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.
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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
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