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HomeMy WebLinkAbout1981-079 Easement - Robertson.��;�'t ?>:L?T' h •r l.yiniA Y �kf� Department of Transportation HIGHWAY DIVISION TRANSPORTATION BUILDING, SALEM, OREGON 97310 CERTIFSED Mr. and Mrs William Robertson 316 Patter on St. Ashland 0 97520 Dear Mr. and Mrs. Robertson November 16, 1981 ROW 12 File 50795 Oak St.-Mtn. Ave. Sec. Hersey St. (Ashland) Jackson County M-3920 (4) Enclosed is State Highway Fund Check No. 16287 for $800.00 payable to William L. Robertson and Mary E. Robertson. This payment represents the full consideration for a permanent easement over 500 square feet of land for slopes, and a permanent drainage easement over 32 square feet. Yours truly Adele L. Egan R/W Office Unit Supervisor nn Enc. Check cc: N. Flanagan F. Lowe vCity of Ashland/Easements, title policy, orig. option In Feply Reter ro FilO NO.: Form 73<J172 OnEGO!� OEPARTh!ENT OF TRANSPORTATION Fite No. 50795 Fed..4id No. M-3920 4 Gramors �'illiam L. and Ya,�r E. Robertson__ MailAddress 31b Patterson St., /�Sh�dnd, OR A!ail Addreis Seciion Oak Street-Hountain Avenue (A5hlandZ ��c Hersey Street Counry Jacl:son Purpox_ Perm_ Ease Agent Kamody REAL ESTATE OPTION IN COhSIDERA *ION ot the otter �o ihe undersigned 1or the hereinaher described property, the underzigned hereby give and.g�ant to the State ot Oregon, by and through its Department of Transportation, upon the te�mz and rnnditians hereinafter stated, the option to purrhax the property described on Exhihit "A”' attached, bearing date of DeCember 1 198� and rnve�ing tw0 __parcels, subject to special provisionz contained in Exhibiilsl L b x attached and Ly this agreement made a part nf this option. The O�egon Transporta[ian Commiszion shall have the irrevocable right, ai any time, �+•ithin six l6) momhs from the date hereof, to accept this option_ ea�se,�ment Upon the delivery of said and the clearing ot tnle zatisfactory to State, Grantors, in the usual murse and through the usual cha�nels o1 auditing daims aaa�nst State, shall be paid the sum of �ieht Hundred and No/ 100----------- (S SOO.00----------y IL�rS---l1ll�------------------- }ier-ecem� ar ks+r.�er' E:h:� it4s# ------------asJe U ga�rn entoi akti�+urekase lkerea� Grantori, uniess the. right is wa��ed herein, are entitled to receive payment, less any deposits and aUowances as listed on rxhfbitfsl, before State takes pessess�on of the property. G�anlors ol o¢upied property are entitled to 90 days written notice belore they are required to va�ate. State will give gran�ors 30 days written no�ice of the sp=cifit vacation da�e when makino pa ment for Property less any deposits and ailowances.G�antorsrecei�ed90daysnoticeon 2-9-81 for Parcel r2, �arcel rl possession by Permit of Entry dated 1-12-81. Gra�tor dces not have to prov�de titie insurance. S�ate will pay all record�ng charges for documents required to vest clear title in Staie. G�aniors acknowledge all items ot damages, all sums of money lo be paid, and all things to be done by State are in this op�ion. Gramors agree, the con3ideration recited herein is just wmpensa�ion lor the optioned property, including ady and all dameges to grantors remaining property, i1 any, which may result irom ihe acquistion or use o! said p�operty and ihe mnstruct�on or improvement o1 ihe highway. AII daim� tor dama3es, injury or lozs on aScoun7,o1 faiiurc to doze lhis O tion a�ehe�rbyeaNe�sly..�aived. NOtF110J contained herein waives grantor s right for actionab�e claims for damages, to their remaining property, that may occur during the project including damages, if any, to the English Walnut tree located approximately 85 feet northerly of centerline Eng. Sta. 49+30 and three feet east of the west '4� boundary of Lot 5, Block 2, Patterson-Phelps Tracts. The State shall take all reasonable pre- cautions necessary to avoid damage to the remaining property during construction. G" Upon compleation of the project if any actua2 damages have resulted, the compensation will be arrived at thru a process of negotiation without prejudice or bias. N0710E: 6EFORE S�GNING THIS OPT ION BE SURE A�L OBUGATIONS, INCIUDiNG THOSE YOU EXPECT STATE TO PERfORA1, ARE SET pUT 1N THIS OP710N AND THAT YOU FUL�Y U�JDERSTF.ND ALL OF THE TERl.'S OF TH150?TiON. *All reterences herein to State shall be to the City of A�hland throu o�t is document. Z l� ca,rd,nis z, �a,•o1 70� o V d EaHIBIT A File 50795 6lilliam L. and Mary Robertson HItS 12-1-80 98-16-28 Survey Approval Projec[ Section: Oak Street-Mountain Avenue (Ashland) Hersey Street Non-T'hroughway PARCEL 1- A Permanent Fasement for Slopes. The �outh 5 feet of Lo[s 5 and 6, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon, containing 500 square feet. PARCEL 2- A Permaneni Easement for Drainage Facility. A parcel of land lying in Lot 12, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon; the said parcel being described as follows: Beginning on the North line of said lot at a point 6 feet East of the Northwest corner of said lot; thence 4'est along said North line 6 feet to said Northwest corner; thence South along the West line of said lot, 10.39 feet; thence Northeasterly in a straight line to the point of beginning. The parcel of land to which this description applies contains 32 square aj/ feet. NOTE: Parcels 1 and 2 Access tvot Controlled. Exr+�eir F,�E No. 50795 DATE STATE'S OTHER OBLIGATIONS stete�sto upon the cor�pletion of the installation or maintenance of said drainage facility all excavations will be refilled and the property restored to its existing condition, as nearly as practicable. m State will, at the time ot highway conscruciion, build the tollowinp road ayyroaches: Engr. Stat Top Surtece W� dth Curb Cut N'idth 49+36 12' 18' 50+15 12' 18' Any consvuction lying outside of the traveled pon�o� and shoulders of the highway which iz made 1or the use and benelit of the remaining properry, either under the terms of this option or the construction plans, shall be completed in conformante with normai engineering construttion practices and thereafter shall be maintained or reconstrucled by the property owner in accordance with Section 374305, et s�eQ., ORS and other applicable �tatufes and regulations. G�aniors hereby grant State, its employees or convactors, permission to enter upon iheu remaining property 1or the purpone of pertorming any ot said tonstruction work. �rJ,,Ll�.��i��' %�7"t�1 ei.iaa 3e7t Exhibit H File 50795 Date POSSESSION Public Law 91-6�6 Sec. 301(4) and.ORS 281.060 provide, "No owner shall be required to surrender possession of real property before the Department oP Tzansportation, Aighvay Division pays the agreed purchase price, or deposits with the court:..for the benefit of the owner, an amount not less than the agency's approved appraisal of the fair market value of such property..." In order for the State to proceed expeditiously with the construction of this project, the State shall have the right to enter upon and take possession of the above-described property upon the notice of approval by the Transportation Commission of this option agree- ment. The undersigned as Grantors hereby acknowledge that they knowingly and willingly waive the right to payment prior to possession. It is understood that this permission will in no way release the State from expeditious handling of this transactioa. i i i 8I-199'71 k���rs s- ��na EASEMENTS 0 �80� Highway Division File 50795 Gj M-3920 (4) ti 9B-16-28 3����qc, �o KNOW ALL MEN BY THESE PRESENTS, That WILLIAM L. ROBERTSON and.MARY E. ROBERTSON, Grantors, for the consideration of the sum of Eight Hundred and NO/100 DOLLARS ($800.00) received, do hereby grant to the CITY OF ASHLAND, Oregon, a municipal corporation, Grantee, a permanent easement to construct and maintain roadway slopes, necessitated by the construction, operation and maintenance of the Oak Street-Mountain Avenue (Ashland) Section of Hersey Street, upon the following described property, to wit: PARCEL 1 The South 5 feet of Lots 5 and 6, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon, containing 500 square feet. IT IS UNDERSTOOD that nothing in this easement will be construed to prevent Grantors from the full use of said property, provided, however, that such use shall not be permitted to interfere with the rights herein granted or endanger the lateral support to said Hersey Street. It is also understood that Grantee shall never be required to remove the slope materials placed by it on said property, nor shall Grantee be subject to any damages to Grantors, their heirs and assigns, by reason of any change of grade of the street abutting on said property. Also for the above stated consideration, there is hereby granted unto Grantee, a permanent easement for the installation, maintenance and operation of a drainage culvert, together with rights of ingress and egress thereto, under and across the following described property, to wit: PARCEL 2 A parcel of land lying in Lot 12, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon; the said .parcel being described as follows: Beginning on the North line of said lot at a point 6 feet East of the Northwest corner of said lot; thence West along said North line 6 feet to said Northwest corner; thence South along the West line of said lot, 10.39 feet; thence Northeasterly in a straight line to the point of beginning. The parcel of land to which this description applies contains 32 square_ feet, more or less. It is understood and agreed that Grantors retain the right to use the surface of t.he above described nrooertv as lon¢ as said use does not interfere with the exercise of Grantee's rights under this easement, provided however, Grantors shall not place or erect any buildings or structures upon said property without the written consent of Grantee or its assigns. �r :l'� .."5 81-199'71 Aighway Division File 50795 M-3920 (4) 9B-16-28 It is also understood and agreed that upon completion of the installation or maintenance of said drainage facility, the excavations will be refilled by Grantee and the property restored to its existing condition, as nearly as practicable. And Grantors do hereby covenant to and with the City of Ashland, Oregon, a granted from all lawful claims whatsoever. Dated this day of 1981. William L. Robertson Mary E. obertson STATE OF OREGON, County of 1981. Personal municipal corporation, that they are the owners in fee simple of said property which is free from all encumbrances and will warrant and defend the easements herein ly appeared the above named William L. Robertson and Mary E. Robertson, who acknowledged the foregoing instrument to be their voluntary act. Before me: t c P �A`.�SF� ���s' O O'����4 �t r`a-� 7� o ,ELO.P 1 2 h �j nF,� f 0 F' 0 ��i✓� vlJ l���a�� Not y P ic f r Oregon My Commission expires �j �j� Jackson CountY� Oiegon Recoided Ax'?�CIAL RECORDS 3a OCT 27 198181.M. WALDENE TEARY CLEA$ and RECORDER �/��DePutv l JACKSON COUNTY BRANCH 72,' 10th Street P.O. Box 9 Medford, Oregon 97501 (503) 779d591 RIGHi OF WAY pDMINISTRATION PIONEER NATIONAL R E C E I i' E D TITIE INSURANCE ATICOR COMPANV OCT 281981 Premium S 75 00 Policy of Ti�e Insurance PIONEER NATIONAL TITLE INSURANCE C�MVmNVia L��'i�or%ia raroora on� hereinafter called the Company, for a valuable consideration paid for this policy of title insurance, the number, date, and amount of which are shown in Schedule A, does hereby insure the parties named as Insured in Schedule A, the heirs, devisees, personal representatives of such Insured, or if a corporation, its successors by dissolution, merger or consolidation, against direct loss or damage not exceeding the amount stated in Schedule A, together with costs, attorneys' fees and expenses which the Company may be obligated to pay as provided in the Conditions and Stipulations hereof, which the Insured shall sustain by reason of: Title to the land described in Schedule A being vested, atthe date hereof, otherwise than as herein stated; or Unmarketability, at the date hereof, of the title to said land of any vestee named herein, unless such un- marketability exists because of defects, liens, encumbrances, or other matters shown or referred to in Schedule B; or Any defect in, or lien or encumbrance on, said title existing at the date hereof, not shown or referred to in Schedule B, or exc�uded from coverage in the Schedule of Exclusions from Coverage; or Any defect in the execution of any mortgage or deed of trust shown in Schedule B securing an indebtedness, the owner of which is insured by this policy, but only insofar as such defect affects the lien or charge of such mortgage or deed of trust upon said land; or Priority, at the date hereof, over any such mortgage or deed of trust, of any lien or encumbrance upon said land, except as shown in Schedule B such mortgage or deed of trust being shown in the order of its priority, all subject, however, to the Schedule of Exclusions from Coverage and the Conditions and Stipulations hereto annexed, which, together with Schedules A and B are hereby made a part of this policy. This policy shall not be valid or binding until countersigned below by a validating office�.�of the Company. t Coun ign d: g tt�t�,� .hs ]7�J Validating Signatory 0 A a�'i a W p."' d Y LC F vi TO 1529 PNTI OH (1-75) Rating eureau for TiLe Insurance Companies in Oreeon Stantlard CoveraBe Policy F 704 Schedu of Exclusions from Coverage This policy does not insure against loss or damage by reason of the fallowing: 1. My law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions, or loca- tion of any improvement now or hereafter erected on said land, or prohibiting a separation in ownership or a reduction in the dimensions or area af any lot or parcel of land. 2. Governmental rights of police power or eminent domain unless notice of the exercise of such rights appears in the.pub- lic records at the date hereof. 3. Title to any property beyond the lines of the land expressly described in Schedule A or title to streets; avenues, lanes, ways or waterways on which such land abuts, or the right to maintain therein vaults, tunnels, ramps'or any other structure or improvement; or any rights or easements therein unless this policy specifically provides that'such property,. rights or easements are insured, except that if the land abuts upon one or more physically open streets or-highways this policy insures the ordinary rights of abutting owners for access to one of such streets or highways, unless otherwise ex- cepted or excluded herein. 4. Defects, liens, encumbrances, adverse claims against the title as insured or other matters (1) created, suffered, as- sumed or agreed to by the Insured claiming loss or damage; or (2) known to the Insured Claimant either at the date of this policy or atthe date such Insured Claimant acquired an estate orinterestinsured by this policy and not shown by the pub- lic records, unless disclosure thereof in writing by the Insured shall have been made to the Company prior to the date of this policy; or (3) resulting in no loss to the Insured Claimant; or (4) attaching or created subsequent to the date hereof. 5. Loss or damage which would not have been sustained if the Insured were a purchaser•or encumbrancer for value with- out knowledge. 6. Usury or claims of usury. 7. "Consumer credit protection," "truth-in-lending," or similar law. Cond iti o ns and Stipulations 1. Definition of Terms The following terms when used in this policy mean: (al "land": the land described, specifically or by reference, in Schedule A and improvements affixed thereto which by law con� stitute real property: (b) "public records": those records which impart constructive notice of matters relating to said land; (c) "knowledge": actual knowledge, not constructive knowledge or notice which may be imputed to the Insured by reason of any public records; (d� "date": the effective date; (e) "mortgage": mortgage, deed of trust, trust deed, or other se- curity instrument; and (f) "insured": the partyor parties named as Insured, and if the owner of the indebtedness secured by a mortgage shown in Sche- dule B is named as an Insured in Schedule A, the Insured shall include (l l each successor in interest in ownership of such in- debtedness, (2) any such owner who acquires the estate or in- terest referred to in this policy by foreclosure, trustee's sale, or other legal manner in satisfaction of said indebtedness, and (3) any federal agency or instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing said indebtedness, or any part thereof, whether named as an Insured herein or not, subject otherwise to the pro- visions hereof. 2. Benefits after Acquisition of Title If an insured owner of the indebtedness secured by a mortgage described in Schedule B acquires said estate or interest, or any part thereof, by foreclosure, trustee's sale, or other legal manner in satisfaction of said �indebtedness, or any part thereof, or if a federal agency or instrumentality acquires said estate or interest, or any part thereof, as a consequence of an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by a mortgage covered by this policy, or any part thereof, this policy shall continue in force in favor of such Insured, agency or instru- mentality., subject to all of the conditions and stipulations hereof. 3. Defense and Rosecution of Actions—�Nofice of C�aim to be given by the Insured �a� The Company, at its own cost and without undue delay shalY� provide (1) for the defense of the Insured in al I litigation�cok? JL sisting of actions or proceedings commenced against tfie 1nsured; or defenses, restraining orders, or injunctions Interposed, a foreclosure or sale of the mortgage and indelitedness-covered by this policy or a sale oi the estate or interest;in said.lan[l; or (2) for such action as may be appropriate to establish the title,of„ the estate or interest or the lien of the mortgage as insured.z. which litigation or action in any of such events is founded upon an alleged defect, lien or encumbrance insured�against by this policy, and may pursue any litigation to final determination+in; the court of last resort. LL% :1 (b) In case any such action or proceeding shall be begun, or de- fense interposed. or in case knowledge shall come to the Insured of any claim of title or interest which is adverse to the title of the estate or interest or lien of the mortgage as insured, or which might cause loss or damage for which the Company shall or may be liable by virtue of this policy, or if the Insured shall in good faith contract to sell the indebtedness secured by a mortgage covered by this policy or, if an Insured in good faith leases or contracts to sell, lease or mortgage the same, or if the success- ful bidder at a foreclosure sale under a mortgage covered by this policy refuses to purchase and in any such event the title to said estate or interest is rejected as unmarketable, the Insured shall notify the Company thereof in writing. If Such notice shall not be given to the Company within ten days of.the receipt of process or pleadings or if the Insured shall not, in writing, promptly notify the Company of any defect, lien or encumbrance insured against which shall come to the knowledge of the Insured, or if the Insured shal I not, in writing, promptly notify the Com- pany of any such rejection by reason of claimed unmarketability of title, then all liability of the Company in regard to the subject matter of such action, proceeding or matter shall cease and ter- minate; provided, however, that failure to notify shall in no case prejudice the claim of any Insured unless the Company shall be actually prejudiced hy such failure and then only to the extent of such prejudice. �(c) The Company shall have the right at its owncost to insti- tute and prosecute any action or proceeding or do any other act which in its opinion may he necessary or desirable to establish [he title of the estate or interest or the lien of the mortgage as insured; and the Company may take any appropriate action under the terms of this policy whether or not it shall be liable there- under and shall not there6y concede liahility or waive any pro- vision of this policy. (d) In all cases where this policy permits or requires the Com- pany to prosecute or provide for the defense of any action or proceeding, the Insured shall secure to it the right to so pro- secute or provide defense in such action or proceeding, and all appeals therein, and permit it to use, at its option, the name of�the Insured for such purpose. Whenever requested by the Company the Insured shall give the Company all reasonable aid in any such action or proceeding, in effecting settlement, securing'evidence, obtaining witnesses, or prosecuting or de- fending sucB action or proceeding, and the Company shall re- imburse the�lnsured for any expense so incurred. �4�.'�Notice'of Loss— Limitation of Action :�;In addition to the notices required under paragraph 3161, a +.:+�statemen[ in writing of any 1055 or damage for which it is claimed the Company is liable under this policy shal I be fur- nished to the Company within sixty days after such loss or ��damage have been determined and no right of action shall ��icc_ue�to the Insured under this policy until thirty days after (C �°�ions and Stipulations Continued and Concluded on Last Page of This Policy) Amount 6�000.00 Premium 75 00 SCHEDULE A Date October 27, 1981 INSURED -----CITY OF ASHLAiVD, OREGOIQ----- a municipal corporation $.32 At8[O�sA. M. The eatate or inte:est refened to he:ein ia at the date hereof, vested in IdILLIAP•4 L. ROBERTSON and MARY E. ROBERTSOIQ, as tenants by the entirety----- The land referred to in this policy is described as PAP�C�L I The Soutn 5 feet of Lots 5 and 6, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon. PARCEL 2 A parcel of land lying in Lot 12, Block 2, PATTERSON-PHELPS TRACTS, Jackson County, Oregon; the said parcel being described.as follows: Beginning on the North line of said lot at a point 6 feet liast of the Northwest corner of said lot; thence West along said North line 6 feet to said Northwest corner; thence South along the West line of said lot, 10.3g feet; thence Ivoriheasterly in a.straight line to the point of beginning. PAGE 2 OF POLICY NO 15-17602 F 298 REV 11�]4 �i S/andard Covers9e Policy SCHEDULE A—Con6nued T6e estate or interest in the land described in this schedule is: a, £22 SCHEDULE B This policy does not insure against loss or damage, nor against cosk, attorney's fees or expenses, any or all of which arise by reason of t6e matters shown or referred to in this Schedule except to the extent that the owner of any mortgage or deed of trust is expressly insured on page 1 of this policy. 1. Taxes or assessments which are not shown as e�stlng liens by the records of any ta4ing authority that levies taxes or assessments on real property or by the public records; proceedings by a pubtic agency which may result in taaces or assessments, or no6ces of such pmceedings, whether or not shown by the records of such agency or by the public records. 2. Auy facts, righfs, interests, or claims which are not shown by the public records but which could be ascerfained by an inspection of said land or by making inquiry of persons iu possessiou thereof. 3. Easemeofs, liens or eocumbrances, or claims thereof, which aze not shown by the public records; uopatented mining daims; reservations or exceptions in patents or in Acfs authorizing the issuance thereof; water rights, claims or tide to water. 4. Discrepancies, conflicfs in boundary lines, shortage in area, encroachmenfs or aoy other facts which a conect survey would disclose. 5. 1981/82 taxes, $432.64, unpaid (A£fects other property also) 6. 1981/82 taxes, $659•10, unpaid (Affects other property also) (5-1 391E4DC 2500 1 5101-6) (5-1 391E4DC 1400 1 5�85-5) 7. Easement, including the terms and provisions thereof, from J.H. Hersey, to The Pacific Telephone and Telegraph Company, recorded April 18 1g23 in Volume 144 page 159, Deed Records. 8. Easement, including the terms and provisions H. Hersey, et al, to the City of Ashland, Oregon, 28 1935 in Volume 205 Page 141, Deed Records. thereof, from James recorded December 9. Easement, including the terms and provisions thereof, £rom Dwight L. Patterson, to The California Oregon Power Company, a California corporation, recorded February 11 1958 in Volume 291 page 24g, Deed Records. 10. Judgment in the State Circuit Court in favor of P9arvin G. Ray and Carol L. Ray, and against William L. Robertson, Judgment tvo. 77-994— E-1, entered December l, 1978 in Docket 35 page 135; Face $236.32. 11. Easement, including the terms and provisions thereof, from William L. Robertson, et ux, to the City of Ashland, Oregon, a municipal corporation, recorded October 27, 1981, as Instrument No. 81-19971, Official Records. PAGE 3 OF Po���Y No. 15-176oz F.20) P-).]{ The slce'.ch below is made soleiy for tha purposa of assisting in locating said pramises and the Company a:suma; �io liability for variafions; if any, in dimensions ar.d locafion ascertair.=d by acfual suivey. Pioaeer NaHonsl Titla Insurance Company A TICOR COMPANY 207 s a v.�, 202 ,.o 2 ,o 5 ,o' 6 i. 7 1� 2�� 2�6 n� 208 s l.w�l o 1 e `�i ,3� r i.o t PARK AREA..N 0.;9 8 9' 209 JD� 215 „o c 9� i 213 2i2 5 15 211 2i0 i i. y a:s 'i��. nY 3 aJ�r :.O e 'Q� asre ..I.s IL 11P1 L_ J 4u ,�o, Ga'. Q� S�°��- d S ,a a�� so:� r--,--�� 378 o) 3500 3503 i. +7� \�'l o Z s.s r i 2 S .os e so.o• �o� 350�i 3510 _:350! „s o' o o o c N O o g :is e 2 O OWNER'S INFLATION PROTECTION 1NDORSEMENT ATI'ACHED'I'O POLICY NO. 15-1�E02 ISSUED RY Pioneer National Title Insurance Company The Company, rccognizing the current clicct of in(lation on real property valuation and intending to provide additional monetary protection ro thc Insurcd Owner named in said Policy, hereby modifies said Policy, as follows: Notwithstanding anything contained in said Policy to thc contrary, the amount of insurance provided by said Policy, as stated in Schedide A thercof, is subject to cumulative auuual upward adjustments in the manner and to thc extent hcreinaftcr speci(icd. "Adjustment Date" is tlefincd, for the purposc of this Indorscment, to bc 12:01 a.m. on thc first January 1 which ocwrs more [han six months after the Date of Policy, as shown in Schedule A of the Policy to which this Indorscment is attached, and on each succeeding January 1. An upward adjustment will be made on each of the Adjustment Datcs, �s defined above, by increasing the maximum amount of insurancc provided by said Policy (as said amount may have been inereased theretofore under the terms of this Indorsement) by the same pe�centage, if any, by which the U�ited States Department of Commerce Composite Co�str�ction Cost Index (base period 1967) for the month of September immediately preceding exceeds thc highest Index number for the month of September in any previous year which is subsequent ro Date of Policy; provided, however, that the maximum amount of insurance in force shall never exceed 150% of the amount of insurauce stated in Schedule A of said Policy, lcss thc amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulations, reduces the amount of insurance in force. 7"here shall be no annual adjus[ment in the amount of insurauce for years in which therc is no increase in said Construction Cost Index. 4. In the setdement of any claim agains[ the Company under said Policy, [he amount of i�surance in force shall be deemed to be the amount which is in force as of the date on which the insured claimant first leamed of the assertion or possible assertion of such claim, or as of the date of receipt by the Company of the first notice of such claim, whichever shall first occur. Nothing herein contained shall be construed as extcnding or changing the effective date of said Policy. This indorsement is made a part of said Policy and is subject to the schedules, conditions and stipulations therein, except as modified by thc provisions hereof. Pioneer National Title Insurance Company by PRESIDENT n': At[est: SECRETARY i PPTING B EPII FOF TITLE INSYR.�NCE �t_ (Conditions and Stipulations Continued and Concluded From Reverse Side of Policy Facel such statement shal I have been fumished, antl no recovery shall be had by the Insured under this policy unless action shall be commenced thereon within five years after expiration of said thirty day period. Failure to furnish such statement of loss or damage, or to commence such action within the time hereinbefore specified, shall be a conclusive bar against main- tenance by the Insured of any action under this policy. 5. Option to Pay, Settle or Compromise Claims The Company shall have the option to pay or settle or compro- mise for or in the name of the Insured any claim insured against or to pay the full amount of this policy, or, in case loss is claimed under this policy by the owner of the indebtedness se- cured by a mortgage covered by this policy, the Company shall have the option to purchase said indebtedness; such purchase, payment or tender of payment of the full amount of this policy, together with all costs, attorneys' fees and expenses which the Company is obligated hereunder to pay, shall terminate all liability of the Company hereunder. In the event, after notice of claim has been given to the Company by the Insured, the Com- pany offers to purchase said indebtedness, the owner of such indebtedness shall transfer and assign said indebtedness and the mortgage securing the same to the Company upon payment of the purchase price. 6. Payment of loss la) The liability of the Com�ny under this policy shall in no case axceed, in all, the actual loss of the Insured and costs and attorneys' fees which the Company may be obligated here- underto pay. (bl The Company wi II p3y, in addition to any loss insured against by this policy, all cost imposed upon the Insured in li- tigation carried on by the Company for the Insured, and all costs and attorneys' fees in litigation carried on by the Insured with the written authorization of the Company. (c) No claim for damages shal I arise or be maintainable under this policy (1) if the Company, after having received notice of an alleged defect, lien or encumbrence not excepted or excluded herein removes such defect, lien or encumbrance within a reason- able time after receipt of such notice, or (2) for liability volun- tarily by the Insured in settling any claim or suit with- out written consent of the Company, or (31 in the event the title is rejected as unmarketable because of a defect. lien or encum- brence not excepted or excluded in this policy, until there has been a final determination by a court of competent jurisdiction sustaining such rejection. (d) All payments under this policy, except payments made for costs, attorneys' fees and expenses, shal I reduce the amount of the insurance pro tanto and no payment shall be made with- out producing this policy for endorsement of such payment un- less the policy be lost or destroyed, in which case proof of Such loss or destruction shall be furnished to the satisfaction of the Company; provided, however, if the owner of an indebted- ness secured by a mortgage shown in Schedule B is an Insured herein then such payments shall not reduce pro tanto the amount of the insurance afforded hereunder as to such Insured, except to the extent that such payments reduce the amount of the in- debtedness secured by such mortgage. Payment in full by any person or voluntary satisfaction or release by the Insured of a mortgage covered by this policy shall terminate all liability of the Company to the insured owner of the indebtedness secured by such morTgage, except as provided in paragraph 2 hereof. (e) When liability has been definitely �fixed in accordance with the conditions of this policy the loss or damage shall be pay- able within thirty days thereafter. 7. Liability Noncumulative It is expressly understood that the amount of this policy is re- duced by any amount the Company may pay under any policy in- suring the validity or priority of any mortgage shown or referred to in Schedule 8 hereof or any mortgage hereafter executed by the Insured which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment to the Insured under this policy. The provisions of this paragraph numbered 7 shall not apply to an Insured owner of an indebtedness secured by a mortgage shown in Schedule B unless such Insured acquires title to said estate or interest in satisfaction of said indebtedness or any part thereof. 8. Coinsurance ard Apporiionment (a) In the event that a partial loss occurs after the Insured makes an improvement subsequent to the date of this policy, and only in that event, the Insured becomes a coinsurer to the extent here- inafter set forth. If the cost of the improvement exceeds twenty per centum of the amount of this policy, such proportion only of any partial loss established shall be borne by the Company as one hundred twenty per centum of the amount of this policy bears to the sum of the amount of this policy and the amount expended for the improvement. The foregoing provisions shal I not apply to costs and attorneys' fees incurred by the Company in prosecuting or providing for the defense of actions or proceedings in behalf of the Insured pursuant to the terms of this policy or to costs im- posed on the Insured in such actions or proceedings, and shall apply only to that portion of losses which exceed in the aggre- gate ten per cent of the face of the pol icy. Provided, however, that the foregoing coinsurance provisions shal I not apply to any loss arising out of a lien or encumbrance for a liquidated amount which existed on the date of this policy and was not shown in Schedule 8; and provided further, Such coinsurance provisions shall not apply to any loss if, at the time of the occurrence of such loss, the then value of the premises, as so improved, does not exceed one hundred twenry per centum of the amount of this policy. (b) If the land described or referred to in Schedule A is divisible into separate and noncontiguous parcels, or if contiguous and such parcels are not used as one single site, and a loss is es- tablished affecting one or more of said parcels but not all, the loss shall be computed and settled on a pro rata basis as if the face amount of the policy was divided pro rata as to the value on the date of this policy of each separate independent parcel to the whole, exclusive of any improvements made subsequent to the date of this policy, unless a liability or value has otherwise been agreed upon as to each such parcel by the Company and the In- sured at the time the issuance of this policy and shown by an express statement herein or by an endorsement attached hereto. 9. Subrogation upon Payment or Se[tlament Whenever the Company shall have settled a claim under this pol- icy, all right of subrogation shall vest in the Company unaffected by any act of the Insured, and it shall be subrogated to and be en- titled to all rights and remedies which the Insured would have had against any person or property in respect to such claim had this policy not been issued. If the payment does not cover the loss of the Insured, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount of said loss. If loss should result from any act of the Insured, such act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against hereunder which shall exceed the amount, if any, lost to the Company by reason of the impairment of the right of subroga- tion. The Insured, if requested by the Company, shall transfer to the Company all rights and remedies against any person or pro- perty necessary in order to perfect such right of subrogation, and shall permit the Company to use the name of the Insured in any transaction or litigation involving such rights or remedies. If the Insured is the owner of [he indebtedness secured by a morb gage covered by this policy, such Insured may release or substi- tute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the mortgage, or release any collateral securiry for the indebtedness, provided such act does not result in any loss of priority of the lien of the mortgage. 10. Policy Entire Contract Any action or actions or rights of action that the Insured may have or may bring against the Company arising out of the status of the lien of the mortgage covered by this policy or the title of the estate or interest insured herein must be based on the pro- visions of this policy. No provision or condition of this policy can be waived or changed except by writing endorsed hereon or attached hereto signed by the President, a Vice President, the Secretary, an Assistant Secretary or other validating officer of the Company. 11. 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 num6er of this policy and shall be addressed to it at the office which issued this policy or to its Home Office, Claims Department. 6300 Wilshire Boulevard, P.O. Box 92792, Los Angeles, California 90009.