o
j /�lGt
ames.B:. Richardson, Melnber
BY:
Jude-D. Richardson, Member
STATE OF KANSAS )
SALINE COUNTY ) SS.
BE IT REMEMBERED, That on this day of c 7ID.4
vP-0/5 before me, the undersigned, a Notary in and for the County and State aforesaid, came
JAMES B. RICHARDSON AND JULIE D. RICHARDSON, Members of RD, LLC, a
corporation duly incorporated and existing under and by virtue of the laws of the State of
KANSAS,who is personally known to me to be such officer, and who is personally known to me
to be the same person who executed, as such officer, the within deed on behalf of said corporation,
and such person duly acknowledged the execution of the same to be the act and deed of said
corporation.
IN TESTIMONY WHEREOF, I have hereunto subscribed my name, and affixed my official Seal
on the.day and year last above mentioned.
7 L--i' 7 / �z� Commission expires: ��.
6/
Notary Public ���� I oNat-k L
Cj NOTARY 0
;N PUBLIC 9
-wafi co
gq-
Mr�ao� moo•
OF
Book : 1303 Page : 721
EXHIBIT A
A tract of land lying in the Southwest Quarter of Section Twelve(12)and the Northwest Quarter of
Section Thirteen(13),Township Fourteen(14)South,Range Three(3)West of the 6th P.M.,Saline
County, Kansas, this tract of land includes all portions of Lots Eighty-four (84), Eighty-six (86),
Eighty-eight (88), Ninety (90), Ninety-two (92), Ninety-four (94), Ninety-six (96), Ninety-eight
(98) on 4th Street and Lots Ninety-one (91),Ninety-three (93), Ninety-five (95), Ninety-seven (97),
Ninety-nine (99), One Hundred One (101), One Hundred Three (103), One Hundred Five (105),
One Hundred Seven (107) on 5th Street and a portion of Lots One Hundred (100), One Hundred
Two(102),One Hundred Four(104),One Hundred Six(106) and One Hundred Eight(108) on 4th
Street and Lot Eighty-nine (89) on 5th Street in the City of Salina, according to the recorded plat
of Original town(Now City),thereof, in Saline County, Kansas, bounded and described as follows:
Beginning at the Southwest corner of Lot One Hundred Seven (107) and assuming the East
property line of 5th Street bears North 0 degrees 00' 00" East; thence North 0 degrees 00' 00" East
along the East property line of 5th Street a distance of Four Hundred Seventy-eight and Nineteen
Hundredths(478.19')feet;thence North 90 degrees 00'00" East a distance of One Hundred Thirty
and Sixty-nine Hundredths (130.69') feet; thence North 0 degrees 00' 49" East a distance of One
Hundred Seventy-five and Fifty-six Hundredths (175.56') feet; thence South 89 degrees 59' 22"
East a distance of One Hundred Nineteen and Twenty Hundredths (119.20') feet; thence South 0
degrees 00'38" East along West property line of 4th Street a distance of Four Hundred Forty-four
and Thirty-two Hundredths (444.32') feet; thence South 12 degrees 30' 16" West on a line parallel
with and Eight and Five Tenths (8.5') feet distance Northwesterly, measure at right angles, from
the Center line of the main tract of the McPherson Branch of the Union Pacific Railroad Company
as now constructed and operated, a distance of Seventy-three and One Hundredths (73.01') feet;
thence Southwesterly along a line curving to the left,having a radius of Nine Hundred Thirty-eight
and Seven Hundredths (938.07')feet and which is concentric with and Eight and Five Tenths(8.5')
feet distance Northwesterly, measured radially, from said center line of main tract of McPherson
Branch a distance of One Hundred Forty-one and Thirty-six Hundredths (141.36') feet to the
North property line of Iron Avenue;thence North 89 degrees 51' 14"West along the North property
line of Iron Avenue a distance of Two Hundred Six and One Hundredths (206.01')feet to the point
of beginning(except that part taken for roads, highways and right-of-ways)
Less:
A tract of land lying in the Southwest Quarter (SW/4) of Section Twelve (12) and the Northwest
Quarter(NW/4)of Section Thirteen(13), Township Fourteen(14) South,Range Three(3)West of
the 6th P.M., Saline County, Kansas. This tract of land includes all of Lots One Hundred One
(101),One Hundred Three(103),One Hundred Five(105),One Hundred Seven(107)on 5th Street
in the City of Salina, according to the recorded plat of the Original Town (Now City), thereof, in
Saline County,Kansas (except that part taken for roads, highways and right-of-ways)
and
A tract of land lying in the Southwest Quarter (SW/4) of Section Twelve (12) and the Northwest
Quarter(NW/4)of Section Thirteen(13), Township Fourteen (14) South,Range Three(3) West of
the 6th P.M., Salina, Saline County, Kansas including al of Lots One Hundred Two (102), One
Hundred Four(104),One Hundred Six(106),One Hundred Eight(108)on 4th Street,according to
7006270014.rdw
Page 2 of 3
Book : 1303 Page : (LL
the recorded plat of Original Town(Now City) thereof, in Saline County, Kansas(except that part
taken for roads, highways and right-of-ways) plus vacated alley between Lots One Hundred Two
(102), One Hundred Four (104), One Hundred Six (106) and One Hundred Eight (108) on Fourth
Street and Lots One Hundred One (101), One Hundred Three (103), One Hundred Five (105) and
One Hundred Seven(107) on 5th Street
Now described as:
A tract of land being composed of Lot 84,Lot 86,Lot 88,Lot 90,Lot 92,Lot 94,Lot 96,Lot 98 and
part of Lot 100 on 4th Street, and Lot 91, Lot 93, Lot 95, Lot 97, Lot 99, and part of Lot 89 on 5th
Street, an that portion of the vacated alley that abuts said Lots, all in the Original Town of Salina,
Saline County, Kansas. Said Tract being more particularly described as follows:
Commencing at the Southwest corner of Lot 107 on said 5th Street; thence on an assumed bearing
of North 00 degrees 03' 18" East on the East right of way line of said 5th Street, a distance of
201.69 feet to the Southwest corner of said Lot 99 and the point of beginning; thence North 00
degrees 03' 18" East on the East right of way line of said 5th Street, a distance of 277.08 feet to the
Northwest corner of the tract described in Saline County Register of Deeds Book 1267, page 761;
thence North 89 degrees 57' 59" East on the boundary line of said described tract, a distance of
130.71 feet to the West line of said Lot 90; thence North 00 degrees 01' 35" East, a distance of
175.29 feet to the Northwest corner of said Lot 84; thence South 89 degrees 58' 04" East, a distance
of 119.26 feet to the Northeast corner of said Lot 84; thence South 00 degrees 05' 02" West on the
West line of said 4th Street, a distance of 444.14 feet to the point that is 8.5 feet Northwest,
measured at right angles, from the centerline of the main track of the McPherson Branch of the
Union Pacific Railroad Company; thence South 12 degrees 57' 26" West on a line that is 8.5 feet
Northwest, measured at right angles, from said centerline, a distance of 9.27 feet to the South line
of said Lot 100; thence North 89 degrees 48' 51" West on the South line of said Lot 100, and said
Lot 99, a distance of 247.58 feet to the point of beginning
`_
7006270014 rdw Page 3 of 3
3 V�
OWNER'S POLICY OF TITLE INSURANCE
Policy Issuer:
LAND TITLE SERVICES,INC.
136 N 7TH
SALINA,KS 67402-0922
PHONE:(785)823-7223
** * * �/
* * Policy Number OX-09919117 File Number: TI15-12993
* * 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
G�� /Air By President
Authoriz Officer, Licensed Ag nt
ORT Form 4309 Attest "1 W Secretary
ALTA Owners Policy of Title Insurance 6-17-06
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: TI15-12993 Policy Number: OX 09919117
Address Reference: 100 N. 5th
Salina, KS 67401
Amount of Insurance: $ 628,229.71 Premium: $ 1,534.00
Date of Policy: October 6, 2015
1. Name of Insured:
The City of Salina
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
4. The Land referred to in this policy is described as follows:
SEE EXHIBIT AATTACHED HERETO
Land Title Services, Inc.
-eadlyiP
By:
Kathy J. Chaput
ALTAOwner's Policy
ScheduleA(6/17/06) (TI15-12993.PFD/T115-12993/26)
Old Republic Title Insurance Co S. Central Div.
SCHEDULE B
File Number: T115-12993 Policy Number: OX 09919117
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.
7. Ordinance No. 7009 (vacating a portion of alley with City reserving right-of-way and easements)
recorded in Saline County Register of Deeds Book 89, page 577.
8. Grant of right-of-way unto The Kansas Power and Light Company recorded in Saline County Register of
Deeds Book 92, page 507.
9. Statements of claims to Mineral interest filed by Union Pacific Land Resources Corporation dated April
25, 1986 and recorded in Oil and Gas Book 41, pages 183-186, and Oil and Gas Book 41, pages
187-189.
10. Reservation of minerals as contained in Deed dated January 31, 1966, recorded on August 16, 1966 in
Book 267 of Deeds, page 146.
11. Reservation of minerals as contained in Deed dated May 16, 1967, recorded June 9, 1967 in Book 271
of Deeds, page 558.
12. Easements in favor of the City of Salina, Kansas for a twelve-inch sanitary sewer line and a twelve-inch
water line over the above described real estate.
13. Reservation of Minerals as contained in Deed dated January 11, 1966, recorded on May 31, 1966 in
Book 265, page 528.
14. Utility Easement by and between RD, LLC and Assurance Partners, LLC recorded in Saline County
Register of Deeds Book 1278, page 791 February 26, 2014.
15. Permanent Utility Easement by and between RD, LLC and the City of Salina, Kansas recorded in Saline
County Register of Deeds Book 1280, page 1499 April 29, 2014.
NOTE: Any Provisions in the Conditions and Stipulations of the Policy Referring to Arbitration are Hereby
Deleted.
ALTA Owner's Policy (TI15-12993.PFD/TI15-12993/26)
Schedule B(6/17/06)
Old Republic Title Insurance Co S. Central Div.
EXHIBIT A
File Number: TI15-12993 Policy Number: OX 09919117
The Land referred to in this policy is described as follows:
Atract of land lying in the Southwest Quarter of Section Twelve (12) and the Northwest Quarter of Section
Thirteen (13), Township Fourteen (14) South, Range Three (3)West of the 6th P. M., Saline County, Kansas,
this tract of land includes all portions of Lots Eighty-four(84), Eighty-six (86), Eighty-eight(88), Ninety(90),
Ninety-two (92), Ninety-four(94), Ninety-six(96), Ninety-eight(98) on 4th Street and Lots Ninety-one (91),
Ninety-three (93), Ninety-five (95), Ninety-seven (97), Ninety-nine (99), One Hundred One (101), One
Hundred Three (103), One Hundred Five (105), One Hundred Seven (107) on 5th Street and a portion of Lots
One Hundred (100), One Hundred Two (102), One Hundred Four(104), One Hundred Six(106) and One
Hundred Eight(108) on 4th Street and Lot Eighty-nine (89) on 5th Street in the City of Salina, according to the
recorded plat of Original town (Now City), thereof, in Saline County, Kansas, bounded and described as
follows:
Beginning at the Southwest corner of Lot One Hundred Seven (107) and assuming the East property line of
5th Street bears North 0 degrees 00' 00" East; thence North 0 degrees 00' 00" East along the East property
line of 5th Street a distance of Four Hundred Seventy-eight and Nineteen Hundredths (478.19') feet; thence
North 90 degrees 00' 00" East a distance of One Hundred Thirty and Sixty-nine Hundredths (130.69') feet;
thence North 0 degrees 00' 49" East a distance of One Hundred Seventy-five and Fifty-six Hundredths
(175.56') feet; thence South 89 degrees 59' 22" East a distance of One Hundred Nineteen and Twenty
Hundredths (119.20') feet; thence South 0 degrees 00' 38" East along West property line of 4th Street a
distance of Four Hundred Forty-four and Thirty-two Hundredths (444.32') feet; thence South 12 degrees 30'
16"West on a line parallel with and Eight and Five Tenths (8.5')feet distance Northwesterly, measure at right
angles, from the Center line of the main tract of the McPherson Branch of the Union Pacific Railroad Company
as now constructed and operated, a distance of Seventy-three and One Hundredths (73.01') feet; thence
Southwesterly along a line curving to the left, having a radius of Nine Hundred Thirty-eight and Seven
Hundredths(938.07')feet and which is concentric with and Eight and Five Tenths(8.5')feet distance
Northwesterly, measured radially, from said center line of main tract of McPherson Branch a distance of One
Hundred Forty-one and Thirty-six Hundredths (141.36') feet to the North property line of Iron Avenue; thence
North 89 degrees 51' 14"West along the North property line of Iron Avenue a distance of Two Hundred Six
and One Hundredths (206.01')feet to the point of beginning (except that part taken for roads, highways and
right-of-ways)
Less:
Atract of land lying in the Southwest Quarter(SW/4) of Section Twelve (12) and the Northwest Quarter(NW/4)
of Section Thirteen (13),Township Fourteen (14) South, Range Three (3) West of the 6th P.M., Saline County,
Kansas. This tract of land includes all of Lots One Hundred One (101), One Hundred Three (103), One
Hundred Five (105), One Hundred Seven (107) on 5th Street in the City of Salina, according to the recorded
plat of the Original Town (Now City), thereof, in Saline County, Kansas (except that part taken for roads,
highways and right-of-ways)
and
A tract of land lying in the Southwest Quarter(SW/4) of Section Twelve (12) and the Northwest Quarter(NW/4)
of Section Thirteen (13),Township Fourteen (14) South, Range Three (3) West of the 6th P.M., Salina, Saline
County, Kansas including al of Lots One Hundred Two (102), One Hundred Four(104), One Hundred Six
(106), One Hundred Eight(108) on 4th Street, according to the recorded plat of Original Town (Now City)
ALTA Owner's Policy
Exhibit A (TI 15-12993.PF D/T 115-12993/26)
EXHIBIT A
(Continued)
File Number: Tl15-12993 Policy Number: OX 09919117
thereof, in Saline County, Kansas (except that part taken for roads, highways and right-of-ways) plus vacated
alley between Lots One Hundred Two (102), One Hundred Four(104), One Hundred Six(106) and One
Hundred Eight(108) on Fourth Street and Lots One Hundred One (101), One Hundred Three (103), One
Hundred Five (105) and One Hundred Seven (107) on 5th Street
Now described as:
Atract of land being composed of Lot 84, Lot 86, Lot 88, Lot 90, Lot 92, Lot 94, Lot 96, Lot 98 and part of Lot
100 on 4th Street, and Lot 91, Lot 93, Lot 95, Lot 97, Lot 99, and part of Lot 89 on 5th Street, an that portion
of the vacated alley that abuts said Lots, all in the Original Town of Salina, Saline County, Kansas. Said Tract
being more particularly described as follows:
Commencing at the Southwest corner of Lot 107 on said 5th Street; thence on an assumed bearing of North
00 degrees 03' 18" East on the East right of way line of said 5th Street, a distance of 201.69 feet to the
Southwest corner of said Lot 99 and the point of beginning; thence North 00 degrees 03' 18" East on the East
right of way line of said 5th Street, a distance of 277.08 feet to the Northwest corner of the tract described in
Saline County Register of Deeds Book 1267, page 761; thence North 89 degrees 57' 59" East on the boundary
line of said described tract, a distance of 130.71 feet to the West line of said Lot 90; thence North 00 degrees
01' 35" East, a distance of 175.29 feet to the Northwest corner of said Lot 84; thence South 89 degrees 58' 04"
East, a distance of 119.26 feet to the Northeast corner of said Lot 84; thence South 00 degrees 05' 02"West
on the West line of said 4th Street, a distance of 444.14 feet to the point that is 8.5 feet Northwest, measured
at right angles, from the centerline of the main track of the McPherson Branch of the Union Pacific Railroad
Company; thence South 12 degrees 57' 26"West on a line that is 8.5 feet Northwest, measured at right
angles, from said centerline, a distance of 9.27 feet to the South line of said Lot 100; thence North 89 degrees
48' 51"West on the South line of said Lot 100, and said Lot 99, a distance of 247.58 feet to the point of
beginning
ALTA Owner's Policy
ExhibitA (TI15-12993.PFD/T115-12993/26)
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
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
warranties in any transfer or conveyance of the Title. This policy
(d)"Insured": The Insured named in Schedule A. 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
(2)if the grantee wholly owns the named Insured, liability to the Insured Claimant under the policy shall be reduced
(3)if the grantee is wholly-owned by an affiliated to the extent of the prejudice.
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 policy. In addition,the Company will pay any costs,attorneys'fees,
(a)In all cases where this policy permits or requires the Company 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. g.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 9.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
•
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 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
Page 5