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HomeMy WebLinkAbout1996-095 Title Ins. - 09AD/2700ISSUED BY _ . _ OWNER'S POLICY OF TITLE INSURANCE TRANSNATION IITLE INSURANCE ~L, OMPANY == POLICY NUMBER A38-0358bb SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, TRANSNATION TITLE INSURANCE COMPANY, an Arizona corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Tille to the estate or interest described in Schedule A being vested other than as stated therein: 2. Any defect in or lien or encumbrance on the title: 3. Unmarketability of the title; 4. Lack of a right of access to and from the land. The Company will also pay lhe costs, altorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, TRANSNATION TITLE 1NS1JRANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. TRANSNATION TITLE INSURANCE COMPANY Transnation President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded frmn the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or gox ernmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (it) the character, dimensions or location of any improve- menl now or hereafter erected on the land; (iii) a separation in ownership or a change in lhe dimensions or area of the land or any parcel of ,~ hich the land is or was a part; or (iv) environmental prolection, or the affect of any violation of these laws, ordinances or governmental regula- tions, except to the extent lhat a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extenl that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecling the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coxerage an). faking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, ~uffered, assumed or agreed to by the insured claimant; (b) not known to lhe Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the instired claimant became an insured under this policy; Ic) resulting in no loss or damage to the in~ured claimant; (d) allaching or created subsequent to Date of Policy; or te) resulting in 1os~, or damage which would not have been sustained if the insured claimant had paid value for the estate or interesl insured by this policy. 4. Any claim, which arises out of the transaction vesting in the Insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: la) Ihe transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (b) the transaction creating the eslate or inleresl insured by this policy being deemed a preferential Iransfer except where the preferential lransfer results from the failure: (il to timely record the instrumenl of transfer; or (it) of such recordation to impart notice Io a purchaser for value or a judgmenl or lien creditor. NM I PA 10 ALTA Owner's Policy (10-17-92) Valid Only If Schedules A and B and Cover Are Attached Face Page Form 1190-57 ORIGINAL CITY OF ASHLAND 20 NORTH FIRST STREET ASHLAND, OREGON 97520 SCHEDULE A Order No. 719230-EZ Policy No. A38-035866 Effective Date: June 7, 1996 at 2:30 P.M. Amount: $98,252.00 Premium: $445.00 INSURED CITY OF ASHLAND The fee simple title to said land is, at the date hereof, vested in: CITY OF ASHLAND, A POLITICAL SUBDIVISION The land referred to in this policy is described as: Beginning at the intersection of the North line of "B" Street and the West line of Mountain Avenue, in the City of Ashland, Jackson County, Oregon, in Donation Land Claim No. 43, Township 39 South, Range 1 East, Willamette Meridian, Jackson County, Oregon; thence North, along the West line of Mountain Avenue 75.0 feet; thence West, parallel with the North line of "B" Street, to the Easterly line of the Timber Products Company Tract as described in Volume 207 Page 58, Jackson County, Oregon, Deed Records; thence Southwesterly, along the Easterly line of said tract, to the North line of "B" Street; thence East, along the North line of "B" Street, 125.0 feet, more or less, to the point of beginning. Order No. 719230-EZ Policy No. A38-035866 Page No. 2 This policy does not insure against loss or damage, nor against costs, attorney's fees or expenses, any or all which may arise by reason of the following: Liens, encumbrances, defects and other matters affecting title to said land, or to which said title is subject, as hereinafter set forth: 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 record or 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. Any facts, rights, interests or claims which are not shown by the  ublic records but which could be ascertained by an inspection of said and or by making inquiry of persons in possession thereof. Easements, or claims of easement, not shown by the public records, reservations or exceptions in patents or in acts authorizing the issuance thereof, water rights, claims or title to water. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments or any other facts which a correct survey would disclose. The rights of the public in and to that portion of the herein described property lying within the limits of public roads, streets or highways. ,i 00~ oo~ .... ~ .L3 3~1.I.S 00~! CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. lb) "insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land (d) "land": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right , title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage": mortgage, deed of trust, trust deed, or other security instrument. If) "public records": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section l(al (iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. /g) "unmarketability of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the deliveD of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this polic~ shall continue in force as of Date of Policy in favor of an in~ured o~dy qo ]t,ng as the insured retains an eslate or interest in the lauc o~ hoh~q :t;~ m'~chlcduess secured b3 .~ purchase money morlgag~c given t,3 a ¢urch.!scr l'tom the insured, or onl) st) Ioug as the insured shall have liability h,,, reason to1 co~.enants of warrant5 made by the insured m an5 transfer ,~r conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either lil an estate or interest in the land. or lit) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The i~sured shall notify the Company promptly in writing (i) in case of any litigation as set fi~rth in Section 41al below, (it) in case knowledge shall come t,,, an insured heretinder of any claim of dtle or interest which is adverse t,, ihc tlti¢ to the estate or interest, a, insured, and which might cause k~ss or damage for which the Comport,,, may be liable by virtue of this polics. or (iii) if title to the estate or interest, as insured, is rejected as unmarketable If prompt notice shall not bc given to lhc Company, then as to the insured all liability of the Company shall terminate with regard to the tnatter or matters }'or which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of lhc prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE, (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigatmn in which any third party asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a detect, lien or encumbrance or other matter insured against by this policy. The Company shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company, will not pay an3 fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against by this policy. (b) The Company shall have the right, at its own cost, to insmute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. B 1190-57 (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (]) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In additiom the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized repr¢seutative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss t>r damage..[ u~.hei requested by any authorized representative of lhc Company , the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine , inspect and copy all records. books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgement of the Company, il is necessary in the administration of the claim. Failure of the insured claimant t(, sugmit for examination under oath, produce other reasonably requested information or g~-ant permission Io secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy', the Company shall ha~e the following options: (alTo Pay or Tender Payment of the Amount of Insurance To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is {*bitgored to pay. tipon the exercise by the Company of this option, all liabilily and obligations Io the insured under this policy, other than t{~ make the paymere required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. {b) To Pay or Otherwise Settle With Parties Other than the Insured or With the [nsured Claimanl. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs. attorneys' fees and expenses incurred by lhc insured claimant which were autf~orized by the Company up to time of payment and which the Company is obligated to pay; or (it) to pay or otherwise settle with the insured claimant the loss or damage provided for under this Fn~licy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized b~ the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (it), the Company's obligations to the insured under this po!icy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obhgation to defend, prosecute or continue any litigation. Conditions and Stipulations Continued Inside Cover 44570. CONDITIONS AND STIPULATIONS 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary' loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall nol exceed the least of: (i) the Amount of Insurance stated in Schedule A: oL (it) the difference between lhe value of the insured estate or interest as insured and the value ff the insured estate or interest subject to the defecl, lien or encumbrance insured against by this policy. (by In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percenl of the value of lhe insured estate or interest or the full consideration paid for the land, whichexer is less, or if subsequent lo the Date of Policy an improvement is erected on the land which increases the value of the insured estate or inlcrcst by tit least 20 percent over the Amounl of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequenl improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in lhc proportion that the amount of insurance at Dale of Policy bears to the total value of the insured estate or interest at Date of Policy; or (it) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion thal 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and lhc amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in lhe aggregate, l0 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, auorncys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. If the land described in Schedule A consists of two or more parcels which are nol used as a single site. and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and sellled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy. unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to lhis policy. 9. LIMITATION OF LIABILITY. (a) If the Company' establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. {by In the event of any litigation, including litigation by the Company or with the Company's consenL the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 11. UABIUTY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and 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 under this policy to the insured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made wilhoul producing I his policv lot endorsement of the paymenl tinless the policy has been lost or destroyed, ili which case proof of loss or dcstruclion shall bc furnished lo the ~alisfaclion of the ¢ ompan~,. NM 1 PA 10 ALTA Owner's Policy (10-17-92) Cover Page c,,,,,, ~ ~ 90-58 (Continued) (by When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in Ihe Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against an3 person or properly in respect to lhc claim had this policy nol been issued If requested by the Company, the insured claimant shall transfer to the Company all righis and remedies against any person or propert,~ necessary in order to perfect this right of subrogation The insured chdmant shall permit the Compan) to suc. compromise or settle in the name of the insured claimant and It) use the name of the iusurcd claimant m an3 transaction or liligalion in~oking these rights or remedies If a payment on accounl of a claim does not fully co~er lhc loss of Ihc insured claimant, the Company shall bc subrogatcd to these rights and remedies in the proportion v, hich the Company's payment bears Io the whole amount of the loss. If loss should result from any acl of the insured claimant. as stated abovc~ that act shall nol ~oid thi~, policy, but the Company. in that event. shall bc required to pay onl; that part of any lc, sscs insured agalnM by this policy which shall exceed ihc amounl. if any. lost to Ihc Cornpan.,, by reason of the impairment by the insured claimant of lhc Compan?s right of subrogation. (by The ('ompany's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obhgors shall exist and shall include. v, ithout limitation. the rights of lhc insured to indemnities, guaranties. other policies of ~nsurancc or bonds. notwithslanding any' lerms or conditions conlaincd in lhosc mstrumenls which provide for subrogahon rights b,,, reason of this polic5 14. ARBITRATION Unless prohibited b,,, applicable la~, either the Company or the insured may demand arbilration pursuant lo the Tille Insurancc Arbdration Rules of the American Arbitration Assocmtmn. Arbitrablc matters may include, but are nol limited Io. any controversy or claim belween the Company and the insured arising oul of or relating to this policy, any servtce of lhc Company in connectton with its issuance or lhe breach of a policy provision or other obligalion. All arbitrable matters when the Amount of Insurance ~s $1,000,000 or less shall be arbitrated al the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000.000 shall be arbitrated only when agreed to by both the Compan3 and the insured Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include altorncys' fees only if the laws of the state in which the land is located permit a court Io award attorneys' fees lo a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any courl having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under lhe Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any', attached hereto by the Company is the entire policy and contract between lhc insured and the Company. In interpreting an_',' prm, ision of this policy, lhis policy shall be construed as a whole. (by Any claim of loss or damage, whether or not based on negligence, and which arises out of the slalus of lhe title to the estale or interest covered hereby or by any action asserting such claim, shall bc restricted to this policy. {c) No amendmenl of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Scoretar), or validating officer or authorized signatory ofthe Company. 16. SEVERABILITY. In the event any provision 0f the policy is held invahd 0r unenibrceable under applicable law, the policy shall be deemed not to include that provi- sion and all other provisions shall remain in full force and ell'coL 17. NOTICES, WHERE SENT. All notices required to be given the Company' and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to TRANSNATION TITLE INSUILAN('E COMPANY, 1700 Market Street, Philadelphia, Pennsylvania 19 ! 0Y ORIGINAL Valid Only If Face Page, Schcdu!cs A and B Are Attached ~6-96 8g'061. I. 8 gO I61 Vd '~!~lCllaPVl.~tld I ;aa3a$ ;a~l.~V~ OO Z ! :~u~0 ~oH uo!teusue~]. ~ xsv, t~oD a3NwanSNI ~qJ~I NO~J~VNSNWa,L X~I t]anssI NOI£VIDOSSV 31,I,11 GNYI NVDI~I~I'~P~ a:)NV'anSNI aq£kL JO ADIqOd S,It~tN.aAO