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HomeMy WebLinkAbout831040.tiff RESOLUTION RE: EXERCISE OF THE OPTION TO PURCHASE THE WALTON BUILDING WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to Colorado statute and the Weld County Home Rule Charter, is vested with the authority of administering the affairs of Weld County, Colorado, and WHEREAS , on the 30th day of May, 1973, the Board of County Commissioners of Weld County, Colorado, entered into a Lease Agreement with Omer Wesley Box concerning the construction and lease of the building known as the Walton Building, to be used and occupied by the Weld County Department of Social Services, and WHEREAS, such Lease Agreement was to commence on the date of the issuance of the Certificate of Occupancy and continue thereafter for a period of ten (10) years , and WHEREAS, at the end of such ten-year period, in accordance with paragraph 25 of such Lease Agreement, the Board of County Commissioners of Weld County would have the option of purchase of such building for the purchase price of $707, 300 . 00 , unless the Board desired to obtain an appraisal of the premises, such option to purchase to be exercised by written notice from the Board to the Lessor and to be delivered not less than 180 days prior to the expiration of the ten-year term of the lease, and WHEREAS, the Board of County Commissioners wishes to exercise such option to purchase at this point in time. NOW, THEREFORE, BE IT RESOLVED by the Board of County Com- missioners of Weld County, Colorado, that it hereby approves the execution of the Notice of Option to Purchase, attached hereto and incorporated herein by reference, and hereby authorizes the signing thereof. / 831040 The above and foregoing Resolution was, on motion duly made and seconded, adopted by the following vote on the 24th day of January, A.D. , 1983. �.._ BOARD OF COUNTY COMMISSIONERS ATTEST: ' it2.ce.^- �- :vin -�'�=:': ,��2Lrl/ WE )COUNTY, CO RADO Weld County Clerk and Recorder / d and Clerk to the Board C ck Carlson, Chairman 7 By: �. . f/l Deputy County-Clerk JQ4 T. Martin, Pro Tem APPROyED AS TO FORM: �C (� , r{ t:.£z.._, / Gene R. Brantner County Attorney EXCUSED DATE OF SIGNING Norman Carlso \ jacq line hnson NOTICE OF OPTION TO PURCHASE TO: Omer Wesley Box In accordance with Section 25 of a certain Lease dated May 30 , 1973, between you, Omer Wesley Box, and the County of Weld, NOTICE IS HEREBY GIVEN by the County of Weld to exercise the option to purchase the real estate known as the Walton Building property and more particularly described as : Lots 1 , 2 , 3 , 4 , 5 , 22 , 23 , 24 , 25 , and 26 , in Block 33 , in Clayton Park, a subdivision of the City of Greeley, Weld County, Colorado; and all of the vacated alleys abutting said Lots , and the S 1/2 of vacated C Street abutting Lots 1 , 4 , and 5 and the vacated alley and all of the N 1/2 of vacated B Street, abutting Lots 21 , 22 , 23 , and 26 and the vacated alley, in said Block 33 , Weld County, State of Colorado. for the stated option purchase price of $707 ,300 . 00 . h BOARD OF COUNTY COMMISSIONERS ATTEST: WEL OUNTY, C ORADO U Weld County Clerk and Recorder and Clerk to the lard Chuck Carlson, Chairman By _7is � � L .�JConi✓ // l� Deputy County Clerk Jo T . Martin, Pro-Tem ene R. Brantner Norman Carlson acq line hnson CARPENTER & KLATSKIN, P C. ATTORNEYS AT LAW • ISOD DENVER CLUB BUILDING WILLIS V.CARPENTER SIB SEVENTEENTH STREET ANDREW S.KLATSKIN DENVER,COLORADO 80202 TELEPHONE: JAN ELL KINZIE FREDERICK B.SKILLERN July 30, 1984 (303) 534-6315 IVEMM ca7TY cr...r „�„,RS 1ECEL. .E JUL 3 1 1984 ;, R. Russell Anson, Esq. Assistant County Attorney GREELEY. COLO. Weld County Courthouse Greeley, Colorado 80631 Re: 313 North 11th Avenue Dear Mr. Anson: Security Title sent us the County' s owner's title insurance policy for the above referenced property by mistake, and it is enclosed herewith. Very truly yours, Holly noting Legal Asstant HSH:her Enclosure Form No. 1402(1/70) ALTA Owner's Policy Form B—1970 (Amended 10-17-70) �S ,T AMER C 1 9 4 stop, _ ww-k ti POLICY OF TITLE INSURANCE ISSUED BY First American Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE B AND THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS HEREOF, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called the Company, insures, as of Date oft Policy shown in Schedule A, against loss or damage, not exceeding the amount of insurance stated in Schedule A, and costs, attorneys' fees and expenses which the Company may become obligated to pay hereunder, sustained or incurred by the insured by reason of: 1. title to the estate or interest described in Schedule A being vested otherwise than as stated therein; 2. any defect in or lien or encumbrance on such title; 3. lack of a right of access to and from the land; or 4. unmarketability of such title. IN WITNESS WHEREOF, First American Title Insurance Company has caused this policy to be signed and sealed by its duly authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company BY PRESIDENT ATTEST kt,�SA... C. 3 „t..i• SECRETARY e7eCurity Title Guaranty Company 3575 CHERRY CREEK DR. NO. • DENVER, CO 80209 (303) 321-2212 I� 470724 • SCHEDULE OF EXCLUSIONS FROM COVERAGE i THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY: 1. ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING ORDINANCES) RESTRICTING OR REGULATING OR PROHIBITING THE OCCUPANCY, USE OR ENJOYMENT OF THE LAND,OR REGULATING THE CHAR- ACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND, OR PROHIBITING A SEPARATION IN OWNERSHIP OR A REDUCTION IN THE DIMENSIONS OR AREA OF THE LAND, OR THE EFFECT OF ANY VIOLATION OF ANY SUCH LAW, ORDINANCE OR GOVERNMENTAL REGULATION. 2. RIGHTS OF EMINENT DOMAIN OR GOVERNMENTAL RIGHTS OF POLICE POWER UNLESS NOTICE OF THE EXERCISE OF SUCH RIGHTS APPEARS IN THE PUBLIC RECORDS AT DATE OF POLICY. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS, OR OTHER MATTERS (a) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (b) NOT KNOWN TO THE COMPANY AND NOT SHOWN BY THE PUBLIC RECORDS BUT KNOWN TO THE INSURED CLAIMANT EITHER AT DATE OF POLICY OR AT THE DATE SUCH CLAIMANT ACQUIRED AN ESTATE OR INTEREST INSURED BY THIS POLICY AND NOT DISCLOSED IN WRITING BY THE INSURED CLAIMANT TO THE COMPANY PRIOR TO THE DATE SUCH INSURED CLAIMANT BECAME AN INSURED HEREUNDER; (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 ESTATE OR INTEREST INSURED BY THIS POLICY. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS insured in all litigation consisting of actions or 4. NOTICE OF LOSS — LIMITATION OF The following terms when used in this Proceedings commenced against such insured, or a ACTION policy mean: defense interposed against an insured in an action In addition to the notices required under to enforce a contract for a sale of the estate or p paragraph 3(b)of these Conditions and Stipulations, (a) "insured": the insured named in interest in said land, to the extent that such liti- Schedule A, and, subject to any rights or defenses gation is founded upon an alleged defect, lien, a statement in writing of any loss or damage for the Company may have had against the named in- encumbrance, or other matter insured against twn hi ich it is claimed the Company is liable under sured, those who succeed to the interest of such by this policy. this policy shall be furnished to the Company insured by operation of law as distinguished from within 90 days after such loss or damage shall have purchase including, but not limited to, heirs, (b)The insured shall notify the Company been determined and no right of action shall accrue distributees,devisees,survivors,personal representa- promptly in writing lil in case any action or pro- to an insured claimant until 30 days after such rives, next of kin, or corporate or fiduciary ceeding is begun or defense is interposed as set statement shall have been furnished. Failure to successors. forth in (a) above, (ii) in case knowledge shall furnish such statement of loss or damage shall come to an insured hereunder of any claim of title terminate any liability of the Company under this (b) "insured claimant": an insured or interest which is adverse to the title to the policy as to such loss br damage. claiming loss or damage hereunder. estate or interest, as insured, and which might (c) "knowledge": actual knowledge, cause loss or damage for which the Company may not constructive knowledge or notice which may be be liable by virtue of this policy, or (iii) if title to 5. OPTIONS TO PAY OR OTHERWISE SET- imputed to an insured by reason of any public the estate or interest, as insured, is rejected as un- TLE CLAIMS records. marketable. If such prompt notice shall not be given to the Company, then as to such insured all The Company shall have the option to pay or (dl "land": the land described, sped- liability of the Company shall cease and terminate otherwise settle for or in the name of an insured fically or by reference in Schedule C,and improve- in regard to the matter or matters for which such claimant any claim insured against or to terminate ments affixed thereto which by law constitute real prompt notice is required; provided,however,that all liability and obligations of the Company here- property; provided,however,the term "land"does failure to notify shall in no case prejudice the under by paying or tendering payment of the not include any property beyond the lines of the rights of any such insured under this policy unless amount of insurance under this policy together area specifically described or referred to in Schedule the Company shall be prejudiced by such failure with any costs, attorneys' fees and expenses in- C, nor any right, title, interest, estate or easement and then only to the extent of such prejudice. curred up to the time of such payment or tender of in abutting streets, roads, avenues, alleys, lanes, payment, by the insured claimant and authorized ways or waterways, but nothing herein shall modi- (cl The Company shall have the right at its by the Company. fy or limit the extent to which a right of access to own cost to institute and without undue delay and from the land is insured by this policy. prosecute any action or proceeding or to do any other act which in its opinion may be necessary or (e) "mortgage": mortgage, deed of desirable to establish the title to the estate or in- 6. DETERMINATION AND PAYMENT OF trust, trust deed, or other security instrument. terest as insured, and the Company may take any LOSS (f) "public records": those records appropriate action under the terms of this policy, which by law impart constructive notice of matters whether or not it shall be liable thereunder, and (a) The liability of the Company under this relating to said land. shall not thereby concede liability or waive any policy shall in no case exceed the least of: provision of this policy. (d)Whenever the Company shall have (i) the actual loss of the insured 2. CONTINUATION OF INSURANCE AFTER claimant; or brought any action or interposed a defense as re- CONVEYANCE OF TITLE quired or permitted by the provisions of this policy, (ii) the amount of insurance stated in The coverage of this policy shall continue in the Company may pursue any such litigation to Schedule A, force as of Date of Policy in favor of an insured so final determination by a court of competent juris- long as such insured retains an estate or interest in diction and expressly reserves the right, in its sole (b)The Company will pay, in addition to the land,or holds an indebtedness secured by a pur- discretion, to appeal from any adverse judgment or any loss insured against by this policy,all costs im- chase money mortgage given by a purchaser from order. posed upon an insured in litigation carried on by such insured, or so long as such insured shall have the Company for such insured, and all costs, (e) In all cases where this policy permits liability by reason of covenants of warranty made or requires the Company to prosecute or provide attorneys' fees and expenses in litigation carried by such insured in any transfer or conveyance of for the defense of any action or proceeding,the in- on by such insured with the written authorization such estate or interest; provided, however, this sured hereunder shall secure to the Company the of the Company. policy shall not continue in force in favor of any right to so prosecute or provide defense in such ac- (c) When liability has been definitely fixed purchaser from such insured of either said estate or interest or the indebtedness secured by a purchase tion or proceeding,and all appeals therein,and per- in accordance with the conditions of this policy, money mortgage given to such insured. mit the Company to use,at its option,the name of the loss or damage shall be payable within 30 days such insured for such purpose.Whenever requested thereafter. by the Company, such insured shall give the 3. DEFENSE AND PROSECUTION OF AC- Company all reasonable aid in any such action or TIONS — NOTICE OF CLAIM TO BE proceeding, in effecting settlement, securing evi- (Continued on inside back cover) GIVEN BY AN INSURED CLAIMANT dente, obtaining witnesses, or prosecuting or de- fending such action or proceeding,and the Company - (a)The Company, at its own cost and with- shall reimburse such insured for any expense so out undue delay,shall provide for the defense of an incurred. • .7" DIVISION OF INSURANCE x. DEPARTMENT OF REGULATORY AGENCIES 106 STATE OFFICE BUILDING • 201 E COLFAX AVElows DENVER. COLORADO 60203 STATE OF COLORADO RICHARD o LAMM c ORE "ft C RICHeRD[BARNES.C L D May 1, 1977 ROBERT L BROWN Dear Real Estate Purchaser: Following this letter you will find a brief explanation of your title insurance commitment and policy. Title insurance companies are regulated by this Division, as are other types of insurance companies. This Division makes certain that com- panies issuing title insurance commitments and title insurance policies are financially sound, and that they operate in accordance with statutes and regulations. We also have a great interest in making certain that you, as the consigner, understand the purpose of title insurance and that you understand your rights under your insurance policy. In the event you are dissatisfied with responses given to your ques- tions or problems by your title insurance company, you are encouraged to send your questions concerning title insurance or any complaints that you may have against your title insurer to this office. We are on hand to make certain that all your rights and remedies, both under your policy and under law, are available to you at all times. Sincerely, CHARD BARNES, C.L.U. Commissioner of Insurance JRB:bl As a purchaser of a home or other real estate you may receive a 'Commitment for Title Insurance"and a"Policy of Title Insurance"Both of these documents, like many others in connection with your purchase,are contracts creating legal rights which you should read carefully and which you may wish to have examined and explained by a lawyer or other adviser While the following description of these documents cannot change the precise terms of these documents, it is hoped that this will help you to understand their purpose and effect and answer some of your questions about them. QUESTION:"WHAT IS TITLE INSURANCE?" ANSWER: Basically, it is a contract with the title insurance company in which the company agrees to defend and indemnify you against losses which you may suffer because of unreported defects in the title to your property as of the date of the contract. It is not casualty insurance and, therefore, does not protect you against acts of theft or damage to your home by fire, storm and the like. Essentially, the insurance insures that you have title to the property subject only to certain exceptions and exclusions listed in the Policy of Title Insurance. Title insurance recognizes the possibility of loss, but transfers the risk of loss from you as property owner to the company issuing the policy. For this reason title insurance companies are required to maintain reserves to cover losses. If you are financing your purchase,your lender will ordinarily require that you obtain a separate Lender's Policy to insure that your property will in fact serve as security for its loan. QUESTION:"WHAT DOES THE PREMIUM PAY FOR?" ANSWER:The one time, non-recurring premium pays for several things. It helps to pay for the cost of collecting, maintaining,searching and examining real estate records and certain other public records which relate to your property so that the title insurance company can determine the insurability of your title. For example, the title insurance company will determine whether the public records show that your seller really owns the property, what mortgages or liens(a recorded legal claim) may exist, whether there are restrictive covenants on your CONTINUED ON REVERSE property or easements which allow persons to cross your property or to place utilities across your property.The premium also serves to finance certain legal costs which may arise if your title is challenged. Additionally, payment of the premium requires the title insurance company to indemnify you for any losses you suffer as a result of the title company s failure to fulfill its contractual obligations under your title policy QUESTION:"WHAT IS A COMMITMENT FOR TITLE INSURANCE?" ANSWER: A Commitment for Title Insurance is a standardized preliminary document authorized by the Commissioner of Insurance indicating that a title insurance company will issue a title insurance policy to you after certain steps have been taken, such as the payment of an outstanding mortgage or lien and the issuance of a deed to you. These steps are set out in the commitment as "requirements" in Schedule B--Section 1. In Schedule B—Section 2 -'Exceptions:the commitment also summarizes certain existing limitations on the use of your property,the defects in your title and liens against your property.Your policy will not protect you against these matters.You will note that some of these limitations and defects may still exist even after all of the requirements of the commitment have been met.These other matters are usually such things as restrictive covenants or easements for utilities and the like.You should carefully read both the"requirements"and the exceptions to title stated in the commitment so that you may raise objections if there are matters affecting the title to which you did not agree when you signed the contract to purchase your property. Some of the "exceptions" are standard and will not normally be covered by your title policy The first standard exception is any claim by parties in possession of the property which is not shown by the public records This means,for example,that someone may have been living on the property for a long period of time and may claim that they own the property, even though they do not have a recorded deed;or may claim that they are somehow otherwise entitled to be on the property.The title insurance company could not learn of such a claim by examining the public real estate records.You should inspect the property to make sure that anyone living there will respect your ownership. Exception 2 of Schedule B similarly may mean that someone has used a portion of the property long enough to claim an easement,even though there is no instrument of record giving that person the authority to do so. Exception 3 of the standard commitment in essence says that the title insurance policy will not insure against problems concerning the exact boundary lines of the property you are purchasing, which means that you should make certain that there are no fences or other encroachments on your property, particularly if you do not have a survey.Again, a title insurance company cannot determine whether such problems exist on your property because employees of the title insurance company will not inspect the property unless they are specially requested and paid to do so. Exception 4 excludes liens which may be filed against your property by someone who may have done work on the property and who has not been paid.The title insurance company does not have any way of determining whether such claims may exist in the absence of some recorded document.You may wish to verify that no such unsatisfied claims exist. The fifth standard exception is for matters which may arise following the issuance of the commitment and before you complete your purchase. Many companies also exclude taxes and special assessments which may be imposed against your property which are not recorded in the public records,or the amount of which has not yet been determined. If you are purchasing a single family residence, you may wish to check to see if you are entitled to obtain endorsement Form No. 130 which removes several of the standard exceptions and will give you insurance for some of those matters. You will see that the commitment shows the amount of title insurance to be issued, together with the amount of the premium charge. Your seller should check with his broker and with the title insurance company issuing the commitment to make certain that he has paid the lowest premium to which he is entitled. For instance, if there has been a title insurance policy issued to your seller within the last two years, he may be entitled to receive some credit for the prior premium against the amount of premium which he will now pay. QUESTION:"WHAT IS THE POLICY OF TITLE INSURANCE?" ANSWER:The Policy of Title Insurance is a document which will be issued to you after your purchase transaction is concluded. It,too, is a standardized document,the printed portions of which have been approved by the Commissioner of Insurance. Schedule A of your policy will set forth,among other matters,the amount of insurance coverage,your name as the insured,your interest in the property,such as actual ownership or a leasehold interest,and the legal description of the property Your title insurance policy, as any other insurance policy, has exceptions from coverage. These will be set forth in Schedule B of your policy and in the Schedule of Exclusions from Coverage.Matters which may limit coverage will be set forth in the"Conditions and Stipulations" section of the policy In Schedule B of the policy,you will find those items against which the title insurance company does not,or cannot,insure.Many of these will be the same as the exceptions set out in Schedule B of the Title Commitment. The Schedule of Exclusions from Coverage excludes matters such as zoning ordinances which regulate how the property may be used, rights which may be possessed by a governmental body and which might be exercised against the property,and any defects of which you may be aware but have not informed the title insurance company You may desire to investigate the status of these matters before you complete your purchase. Also excluded are defects or encumbrances which may be placed upon the property subsequent to the date of the policy. You should remember that a title policy is not a promise of indemnity against some defect or claim against your title which may be created in the future. It does protect you against loss or damage existing from defects in the title to real property existing prior to and as of the date of the policy even though they may not be discovered until some future date. The language concerning Conditions and Stipulations under which the title insurance company issues its policy contains an explanation of the terms of the policy, and also deals with how you should notify the title insurance company in the event you may believe that you may have a claim under the policy. If someone should assert that they have a right to use your property or that they own part of it, and you cannot find that right set forth in your policy as an exception or an exclusion,you must notify the title insurance company in writing of the situation. The address for this notification will normally appear in your policy Prompt notification will enable you and the company to deal with the matter or problem that you raise.if it is covered by the policy,so that the dispute may be resolved in as timely a manner as possible. You should know that if the problem is covered by your title insurance policy, a title insurance company must usually bear the costs of litigation, either to defend your title in the event of an adverse claim against it, or sometimes to bring affirmative legal action to clear up the problem. In so doing, the title insurance company retains the right of settling the claim or pursuing the matter through the courts,if it believes that the rights asserted by a third party against your property are not legally justified. If the title insurance company takes the position that the matter which you raise is not covered by the terms of the title insurance policy, it must so notify you as soon as reasonably possible after you present your claim. QUESTION: "WHAT IF I STILL HAVE FURTHER QUESTIONS ABOUT THE COMMITMENT FOR TITLE INSURANCE OR POLICY OF TITLE INSURANCE?" ANSWER: You should certainly ask them of your attorney, the seller, the lender or the title insurance company. If you do not receive a satisfactory answer to your questions,you may contact the office of the ColoradoCommissioner of Insurance,J.Richard Barnes,Commissioner, Department of Regulatory Agencies, 106 State Office Building,Denver,Colorado 80203. 1765 (2/78) Form No.1402—A ALTA Owner's Policy Form B—1970 7/26/84 lc C 57560 SCHEDULE A Total Fee for Title Search, Examination and Title Insurance $ Amount of Insurance: $ 707,300.00 Policy No. D 470724 Date of Policy: April 27, 1984 at 8:00 a.m. 1. Name of Insured: THE COUNTY OF WELD, STATE OF COLORADO 2. The estate or interest referred to herein is at Date of Policy vested in: THE ABOVE INSURED 3. The estate or interest in the land described in Schedule C and which is covered by this policy is: IN FEE SIMPLE Form No.1402-D(1/841 ALTA Standard Policy - • Colorado C 57560 D 470724 SCHEDULE B This policy does not insure against loss or damage, including attorney fees, by reason of the matters shown below: 1. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 2. Easements or claims of easement which are not shown by the public records. 3. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, and any other facts which a correct survey would disclose, and which are not shown by public records. 4. Any water rights or claims or title to water in, on or under the land. 5. Any lien,or right to a lien,for services,labor or material heretofore or hereafter furnished,imposed by law and not shown by the public records. 6. Easement or easements for all utility lines and appurtenances, including drainage easements, now installed and located in, on or under those portions of subject property lying within vacated streets and alleys, as reserved in Ordinance No. 47 recorded August 22, 1973 in Book 698 at Reception No. 1619923. • • Form No. 1056-4 Ali Policy Forms C 57560 D 470724 SCHEDULE C The land referred to in this policy is situated in the State of Colorado County of Weld and is described as follows: Lots 1, 2, 3, 4, 5, 22, 23, 24, 25 and 26, in Block 33, in CLAYTON PARK, a subdivision of the City of Greeley, Weld County, Colorado; and all of the vacated alleys abutting said Lots, and the South 1/2 of vacated C Street abutting Lots 1,4, and 5, and the vacated alley, and all of the North 1/2 of vacated B. Street, abutting Lots 21, 22, 23 and 26, and the vacated alley, in said Block 33, Weld County, State of Colorado. CONDITIONS AND STIPULATIONS (Continued from inside front cover) 7. LIMITATION OF LIABILITY 10. APPORTIONMENT 12. LIABILITY LIMITED TO THIS POLICY No claim shall arise or be maintainable under If the land described in Schedule C con- This instrument together with all endorse- this policy(a)if the Company,after having received sists of two or more parcels which are not used as ments and other instruments, if any, attached notice of an alleged defect,lien or encumbrance in- a single site, and a loss is established affecting one hereto by the Company is the entire policy and sured against hereunder, by litigation or otherwise, or more of said parcels but not all, the loss shall contract between the insured and the Company. removes such defect, lien or encumbrance or es- be computed and settled on a pro rata basis as if Any claim of loss or damage,whether or not tablishes the title, as insured, within a reasonable the amount of insurance under this policy was di- based on negligence, and which arises out of the time after receipt of such notice; (b) in the event vided pro rata as to the value on Date of Policy of status of the title to the estate or interest covered of litigation until there has been a final determina- each separate parcel to the whole,exclusive of any hereby or any action asserting such claim, shall be tion by a court of competent jurisdiction,and dis- improvements made subsequent to Date of Policy, position of all appeals therefrom, adverse to the unless a liability or value has otherwise been agreed restricted to the provisions and conditions and title, as insured, as provided in paragraph 3 hereof; upon as to each such parcel by the Company and stipulations of this policy. or (c) for liability voluntarily assumed by an in- the insured at the time of the issuance of this No amendment of or endorsement to this sured in settling any claim or suit without prior policy and shown by an express statement herein policy can be made except by writing endorsed written consent of the Company. or by an endorsement attached hereto. hereon or attached hereto signed by either the Presi- dent, a Vice President, the Secretary, an Assistant 8. REDUCTION OF LIABILITY 11. SUBROGATION UPON PAYMENT OR Secretary, or validating officer or authorized signa- All payments under this policy,except pay- SETTLEMENT tory of the Company. ments made for costs, attorneys' fees and ex- penses, shall reduce the amount of the insurance Whenever the Company shall have settled a 13. NOTICES, WHERE SENT pro tanto. No payment shall be made without claim under this policy, all right of subrogation All notices required to be given the Company producing this policy for endorsement of such shall vest in the Company unaffected by any act of and any statement in writing required to be fur- payment unless the policy be lost or destroyed,in the insured claimant. The Company shall be subro- nished the Company shall be addressed to it at its which case proof of such loss or destruction shall gated to and be entitled to all rights and remedies main office at 421 North Main Street,Santa Ana, be furnished to the satisfaction of the Company. which such insured claimant would have had against California,or to the office which issued this policy. any person or property in respect to such claim 9. LIABILITY NONCUMULATIVE had this policy not been issued,and if requested by the Company, such insured claimant shall transfer It is expressly understood that the amount of to the Company all rights and remedies against any insurance under this policy shall be reduced by any person or property necessary in order to perfect amount the Company may pay under any policy such right of subrogation and shall permit the insuring either (a) a mortgage shown or referred to Company to use the name of such insured claimant in Schedule B hereof which is a lien on the estate in any transaction or litigation involving such rights or interest covered by this policy,or(b)a mortgage or remedies. If the payment does not cover the hereafter executed by an insured which is a charge loss of such insured claimant,the Company shall be or lien on the estate or interest described or re- subrogated to such rights and remedies in the pro- tarred to in Schedule A, and the amount so paid portion which said payment bears to the amount of shall be deemed a payment under this policy. The said loss. If loss should result from any act of such Company shall have the option to apply to the pay- insured claimant,such act shall not void this policy, ment of any such mortgages any amount that but the Company, in that event, shall be required otherwise would be payable hereunder to the in- to pay only that part of any losses insured against sured owner of the estate or interest covered by hereunder which shall exceed the amount, if any, this policy and the amount so paid shall be deemed lost to the Company by reason of the impairment a payment under this policy to said insured owner. of the right of subrogation. ii la 9 iiit.° unemIIIOIOIOOINIOIIImumlIIIIItl0lllllllllllNI10011111011Mllllllllllll1110011INI011H .////I11011llllllItll ,/ I i q N i Z Ct It E L a O • UN 1) TN il 1 Q' U 0 Udr criiQ < g i ~ 4 a 3 rr^^ a 3 ii w vl NF 1 r ' / C = ® a ELI' 9 t\ 44.4 � � 9 4C En 9 � Q .11- Cf s •LI W rkit. a a l I a z 0 1...2L a z ACM)IIINNIIIWNIIIIIIIIIIIOIIIIImilli 1111111p1llitII Illll111111malla111111Maillainialli Milli11tl1MIIIIIII Pan tlilli Hello