HomeMy WebLinkAbout0850-72_Highland Haven Development Sewer Project - RDA_2.2MEMORANDUM
TO: JIM RANKIN, SENIOR PUBLIC WORKS INSPECTOR
FROM: YOUSUF PATANWALAv ASSOCIATE ENGINEER '
DATE: JULY 24,1992
SUBJECT: TRACT NO 3348-HIGHLAND HAVEN CONSTRUCTION,SEWER AND
STORM DRAIN IMPROVEMENTS,R/W FOR SEWER EASEMENT ON
FUTURE WALNUT AVENUE
This is to verify that the City has acquired a sewer easement
commencing at the South Boundary for Tract 3348 at STA. 2+75.90
Catawba Avenue going South onto future Walnut Street and then
turning West to the East Boundary for Tract 12314 at STA.
15+17.90 on Walnut Street.
DATE:
TO:
d/o/q9--
14)1,,f2ilic/
WE TRANSMIT TO YOU:
PURPOSE:
CITY OF FONTANA
Transmittal
RE:
CITY ENGINEER'S OFFICE
A:<=1
FROM: Maggie Pacheco, Redev. Proj. Coordinator
City of Fontana
8353 Sierra Avenue
L /1/L . ek/1-(C Fontana, CA 92335
Separately By mail
Enclosed Herewith By hand delivery
For your information
For your files/records
Per your request
Your review
COMMENTS: 1714,l1td
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Your approval
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Please comment
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04168916
RECORDED
.� ., R:OUEST OF
CMCAGO 1 ITIE C0.
RECORDINO REQUESTED STt
C'•..y of Fontana
AND WREN RECORDED MAIL TO:
City Clerk
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
IFES
0 O7
CNRO
2 MSYS
7 GIMS
3 PCOR
6 NO FEE
4 LNNT
S 6T FEE
6 SVY
5
J
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1
FOR RECORDERS USE ONLY
924152637 .
RECORDED IN OFFICIAL RECORDS
FEB 18 199k AT WPM
$All BERNARDIN& COUNTY, CALIF.
No reeording feat required/ this document Is exempt from fos pursuant to
Oovernment Cods Section 6103
f3u : 228-:3 i-O'
FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged,
QUEENIE LYNCH, AS TRUSTEE OF THE QUEENIE LYNCH 1991 REVOCABLE
TRUST (hereinafter "Grantor"),
EASEMENT DEED
FOR
STREET AND PUBLIC UTILITY PURPOSES
does hereby grant and convey to
CITY OF FONTANA, a municipal corporation,
its successors and assigns, an exclusive, permanent and perpetual
easement and right-of-way to construct, maintain, operate, repair,
alter, replace, and remove a city street and all necessary
utilities in, over, and across the parcel of real property rituatod
in the City of Fontana, County of San Bernardino, °fate of
California, as described in Exhibit "A" attached hereto and made a
part hereof, together with all necessary and convenient means of
ingress and egress to and from said right-of-way or strip or parcel
of land, for the purpose of constructing, reconstructing,
maintaining, operating, repairing, renewing, or enlarging in any
manner the said city street and necessary utilities, together with
any and all of the purposes hereinbefore mentioned. To have and
to hold the above granted and described premises unto the City of
Fontana California, its successors and assigns, forever.
Grantor also grants to City a temporary construction easement over
contiguous real property now owned by Grantor, consisting of ten
(10) feet on each side of the property described in Exhibit "A"
ettached hereto. Said temporary construction easement shall be
s•
•
7
if
71
•eleased by City upon completion of the works
contemplated herein.
IN WITNESS WHEREO!, Grantor has caused these
signed this 3,440 day of /„Z464/69Ele,
THE QUEENIE LYNCH 1991
REVOCABLE TRUST
By:
ALL-PURPOSE ACKMOWLIDGMCMT
•
x„-et ,., t'
Queenie Lynch
Trustee
State of CAL/FoRNJA
County of S N iE•,2444,eD/Alli
On ZetmNf '3 /If/ before me. F//C•s//AI44 Y/ 4 7?3e -4 C,
TE IMAM. T171e OP on•CIA • e G. •JMI(OOe. NO/MY PI..C•
personafy appeared (gVEE.UiF LYNGAL
NAMEm OF MOW MISI
0 personally known to me - OR - O proved to me on the basis of satisfactory evidence
to be the person(s) whose name(s) is/are
subscribed to the within instrument and ac-
knowledged to me that he/she/they executed
the same In his/her/their authorized
capacity(ies), and that by his/her/their
signature(s) on the instrument the person(s),
or the entity upon behalf of which the person(s)
acted, executed the instrument.
OFFICIAL SEAL
-1-''1 `O A,rSHI
fartRr rCBUC • CALIFORNIA
ORANGE CO;M.T
MI comm. Mime FEB 5, !E53
Wdnesg n, and official seal.
ATTENTION NOTARY: ARNAch f1• YNOrm,tgn reGu„bd
THIS CERTIFICATE
MUST 8E ATTACHED
TO THE DOCUMENT
DESCRIBED AT t,IGHT:
92-052 37
of improvement
presents to be
, 1991.
No 20111
CAPACITY CWMED BY SIGNER
O INOMOUAL(S)
O CORPORATE
OFFICERS)
*mesa
0 PARTNER(S)
0 ATTORNEY -IN -FACT
jiTRUSTEE(S)
0 SUBSCRIBING WITNESS
0 GUARDIAN/CONSERVATOR
0 OTHER:
SIGNER IS REPRESENTING:
NAME OF PERSONS) OR ENTITYPESI
7OF Qai q,E LYA.
it could p,.r1f rrM,QYnr mea.neol of Ms amnesty b v+rAhOAtM document.
EAfr.�1,cNT 0E40 Fu/!- sn¢efsT .4010
Title or Type of Document Pit,tur ur« y-r / i/ crFJ
Number of Pages , Date of Document /o /y
Signer(s) Other Than Named Above
O INN NATION.N. NOTARY ASSOCIATCN • ALT, 11r,.,r1 A.e. • P O d0. 71M • Crept PIM. CA 113W.744
Y%
Hay 28, 1991
EXHIBIT "A"
M.O. 1911629-02
That portion of the West one-half of the Northeast one -quarter of the
Northwest one -quarter of the Southeast ens -quarter of Section 36, Township
1 North, Range 6 West, San Bernardino Meridian, in the City of tontana,
County of San Bernardino, State of California, described as follows:
Commencing at the Northwest corner of said Nast one-half, said corner
being on the South line of Lot 113 of Tract No. 3348 on file in Book 47 of
Haps at pages 14 through 16 thereof, Records of San Bernardino County,
California,
?hence N.89'19'42"E. along the North line of:said West one-half, also
being the South line of said Lot 113, a distance of.2.77 feet to the
Southwest corner of Almeria Avenue as shown on said Tract No. 3348, said
Corner being the point of beginning of the parcel. to be described, • '
Thence continuing N.89.49'12"E. along said North line also being the
South line of said Almeria Avenue, a distance of 60.00 feet to the
Southeast corner of said Almeria Avenue,
. Thence S.00°09'31"E. along the Southerly prolongation of the Easterly
line of said Almeria Avenue, a distance of 112.01 feet,
Thence Southwesterly on a curve concave to tho Northwest having a
radius of 60.00 feet, through an angle of S9'39,360, an arc length of 94.24
feet, to the Easterly prolongation of the Southerly line of Walnut Street
as shown on Tract No. 12314, on file in Book 240 of Haps at pages 3 through
10 thereof, Records of San Bernardino County, California,
Thence S.69'19'12"W. along said prolongation, a distance of 2.96 feet
�T
to the Southeast corner of said Walnut Street, said corner being on the
�` Nest line of said Weat one-half,
•
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tvr-
Agittargegitri&
• • • 14
!.;•:. •
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PREPARED UNDER THE SUPERVISION OR
F.p!ivIdson Aspciatri, Inc. Dats
NIP1'49.4rE
1.77'
/13
dill Ca?. W
132
1/41'49227•E-42/'
43o
92-052637
IX.44Elet4 AVE
Tie A4.1.t.47 4 6 1.4.1 41 4 7/
/12
liMr€79:4PE
16000.
40.122'
dig 49959'.M,'
• 924'
5e9•49W2'W
t96'
itlE.40V.W
5.E. Y# SEC. 3421
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'
C/TY OF FONTANA,CAL/FORN/A 4PRia'frFsi
DEED PLAT . • ..
/WC& M2 •
51/E:77 / OF 1
DRAWN DY: 1.40'
.e
....77•77."-,77. • ": —• • • v• • .• • • •• • .• • .
:•!*;:,4*••••:dikli ,1:ji • .• . •
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..6 RECORDED
REQUEST OF
CHICAGO TIME CO.
RECORDING REQUESTED SYt
LMN6S912
City of Fontana
AND WREN RECORDED MAIL TO:
City Clerk
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
' I FEE
6 CI -1•
CHRG
2 MSYS
7 GIMS
3 PCOR
S NO FEE V.
4 LNNT
S ST FEE
5 SVY
5
J
DTT
FOR RECORDER'S USE ONLY
92-052638
RECORDED IN OFFICIAL RECORDS
FEB 1.3 199[ AT 8:O0AM
SAN BERNARDINB COUNTY, CALIF.
No recording fee required, this aocument is exempt from fee pursuant to
Government Cods Section 6103
PTA : 22?-(3 )-08
FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged,
EASEMENT DEED
FOR
SEWER FACILITIES
QUEENIE LYNCH, AS TRUSTEE OF THE QUEENIE LYNCH 1991 REVOCABLE
TRUST (hereinafter, "Grantor")
does hereby grant and convey to
CITY OF FONTANA, a municipal corporation,
its successors and assigns, an exclusive, permanent and perpetual
easement, together with the right to forever maintain, operate,
improve, alter, relocate, reconstruct, inspect, repair, occupy and
use, and otherwise install necessary appurtenances thereto, for the
construction and maintenance of sanitary sewer line facilities as
determined necessary by the City of Fontana, its successors and
assigns (collectively, the "City"), both above and below the ground
level, together with all necessary rights of ingress and egress to
said easement over and across contiguous land now owned by Grantor
in connection with the exercise of any of the rights granted
herein, under and across the following described real property in
the County of San Bernardino, State of California, to wit:
See legal description and plat attached as Exhibit "A"
Grantor shall be entitled to utilize the easement area for parking,
driveway and/or landscaping purposes. Grantor shall not, however,
erect or construct, or permit to be erected or constructed, any
Nay 26, 1991
92-052638
N.O. $911429..02
EXHIBIT "A"
That portion of the west one-half of the Northeast one -quarter of the
Northwest one -quarter of the Southeast one -quarter of Section 36, Township
1 North, Range 6 Nest, San Bernardino Meridian, in the City of Fontana,
County of San Bernardino, State of California, described as follows:
Beginning at • point on the Cast line of said Nest one-half,
5.00.06'47"E., a distance of 53.17 feet from the Northeast corner of said
Nest one-half/
Thence 5.77.1E SO"N., a distance of 103.93 feet:
• Thence Nssterly on a curve concave to the North having a radius of
697.50 fest, through an angle of 12•29'S1N, an arc length of 152.14 feet to
the Nest line of said Most one-half, also being the East line of Walnut
Street as sheen by map of Tract No. 12314, on file in Book 240 of Maps, at
pages 3 through 10 !hereof, Records of San Bernardino County, California;
Thence S.00•06'169C. along said Neat lin*, also being th* East line of
said•Walnut Street, a distance of 15.00 feet;
Thence Easterly on a non -tangent curve concave to the North having a
radius of 712.30 feet, through an angle of 12•29'S6", an aro length of
155.43 feet (the initial radial line bears 5.00410'14•g.),
Thence N.77•19'50"E., a distance of 150.59 feet to said East line of
the West one-half:
Thence N.00'06'4791. along said East line, a distance of 15.37 feet to
the point of beginning.
The above described parcel of land contains $040.67 square feet or
0.111 acres, nor: or less.
RLN:MNC:bn
leg/st1,91
DCSCRIPTION PREPARED UNDER THE SUPERVISION OT:
s/5zq/qi
Homer A. Fountain* Date
J. F. DAVIDSON ASSOCIATES, INC.
Iy>
I 600.06.w
/.0•••.,14
..••••••MENME,
•
Ar ' /WS , 4.0
• • ; 02
22e- IVI-0,5
155Z61345ELIA1a
r-t2A/TANA) 44,
sate? EASEMENT
20760 12151P
I: lam/
\1/4v. pv2.0442'29
UNDER THE $ PERVISION OR
Ofl Wes, Inc. Da
1Y,
arr. c.4•2,
er2
44222,04710
/557'
N.E. / Az)
5/4 SEC!. 36,
IN. R.6W 66.44.
, 7
:Orr. ,OF FONTA1VA, CAW-0011A
..! PEED 17Z.Ar
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• 17/17'd
180. 99
FFR4OVE.0;
PaRCa' M7.
511E7 / Ofi
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OOSSU NOSCIAUCE Jr ei:60 26, EZ inr
.. • . I NECOflE D
• REQUEST OF
CHICAGO TITLE CO.
RECORDING REQUESTED SYt
City of Fontana
AND NEES RECORDED NAIL TOt
City Clerk
City of Fontana
8353 Sierra Avenue
Fontana, CA 92335
IFEE •e
67,
CNRO
2 MSYS
7 GIMS
3 FCOR
8 NO FEET /
V
4 LNNT
9 ST FEE
6SVY
6
OTT
,
FOR RECORDER'S USE ONLY
92-052639
RECOROEIZ IN OFFICIAL RECORDS.
FEB is 199k AT 8:81AM I
SAN BER IARDINB COUNTY. CANE:.
No recording fee required,Gt Co this
um nt is exempt
from fee pursuant to
EASEMENT DEED
FOR
SEWER FACILITIES
PTA, : 228-/31.09
FOR VALUABLE CONSIDERATION, receipt of which is hereby
acknowledged,
RICHARD H. LYNCH, a single man (hereinafter, "Grantor")
does hereby grant and convey to
CITY OF FONTANA, a municipal corporation,
its successors and assigns, an exclusive, permanent and perpetual
easement, together with the right to forever maintain, operate,
improve, alter, relocate, reconstruct, inspect, repair, occupy and
constructionuse, and ary
otherwise andmaintenance cofssanitarc y sewer line facilitiesthees thereto,'for as
determined necessary by the City of Fontana, its successors and
assigns (collectively, the "City"), both above and below the ground
level, together with all necessary rights of ingress and egress to
said easement over and across contiguous land now owned by Grantor
in connection with the exercise of any of the rights granted
herein, under and across the following described real property in
the County of San Bernardino, State of California, to wit:
See legal description and plat attached as Exhibit "A"
Grantor shall be entitled to utilize the easement area for parking,
driveway and/or landscaping purposes. Grantor shall not, however,
erect or construct, or
permit to be erected or constructed,
building, structure or permanent improvement on, over or under any
1MN68919
1
May 29, 1991
92-052639
EXHIBIT "A"
N.O. 6911629-02
That'portion of the East one-half of the Northeast one -quarter of the
Northwest one -quarter of the southeast one -quarter of Section 36, Township
1 North, Range 6 Nest, San Bernardino Meridian, in the City of Fontana,
County of San Bernardino, State of California, described as follows:
Beginning at a point on the Nest line of said East one-half,
8.00.06,47"E., a distance of 55.17 feet from the Northwest corner of said
East one-half,
Thence M.77.19'50"E., a distance of 66.06 feet,
?hence N.00•09'5991., a distance of 64.54 feet to the North line of
said East one-half, also being the South line of Catawba Avenue as shown by
map of Tract No. 334E on file in Book 47 of Maps, at pages 14 through 16
thereof, Recorda:of San Bernardino County, California,
Thence'N.69•49,42"E. along said North line also being the South line
of said Catawba Avenue, a distance of 15.00 feet,
Thence S.00•09'580E., a distance of 76.56 feet,
Thence 8.77.19'SO•N., a distance of 101.44 feet to said Nest line of
the East one-half,
Thence N.00•06,474N. along said Nest line, a distance of 15.37 feet to
the point of beginning.
The abore described parcel of land contains 2464.75 square foot or
0.056 acres, more or less.
RLN:NNC:bn
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DESCRIPTION PREPARED
- UUNNDER THE SUPERVISION Or:
art.
Romer A. Fountains Date
J. r. DAVIDSON ASSOCIATES, INC.
.1
A
'
WIDER THE SUPERVISION OF:
X
; f4 el aces, inc. Date
i #1.t/.{7 14 �4%?
A/qro%ter
EASEMENT
E. %z, N.E %-, N.W 4,
r SEG. 36,
r R. G,W 16 M.
r': OF FONTANA, CALL OR/U/A
t. PE&7 PLAT •
' 016. • d
228-1 I-o9
15C70 8 L/NE
Fo/cirAM44 CA.
. 17..
%i./
PGRCEL A'O.
SHEET / & f
DRAWN BY- ML
137 /1 +29
OOSSU MOSQIAUG At ZT :60 26, 2E inr
• •
Chicago Title
625 Carnegie Dr., Suite 100, San Bernardino, CA 92408 (714)884-0448 /1-800-722-0824
JUNE 5, 1992
CITY OF FONTANA
8353 SIERRA AVENUE
P.O.BOX 518
FONTANA, CALIFORNIA 92334-0518
ATTN: MAGGIE PACHECO
RE: ESCROW NOS. 12219-35 AND 12220-35
DEAR MAGGIE,
IN ACCORDANCE WITH YOUR REQUEST, I AM ENCLOSING HEREWITH COPIES OF THE THREE
EASEMENT DEED RECORDED THROUGH OUR ABOVE NUMBERED ESCROWS.
IF WE CAN BE OF ANY FURTHER ASSISTANCE TO YOU, PLEASE DO NOT HESITATE TO
CONTACT US.
SINC jRELY,
e.
SUZIE MORRIS
CERTIFIED SENIOR ESCROW OFFICER
ENC.
•
MEMORANDUM
CITY OF FONTANA
California
TO: BOBWEDDLE, CITY ENGINEER
FROM: MAGGIE PACHECO, REDEVELOPMENT PROJECT COORDINATOR f�
SUBJECT: TITLE POLICY - LYNCH EASEMENT DEEDS - HIGHLAND HAVEN
PROJECT
DATE: MAY 26, 1992
nJ�
Attached, you will find copies of the title policies for the two
Lynch easements for your files.
MP:pd
cc: Principal Engineer/Capital Improvements(F. Molinos)
•
Chicago Title
•
625 Carnegie Dr., Suite 100, San Bernardino, CA 92408 (714)884-0448 /1-800-722-0824
MARCH 9, 1992
CITY OF FONTANA
8353 SIERRA AVENUE
P.O.BOX 518
FONTANA, CALIFORNIA 92334-0518
ATTN: MAGGIE PACHECO
RE: ESCROW NO. 12220-35
DEAR MAGGIE,
IN CONNECTION WITH THE RECORDATION OF YOUR ESCROW WE HAVE ENCLOSED HEREWITH
YOUR TITLE POLICY OF TITLE INSURANCE.
SHOULD YOU HAVE ANY QUESTIONS REGARDING THE ENCLOSED, PLEASE CONTACT OUR
OFFICE.
THANK YOU FOR ALLOWING US TO HANDLE THIS TRANSACTION FOR YOU. WE HOPE WE MAY
SERVE YOU AGAIN FOR ANY OF YOUR FUTURE TITLE AND ESCROW NEEDS.
SINCER$LY,
/..
SUZIE MORRIS
CERTIFIED SENIOR ESCROW OFFICER
ENC.
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY 1990
CHICAGO TITLE INSURANCE COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE
CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE
INSURANCE COMPANY, a Missouri 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. Title 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;
and in addition, as to an insured lender only:
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being
shown in Schedule B in the order of its priority;
7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment
is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured
mortgage in the named insured assignee free and clear of all liens.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the
insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations.
In Witness Whereof, CHICAGO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed as
of Date of Policy shown in Schedule A, the policy to become valid when countersigned by an authorized signatory.
Issued by:
CHICAGO TITLE COMPANY
625 Carnegie Drive - Suite 100
San Bernardino, CA 92408
(714) 884-0448
CHICAGO TITLE INSURANCE COMPANY
By:
Presidri
ent
Secretary
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from 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 governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restrict-
ing, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any
improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any
parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to the extent that 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 extent that a notice of the exercise 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.
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
coverage any taking 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) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the 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 insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or the
estate or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of
any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured
mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the
interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws.
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. The term "insured" also includes
(i) the owner of the indebtedness secured by the insured mortgage and
each successor in ownership of the indebtedness except a successor who is
an obligor under the provisions of Section 12(c) of these Conditions and
Stipulations (reserving, however, all rights and defenses as to any successor
that the Company would have had against any predecessor insured, unless
the successor acquired the indebtedness as a purchaser for value without
knowledge of the asserted defect, lien, encumbrance, adverse claim or other
matter insured against by this policy as affecting title to the estate or interest in
the land);
(ii) any governmental agency or governmental instrumentality which is an
insurer or guarantor under an insurance contract or guaranty insuring or
guaranteeing the indebtedness secured by the insured mortgage, or any part
thereof, whether named as an insured herein or not;
(iii) the parties designated in Section 2(a) of these Conditions and Stipula-
tions.
(b) "insured claimant": an insured claiming loss or damage.
(c) "insured lender": the owner of an insured mortgage.
(d) "insured mortgage": a mortgage shown in Schedule B, the owner of
which is named as an insured in Schedule A.
(e) "knowledge" or "known": actual knowledge, not constructive knowl-
edge 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 construc-
tive notice of matters affecting the land.
(f) "land": the land described or referred to in Schedule A, and improve-
ments 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 noth-
ing herein shall modify or limit the extent to which a right of access to and from
the land is insured by this policy.
(g) "mortgage": mortgage, deed of trust, trust deed, or other security
instrument.
(h) "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.
(i) "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 or the insured
mortgage to be released from the obligation to purchase by virtue of a contrac-
tual condition requiring the delivery of marketable title.
2. CONTINUATION OF INSURANCE
(a) After Acquisition of Title by Insured Lender. If this policy insures the
owner of the indebtedness secured by the insured mortgage, the coverage of
this policy shall continue in force as of Date of Policy in favor of (i) such insured
who acquires all or any part of the estate or interest in the land by foreclosure,
trustee's sale, conveyance in lieu of foreclosure, or other legal manner which
discharges the lien of the insured mortgage; (ii) a transferee of the estate or
interest so acquired from an insured corporation, provided the transferee is
the parent or wholly -owned subsidiary of the insured corporation, and their
corporate successors by operation of law and not by purchase, subject to any
rights or defenses the Company may have against any predecessor insureds;
and (iii) any governmental agency or governmental instrumentality which
acquires all or any part of the estate or interest pursuant to a contract of
insurance or guaranty insuring or guaranteeing the indebtedness secured by
the insured mortgage.
(b) After Conveyance of Title by an Insured. The coverage of this policy
shall continue in force as of Date of Policy in favor of an insured only so long as
the insured retains an estate or interest in the land, or holds an indebtedness
secured by a purchase money mortgage given by a purchaser from the
insured, or only so long as the insured shall have liability by reason of cove-
nants of warranty made by the insured in any transfer or conveyance of the
estate or interest. This policy shall not continue in force in favor of any pur-
chaser from an insured of either (i) an estate or interest in the land, or (ii) an
indebtedness secured by a purchase money mortgage given to an insured.
(c) Amount of Insurance. The amount of insurance after the acquisition or
after the conveyance by an insured lender shall in neither event exceed the
least of:
(i) the amount of insurance stated in Schedule A;
(ii) the amount of the principal of the indebtedness secured by the insured
mortgage as of Date of Policy, interest thereon, expenses of foreclosure,
amounts advanced pursuant to the insured mortgage to assure compliance
with laws or to protect the lien of the insured mortgage prior to the time of
acquisition of the estate or interest in the land and secured thereby and
reasonable amounts expended to prevent deterioration of improvements, but
reduced by the amount of all payments made; or
(iii) the amount paid by any governmental agency or governmental instru-
mentality, if the agency or instrumentality is the insured claimant, in the acqui-
sition of the estate or interest in satisfaction of its insurance contract or guar-
anty.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
An insured shall notify the Company promptly in writing (i) in case of any
litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to
an insured hereunder of any claim of title or interest which is adverse to the
title to the estate or interest r the lien of the insured mortgage, as insured, and
SCHEDULE A
Policy No: 9114650 _ 11
Premium: $400.00
Amount of Insurance: $1, 600.00
Date of Policy: February 13, 1992 at 8:00 A.M.
1. Name of Insured:
CITY OF FONTANA, A MUNICIPAL CORPORATION
2. The estate or interest in the land which is covered by this policy is:
AN EASEMENT AS CREATED BY THAT CERTAIN "EASEMENT DEED FOR SEWER FACILITIES", DATED
OCTOBER 9, 1991, AND RECORDED FEBRUARY 13, 1992, AS INSTRUMENT NO. 92-052639,
OFFICIAL RECORDS
3. Title to the estate or interest in the land is vested in:
CITY OF FONTANA, A MUNICIPAL CORPORATION
4. The land referred to in this policy is situated in the State of California, County of SAN BERNARDINO
and is described as follows:
SEE ATTACHED DESCRIPTION
CLTAOASS - 11/29/88
This Policy valid only if Schedule B is attached.
Policy No. 9114650 —11
Page 1
DESCRIPTION
1
THAT PORTION OF THE EAST 1/2 OF THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE
SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN,
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS:
BEGINNING AT A POINT ON THE WEST LINE OF SAID EAST 1/2, SOUTH 00° 06' 47" EAST, A
DISTANCE OF 83.17 FEET FROM THE NORTHWEST CORNER OF SAID EAST 1/2;
THENCE NORTH 77° 19' 50" EAST, A DISTANCE OF 86.06 FEET;
THENCE NORTH 00° 09' 58" WEST, A DISTANCE OF 64.54 FEET TO THE NORTH LINE OF SAID EAST
1/2, ALSO BEING THE SOUTH LINE OF CATAWBA AVENUE AS SHOWN BY MAP OF TRACT NO. 3348 ON
FILE IN BOOK 47 OF MAPS, AT PAGES 14 THROUGH 16, INCLUSIVE, THEREOF, RECORDS OF SAN
BERNARDINO COUNTY, CALIFORNIA;
THENCE NORTH 89° 49' 42" EAST, ALONG SAID NORTH LINE ALSO BEING THE SOUTH LINE OF SAID
CATAWBA AVENUE, A DISTANCE OF 15.00 FEET;
THENCE SOUTH 00° 09' 58" EAST,
THENCE SOUTH 77° 19' 50" WEST,
1/2;
THENCE NORTH 00° 06' 47" WEST,
POINT OF BEGINNING.
A DISTANCE OF 76.58 FEET;
A DISTANCE OF 101.44 FEET TO SAID WEST LINE OF THE EAST
ALONG SAID WEST LINE, A DISTANCE OF 15.37 FEET TO THE
Policy No.9114650 - 11
SCHEDULE B
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses)
which arise by reason of:
PART I
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 not shown by the public records but which could be ascertained by an
inspection of the land or which may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey
would disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof;
(c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by
the public records.
PART II
1. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE
PROVISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF THE REVENUE AND
TAXATION CODE OF THE STATE OF CALIFORNIA.
2. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS
RESERVED IN A DOCUMENT
PURPOSE: ROAD AND PIPELINE
RECORDED: DECEMBER 23, 1926 IN BOOK 168, PAGE 299, OFFICIAL
RECORDS
AFFECTS: THE EAST 15 FEET OF SAID LAND
3. NOTWITHSTANDING THE INSURING CLAUSES OF THE POLICY, THE COMPANY DOES NOT
INSURE AGAINST LOSS OR DAMAGE BY REASON OF A LACK OF A RIGHT OF ACCESS TO
AND FROM THE LAND.
END OF SCHEDULE B
CLTAOB83 -- 11/29/88
•
Policy No.
Page 2
9114650 -11
SCHEDULE B (CONT.)
CLTASSC - 12/16/88
Por 5.1/2 Sec.36, T N.,R.6W.,S.131-3 a M.
228-13
•
36
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T. R. A. IC0.71
T. R. .1. -• 10105
9 '4 AG. V.L
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0
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Fontana City
Tax Rote Area
10105 , 10041
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AVENUE --
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Assessor's Map
Book 228 Page 13
Son Bernardino County
Note -Assessor's Blk.£1 Lot
Numbers Shown in Circles
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91
which might cause Toss or damage for which th Company may be liable by
virtue of this policy, or (iii) if title to the estate or interest or the lien of the
insured mortgage, as insured, is rejected as unmarketable. If prompt notice
shall not be given to the Company, then as to that insured all liability of the
Company shall terminate with regard to the matter or matters for 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 the
prejudice.
4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED
CLAIMANT TO COOPERATE
(a) Upon written request by an 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 such
insured in litigation 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
defect, 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 such 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 any 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 institute 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 or
the lien of the insured mortgage, 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.
(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 juris-
diction 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 prose-
cute or provide for the defense of any action or proceeding, an 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 such insured for this purpose. Whenever requested
by the Company, an insured, at the Company's expense, shall give the Com-
pany all reasonable aid (i) 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 or the lien of the insured mortgage, as insured. If the Company is
prejudiced by the failure of an insured to furnish the required cooperation, the
Company's obligations to the insured under the policy shall terminate, includ-
ing 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 Condi-
tions 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 an insured claimant to
provide the required proof of loss or damage, the Company's obligations to
such insured under the policy shall terminate, including any liability or obliga-
tion to defend, prosecute, or continue any litigation, with regard to the matter
or matters requiring such proof of loss or damage.
In addition, an 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 reason-
able times and places as may be designated by any authorized representative
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 or damage. Further, if requested by any author-
ized representative of the Company, the insured claimant shall grant its per-
mission, in writing, for any authorized representative of the Company to exam-
ine, 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 an
insured claimant provided to the Company pursuant to this Section shall not
be disclosed to others unless, in the reasonable judgment of the Company, it
is necessary in the administration of the claim. Failure of an insured claimant
to submit for examination under oath, produce other reasonably requested
information or grant permission to secure reasonably necessary information
from third parties as r110
equired in this paragraph, unless prohibited by law or
governmental regulation, shall terminate any liability of the Company under
this policy as to that insured for that claim.
6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION
OF LIABILITY
In case of a claim under this policy, the Company shall have the following
additional options:
(a) To Pay or Tender Payment of the Amount of Insurance or to
Purchase the Indebtedness.
(i) 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 obligated to pay; or
(ii) in case loss or damage is claimed under this policy by the owner of the
indebtedness secured by the insured mortgage, to purchase the indebted-
ness secured by the insured mortgage for the amount owing thereon together
with any costs, attorneys' fees and expenses incurred by the insured claimant
which were authorized by the Company up to the time of purchase and which
the Company is obligated to pay.
If the Company offers to purchase the indebtedness as herein provided, the
owner of the indebtedness shall transfer, assign, and convey the indebted-
ness and the insured mortgage, together with any collateral security, to the
Company upon payment therefor.
Upon the exercise by the Company of the option provided for in paragraph
a(i), all liability and obligations to the insured under this policy, other than to
make the payment required in that paragraph, 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.
Upon the exercise by the Company of the option provided for in paragraph
a(ii) the Company's obligation to an insured lender under this policy for the
claimed loss or damage, other than the payment required to be made, shall
terminate, including any liability or obligation to defend, prosecute or continue
any litigation.
(b) To Pay or Otherwise Settle With Parties Other than the Insured or
With the Insured Claimant.
(i) to pay or otherwise settle with other parties for or in the name of an
insured claimant any claim insured against under this 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 and which the
Company is obligated to pay; or
(ii) to pay or otherwise settle with the insured claimant the loss or damage
provided for 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 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 b(ii), the Company's obligations to the insured under this
policy for the claimed loss or damage, other than the payments required to be
made, shall terminate, including any liability or obligation to defend, prose-
cute or continue any litigation.
7. DETERMINATION AND EXTENT OF LIABILITY
This policy is a contract of indemnity against actual monetary loss or dam-
age 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 to an insured lender shall
not exceed the least of:
(i) the Amount of Insurance stated in Schedule A, or, if applicable, the
amount of insurance as defined in Section 2 (c) of these Conditions and
Stipulations;
(ii) the amount of the unpaid principal indebtedness secured by the
insured mortgage as limited or provided under Section 8 of these Conditions
and Stipulations or as reduced under Section 9 of these Conditions and
Stipulations, at the time the loss or damage insured against by this policy
occurs, together with interest thereon; or
(iii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect,
lien or encumbrance insured against by this policy.
(b) In the event the insured lender has acquired the estate or interest in the
manner described in Section 2(a) of these Conditions and Stipulations or has
conveyed the title, then the liability of the Company shall continue as set forth
in Section 7(a) of these Conditions and Stipulations.
(c) The liability of the Company under this policy to an insured owner of the
estate or interest in the land described in Schedule A shall not exceed the
least of:
(i) the Amount of Insurance stated in Schedule A; or,
(ii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect,
lien or encumbrance insured against by this policy.
(d) The Company will pay only those costs, attorneys' fees and expenses
incurred in accordance with Section 4 of these Conditions and Stipulations.
8. 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, or otherwise establishes the lien of
the insured mortgage, 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.
(b) In the event of any litigation, including litigation by the Company or with
the Company's consent, the Company shall have no liability for loss or dam-
age until there has been a final determination by a court of competent jurisdic-
tion, and disposition of all appeals therefrom, adverse to the title or, if applica-
ble, to the lien of the insured mortgage, 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.
(d) The Company shall not be liable to an insured lender for: (i) any indebt-
edness created subsequent to Date of Policy except for advances made to
protect the lien of the insured mortgage and secured thereby and reasonable
amounts expended to prevent deterioration of improvements; or (ii) construc-
tion loan advances made subsequent to Date of Policy, except construction
loan advances made subsequent to Date of Policy for the purpose of financing
in whole or in part the construction of an improvement to the land which at
Date of Policy were secured by the insured mortgage and which the insured
was and continued to be obligated to advance at and after Date of Policy.
9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF
LIABILITY
(a) All payments under this policy, except payments made for costs, attor-
neys' fees and expenses, shall reduce the amount of the insurance pro tanto.
However, as to an insured lender, any payments made prior to the acquisition
of title to the estate or interest as provided in Section 2(a) of these Conditions
and Stipulations shall not reduce pro tanto the amount of the insurance
afforded under this policy as to any such insured except to the extent that the
payments reduce the amount of the indebtedness secured by the insured
mortgage.
(b) Payment in part by any person of the principal of the indebtedness, or
any other obligation secured by the insured mortgage, or any voluntary partial
satisfaction or release of the insured mortgage, to the extent of the payment,
satisfaction or release, shall reduce the amount of insurance pro tanto. The
amount of insurance may thereafter be increased by accruing interest and
advances made to protect the lien of the insured mortgage and secured
thereby, with interest thereon, provided in no event shall the amount of insur-
ance be greater than the Amount of Insurance stated in Schedule A.
(c) Payment in full by any person or the voluntary satisfaction or release of
the insured mortgage shall terminate all liability of the Company to an insured
lender except as provided in Section 2(a) of these Conditions and Stipula-
tions.
10. LIABILITY 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 exe-
cuted 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.
The provisions of this Section shall not apply to an insured lender, unless
such insured acquires title to said estate or interest in satisfaction of the
indebtedness secured by an insured mortgage.
11. PAYMENT OF LOSS
(a) No payment shall be made without producing this policy for endorse-
ment of the payment unless the policy has been lost or destroyed, in which
case proof of loss or destruction shall be furnished to the satisfaction of the
Company.
(b) 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.
12. 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 the 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 any person or
property in respect to the claim had this policy not been issued. If requested by
the Company, the insured claimant shall transfer to the Company all rights
and remedies against any person or property necessary in order to perfect
this right of subrogation. The insured claimant shall permit the Company to
sue, compromise or settle in the name of the insured claimant and to use the
name of the insured claimant in any transaction or litigation involving these
rights or remedies.
If a payment on account of a claim does not fully cover the loss of the
Reorder Form No. 8223
insured claimant, the Company shall be subrogated (i) as to an insured owner,
to all rights and remedies in the proportion which the Company's payment
bears to the whole amount of loss; and (ii) as to an insured lender, to all rights
and remedies of the insured claimant after the insured claimant shall have
recovered its principal, interest, and costs of collection.
If loss should result from any act of the insured claimant, as stated above,
that 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 by this policy which
shall exceed the amount, if any, lost to the Company by reason of the impair-
ment by the insured claimant of the Company's right of subrogation.
(b) The Insured's Rights and Limitations.
Notwithstanding the foregoing, the owner of the indebtedness secured by
an insured mortgage, provided the priority of the lien of the insured mortgage
or its enforceability is not affected, may release or substitute 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
insured mortgage, or release any collateral security for the indebtedness.
When the permitted acts of the insured claimant occur and the insured has
knowledge of any claim of title or interest adverse to the title to the estate or
interest or the priority or enforceability of the lien of the insured mortgage, as
insured, the Company shall be required to pay only that part of any losses
insured against by this policy which shall exceed the amount, if any, lost to the
Company by reason of the impairment by the insured claimant of the Compa-
ny's right of subrogation.
(c) The Company's Rights Against Non-insured Obligors.
The Company's right of subrogation against non-insured obligors shall
exist and shall include, without limitation, the rights of the insured to indem-
nities, guaranties, other policies of insurance or bonds, notwithstanding any
terms or conditions contained in those instruments which provide for subroga-
tion rights by reason of this policy.
The Company's right of subrogation shall not be avoided by acquisition of
an insured mortgage by an obligor (except an obligor described in Section
1(a)(ii) of these Conditions and Stipulations) who acquires the insured mort-
gage as a result of an indemnity, guarantee, other policy of insurance, or bond
and the obligor will not be an insured under this policy, notwithstanding Sec-
tion 1(a)(i) of these Conditions and Stipulations.
13. ARBITRATION
Unless prohibited by applicable law, either the Company or the insured may
demand arbitration pursuant to the Title Insurance Arbitration Rules of the
American Arbitration Association. Arbitrable matters may include, but are not
limited to, any controversy or claim between the Company and the insured
arising out of or relating to this policy, any service of the Company in connec-
tion with its issuance or the breach of a policy provision or other obligation. All
arbitrable matters when the Amount of Insurance is $1,000,000 or less shall
be arbitrated at the option of either the Company or the insured. All arbitrable
matters when the Amount of Insurance is in excess of $1,000,000 shall be
arbitrated only when agreed to by both the Company and the insured. Arbitra-
tion 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 attorneys' fees only if the laws of the state in which the land is located
permit a court to award attorneys' fees to a prevailing party. Judgment upon
the award rendered by the Arbitrator(s) may be entered in any court having
jurisdiction thereof.
The law of the situs of the land shall apply to an arbitration under the Title
Insurance Arbitration Rules.
A copy of the Rules may be obtained from the Company upon request.
14. 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 the insured and the Com-
pany. In interpreting any provision of this policy, this policy shall be construed
as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, and
which arises out of the status of the lien of the insured mortgage, or of the title
to the estate or interest covered hereby, or by any action asserting such claim
shall be restricted to this policy.
(c) No amendment 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 Secretary, or validating officer or
authorized signatory of the Company.
15. SEVERABILITY
In the event any provision of this policy is held invalid or unenforceable
under applicable law, the policy shall be deemed not to include that provision
and all other provisions shall remain in full force and effect.
16. 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 the Company at the issuing office or to:
Chicago Title Insurance Company
Claims Department
111 West Wa. gton Street
Chicago, Illi 60602
•
Chicago Title
•
625 Carnegie Dr., Suite 100, San Bernardino, CA 92408 (714)884-0448 /1-800-722-0824
MARCH 9, 1992
CITY OF FONTANA
8353 SIERRA AVENUE
P 0 BOX 518
FONTANA, CALIFORNIA 92334-0518
ATTN: MAGGIE PACHECO
RE: OUR ESCROW NO. 12219-35
DEAR MAGGIE
IN CONNECTION WITH THE RECORDATION OF YOUR ESCROW WE HAVE ENCLOSED HEREWITH
YOUR TITLE POLICY OF TITLE INSURANCE.
SHOULD YOU HAVE ANY QUESTIONS REGARDING THE ENCLOSED, PLEASE CONTACT OUR
OFFICE.
THANK YOU FOR ALLOWING US TO HANDLE THIS TRANSACTION FOR YOU. WE HOPE WE MAY
SERVE YOU AGAIN FOR ANY OF YOUR FUTURE TITLE AND ESCROW NEEDS.
SINCERELY,
SUZIE MORRIS
CERTIFIED SENIOR ESCROW OFFICER
ENC.
ij
•
CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY 1990
CHICAGO TITLE INSURANCE COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE
CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, CHICAGO TITLE
INSURANCE COMPANY, a Missouri 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. Title 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;
and in addition, as to an insured lender only:
5. The invalidity or unenforceability of the lien of the insured mortgage upon the title;
6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being
shown in Schedule B in the order of its priority;
7. The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment
is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured
mortgage in the named insured assignee free and clear of all liens.
The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the
insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations.
hi Witness Whereof, CHICAGO TITLE INSURANCE COMPANY has caused this policy to be signed and sealed as
of Date of Policy shown in Schedule A, the policy to become valid when countersigned by an authorized signatory.
Issued by:
CHICAGO TITLE COMPANY
625 Carnegie Drive - Suite 100
San Bernardino, CA 92408
(714) 884-0448
CHICAGO TITLE INSURANCE COMPANY
By:
By:
President
Secretary
EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from 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 governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restrict-
ing, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any
improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any
• parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or
governmental regulations, except to the extent that 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 extent that a notice of the exercise 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.
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
coverage any taking 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) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the 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 insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant;
(d) attaching or created subsequent to Date of Policy; or
(e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or the
estate or interest insured by this policy.
4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of
any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated.
5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured
mortgage and is based upon usury or any consumer credit protection or truth in lending law.
6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the
interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws.
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. The term "insured" also includes
(i) the owner of the indebtedness secured by the insured mortgage and
each successor in ownership of the indebtedness except a successor who is
an obligor under the provisions of Section 12(c) of these Conditions and
Stipulations (reserving, however, all rights and defenses as to any successor
that the Company would have had against any predecessor insured, unless
the successor acquired the indebtedness as a purchaser for value without
knowledge of the asserted defect, lien, encumbrance, adverse claim or other
matter insured against by this policy as affecting title to the estate or interest in
the land);
(ii) any governmental agency or governmental instrumentality which is an
insurer or guarantor under an insurance contract or guaranty insuring or
guaranteeing the indebtedness secured by the insured mortgage, or any part
thereof, whether named as an insured herein or not;
(iii) the parties designated in Section 2(a) of these Conditions and Stipula-
tions.
(b) "insured claimant": an insured claiming loss or damage.
(c) "insured lender": the owner of an insured mortgage.
(d) "insured mortgage": a mortgage shown in Schedule B, the owner of
which is named as an insured in Schedule A.
(e) "knowledge" or "known": actual knowledge, not constructive knowl-
edge 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 construc-
tive notice of matters affecting the land.
(f) "land": the land described or referred to in Schedule A, and improve-
ments 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 noth-
ing herein shall modify or limit the extent to which a right of access to and from
the land is insured by this policy.
(g) "mortgage": mortgage, deed of trust, trust deed, or other security
instrument.
(h) "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.
(i) "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�edule A or the insured
mortgage to be released from the obligation to purchase by virtue of a contrac-
tual condition requiring the delivery of marketable title.
2. CONTINUATION OF INSURANCE
(a) After Acquisition of Title by Insured Lender. If this policy insures the
owner of the indebtedness secured by the insured mortgage, the coverage of
this policy shall continue in force as of Date of Policy in favor of (i) such insured
who acquires all or any part of the estate or interest in the land by foreclosure,
trustee's sale, conveyance in lieu of foreclosure, or other legal manner which
discharges the lien of the insured mortgage; (ii) a transferee of the estate or
interest so acquired from an insured corporation, provided the transferee is
the parent or wholly -owned subsidiary of the insured corporation, and their
corporate successors by operation of law and not by purchase, subject to any
rights or defenses the Company may have against any predecessor insureds;
and (iii) any governmental agency or governmental instrumentality which
acquires all or any part of the estate or interest pursuant to a contract of
insurance or guaranty insuring or guaranteeing the indebtedness secured by
the insured mortgage.
(b) After Conveyance of Title by an Insured. The coverage of this policy
shall continue in force as of Date of Policy in favor of an insured only so long as
the insured retains an estate or interest in the land, or holds an indebtedness
secured by a purchase money mortgage given by a purchaser from the
insured, or only so long as the insured shall have liability by reason of cove-
nants of warranty made by the insured in any transfer or conveyance of the
estate or interest. This policy shall not continue in force in favor of any pur-
chaser from an insured of either (i) an estate or interest in the land, or (ii) an
indebtedness secured by a purchase money mortgage given -to an insured.
(c) Amount of Insurance. The amount of insurance after the acquisition or
after the conveyance by an insured lender shall in neither event exceed the
least of:
(i) the amount of insurance stated in Schedule A;
(ii) the amount of the principal of the indebtedness secured by the insured
mortgage as of Date of Policy, interest thereon, expenses of foreclosure,
amounts advanced pursuant to the insured mortgage to assure compliance
with laws or to protect the lien of the insured mortgage prior to the time of
acquisition of the estate or interest in the land and secured thereby and
reasonable amounts expended to prevent deterioration of improvements, but
reduced by the amount of all payments made; or
(iii) the amount paid by any governmental agency or governmental instru-
mentality, if the agency or instrumentality is the insured claimant, in the acqui-
sition of the estate or interest in satisfaction of its insurance contract or guar-
anty.
3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT
An insured shall notify the Company promptly in writing (i) in case of any
litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to
an insured hereunder of any claim of title or interest which is adverse to the
title to the estate or interest rr the lien of the insured mortgage, as insured, and
SCHEDULE A
Policy No: 9114649 _ 11
Premium: $400.00
Amount of Insurance: $15 , 5 00.00
Date of Policy: February 13, 1992 at 8:00 A.M.
1. Name of Insured:
CITY OF FONTANA, A MUNICIPAL CORPORATION
2. The estate or interest in the land which is covered by this policy is:
AN EASEMENT AS CREATED BY THAT CERTAIN "EASEMENT DEED FOR STREET AND PUBLIC UTILITY
SEE ATTACHED EXHIBIT - ESTATE OR INTEREST
3. Title to the estate or interest in the land is vested in:
CITY OF FONTANA, A MUNICIPAL CORPORATION
4. The land referred to in this policy is situated in the State of California, County of SAN BERNARDINO
and is described as follows:
SEE ATTACHED DESCRIPTION
CLTAOA88 - 11/29/88
This Policy valid only if Schedule B is attached.
•
•
Policy No. -114649
11
EXHIBIT (ESTATE OR INTEREST)
PURPOSES" DATED DECEMBER 3, 1991 AND RECORDED FEBRUARY 13, 1992, AS INSTRUMENT NO.
92-052637, OFFICIAL RECORDS, AS TO PARCEL 1;
AN EASEMENT AS CREATED BY THAT CERTAIN "EASEMENT DEED FOR SEWER FACILITIES", DATED
DECEMBER 3, 1991 AND RECORDED FEBRUARY 3, 1992, AS INSTRUMENT NO. 92-052638, OFFICIAL
RECORDS, AS TO PARCEL 2
EXH I B E ST-9 / 13 / 91-I rc
Policy No. 9114649 -11
Page 1
DESCRIPTION
PARCEL 1:
THAT PORTION OF THE WEST 1/2 OF THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE
SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN,
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS:
COMMENCING AT THE NORTHWEST CORNER OF SAID WEST 1/2, SAID CORNER BEING ON THE SOUTH
LINE OF LOT 113 OF TRACT NO. 3348 ON FILE IN BOOK 47, PAGES 14 THROUGH 16, INCLUSIVE,
OF MAPS, RECORDS OF SAN BERNARDINO COUNTY, CALIFORNIA;
THENCE NORTH 89° 49' 42" EAST, ALONG THE NORTH LINE OF SAID WEST 1/2, ALSO BEING THE
SOUTH LINE OF SAID LOT 113, A DISTANCE OF 2.77 FEET TO THE SOUTHWEST CORNER OF
ALMERIA AVENUE AS SHOWN ON SAID TRACT NO. 3348, SAID CORNER BEING THE POINT OF
BEGINNING OF THE PARCEL TO BE DESCRIBED;
THENCE CONTINUING NORTH 89° 49' 42" EAST, ALONG SAID NORTH LINE ALSO BEING THE SOUTH
LINE OF SAID ALMERIA AVENUE, A DISTANCE FO 60.00 FEET TO THE SOUTHEAST CORNER OF SAID
ALMERIA AVENUE;
THENCE SOUTH 00° 09' 54" EAST, ALONG THE SOUTHERLY PROLONGATION OF THE EASTERLY LINE
OF SAID ALMERIA AVENUE, A DISTANCE FO 112.01 FEET;
THENCE SOUTHWESTERLY ON A CURVE CONCAVE TO THE NORTHWEST HAVING A RADIUS OF 60.00
FEET, THROUGH AN ANGLE OF 89° 59' 36", AN ARC LENGTH OF 94.24 FEET TO THE EASTERLY
PROLONGATION OF THE SOUTHERLY LINE OF WALNUT STREET AS SHOWN ON TRACT NO. 12314, ON
FILE IN BOOK 240, PAGES 3 THROUGH 10, INCLUSIVE, OF MAPS, RECORDS OF SAN BERNARDINO
COUNTY, CALIFORNIA;
THENCE SOUTH 89° 49' 42" WEST ALONG SAID PROLONGATION, A DISTANCE OF 2.96 FEET TO THE
SOUTHEAST CORNER OF. SAID WALNUT STREET, SAID CORNER BEING ON THE WEST LINE OF SAID
WEST 1/2;
THENCE NORTH 00° 06' 16" WEST ALONG SAID WEST LINE, ALSO BEING THE EAST LINE OF SAID
WALNUT STREET, A DISTANCE OF 76.81 FEET TO THE MOST NORTHERLY CORNER OF SAID WALNUT
STREET;
THENCE NORTH 41° 49' 07" EAST ALONG THE NORTHEASTERLY PROLONGATION OF THE
NORTHWESTERLY LINE OF SAID WALNUT STREET, A DISTANCE OF 4.29 FEET TO THE SOUTHERLY
PROLONGATION OF THE WESTERLY LINE OF SAID ALMERIA AVENUE;
THENCE NORTH 00° 09' 54" WEST ALONG SAID SOUTHERLY PROLONGATION, A DISTANCE OF 92.00
FEET TO THE POINT OF BEGINNING.
PARCEL 2:
THAT PORTION OF THE WEST 1/2 OF THE NORTHEAST 1/4 OF THE NORTHWEST 1/4 OF THE
SOUTHEAST 1/4 OF SECTION 36, TOWNSHIP 1 NORTH, RANGE 6 WEST, SAN BERNARDINO MERIDIAN,
IN THE CITY OF FONTANA, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS
FOLLOWS:
BEGINNING AT A POINT ON THE EAST LINE OF SAID WEST 1/2 SOUTH 00° 06' 47" EAST, A
DISTANCE OF 83.17 FEET FROM THE NORTHEAST CORNER OF SAID WEST 1/2;
THENCE SOUTH 77° 19' 50" WEST, A DISTANCE OF 183.93 FEET;
THENCE WESTERLY ON A CURVE CONCAVE TO THE NORTH HAVING A RADIUS OF 697.50 FEET,
THROUGH AN ANGLE OF 12° 29' 51", AN ARC LENGTH OF 152.14 FEET TO THE WEST LINE OF SAID
WEST 1/2, ALSO BEING THE EAST LINE OF WALNUT STREET AS SHOWN BY MAP OF TRACT NO.
12314, ON FILE IN BOOK 240, PAGES 3 THROUGH 10, INCLUSIVE, OF MAPS RECORDS OF SAN
BERNARDINO COUNTY, CALIFORNIA;
THENCE SOUTH 00° 06' 16" EAST, ALONG SAID WEST LINE, ALSO BEING THE EAST LINE OF SAID
WALNUT STREET, A DISTANCE OF 15.00 FEET;
THENCE EASTERLY ON A NON -TANGENT CURVE CONCAVE TO THE NORTH HAVING A RADIUS OF 712.50
Policy No. 9114649 —11
Page 2
DESCRIPTION
FEET, THROUGH AN ANGLE OF 12° 29' 56", AN ARC LENGTH OF 155.43 FEET (THE INITIAL
RADIAL LINE BEARS SOUTH 00° 10' 14" EAST);
THENCE NORTH 77° 19' 50" EAST, A DISTANCE OF 180.59 FEET TO SAID EAST LINE OF THE WEST
1/2;
THENCE NORTH 00° 06' 47" WEST, ALONG SAID EAST LINE, A DISTANCE OF 15.37 FEET TO THE
POINT OF BEGINNING.
•
Policy No. 9114649
- 11
•
SCHEDULE B
EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses)
which arise by reason of:
PART I
1. Taxes or assessments which are not shown as existing liens by the records of any taxingauthority 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 not shown by the public records but which could be ascertained by an
inspection of the land or which may be asserted by persons in possession thereof.
3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records.
4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey
would disclose, and which are not shown by the public records.
5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof;
(c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by
the public records.
PART II
1. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE
PROVISIONS OF CHAPTER 3.5 (COMMENCING WITH SECTION 75) OF THE REVENUE AND
TAXATION CODE OF THE STATE OF CALIFORNIA.
2. NOTWITHSTANDING THE INSURING CLAUSES OF THE POLICY, THE COMPANY DOES NOT
INSURE AGAINST LOSS OR DAMAGE BY REASON OF A LACK OF A RIGHT OF ACCESS TO
AND FROM THE LAND.
END OF SCHEDULE B
SN/JH
AUTHORIZED SIGNATORY
CLTAOB8 -- 11/29/83
Por S. I/2 Sec.36, T I N.,R.6W.,S.B.D. M.
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which might cause loss or damage for which 0 ompany may be liable by
virtue of this policy, or (iii) if title to the estate or interest or the lien of the
insured mortgage, as insured, is rejected as unmarketable. If prompt notice
shall not be given to the Company, then as to that insured all liability of the
Company shall terminate with regard to the matter or matters for 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 the
prejudice.
4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED
CLAIMANT TO COOPERATE
(a) Upon written request by an 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 such
insured in litigation 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
defect, 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 such 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 any 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 institute 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 or
the lien of the insured mortgage, 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.
(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 juris-
diction 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 prose-
cute or provide for the defense of any action or proceeding, an 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 such insured for this purpose. Whenever requested
by the Company, an insured, at the Company's expense, shall give the Com-
pany all reasonable aid (i) 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 or the lien of the insured mortgage, as insured. If the Company is
prejudiced by the failure of an insured to furnish the required cooperation, the
Company's obligations to the insured under the policy shall terminate, includ-
ing 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 Condi-
tions 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 an insured claimant to
provide the required proof of loss or damage, the Company's obligations to
such insured under the policy shall terminate, including any liability or obliga-
tion to defend, prosecute, or continue any litigation, with regard to the matter
or matters requiring such proof of loss or damage.
In addition, an 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 reason-
able times and places as may be designated by any authorized representative
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 or damage. Further, if requested by any author-
ized representative of the Company, the insured claimant shall grant its per-
mission, in writing, for any authorized representative of the Company to exam-
ine, 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 an
insured claimant provided to the Company pursuant to this Section shall not
be disclosed to others unless, in the reasonable judgment of the Company, it
is necessary in the administration of the claim. Failure of an insured claimant
to submit for examination under oath, produce other reasonably requested
information or grant permission to secure reasonably necessary information
from third parties as required in this paragraph, unless prohibited by law or
governmental regulation, shall terminate any liability of the Company under '
this policy as to that insured for that claim.
6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION
OF LIABILITY
In case of a claim under this policy, the Company shall have the following
additional options:
(a) To Pay or Tender Payment of the Amount of Insurance or to
Purchase the Indebtedness.
(i) 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 obligated to pay; or
(ii) in case loss or damage is claimed under this policy by the owner of the
indebtedness secured by the insured mortgage, to purchase the indebted-
ness secured by the insured mortgage for the amount owing thereon together
with any costs, attorneys' fees and expenses incurred by the insured claimant
which were authorized by the Company up to the time of purchase and which
the Company is obligated to pay.
If the Company offers to purchase the indebtedness as herein provided, the
owner of the indebtedness shall transfer, assign, and convey the indebted-
ness and the insured mortgage, together with any collateral security, to the
Company upon payment therefor.
Upon the exercise by the Company of the option provided for in paragraph
a(i), all liability and obligations to the insured under this policy, other than to
make the payment required in that paragraph, 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.
Upon the exercise by the Company of the option provided for in paragraph
a(ii) the Company's obligation to an insured lender under this policy for the
claimed loss or damage, other .than the payment required to be made, shall
terminate, including any liability or obligation to defend, prosecute or continue
any litigation.
(b) To Pay or Otherwise Settle With Parties Other than the Insured or
With the Insured Claimant.
(i) to pay or otherwise settle with other parties for or in the name of an
insured claimant any claim insured against under this 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 and which the
Company is obligated to pay; or
(ii) to pay or otherwise settle with the insured claimant the loss or damage
provided for 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 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 b(ii), the Company's obligations to the insured under this
policy for the claimed loss or damage, other than the payments required to be
made, shall terminate, including any liability or obligation to defend, prose-
cute or continue any litigation.
7. DETERMINATION AND EXTENT OF LIABILITY
This policy is a contract of indemnity against actual monetary loss or dam-
age 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 to an insured lender shall
not exceed the least of:
(i) the Amount of Insurance stated in Schedule A, or, if applicable, the
amount of insurance as defined in Section 2 (c) of these Conditions and
Stipulations;
(ii) the amount of the unpaid principal indebtedness secured by the
insured mortgage as limited or provided under Section 8 of these Conditions
and Stipulations or as reduced under Section 9 of these Conditions and
Stipulations, at the time the loss or damage insured against by this policy
occurs, together with interest thereon; or
(iii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect,
lien or encumbrance insured against by this policy.
(b) In the event the insured lender has acquired the estate or interest in the
manner described in Section 2(a) of these Conditions and Stipulations or has
conveyed the title, then the liability of the Company shall continue as set forth
in Section 7(a) of these Conditions and Stipulations.
(c) The liability of the Company under this policy to an insured owner of the
estate or interest in the land described in Schedule A shall not exceed the
least of:
(i) the Amount of Insurance stated in Schedule A; or,
(ii) the difference between the value of the insured estate or interest as
insured and the value of the insured estate or interest subject to the defect,
lien or encumbrance insured against by this policy.
(d) The Company will pay only those costs, attorneys' fees and expenses
incurred in accordance with Section 4 of these Conditions and Stipulations.
8. LIMITATKJN OF T BICI
(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, or otherwise establishes the lien of
the insured mortgage, 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.
(b) In the event of any litigation, including litigation by the Company or with
the Company's consent, the Company shall have no liability for loss or dam-
age until there has been a final determination by a court of competent jurisdic-
tion, and disposition of all appeals therefrom, adverse to the title or, if applica-
ble, to the lien of the insured mortgage, 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.
(d) The Company shall not be liable to an insured lender for: (i) any indebt-
edness created subsequent to Date of Policy except for advances made to
protect the lien of the insured mortgage and secured thereby and reasonable
amounts expended to prevent deterioration of improvements; or (ii) construc-
tion loan advances made subsequent to Date of Policy, except construction
loan advances made subsequent to Date of Policy for the purpose of financing
in whole or in part the construction of an improvement to the land which at
Date of Policy were secured by the insured mortgage and which the insured
was and continued to be obligated to advance at and after Date of Policy.
9. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF
LIABILITY
(a) All payments under this policy, except payments made for costs, attor-
neys' fees and expenses, shall reduce the amount of the insurance pro tanto.
However, as to an insured lender, any payments made prior to the acquisition
of title to the estate or interest as provided in Section 2(a) of these Conditions
and Stipulations shall not reduce pro tanto the amount of the insurance
afforded under this policy as to any such insured except to the extent that the
payments reduce the amount of the indebtedness secured by the insured
mortgage.
(b) Payment in part by any person of the principal of the indebtedness, or
any other obligation secured by the insured mortgage, or any voluntary partial
satisfaction or release of the insured mortgage, to the extent of the payment,
satisfaction or release, shall reduce the amount of insurance pro tanto. The
amount of insurance may thereafter be increased by accruing interest and
advances made to protect the lien of the insured mortgage and secured
thereby, with interest thereon, provided in no event shall the amount of insur-
ance be greater than the Amount of Insurance stated in Schedule A.
(c) Payment in full by any person or the voluntary satisfaction or release of
the insured mortgage shall terminate all liability of the Company to an insured
lender except as provided in Section 2(a) of these Conditions and Stipula-
tions.
10. LIABILITY 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 exe-
cuted 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.
The provisions of this Section shall not apply to an insured lender, unless
such insured acquires title to said estate or interest in satisfaction of the
indebtedness secured by an insured mortgage.
11. PAYMENT OF LOSS
(a) No payment shall be made without producing this policy for endorse-
ment of the payment unless the policy has been lost or destroyed, in which
case proof of loss or destruction shall be furnished to the satisfaction of the
Company.
(b) 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,
12. 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 the 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 any person or
property in respect to the claim had this policy not been issued. If requested by
the Company, the insured claimant shall transfer to the Company all rights
and remedies against any person or property necessary in order to perfect
this right of subrogation. The insured claimant shall permit the Company to
sue, compromise or settle in the name of the insured claimant and to use the
name of the insured claimant in any transaction or litigation involving these
rights or remedies.
If a payment on account of a claim does not fully cover the loss of the
Reorder Form No. 8223
insured claimant, the Company shall be subrogated (i) as to an insured owner,
to all rights and remedies in the proportion which the Company's payment
bears to the whole amount of loss; and (ii) as to an insured lender, to all rights
and remedies of the insured claimant after the insured claimant shall have
recovered its principal, interest, and costs of collection.
If loss should result from any act of the insured claimant, as stated above,'
that 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 by this policy which
shall exceed the amount, if any, lost to the Company by reason of the impair-
ment by the insured claimant of the Company's right of subrogation.
(b) The Insured's Rights and Limitations.
Notwithstanding the foregoing, the owner of the indebtedness secured by
an insured mortgage, provided the priority of the lien of the insured mortgage
or its enforceability is not affected, may release or substitute 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
insured mortgage, or release any collateral security for the indebtedness.
When the permitted acts of the insured claimant occur and the insured has
knowledge of any claim of title or interest adverse to the title to the estate or
interest or the priority or enforceability of the lien of the insured mortgage, as
insured, the Company shall be required to pay only that part of any losses
insured against by this policy which shall exceed the amount, if any, lost to the
Company by reason of the impairment by the insured claimant of the Compa-
ny's right of subrogation.
(c) The Company's Rights Against Non-insured Obligors.
The Company's right of subrogation against non-insured obligors shall
exist and shall include, without limitation, the rights of the insured to indem-
nities, guaranties, other policies of insurance or bonds, notwithstanding any
terms or conditions contained in those instruments which provide for subroga-
tion rights by reason of this policy.
The Company's right of subrogation shall not be avoided by acquisition of
an insured mortgage by an obligor (except an obligor described in Section
1(a)(ii) of these Conditions and Stipulations) who acquires the insured mort-
gage as a result of an indemnity, guarantee, other policy of insurance, or bond
and the obligor will not be an insured under this policy, notwithstanding Sec-
tion 1(a)(i) of these Conditions and Stipulations.
13. ARBITRATION
Unless prohibited by applicable law, either the Company or the insured may
demand arbitration pursuant to the Title Insurance Arbitration Rules of the
American Arbitration Association. Arbitrable matters may include, but are not
limited to, any controversy or claim between the Company and the insured
arising out of or relating to this policy, any service of the Company in connec-
tion with its issuance or the breach of a policy provision or other obligation. All
arbitrable matters when the Amount of Insurance is $1,000,000 or less shall
be arbitrated at the option of either the Company or the insured. All arbitrable
matters when the Amount of Insurance is in excess of $1,000,000 shall be
arbitrated only when agreed to by both the Company and the insured. Arbitra-
tion 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 attorneys' fees only if the laws of the state in which the land is located
permit a court to award attorneys' fees to a prevailing party. Judgment upon
the award rendered by the Arbitrator(s) may be entered in any court having
jurisdiction thereof.
The law of the situs of the land shall apply to an arbitration under the Title
Insurance Arbitration Rules.
A copy of the Rules may be obtained from the Company upon request.
14. 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 the insured and the Com-
pany. In interpreting any provision of this policy, this policy shall be construed
as a whole.
(b) Any claim of loss or damage, whether or not based on negligence, and
which arises out of the status of the lien of the insured mortgage, or of the title
to the estate or interest covered hereby, or by any action asserting such claim
shall be restricted to this policy.
(c) No amendment 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 Secretary, or validating officer or
authorized signatory of the Company.
15. SEVERABILITY
In the event any provision of this policy is held invalid or unenforceable
under applicable law, the policy shall be deemed not to include that provision
and all other provisions shall remain in full force and effect.
16. 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 the Company at the issuing office or to:
Chicago Title Insurance Company
Claims Department
111 West W ington Street
Chicago, I s 60602