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HomeMy WebLinkAbout1981-099 Easement - Redfield .' 3QI6. i.f Dc- 3{oC) Highway Division File 51145 M-3920 (4) 9B-16-28 o H 00 'P 1- ~ ~ "<, . ,-':~ ,l:i30-80 PrJrr (:;- n~ 13 . ,i\), ' " , 81.--01616 (]) EASEMENT .... KNOW ALL MEN BY THESE PRESENTS, That ALLEN L. REDFIELD and VIRGINIA REDFIELD, husband and wife; and ALLEN LEE REDFIELD, Grantors, for the consideration of the sum of Six Hundred and No/lOO DOLLARS ($600.00) received, do hereby grant unto the CITY OF ASHLAND, Oregon, a municipal corporation, Grantee, a permanent easement for the construction, operation and maintenance of slopes of cuts or fills; telephone and electric powerlines, including poles and appurtenances therefor; and to construct, operate, and maintain a drainage facility necessitated ?y the widening and improvement of the Oak Street-Mountain Ave, (Ashla~d) Section of Hersey Way, over, across and upon the following described property, to wit: PARCEL 1 A parcel of land lying in Lot 4, Block 1 of GRIZZLY INDUSTRIAL PARK SUBDIVISION, Jackson County, Oregon; the said parcel being that portion of, said Lot 4 included in a strip of land 35 feet in width, lying on the Southerly side of the center line of Hersey Street as said street has been relocated, which center line is described as follows: Beginning at Engineer's center line Station 40+00, said station being 30.36 feet South and 406.30 feet East of the Southwest corner of the Bennel Million D.L.C, No. 41, Township 39 South, Range 1 East, W.M,; thence South 890 56' 37" East 1028.45 feet; thence South 890 57' 42" East 1335.6 feet to Engineer's center line Station 63+64.05. The parcel of land to which this description applies contains 500 square feet, more or less. PARCEL 2 A parcel of land lying in Lot 4, Block 1 of GRIZZLY INDUSTRIAL PARK SUBDIVISION, Jackson County, Oregon; the said parcel being that portion of said Lot 4 lying Southerly of Parcell; Easterly of a line at right angles to the center line of relocated Hersey Street at Engineer's Station 54+50 and Northerly of the following described line: Beginning at a point opposite and 35 feet Southerly of Engineer's Station 54+50 on said center line; thence Easterly in a straight line to a point opposite and 55 feet Southerly of Engineer's Station 56+00 on said center line, which center line is described in Parcell. The parcel of land to which this description applies contains 460 square feet, more or less. IT IS EXPRESSLY UNDERSTOOD that the easement herein granted does not convey any right, title or interest in the land above described, except those expressly stated herein, nor prevent Grantors from the full use and dominion thereover; provided, however, that such use does not damage or destroy the lateral support to said public way or interfere in any way with the construction, operat~on or, maintenance of Grantee's drainage facility. Grantee shall have the right to go upon the real property herein- above described for the purpose of constructing and maintaining said slopes and drainage facility thereon and making those certain changes in the existing telephone and electric powerlines necessitated by the widening and improvement of said section of Hersey Way, it being understood that the rights in said relocated telephone and electric power lines ~ 81-01616 " " - Page 2 - Easement r}~:}9"'30 Highway Division File 511115 M-3920 (4) 9B-16-28 shall be the same as previously existed in that portion of the telephone and electric power lines being relocated. Nothing herein contained shall be construed to prevent Grantors from the full use and dominion over said property, provided, however, that such uses are not inconsistent with the rights herein granted, it being understood and agreed that Grantee shall never be required to remove the slope material placed by it upon said property, nor shall Grantee be subject to any damages to Grantors, their heirs and assigns, by reason thereof, or by reason of the slopes and drainage facility constructed thereon, or by reason of the telephone and electric power lines constructed thereon, Also nothing herein contained is intended to create an obligation on the part of Grantee for the maintainance of said telephone and electric power lines and/or drainage facility. And Grantors do hereby covenant to and with Grantee that they are the owners of said property which is free from all encumbrances and will warrant and defend the ease- ment rights herein granted from all lawful claims whatsoever. Da ted this 1 hrh day of .TRnl1:=Iry , 198,l Jackson County, Oregoa Recorded OFFICIAL RECORDS ~ :j 2. JAN 29 19Bt/l,M, ~~~ All., c. Rom."~ . ~/~~ ~../ virgi a Redfield aa..:k- ~ Allen Lee Redfield WALDENE TERRY ~BX~BECORDER :.~ LYnU.lh.putv STATE OF CALIFORNIA, County of San Bernardino January 16th ,198__~ Personally appeared the above named Allen L, Redfield and Virginia Redfield, who acknowledged the foregoin act. Before me: STATE OF CALIFORNIA, County of San Bernardino January 16th ,198~. Personally appeared the above named Allen Lee Redfield, 1"1)"""''''''''''''''''''''''''''''''''''"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"""~ ~ . ' ANNETTE LEAL ~ ~, : NOT^RY PUBLIC ~ ~ SAN BERNl\RDINO COUNTY ~ ~ ' 04"'" CALIFORNIA ~ ~ My Commission Expires JUBe 15 188~ ~ - , - ::;'UIIUlI1U11IUIIIIIIIIIIIIUlllllnJIIIIJl111111111111l111ltllll111ll11111l111111lJlllllllllllrrllllllllllllllh~ Notary Pub ' My Commission who acknowledged the foregoing klm//71 ~~ I I, JACKSON COUNTY BRANCH 721 ;v, ,10th Street . \;...- Medford, Oregon 97501 (503) 779-7591 Premium $ 50.00 P,O, Box 9 . PIONEER NATIONAL TITLE INSURANCE A TICOR COMPANY Policy of Title Insurance . PIONEER NATIONAL TITLE INSURANCE COMPANY, a California corporation, 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 At 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, at the 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, marketabi 1 ity exi sts because of defects, I iens, 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 excluded 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 officer of the Company, RIGHT OF WAY AOMINISTRATION RECEIVED FEB 10 1981 DDDDDD M AM ADM RBR nCA RS LJDIlD'11l f'MS AS 'c"E 08 ~ 1foE DD -- , Countersigned: by PRESIDENT Attest: ......')--"': SECRETARY By ;..."J;,~ Va I idating Signatory las ) A ~ ~ ~ ~ 05= is .. .. Q) ~ 'It oS ~ <l!! ~~ ..to E::iril ~, Schedule of Exclusions from Coverage This policy does not insure against loss or damage by reason of the following: 1, Any 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 of 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, roads. 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 at the date such'liisured-Claimant'acquired an estate or interest insured by this policy and not shown by the pub- lic records, unless disclosure th'ereof,in;writing by' the .Insured shall have been made to the Company prior to the date of this policy; or (3) resulting'in no 1055'tO the'lnsured 'Claimant; or (4) attaching or created subsequent to the date hereof, 5. Loss or damage whichJw(n.ild~not I;-ave ~een s_l;J.?iai~~d if the Insured were a purchaser or encumbrancer for,~fllue Y;ith:-_ C\.1 out knowledge.. i L. j. _J'. . ~. J ~_ -: I -..' ; ~:~ Q 6, Usury or claIms of usury, , tp uj c; ~ 7. "Consumer credit protection:.'_2trl..th!ih-ieRd'ing:' or similar law. ~~ ";;~,I) :?; ~ I . 1 -.. o(/r ;:<.. . u; . ,l ~" ~,".,\; Conditions and Sti.tulati~rts'i " I 'I 1 ,1 i I 1 II " '; " I t II :! { 1. Definition of Terms The following terms when used in this policy mean: (a) "rand": the land described, specifically or by reference, in Schedule A and improvements affixed thereto which by law con- stitute rea I property; (b) "public records": those records which impart constructive notice of matters relating to said land; (c) "knowledge": actua I knowledge, not constructive knowledge or notice which may be imputed to the Insured by reason of any publ i c records; (d) "date": the effective date; (e) "mortgage": mortgage, deed of trust, trust deed, or other se- curity instrument; and (f) "insured": the party or 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 (1) 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 Jf 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 mann.er 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 Prosecutionof Actions-Notice of Claim to be given by the Insured (al The Company, at its own cost and without undue delay shall provide (1) for the defense of the Insured in all litigation con- sisting of actions or proceedings commenced against the Insured, or defenses, restraining orders, or injunctions interposed against a foreclosure or sale of the mortgage and indebtedness covered by this policy or a sale ot9the estate or interest in said land; 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, 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, " (b) In case any such action or proceeding shall be begunYor de- ~ fense interposed, or in case knowledge shall come to the(lnsured:.. 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, 'Pr/;'whichg might cause loss or damage for which the Company shall o~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 pol icy 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, I ien or encumbrance insured againSt which shall come to the knowledge of the Insured, or if the Insured shall 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 by such fai lure and then only to the extent of such prejudice. {c} The Company shall have the right at its own cost to insti- tute and prosecute any action or proceeding or do any other act which in its opinion may be necessary or desirable to establish the title of the estate or interest or the I ien 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 thereby concede liability 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 a II appea Is 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 such action or proceeding, and the Company shall re- imburse the Insured for any expense so incurred. 4. Notice of Loss- Limitation of Action In addition to the notices required under paragraph 31b), a statement in writing of any loss or damage for which it is claimed the Company is Iiabte under this policy .shall be fur- nished to the Company within sixty days after such loss or damage sha 11 have been determined and no right of action sha II accrue to the Insured under this policy unti I thirty days after (Con<:F'tions and Stipulations Continued and Concluded on Last Page of This Policy) 'C '" SCHEDULE A Amount$ 6,000.00 Premium $ 50,00 Date January 29, 1981 8:32 At!\l.llllA.M, INSURED -----CITY OF ASHLAND, OREGON----- a municipal corporation The estate or interest relerred,to herein is, at the date hereol, vested in ALLEN L. REDFIELD and VIRGINIA REDFIELD, husband and wife, as to an undivided 1/2 interest; and ALLEN LEE REDFIELD, as to an undivided 1/2 interest as tenants in common------ ' . The land referred to in this policy is described as PARCEL 1 A parcel of land lying'in Lot 4, Block 1 of GRIZZLY INDUSTRIAL PARK SUBDIVISION, Jackson County, Oregon; the said parcel being that portion of said Lot 4 included in a strip of land 35 feet in width, lying on the Southerly side of the center line of Hersey Street as said street has been relocated, which center line is described as follows: Beginning at Engineer's center line Station 40+00, said station being 30.36 feet South and 406,30 feet East of the Southwest corner of the Bennel Million D,L,C.No, 41, Township 39 South, Range 1 East, Willamette Ivleridian; thence South 890 56' 37" East 1028.45 feet; thence South 890 57' 42" East 1335,~ feet to Engineer's center line Station 63+64.05. PARCEL 2 A parcel of land lying in Lot 4, Block 1 of GRIZZLY INDUSTRIAL PARK SUBDIVISION, Jackson County, Oregon; the said parcel being that portion of said Lot 4 lying Southerly of Parcell; Easterly of a line at right anglea to the center line of relocated Hersey Street at Engineer's Station 54+50 .and Northerly of the following described line: ,. Beginning at a point opposite and 35 feet Southerly of Engineer's Station 54+50 on said center line; thence Easterly in a straight line to a point opposite and 55. feet Southerly of Engineer's Station 56+00 on said center line, which center line is described in Parcell, PAGE 2 OF POLICY NO 15-17813 F 236 REV 11-74 @l Standard Coverage Policy ~ SCHEDULE A - Continued The estate or interest in the land described in this schedule is: A fee SCHEDULE B This policy does not insure against loss or damage, nor against costs, attorney's fees or expenses, any or all of which arise by reason of the 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 existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records; proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are Dot shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records; unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments or any other facts which a correct sunrey would disclose. 5. 1980/81 taxes $35~.73 unpaid. (5-1 391E4DC 3509 1-59301-2) 6, Easement, including the terms and provisions thereof, from Southern Pacific Company to D.L, Patterson, recorded November 23, 1945, in Volume 264 page 52, Deed Records. 7. Easement, including the terms and provisions thereof, from P.R. Williamson and Edna L. Williamson, to The California Oregon Power Company, a California corporation, recorded January 5, 1948, in Volume 289 page 107, Deed Records. 8. Covenants, conditions and restrictions, including the terms and provisions thereof in Declaration dated December 8, 1977, recorded December 21, 1977, as Instrument No. 77-26950, Official Records. 9. Deed of Trust, including the terms and provisions thereof, executed by Grantor: Allen L, Redfield & Virginia Redfield, husband and wife, & Allen Lee Redfield & Joyce Lynn Redfield, husband and wife Trustee: Crater Title Insurance Company Beneficiary: Craig E. Hoffarth Dated: February 19, 1980 Recorded: February 29, 1980 Instrument No,: 80-03971 Official Records, given to secure the sum of $15,500.00, PAGE 3 OF POLICY NO, 15-17813 F'l101A.1'14 . " ' / '\' 10, Easement, including the terms and prov~s~ons thereof, from Allen L, Redfield and Virginia Redfield, husband and wife, and Allen Lee Redfield, to the City of Ashland, Oregon, a municipal corporation, recorded January 29, 1981, as Instrument No. 81-01616, Official Records, Page 4 af Pal icy Na, 15-17813 F-236A 0L ~ OWNER'S INFLATION PROTECTION INDORSEMENT ATTACHED TO POLICY NO, 15-17813 ISSUED BY Pioneer National Title Insurance Company The Company, recognizing the current effect of inITation on real property valuation and intending to provide additional monetary protection to the Insured Owner named in said Policy, hereby modifies said Policy, as follows: 1. Notwithstanding anything contained in said Policy to the contrary, the amount of insurance provided by said Policy, as stated in Schedule A thereof, is subject to cumulative annual upward adjustments in the manner and to the extent hereinafter specified, 2, "Adjustment Date" is dclined, for the purpose of this Indorsement, to be 12:01 a,m, on the first January I which occurs more than six months after the Date of Policy, as shown in Schedule A of the Policy to which this Indorsement is attached, and on each succeeding January I. 3, An upward adjustment will be made on each of the Adjustment Dates, as defined above, by increasing the maximum amount of insurance provided by said Policy (as said amount may have been increased theretofore under the terms of this Indorsement) by the same percentage, if any, by which the United States Department of Commerce Composite Construction Cost Index (base period 1967) for the month of September immediately preceding exceeds the highest Index number for the month of September in any previous year which is subsequent to Date of Policy; provided, however, that the maximum amount of insurance in force shall never exceed 150% of the amount of insurance stated in Schedule A of said Policy, less the amount of any claim paid under said Policy which, under the terms of the Conditions and Stipulations, reduces the amount of insurance in force, There shall be no annual adjustment in the amount of insurance for years in which there is no increase in said Construction Cost Index. 4, In the settlement of any claim against the Company under said Policy, the amount of insurance in force shall be deemed to be the amount which is in force as of the date on which the insured claimant first learned 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 OCCUI, Nothing herein contained shall be construed as extending 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 the provisions hereof. Pioneer National Title"lnsurance Company ,,~;.w' _'"~"'\\\ _~~~n'-r I,:, ''>\t\ .f.~.c.-C'aSi!;Jy}v}'1. h b~"'cGd,"" y ~. -'; ~ ,- - " I~ _ - C ' 'I: p: _",: J' , / . .,. ~_ r" ~ I PRESIDENT ~: '- i , , ,:;\:. ~;~:" j \' f")~ ~ ~ , ,.. /, 0 .,' , -\ ~. & -~, -; ," -~ "">~' -,"-:;- SECRETARY Attest: RATING BUREAU FOR TITLE INSURANCE COMPANIES IN ORE;GON F_2191.75 N" ~,~' ~) '- ~} . ,: :., ~' ... ... I) 'i ~ ;;;: ... !I' ~ ,. ? , . . b' ~ ~'(-~ ~ " ~ ~ ~ Q) '-" Ol o o , /, 1~ ". ~',~~,~,,~. .... '" ,a .. .:. MQ6,27 ..... <.n o - Ql >, U1 I s~,,~.,. ......tU.I.I.II.I..!~1 '-'" Ul o "...., >,' ,,0 . . . . . . ~ . o O. N :,:1 :1 0, ~, I I I ...............'11. 1<: j~:> - ;/ i ~ '-" . .-, ~ ... ,"'..'1.'- '0;,:-" '-" ) <.n >",,0 e ,'" je,o' 500' I \. . ( " CN ...~ tn <- 0 @ 0 - (J) , :U'=-tG I'T1 r-----r- 1'T1! -,,",,- ',",,_. ............I~~~.!..I '" CO'C' . '-" ~ ~ '" .~ - ...N - o o ~ '.Jo, tJJ O. '\. '-!" 22 I\) W... _ 1'=0.0' .'0.0' '::.~. :;. ..... Ul o CJO'I to ~''!l "'''0- ''!o. 0' 150 o' @lD,. r ... ... ,(.1.1 ~ o .1U) o. ~"",-Io '" 2GO 0' '00'0 0, '" : Ol ~ >~O . ~ ~ ... en '...., ~ I I I I ~ :, " I ,. WILLIAMSON WAY-/ .. I ., , '" Bo.o' Il' '-"0 'J (J1 - ~-:6 ~ Cl> @ /..:5'0 ' ~~ ,~ ".. . Z PH f;:L ~-~OO ~- .~ @ N -, : ... ,.L . (!) ,.J ... ,- " q;- en - - - - - -6'...._ J I _ ~ en @ ;~ ~Ij t . I g, , . " -'>0' '/' ~I ~~~ AN N '" '".. I ..., ~. 1 .:$g. @~~ "" '" tn ')0 ~::.tO ;:. -. ..... ...' . , tn < "'N o . "0 CD ~ I\) -, C>I :01 ~en " ,'~ - @~ o ---; , . I -., I I ! ! ~ I CID 8 I,: /' '"""".:1c.. - f ~ ' (~ondTtionsand Stipulations Continued and Concluded From Reverse Side of Policy Face) such statement shall have been furnished, and 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 ba,r 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 payor 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 a II costs, attorneys' fees and expenses which the Company is obligated hereunder to pay, shall terminate all I iabi J ity 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 (al The liability of the Company under this policy shall in no case exceed, in a II, the actua I loss of the Insured and costs and attorneys' fees which the Company may be obligated here- under to pay. (b) The Company will pay, 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, (cl No claim for damages shall arise or be maintainable under this policy (1) if the Company, after having received notice of an alleged. defect. lien or encumbrance 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 assumed by the Insurea in settling any claim or suit with- out written consent of the Company, or {3l in the event the title is rejected as unmarketable because of a defect, lien or encum- brance 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, shall reduce the amount of the insurance pro tanto and no payment sha II 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 sha II not reduce pro tanto the amount of the insuranceafforded 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. (el 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 Schedu Ie B 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 sha II 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 and Apportionment (alln 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 shall 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 policy, Provided, however, that the foregoing coinsurance provisions shall 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 B; 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 twenty 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 of the issuance of this policy and shown by an express statement herein or by an endorsement attached hereto. 9. Subrogation upon Payment or Settlement Whenever the Company shall have settled a claim under this pol- icy, a II right of subrogation sha II 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. I f 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 the indebtedness secured by a mort- 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 I ien of the mortgage, or release any collatera I security 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 reql:lired to be furnished the Company shall include the number of-this policy and shall be addressed to it at the office which issued this policy or to its Home Office, Claims Department, 433 South Spring Street, P.O. Box 54730, Los Angeles, Califor- nia 90054.