Creditors Rights in Bankruptcy

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					                                                               COMPARISON OF KEY PROVISIONS IN
                                                             THE OWNER'S TITLE INSURANCE POLICIES
                                                                                                  (9/15/06)

                This Side-By-Side Comparison should not be relied upon for interpretation of the policies; it was drafted only to highlight differences between the policies.


             1970 ALTA OWNERS                                         1992 ALTA OWNERS                                    2006 ALTA OWNERS                                       COMMENTS


                                                                                                                              Opening Notice
                                                                                                                  Any Notice of claim and any other notice or     The 2006 policy has a new introduction not
                                                                                                                  statement in writing required to be given the   found in the earlier policies. It is intended to
                                                                                                                  Company under this Policy must be given to      assist Insureds in submitting notices of
                                                                                                                  the Company at the address shown in             claims.
                                                                                                                  Section 18 of the Conditions



                                                                                                                              Covered Risks

SUBJECT TO THE EXCLUSIONS FROM                           SUBJECT TO THE EXCLUSIONS FROM                           SUBJECT TO THE EXCLUSIONS FROM                  The 1992 policy moved the contract language
COVERAGE, THE EXCEPTIONS CONTAINED IN                    COVERAGE, THE EXCEPTIONS FROM                            COVERAGE, THE EXCEPTIONS FROM                   regarding the insurer’s defense obligation to a
SCHEDULE B AND THE PROVISIONS OF THE                     COVERAGE CONTAINED IN SCHEDULE B AND                     COVERAGE CONTAINED IN                           separate paragraph, making it clear that the
CONDITIONS AND STIPULATIONS HEREOF,                      THE CONDITIONS AND STIPULATIONS, BLANK                   SCHEDULE B AND THE CONDITIONS,                  “loss or damage coverage” was limited by the
BLANK TITLE INSURANCE COMPANY, a Blank                   TITLE INSURANCE COMPANY, a Blank                         BLANK TITLE INSURANCE COMPANY,                  amount of insurance stated in Schedule A.
corporation, herein called the Company, insures, as of   corporation, herein called the Company, insures, as of   a Blank corporation (the “Company”)             The defense obligation is in addition to the
Date of Policy shown in Schedule A, against loss or      Date of Policy shown in Schedule A, against loss or      insures, as of Date of Policy and, to the       loss coverage and has no upward cap. See,
damage, not exceeding the amount of insurance stated     damage, not exceeding the Amount of Insurance stated     extent stated in Covered Risks 9 and 10,        Schwartz V. Stewart Title Guaranty Co., 731
in Schedule A, and costs, attorneys' fees and expenses   in Schedule A, sustained or incurred by the insured by   after Date of Policy, against loss or damage,   N.E.2d 1159, 1163 (Ohio Ct. App. 1999);
which the Company may become obligated to pay            reason of:                                               not exceeding the Amount of Insurance,          and, Rosen v. Nations Title Ins. Co., 66
hereunder, sustained or incurred by the insured by                                                                sustained or incurred by the Insured by         Cal.Rptr.2d 714, (1997) where the courts
reason of:                                                                                                        reason of:                                      held that the insurer's duty of defense is a
                                                                                                                                                                  continuing one, arising on a tender of defense
                                                                                                                                                                  and lasting until either the underlying lawsuit
                                                                                                                                                                  ends or until it has been shown that there is
                                                                                                                                                                  no potential for coverage.

                                                                                                                                                                  The 2006 policy makes clear that the policy
                                                                                                                                                                  provides coverage for events occurring prior
                                                                                                                                                                  to the issuance of the policy AND certain
                                                                                                                                                                  post policy events occurring after the
                                                                                                                                                                  issuance of the policy.
             1970 ALTA OWNERS                                             1992 ALTA OWNERS                                        2006 ALTA OWNERS                                         COMMENTS


1. Title to the estate or interest described in Schedule A   1. Title to the estate or interest described in Schedule A   1. Title being vested other than as stated in     One of the goals of the drafters of the 1992
being vested otherwise than as stated therein;               being vested other than as stated therein;                   Schedule A.                                       policy and the 2006 policy was to remove as
                                                                                                                                                                            much legalese as possible, making the policy
                                                                                                                                                                            more understandable to the insured. The
                                                                                                                                                                            changes in this provision reflect this goal,
                                                                                                                                                                            being stylistic in nature, only. The 2006
                                                                                                                                                                            policy uses the word “Title” instead of “Title
                                                                                                                                                                            to the estate or interest described in Schedule
                                                                                                                                                                            A”. “Title” is defined in the definitions
                                                                                                                                                                            section of the Conditions & Stipulations to
                                                                                                                                                                            mean the same. There is no change in
                                                                                                                                                                            coverage.
2. Any defect in, or lien or encumbrance on such title       2. Any defect in or lien or encumbrance on the title         2. Any defect in or lien or encumbrance on        There is no difference between the 1970 and
                                                                                                                          the Title. This Covered Risk includes but is      the 1992 policy. Despite the fact that
                                                                                                                          not limited to insurance against loss from:       expressing coverage broadly is in the best
                                                                                                                                                                            interests of the insured, most Insureds prefer
                                                                                                                                                                            to have the Covered Risks expressly stated.

                                                                                                                                                                            The 2006 policy does not limit coverage to
                                                                                                                                                                            the risks identified. It simply identifies those
                                                                                                                                                                            risks that have previously been considered
                                                                                                                                                                            covered by the earlier policies and makes
                                                                                                                                                                            clear that coverage under the policy is not
                                                                                                                                                                            affected by the use of electronic
                                                                                                                                                                            documentation.


                                                                                                                          (a) A defect in the Title caused by:

                                                                                                                          (i) forgery, fraud, undue influence, duress,      See, California Pacific Title & Trust Co. v.
                                                                                                                          incompetency, incapacity or impersonation;        MacArthur, 1 Cal. App. 2d 323 (1934) , for a
                                                                                                                                                                            case involving coverage for forgery, Promis
                                                                                                                                                                            v. Duke, 208 Cal. 420 (1929) for a case
                                                                                                                                                                            involving the lack of delivery of document,
                                                                                                                                                                            and Vernon v. Title Guarantee & Trust Co., 7
                                                                                                                                                                            Cal. App.2d 171 (1935) for a case involving
                                                                                                                                                                            lack of capacity.
                                                                                                                          (ii) failure of any person or Entity to have
                                                                                                                          authorized a transfer or conveyance;
                                                                                                                          (iii) a document affecting Title not properly
                                                                                                                          created, executed, witnessed, sealed,
                                                                                                                          acknowledged, notarized or delivered;


                                                                                                                          (iv) failure to perform those acts necessary to
                                                                                                                          create a document by electronic means
                                                                                                                          authorized by law;
1970 ALTA OWNERS   1992 ALTA OWNERS           2006 ALTA OWNERS                                       COMMENTS


                                      (v) a document executed under a falsified,
                                      expired or otherwise invalid power of
                                      attorney;
                                      (vi) a document not properly filed, recorded
                                      or indexed in the Public Records including
                                      failure to perform those acts by electronic
                                      means authorized by law; or
                                      (vii) a defective judicial or administrative
                                      proceeding.
                                      (b) The lien of real estate taxes or               The 2006 Policy adds a Covered Risk" for
                                      assessments imposed on the Title by a            real estate taxes and liens, a coverage
                                      governmental authority due or payable, but       impliedly included in the earlier policies as
                                      unpaid.                                          "a defect in, or lien or encumbrance" on the
                                                                                       land.




                                      (c) Any encroachment, encumbrance,               Section 2(c) in the 2006 policy provides
                                      violation, variation, or adverse circumstance    additional survey coverage that some courts
                                      affecting the Title that would be disclosed by   have held did not exist in the prior policies.
                                      an accurate and complete land survey of the      Because the definition of “Land” under the
                                      Land. The term “encroachment” includes           earlier policies was tied to the boundary lines
                                      encroachments of existing improvements           of the property described in the policy,
                                      located on the Land onto adjoining land, and     questions arose as to whether there was
                                      encroachments onto the Land of existing          coverage when improvements mostly located
                                      improvements located on adjoining land.          on the Land described in the policy
                                                                                       encroached onto adjoining land when the
                                                                                       policy did not contain a general survey
                                                                                       exception. The 2006 policy makes clear,
                                                                                       provided a survey exception is not contained
                                                                                       in Schedule B, that there is coverage under
                                                                                       this situation. See, for example, Denny’s
                                                                                       Restaurants, Inc. v. Security Union Title Ins.
                                                                                       Co., 859 P.2d 619 (Wash. App. 1993) and
                                                                                       Note 3 in Transamerica Title Ins. Co. v.
                                                                                       Northwest Building Corp, et al.., 773 P.2d
                                                                                       431 (Wash. App. 1989)
             1970 ALTA OWNERS                                    1992 ALTA OWNERS                               2006 ALTA OWNERS                                     COMMENTS


3. Lack of a right of access to and from the land   4. Lack of a right of access to and from the land   4. No right of access to and from the Land.   There are no significant differences between
                                                                                                                                                      any of the policies.

                                                                                                                                                      Courts have generally interpreted this
                                                                                                                                                      provision as providing a “legal right” of
                                                                                                                                                      access. This provision does not insure that
                                                                                                                                                      the insured has “physical” or “practical”
                                                                                                                                                      access to the insured property. Insureds
                                                                                                                                                      should consider requesting a CLTA 103.7
                                                                                                                                                      (direct access) or a CLTA 103.4 if they desire
                                                                                                                                                      broader “access” coverage. See, Magna
                                                                                                                                                      Enterprises Inc. v. Fidelity National Title Ins.
                                                                                                                                                      Co., 104 Cal. App. 4th 122 (2002) and
                                                                                                                                                      Havstad v. Fidelity National Title Ins. Co., 58
                                                                                                                                                      Cal. App. 4th 654 (1997).

4. Unmarketability of such title                    3. Unmarketability of the title                     3. Unmarketable title                         There is no difference between the 1970 and
                                                                                                                                                      1992 policies. Please note, however, that the
                                                                                                                                                      1992 policy, in paragraph 1(g) contains a
                                                                                                                                                      definition of “unmarketability” that was not
                                                                                                                                                      contained in the 1970 policy.

                                                                                                                                                      See, Lick Mill Creek Apartments v. Chicago
                                                                                                                                                      Title Ins. Co., 231 Cal. App. 3d 1654, 1663
                                                                                                                                                      (1991), Overholtzer v. Northern Counties
                                                                                                                                                      Title Ins. Co., 116 Cal. App2d 113 (1953),
                                                                                                                                                      and Hocking v. Title Ins. & Trust Co., 37
                                                                                                                                                      Cal.2d 644 (1951) for a discussion on
                                                                                                                                                      marketability.

                                                                                                                                                      Due to the changes in the definition of
                                                                                                                                                      "Unmarketabe Title" in the 2006 policy ,
                                                                                                                                                      (Condition 1(k)), the new policy expands the
                                                                                                                                                      coverage provided to include losses resulting
                                                                                                                                                      when a lessee or a lender is released from its
                                                                                                                                                      obligation to lease the property or lend due to
                                                                                                                                                      a contractual obligation to deliver marketable
1970 ALTA OWNERS   1992 ALTA OWNERS           2006 ALTA OWNERS                                      COMMENTS


                                      5. The violation or enforcement of any law,     The 1970 and the 1992 policies did not
                                      ordinance, permit, or governmental              contain insuring provisions that addressed
                                      regulation (including those relating to         notices of violation or notices of enforcement
                                      building and zoning) restricting, regulating,   that are recorded in the public records. The
                                      prohibiting or relating to:                     issue was only addressed in the exclusion to
                                                                                      the exclusion contained in the 1992 policy in
                                                                                      Exclusions 1(a)(iv) and 1(b). Some courts
                                                                                      have held that for there to be coverage,
                                                                                      coverage must be found in the insuring
                                                                                      provisions. The new policy moves the
                                                                                      exclusion to the exclusion into the Covered
                                                                                      Risks and additionally adds the word
                                                                                      “permit” to provide coverage when there is a
                                                                                      loss resulting from a recorded notice of
                                                                                      violation or enforcement of a permit. See,
                                                                                      Lick Mill Creek Apartments v. Chicago Title
                                                                                      Ins. Co., 231 Cal. App. 3d 1654, (1991) and
                                                                                      Elysian Investment Group, LLC v. Stewart
                                                                                      Title Guaranty Co., 105 Cal. App. 4th 315,
                                                                                      (2002) for the proposition that coverage
                                                                                      cannot be found in the Exclusions or
                                                                                      Exceptions to Coverage.


                                      (a) the occupancy, use or enjoyment of the
                                      Land;

                                      (b) the character, dimensions or location of
                                      any improvement erected on the Land;
                                      (c) subdivision of land; or
                                      (d) environmental protection

                                      if a notice, describing any part of the Land,
                                      is recorded in the Public Records setting
                                      forth the violation or intention to enforce,
                                      but only to the extent of the violation or
                                      enforcement referred to in that notice.
                                      6. An enforcement action based on the
                                      exercise of a governmental police power not
                                      covered by Covered Risk 5 if a notice of the
                                      enforcement action, describing any part of
                                      the Land, is recorded in the Public Records,
                                      but only to the extent of the enforcement
                                      referred to in that notice.
1970 ALTA OWNERS   1992 ALTA OWNERS           2006 ALTA OWNERS                                        COMMENTS


                                      7. The exercise of the rights of eminent         The earlier policies did not contain an
                                      domain if a notice of the exercise, describing   insuring provision that provided coverage for
                                      any part of the Land, is recorded in the         recorded notices of the exercise of rights of
                                      Public Records.                                  eminent domain. The new policy fixes the
                                                                                       exclusion to the exclusion problem and
                                                                                       moves the exclusion in Exclusion 2 of the
                                                                                       1992 policy into the Covered Risks.

                                      8. Any taking by a governmental body that        There is no insuring provision in the earlier
                                      has occurred and is binding on the rights of     policies that directly provides this coverage.
                                      a purchaser for value without Knowledge.         Many assumed this was provided by the
                                                                                       exclusion to the exclusions contained in
                                                                                       Exclusions 1 and 2. The 2006 policy makes
                                                                                       it clear that the coverage is provided.


                                      9. Title being vested other than as stated in
                                      Schedule A or being defective:

                                      (a) as a result of the avoidance in whole or     This provision pertains to creditors' rights
                                      in part, or from a court order providing an      coverage for transactions that occur prior to
                                      alternative remedy, of any transfer of all or    the insured transaction. There is no insuring
                                      any interest in the Land occurring prior to      provision in the earlier policies that expressly
                                      the transaction vesting Title as shown in        provides this coverage. Insuring Clause 1 in
                                      Schedule A because that prior transfer           the 1970 and the 1992 policies are broad
                                      constituted a fraudulent or preferential         enough to include the coverage contained in
                                      transfer under federal bankruptcy, state         new Covered Risk 9(a).
                                      insolvency or similar creditors’ rights laws;
                                      or
                                      (b) because the instrument of transfer           This new Covered Risk addresses
                                      vesting Title as shown in Schedule A             “preferences” resulting solely from the failure
                                      constitutes a preferential transfer under        to timely record the transfer instrument. Any
                                      federal bankruptcy, state insolvency or          other cause of a preferential transfer is
                                      similar creditors’ rights laws by reason of      excluded from coverage by Exclusion 4(b).
                                      the failure of its recording in the Public       Many practitioners have assumed that new
                                      Records:                                         Coverage Risk 9(b) was provided by the
                                                                                       "carve-out" from Exclusion 4(b) in the 1992
                                                                                       policy or by requesting the issuance of a 1970
                                                                                       policy, which did not contain the exclusion.
                                                                                       The decisions in Elysian and Lick Mill
                                                                                       (referred to above) call into question this
                                                                                       type of fix.
        1970 ALTA OWNERS                           1992 ALTA OWNERS                                   2006 ALTA OWNERS                                       COMMENTS


                                                                                              (i) to be timely, or

                                                                                              (ii) to impart notice of its existence to a
                                                                                              purchaser for value or a judgment or lien
                                                                                              creditor.
                                                                                              10. Any defect in or lien or encumbrance on      This new Covered Risk provides “Gap
                                                                                              the Title or other matter included in Covered    Coverage,” making unnecessary Gap
                                                                                              Risks 1 through 9 that has been created or       endorsements.
                                                                                              attached or has been filed or recorded in the
                                                                                              Public Records subsequent to Date of Policy
                                                                                              and prior to the recording of the deed or
                                                                                              other instrument of transfer in the Public
                                                                                              Records that vests Title as shown in
                                                                                              Schedule A.


                                      The Company will also pay the costs, attorneys' fees    The Company will also pay the costs,             The 2006 policy expands the defense
                                      and expenses incurred in defense of the title, as       attorneys' fees, and expenses incurred in        coverage to include the defense of any matter
                                      insured, but only to the extent provided in the         defense of any matter insured against by this    insured under the policy. The earlier policies
                                      Conditions and Stipulations.                            policy, but only to the extent provided in the   may not have provided defense coverage for
                                                                                              Conditions.                                      non- title matters such as the access issues
                                                                                                                                               and police power issues set forth in Covered
                                                                                                                                               Risks 4 through 8.

       Exclusions from Coverage                 Exclusions from Coverage                           Exclusions from Coverage

THE FOLLOWING MATTERS ARE EXPRESSLY   The following matters are expressly excluded from the   The following matters are expressly               There are no differences between the 1992
EXCLUDED FROM THE COVERAGE OF THIS    coverage of this policy and the Company will not pay    excluded from the coverage of this policy        and the 2006 policy.
POLICY:                               loss or damage, costs, attorneys’ fees or expenses      and the Company will not pay loss or
                                      which arise by reason of:                               damage, costs, attorneys’ fees or expenses
                                                                                              that arise by reason of:
             1970 ALTA OWNERS                                             1992 ALTA OWNERS                                     2006 ALTA OWNERS                                      COMMENTS


1. Any law, ordinance or governmental regulation             1. (a) Any law, ordinance or governmental regulation      1. (a) Any law, ordinance, permit, or           Provision 1(a) in the 1992 policy contains an
(including but not limited to building and zoning            (including but not limited to building and zoning laws,   governmental regulation (including those        exception to the exclusion for any “law,
ordinances) restricting or regulating or prohibiting         ordinances, or regulations) restricting, regulating,      relating to building and zoning) restricting,   ordinance or governmental regulation…
                                                             prohibiting or relating to                                regulating, prohibiting or relating to:         restricting , regulating or prohibiting the
                                                                                                                                                                       occupancy, use or enjoyment of the land
                                                                                                                                                                       when a notice of the enforcement thereof or a
                                                                                                                                                                       notice of a defect, lien or encumbrance
                                                                                                                                                                       resulting from the violation has been
                                                                                                                                                                       recorded in the public records. As a result of
                                                                                                                                                                       the decisions in Elysian and elsewhere, the
                                                                                                                                                                       2006 policy moves the exclusion to
                                                                                                                                                                       Exclusion 1(a) in the 1992 policy to Covered
                                                                                                                                                                       Risk 5.
the occupancy, use, or enjoyment of the land,                (i) the occupancy, use, or enjoyment of the land;         (i) the occupancy, use, or enjoyment of the     There are no differences between the policies.
                                                                                                                       Land;
or regulating the character, dimensions or location of       (ii) the character, dimensions or location of any         (ii) the character, dimensions or location of   There are no differences between the policies.
any improvement now or hereafter erected on the land,        improvement now or hereafter erected on the land;         any improvement erected on the Land;            The deletion of the exclusion for
                                                                                                                                                                       improvements erected after the issuance of
                                                                                                                                                                       the policy should not create coverage as the
                                                                                                                                                                       policy excludes for the most part post policy
                                                                                                                                                                       events.

or prohibiting a separation in ownership or a reduction      (iii) a separation in ownership or a change in the        (iii) subdivision of land; or                   There are no substantial differences between
in the dimensions or area of the land or the effect of any   dimensions or area of the land or any parcel of which                                                     the policies. The 2006 policy language has
violation of any such law, ordinance or governmental         the land is or was a part; or                                                                             been simplified.
regulation.

                                                             (iv) environmental protection, or the effect of any       (iv) environmental protection; or the effect    Specific reference to environmental
                                                             violation of these laws, ordinances or governmental       of any violation of these laws, ordinances or   protection laws was first added in the 1984
                                                             regulations, except to the extent that a notice of the    governmental regulations. This Exclusion        amendment to the 1970 form policy. In the
                                                             enforcement thereof or a notice of a defect, lien or      1(a) does not modify or limit the coverage      opinion of the authors of this article, the
                                                             encumbrance resulting from a violation or alleged         provided under Covered Risk 5.                  addition of a specific reference to
                                                             violation affecting the land has been recorded in the                                                     "environmental protection laws" did not
                                                             public records at Date of Policy.                                                                         reduce coverage as the broad exclusion in the
                                                                                                                                                                       1970 policy covered the issue anyway.
                                                                                                                                                                       The 2006 policy provides the same coverage
                                                                                                                                                                       as the 1992 policy; however, the language
                                                                                                                                                                       has been simplified.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                     2006 ALTA OWNERS                                      COMMENTS


                                                            1. b. Any governmental police power not excluded by        (b) Any governmental police power. This        The 2006 policy provides the same coverage
                                                            (a) above, except to the extent that a notice of the       Exclusion 1(b) does not modify or limit the   as the 1992 policy; however, the language
                                                            exercise thereof or a notice of a defect, lien or          coverage provided under Covered Risk 6.       has been simplified and the exception to
                                                            encumbrance resulting from a violation or alleged                                                        Exclusion 1(b) in the 1992 policy has been
                                                            violation affecting the land has been recorded in the                                                    moved to Covered Risk 6 to address the
                                                            public records at Date of Policy.                                                                        result in Elysian and similar cases confirming
                                                                                                                                                                     that coverage is not found in the exclusions
                                                                                                                                                                     even by double negative statements (or
                                                                                                                                                                     exclusions to exclusions). 1(b) in the 1992
                                                                                                                                                                     and 2006 policies is addressed in the 1970
                                                                                                                                                                     form in Exclusion 2.


2. Rights of eminent domain or governmental rights of       2. Rights of eminent domain unless notice of the           2. Rights of eminent domain. This             The 1970 policy does not provide coverage
police power unless notice of the exercise of such rights   exercise thereof has been recorded in the public records   Exclusion does not modify or limit the        for takings which occur prior to the date of
appears in the public records at Date of Policy.            at Date of Policy, but not excluding from coverage any     coverage provided under Covered Risk 7 or     the policy that are binding on the rights of a
                                                            taking which has occurred prior to Date of Policy          8                                             purchaser for value without knowledge unless
                                                            which would be binding on the rights of a purchaser for                                                  notice of the exercise of the right of eminent
                                                            value without knowledge.                                                                                 domain has been recorded in the public
                                                                                                                                                                     records at the date of the policy. The
                                                                                                                                                                     exclusion in the 1970 policy, which arguably
                                                                                                                                                                     is subsumed by exclusion 1(b), excludes
                                                                                                                                                                     exercises of eminent domain or
                                                                                                                                                                     condemnation actions that are not recorded in
                                                                                                                                                                     the public records as of the date of the policy.


                                                                                                                                                                      The 1992 policy is broader in coverage in
                                                                                                                                                                     that it provides coverage for any taking by
                                                                                                                                                                     any government body that has occurred prior
                                                                                                                                                                     to the date of the policy and is binding on the
                                                                                                                                                                     rights of a purchaser for value without
                                                                                                                                                                     knowledge despite the fact that nothing is
                                                                                                                                                                     recorded in the public records. Note, that the
                                                                                                                                                                     1992 policy modified the definition of
                                                                                                                                                                     “knowledge.”

                                                                                                                                                                     The 2006 policy provides the same coverage
                                                                                                                                                                     as the 1992 policy. The exclusion to the
                                                                                                                                                                     exclusion contained in the 1992 policy has
                                                                                                                                                                     been moved to Covered Risks 7 and 8 in the
                                                                                                                                                                     new policy.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                   2006 ALTA OWNERS                                     COMMENTS


3. Defects, liens, encumbrances, adverse claims or other    3. Defects, liens, encumbrances, adverse claims or      3. Defects, liens, encumbrances, adverse       There are no differences between any of the
matters:                                                    other matters:                                          claims or other matters:                       policies. See, Fry v. Title Insurance & Trust
                                                                                                                                                                   Co., 187 Cal. 168 (1921), Macfarlane v.
                                                                                                                                                                   Faulkner 1 Cal. App.2d 722 (1934), National
                                                                                                                                                                   Holding Co. v. Title Ins. & Trust Co., 45 Cal.
                                                                                                                                                                   App. 2d 215 (1941), Lick Mill Creek
                                                                                                                                                                   Apartments v. Chicago Title Ins. Co., 231
                                                                                                                                                                   Cal. App. 3d 1654 (1991) and 1119 Delaware
                                                                                                                                                                   v. Continental Land Title Ins. Co., 16 Cal.
                                                                                                                                                                   App. 4th 992 (1993) for definition of "defect,
                                                                                                                                                                   lien or encumbrance."

a. created, suffered, assumed or agreed to by the insured   a. created, suffered, assumed or agreed to by the       (a) created, suffered, assumed or agreed to    There are no differences between any of the
claimant;                                                   insured claimant;                                       by the Insured Claimant;                       policies. See, Stewart Title Guarantee Co. v.
                                                                                                                                                                   National Enterprises, 133 F.3d. 929 (1997)
                                                                                                                                                                   and Safeco Title Ins. Co. v. Moskopoulos,
                                                                                                                                                                   116 Cal. App. 3d 658 (1981)

b. not known to the Company and not shown by the            b. not known to the Company, not recorded in the        (b) not Known to the Company, not recorded     There are no significant differences between
public records but known to the insured claimant either     public records at Date of Policy, but known to the      in the Public Records at Date of Policy, but   any of the policies. The changes are
at Date of Policy or at the Date such Claimant acquired     insured claimant and not disclosed in writing to the    Known to the Insured Claimant and not          cosmetic, only.
an estate or interest insured by this policy and not        Company by the insured claimant prior to the date the   disclosed in writing to the Company by the
disclosed in writing by the Insured Claimant to the         insured claimant became an insured under this policy;   Insured Claimant prior to the date the         When an Insured knows of a defect in the
Company prior to the date such insured claimant                                                                     Insured Claimant became an Insured under       title to the insured property that is not known
became an insured hereunder;                                                                                        this policy;                                   by the Insurer, the Insured has a
                                                                                                                                                                   responsibility to disclose the fact to the
                                                                                                                                                                   Insurer.
                                                                                                                                                                   See, Ins. Code sections 331 and 359; and
                                                                                                                                                                   Mitchell v. United Nat. Ins. Co., 127 Cal
                                                                                                                                                                   App. 4th 457 (2005). This provision requires
                                                                                                                                                                   the insured to have “actual knowledge” of the
                                                                                                                                                                   defect, not “constructive “or “imputed”
                                                                                                                                                                   knowledge of the defect. See, Parker v. Title
                                                                                                                                                                   and Trust Co., 233 F.2d 505, 512 (9th Cir.
                                                                                                                                                                   1956) and Jesko v. American-First Title &
                                                                                                                                                                   Trust Co., 603 F.2d 815, 818 (10th Cir.
                                                                                                                                                                   1979) for a discussion of this provision.


c. resulting in no loss or damage to the insured            c. resulting in no loss or damage to the insured        (c) resulting in no loss or damage to the      There are no significant differences between
claimant;                                                   claimant;                                               Insured Claimant;                              any of the policies. The changes are
                                                                                                                                                                   cosmetic, only.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                       2006 ALTA OWNERS                                    COMMENTS


d. attaching or created subsequent to Date of Policy; or   d. attaching or created subsequent to Date of Policy; or     (d) attaching or created subsequent to Date   There are no significant differences between
                                                                                                                        of Policy (however, this does not modify or   any of the policies. The 2006 Policies do,
                                                                                                                        limit the coverage provided under Covered     however, make it clear that this provision
                                                                                                                        Risk 9 and 10); or                            does not limit the coverage afforded under
                                                                                                                                                                      Covered Risks 9 and 10.

                                                                                                                                                                      See, Elysian Investment Group v. Stewart
                                                                                                                                                                      Title Guaranty Co., 105 Cal. App. 4th 315
                                                                                                                                                                      (2002), Rosen v. Nations Title Ins. Co., 56
                                                                                                                                                                      Cal. App.4th 1489 (1997) and Safeco Title
                                                                                                                                                                      Ins. Co. v. Moskopoulos, 116 Cal. App.3d
                                                                                                                                                                      658 (1981)

e. resulting in loss or damage which would not have        e. resulting in loss or damage which would not have          (e) resulting in loss or damage that would    There are no significant differences between
been sustained if the insured claimant had paid value      been sustained if the insured claimant had paid value        not have been sustained if the Insured        any of the policies. The changes are
for the estate or interest insured by this policy.         for the estate or interest insured by this policy.           Claimant had paid value for the Title.        cosmetic, only.

                                                           4. Any claim, which arises out of the transaction            4. Any claim, by reason of the operation of   It has been the position of insurers that the
                                                           vesting in the Insured the estate or interest insured by     federal bankruptcy, state insolvency, or      1970 Owners and Lenders policy did not
                                                           this policy, by reason of the operation of federal           similar creditors’ rights laws, that the      provide “creditors’ rights” coverage because
                                                           bankruptcy, state insolvency, or similar creditors’          transaction vesting the Title as shown in     the standard exclusion for “matters created,
                                                           rights laws, that is based on:                               Schedule A, is:                               suffered, assumed or agreed to by the
                                                                                                                                                                      insured” and the exclusion for “matters
                                                                                                                                                                      known only to the insured and not disclosed
                                                                                                                                                                      in writing to the insurer “ excluded it from
                                                                                                                                                                      coverage. Many lenders have assumed that
                                                                                                                                                                      there is coverage unless the policy is issued
                                                                                                                                                                      with an express exclusion for creditors’
                                                                                                                                                                      rights.

                                                           a. the transaction creating the estate or interest insured   (a) a fraudulent conveyance or fraudulent     Owners have taken that position despite the
                                                           by this policy being deemed a fraudulent conveyance          transfer; or                                  decision in Elysian Investment Group, LLC
                                                           or fraudulent transfer; or                                                                                 v. Stewart Title Guaranty Co, 105 Cal. App.
                                                                                                                                                                      4th 315 (2002) and Chicago Title Ins. Co. v.
                                                                                                                                                                      Citizens and Southern Nat’l Bank, 821 F.
                                                                                                                                                                      Supp. 1492 (N.D. Ga. 1993), which held that
                                                                                                                                                                      a decision to include a creditors’ rights
                                                                                                                                                                      exclusion in other title policies does not
                                                                                                                                                                      create an implication that creditors’ right s
                                                                                                                                                                      issues are covered in policies that contain no
                                                                                                                                                                      such specific exclusion.
              1970 ALTA OWNERS                                    1992 ALTA OWNERS                                       2006 ALTA OWNERS                                       COMMENTS


                                                    b. the transaction creating the estate or interest insured   (b) a preferential transfer for any reason not   The 2006 policy moves the exception to the
                                                    by this policy being deemed a preferential transfer          stated in Covered Risk 9 of this policy.         exclusion in Insuring Clause 4(b) to Covered
                                                    except where the preferential transfer results from the                                                       Risk 9(b). The language is also much easier
                                                    failure:                                                                                                      to read. The exclusion only applies to the
                                                                                                                                                                  transaction vesting the Title shown in
                                                                                                                                                                  Schedule A. It does not apply to prior
                                                                                                                                                                  transactions within the chain of title to the
                                                                                                                                                                  property. Coverage is expressly provided in
                                                                                                                                                                  the 2006 Policy for creditors' rights
                                                                                                                                                                  challenges by Covered Risk 9(a).
                                                    (i) to timely record the instrument of transfer; or

                                                    (ii) of such recordation to impart notice to a purchaser
                                                    for value or a judgment or lien creditor.
                                                                                                                 5. Any lien on the Title for real estate taxes   This exclusion, not contained in the earlier
                                                                                                                 or assessments imposed by governmental           policies, pertains to liens imposed for real
                                                                                                                 authority and created or attaching between       estate taxes and assessments that are imposed
                                                                                                                 Date of Policy and the date of recording of      against the property during the Gap Period.
                                                                                                                 the deed or other instrument of transfer in      These taxes and assessments logically should
                                                                                                                 the Public Records that vests Title as shown     be born by the Insured. Since the earlier
                                                                                                                 in Schedule A.                                   policies did not provide Gap coverage, the
                                                                                                                                                                  Exclusion was not necessary.


                      Schedule A                                          Schedule A                                             Schedule A

                                                                                                                 Name and Address of the Title Insurance          There are no significant changes in Schedule
                                                                                                                 Company:                                         A in the 1970 and the 1992 policies. The
                                                                                                                                                                  2006 policy contains the same coverage ;
                                                                                                                                                                  however, it provides much more information.
                                                                                                                                                                  The policy sets forth the name and address of
                                                                                                                                                                  the Insurer. This is important should the
                                                                                                                                                                  jacket become separated from the policy, as
                                                                                                                                                                  frequently happens.

Policy No.:                                         1. Policy No.:                                               [File No.: ] ] Policy No.:

                                                                                                                 Address Reference:                               The 2006 policy provides for the first time
                                                                                                                                                                  the address of the property.

Amount of Insurance:                                2. Amount of Insurance:                                      2. Amount of Insurance:

Total Fee for Title Search, Examination and Title   3. Premium Amount:                                           3. Premium Amount:
Insurance $____________
Date of Policy:                                     4. Date of Policy:                                           4. Date of Policy:


1. Name of Insured:                                 5. Name of Insured:                                          5. Name of Insured:
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                   2006 ALTA OWNERS                                      COMMENTS


2. The estate or interest referred to herein at Date of   6. Vesting:                                               6. Vesting:
Policy vested in:
3. The estate or interest in the land described in        7. The Estate or Interest Insured:                        7. The Estate or Interest Insured:
Schedule C and which is covered by this policy is:
                                                                                                                    8. Land Description:                            The 1992 policy allowed the Insurer to delete
                                                                                                                                                                    the legal description from Schedule A and
                                                                                                                                                                    attach a Schedule C. The new policy does
                                                                                                                                                                    not allow for a Schedule C addition. Word
                                                                                                                                                                    Processing and automated systems have made
                                                                                                                                                                    it unnecessary.

Schedule B                                                Schedule B                                                Schedule B

[File No.____] Policy No.                                 [File No.____] Policy No.                                 [File No.____] Policy No.



       EXCEPTIONS FROM COVERAGE                                 EXCEPTIONS FROM COVERAGE                             EXCEPTIONS FROM COVERAGE

This policy does not insure against loss or damage by     This policy does not insure against loss or damage, and   This policy does not insure against loss or
reason of the following:                                  the Company will not pay costs, attorneys’ fees, or       damage, and the Company will not pay
                                                          expenses) which arise by reason of:                       costs, attorneys fees, or expenses that arise
                                                                                                                    by reason of:

1. [POLICY MAY INCLUDE REGIONAL                           1. [POLICY MAY INCLUDE REGIONAL                           1. [Policy may include regional exceptions if
EXCEPTIONS IF SO DESIRED BY ISSUING                       EXCEPTIONS IF SO DESIRED BY ISSUING                       so desired by the issuing Company.]
COMPANY]                                                  COMPANY]

[VARIABLE EXCEPTIONS SUCH AS TAXES,                       [VARIABLE EXCEPTIONS SUCH AS TAXES,                       3. [Variable exceptions such as taxes,
EASEMENTS, CC & Rs, ETC.]                                 EASEMENTS, CC & Rs, ETC.]                                 easements, CC&R’s, etc. shown here]

                                                                                                                                                                    The new 2006 policy deletes the term
           Conditions & Stipulations                                    Conditions & Stipulations                                   Conditions
                                                                                                                                                                    “& Stipulations.”

              1. Definition of Terms                                     1. Definition of Terms                             1. Definition of Terms

The following terms when used in this policy mean:        The following terms when used in this policy mean:        The following terms when used in this policy
                                                                                                                    mean:
                                                                                                                    (a) “Amount of Insurance”: the amount           The 1970 and 1992 policies used the term
                                                                                                                    stated in Schedule A, as may be increased or    “Amount of Insurance”, meaning the amount
                                                                                                                    decreased by endorsement to this policy,        set forth in Schedule A, and “amount of
                                                                                                                    increased by Section 8(b), or decreased by      insurance.” This led to confusion, especially
                                                                                                                    Sections 11 and 12 of these Conditions.         when the dollar amount available to pay
                                                                                                                                                                    claims was higher or lower then the amount
                                                                                                                                                                    set forth in Schedule A. The 2006 policy
                                                                                                                                                                    resolves this dilemma by defining the term.
            1970 ALTA OWNERS                                           1992 ALTA OWNERS                                      2006 ALTA OWNERS                                        COMMENTS


                                                                                                                     (b) “Date of Policy”: The date designated as     The prior policies did not define the term. It
                                                                                                                     “Date of Policy” in Schedule A.                  was presumed it was the date set forth in
                                                                                                                                                                      Schedule A. The change in the 2006 policy
                                                                                                                                                                      does not alter the coverage provided.

                                                                                                                     (c) “Entity”: A corporation, partnership,        This definition was added because the ALTA
                                                                                                                     trust, limited liability company or other        made a decision to expand the definition of
                                                                                                                     similar legal entity.                            “Insured” to include certain types of entities.


a. "insured": the insured named in Schedule A, and,       a. "insured": the insured named in Schedule A, and,        (d) “Insured": the Insured named in              There are no significant differences between
subject to any rights or defenses the Company may         subject to any rights or defenses the Company would        Schedule A.                                      the 1970 policy and the 1992 policy. The
have had against the named insured, those who succeed     have had against the named insured, those who succeed                                                       2006 policy expands the definition of Insured
to the interest of such insured by operation of law as    to the interest of the named insured by operation of law                                                    to include parties previously not insured
distinguished from purchase including, but not limited    as distinguished from purchase including, but not                                                           under the policy. The new policy helps
to, heirs, distributees, devisees, survivors, personal    limited to, heirs, distributees, devisees, survivors,                                                       resolve the “voluntary transfer” problem that
representatives, next of kin, or corporate or fiduciary   personal representatives, next of kin, or corporate or                                                      occurs when transfers are made for estate
successors.                                               fiduciary successors.                                                                                       planning purposes or when properties are
                                                                                                                                                                      transferred to subsidiaries, affiliates or parent
                                                                                                                                                                      companies. This change will obviate , in
                                                                                                                                                                      certain circumstances, the need for
                                                                                                                                                                      Additional Insured endorsements.


                                                                                                                     (i) The term "Insured" also includes:

                                                                                                                     (A) successors to the Title of the Insured by
                                                                                                                     operation of law as distinguished from
                                                                                                                     purchase, including heirs, devisees,
                                                                                                                     survivors, personal representatives or next of
                                                                                                                     kin;
                                                                                                                     (B) successors to an Insured by dissolution,
                                                                                                                     merger, consolidation, distribution or
                                                                                                                     reorganization;

                                                                                                                     (C) successors to an Insured by its
                                                                                                                     conversion to another kind of Entity;

                                                                                                                     (D) a grantee of an Insured under a deed
                                                                                                                     delivered without payment of actual valuable
                                                                                                                     consideration conveying the Title;


                                                                                                                     (1) If the stock, shares, memberships, or
                                                                                                                     other equity interests of the grantee are
                                                                                                                     wholly-owned by the named Insured,

                                                                                                                     (2) If the grantee wholly owns the named
                                                                                                                     Insured,
             1970 ALTA OWNERS                                             1992 ALTA OWNERS                                       2006 ALTA OWNERS                                       COMMENTS


                                                                                                                         (3) If the grantee is wholly-owned by an
                                                                                                                         affiliated Entity of the named Insured,
                                                                                                                         provided the affiliated Entity and the named
                                                                                                                         Insured are both wholly-owned by the same
                                                                                                                         person or Entity, or

                                                                                                                         (4) If the grantee is a trustee or beneficiary
                                                                                                                         of a trust created by a written instrument
                                                                                                                         established by the Insured named in
                                                                                                                         Schedule A for estate planning purposes.

                                                                                                                         (ii) With regard to (A), (B), (C) and (D)
                                                                                                                         reserving, however, all rights and defenses
                                                                                                                         as to any successor that the Company would
                                                                                                                         have had against any predecessor Insured.


b. "insured claimant": an insured claiming loss or           b. "insured claimant": an insured claiming loss or          (e) "Insured Claimant": an Insured claiming
damage hereunder.                                            damage.                                                     loss or damage.

c. "knowledge": actual knowledge, not constructive           c. "knowledge" or "known": actual knowledge, not            (f) "Knowledge" or "Known": actual               The 1992 policy added a definition for the
knowledge or notice which may be imputed to an               constructive knowledge or notice which may be               knowledge, not constructive knowledge or         word “known” and included knowledge
insured by reason of any public records.                     imputed to an insured by reason of the public records       notice that may be imputed to an Insured by      imputed by “any record which imparts
                                                             as defined in this policy or any other records which        reason of the Public Records or any other        constructive notice of matters affecting the
                                                             impart constructive notice of matters affecting the land.   records that impart constructive notice of       land.” The 2006 policy has been modified to
                                                                                                                         matters affecting the Title.                     take into account changes in policy
                                                                                                                                                                          definitions and Covered Risks.

d. "land": the land described, specifically or by            d. "land": the land described or referred to in Schedule    (g) "Land": the land described in Schedule       There are no significant differences between
reference in Schedule C, and improvements affixed            [A][C], and improvements affixed thereto which by           A, and affixed improvements that by law          the 1970 policy, the 1992 policy, and the
thereto which by law constitute real property; provided,     law constitute real property. The term "land" does not      constitute real property. The term "Land”        2006 policy .
however, the term "land" does not include any property       include any property beyond the lines of the area           does not include any property beyond the
beyond the lines of the area specifically described or       described or referred to in Schedule [A][C], nor any        lines of the area described in Schedule A,
referred to in Schedule C, nor any right, title, interest,   right, title, interest, estate or easement in abutting      nor any right, title, interest, estate or
estate or easement in abutting streets, roads, avenues,      streets, roads, avenues, alleys, lanes, ways or             easement in abutting streets, roads, avenues,
alleys, lanes, ways or waterways, but nothing herein         waterways, but nothing herein shall modify or limit the     alleys, lanes, ways or waterways, but this
shall modify or limit the extent to which a right of         extent to which a right of access to and from the land is   does not modify or limit the extent that a
access to and from the land is insured by this policy.       insured by this policy.                                     right of access to and from the Land is
                                                                                                                         insured by this policy.

e. "mortgage": mortgage, deed of trust, trust deed, or       e. "mortgage": mortgage, deed of trust, trust deed, or      (h) "Mortgage": mortgage, deed of trust,         There are no significant differences between
other security instrument.                                   other security instrument.                                  trust deed, or other security instrument,        the 1970 policy, the 1992 policy and the
                                                                                                                         including one evidenced by electronic means      2006 policy. The 2006 policy takes into
                                                                                                                         authorized by law.                               account and accommodates electronic
                                                                                                                                                                          transactions.
             1970 ALTA OWNERS                                          1992 ALTA OWNERS                                        2006 ALTA OWNERS                                          COMMENTS


f. "public records": those records which by law impart   f. "public records": records established under state          (i) "Public Records": records established          The definition of public records is extremely
constructive notice of matters relating to said land.    statutes at Date of Policy for the purpose of imparting       under state statutes at Date of Policy for the     important as it sets forth where the title
                                                         constructive notice of matters relating to real property      purpose of imparting constructive notice of        company will search for exceptions to the
                                                         to purchasers for value and without knowledge. With           matters relating to real property to               policy. The 1970 policy defined “public
                                                         respect to Section 1(a)(iv) of the Exclusions From            purchasers for value and without                   records” as those records that impart
                                                         Coverage, "public records" shall also include Section         Knowledge. With respect to Covered Risk            constructive knowledge. Most companies
                                                         1(a)(iv) of the Exclusions From Coverage, "public             5(d), "Public Records" shall also include          interpreted this as limiting the search to the
                                                         records" shall also include environmental protection          environmental protection liens filed in            local county records. However, in 1976, a
                                                         liens filed in the records of the clerk of the United         Covered Risk 5(d), "Public Records" shall          court held that easements or rights of ways
                                                         States district court for the district in which the land is   also include environmental protection liens        recorded in the Federal Register constitute
                                                         located.                                                      filed in the records of the clerk of the United    public records under the policy. (Hahn v.
                                                                                                                       States District Court for the district where       Alaska Title Guaranty Company, 557 P.2d.
                                                                                                                       the Land is located.                               143 [1976].


                                                                                                                                                                           In response, the title industry modified the
                                                                                                                                                                          definition to make clear that “public records”
                                                                                                                                                                          is limited to land records that impart
                                                                                                                                                                          constructive knowledge. The carve out to the
                                                                                                                                                                          new 1992 limitation is the inclusion of U.S.
                                                                                                                                                                          District Court records that reflect federal
                                                                                                                                                                          environmental liens. The 2006 policy
                                                                                                                                                                          definition provides the same coverage and
                                                                                                                                                                          takes into account the addition of Covered
                                                                                                                                                                          Risks 5 and 6, environmental protection
                                                                                                                                                                          coverage, that previously were contained in
                                                                                                                                                                          the 1992 Policy, Exclusions to Coverage.


                                                                                                                       (j) “Title”: the estate or interest described in   “Title” was not a defined term in the prior
                                                                                                                       Schedule A.                                        policies. The addition of the term does not
                                                                                                                                                                          modify the coverages previously provided.
                                                                                                                                                                          By adding the term, the 2006 policy
                                                                                                                                                                          eliminates multiple uses throughout the
                                                                                                                                                                          policies of phrases like “estate or interest”,
                                                                                                                                                                          “insured estate or interest”, and “estate or
                                                                                                                                                                          interest in the land.”
             1970 ALTA OWNERS                                              1992 ALTA OWNERS                                        2006 ALTA OWNERS                                         COMMENTS


                                                              g. "unmarketability of the title": an alleged or apparent    (k) "Unmarketable Title”: Title affected by       The 1992 policy added a definition of
                                                              matter affecting the title to the land, not excluded or      an alleged or apparent matter that would          “unmarketability” to make clear that the
                                                              excepted from coverage, which would entitle a                permit a prospective purchaser or lessee of       insurer is not insuring that defects do not
                                                              purchaser of the estate or interest described in Schedule    the Title or lender on the Title to be released   exist in the title to the property. In order for
                                                              A to be released from the obligation to purchase by          from the obligation to purchase, lease or         there to be coverage, the defect must rise to
                                                              virtue of a contractual condition requiring the delivery     lend if there is a contractual condition          such a level as to permit a reasonable buyer
                                                              of marketable title.                                         requiring the delivery of marketable title.       to walk away from the transaction. Courts
                                                                                                                                                                             have held that title is "marketable " if it is
                                                                                                                                                                             free from reasonable doubt, that which a
                                                                                                                                                                             reasonable purchaser would be willing to
                                                                                                                                                                             accept ; see, Davis v. Stewart Title Guaranty
                                                                                                                                                                             Co., 726 S.W.2d 839 (1987) and Keown v.
                                                                                                                                                                             West Jersey Title & Guaranty Co., 390 A.2d
                                                                                                                                                                             715, 717 (1978).
                                                                                                                                                                             The 2006 policies’ definition of
                                                                                                                                                                             “unmarketability,” now called “unmarketable
                                                                                                                                                                             title,” is more expansive than its counterpart
                                                                                                                                                                             in the 1992 policies because it expressly
                                                                                                                                                                             includes lessee and lender interests.



      2. Continuation of Insurance After                            2. Continuation of Insurance After
                                                                                                                               2. Continuation of Insurance
             Conveyance of Title                                           Conveyance of Title

The coverage of this policy shall continue in force as of     The coverage of this policy shall continue in force as of    The coverage of this policy shall continue in     There are no significant differences between
Date of Policy in favor of an insured so long as such         Date of Policy in favor of an insured only so long as        force as of Date of Policy in favor of an         the three policies. The language in the 2006
insured retains an estate or interest in the land, or holds   the insured retains an estate or interest in the land, or    Insured, but only so long as the Insured          policy has been modified to reflect the
an indebtedness secured by a purchase money mortgage          holds an indebtedness secured by a purchase money            retains an estate or interest in the Land, or     addition of definitions for “Amount of
given by a purchaser from such insured, or so long as         mortgage given by a purchaser from the insured, or           holds an obligation secured by a purchase         Insurance” and “Indebtedness,” and changes
such insured shall have liability by reason of covenants      only so long as the insured shall have liability by          money Mortgage given by a purchaser from          to the definition of “Insured.” Note, under
of warranty made by such insured in any transfer or           reason of covenants of warranty made by the insured in       the Insured, or only so long as the Insured       the 1970 and 1992 policies voluntary
conveyance of such estate or interest; provided,              any transfer or conveyance of the estate or interest.        shall have liability by reason of warranties in   transfers to LLC's and inter vivos trusts
however, this policy shall not continue in force in favor     This policy shall not continue in force in favor of any      any transfer or conveyance of the Title. This     require an endorsement if coverage under the
of any purchaser from such insured of either said estate      purchaser from the insured of either (i) an estate or        policy shall not continue in force in favor of    policy is to continue.
or interest or the indebtedness secured by a purchase         interest in the land, or (ii) an indebtedness secured by a   any purchaser from the Insured of either (i)
money mortgage given to such insured.                         purchase money mortgage given to the insured.                an estate or interest in the Land, or (ii) an
                                                                                                                           obligation secured by a purchase money
                                                                                                                           Mortgage given to the Insured.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                              2006 ALTA OWNERS                               COMMENTS


                                                                                                                                                        See, Gebhardt Family Inv., L.L.C. v. Nations
                                                                                                                                                        Title Ins. of New York, Inc., 132 Md. App.
                                                                                                                                                        457 (2000). (As of the date of this article,
                                                                                                                                                        there are no known California cases on this
                                                                                                                                                        issue.) The 2006 policy allows for the
                                                                                                                                                        continuation of coverage in more situations,
                                                                                                                                                        including, wholly owned entities, transfers to
                                                                                                                                                        grantees without payment of consideration,
                                                                                                                                                        and transfers to trusts.

  3. Defense and Prosecution of Action-
                                                               3. Notice of Claim to be Given by Insured          3. Notice of Claim to be Given by
 Notice of Claim to be Given by an Insured
                                                                                Claimant                                  Insured Claimant
                  Claimant

a. The Company, at its own cost and without undue                                                                                                       The 1992 policy changed the text to promote
delay, shall provide for the defense of an insured in all                                                                                               clarity and broke the 1970 provision 3 into
litigation consisting of actions or proceedings                                                                                                         two provisions, provisions 3 and 4. The
commenced against such insured, or a defense                                                                                                            sections were changed to reflect the usual
interposed against an insured in an action to enforce a                                                                                                 sequence of events when a claim is tendered.
contract for a sale of the estate or interest in said land,                                                                                             Provision 3(a) in the 1970 policy was moved
to the extent that such litigation is founded upon an                                                                                                   to section 4(a) of the 1992 policy and section
alleged defect, lien, encumbrance, or other matter                                                                                                      5(a) of the 2006 policy.
insured against by this policy.




b. The insured shall notify the Company promptly in           The insured shall notify the Company promptly in   The Insured shall notify the Company   There is no significant difference in the
writing                                                       writing                                            promptly in writing                    coverage provided under any of the policies.
                                                                                                                                                        The addition of defined terms has made the
                                                                                                                                                        language in the 2006 policy simpler. The
                                                                                                                                                        reference to Subsection 5(a) in the 2006
                                                                                                                                                        policy instead of 4(a) in the 1992 policy is a
                                                                                                                                                        result of the reordering of subsections in the
                                                                                                                                                        2006 policy.
              1970 ALTA OWNERS                                                1992 ALTA OWNERS                                          2006 ALTA OWNERS                                          COMMENTS


(i) in case any action or proceeding is begun or defense       (i) in case of any litigation as set forth in Section 4(a)       (i) in case of any litigation as set forth in       See, Northwestern Title Security Co. v. Flack,
is interposed as set forth in (a) above, (ii) in case          below, (ii) in case knowledge shall come to an insured           Section 5(a) below, (ii) in case Knowledge          6 Cal. App. 3d 134 (1970) and Moe v.
knowledge shall come to an insured hereunder of any            hereunder of any claim of title or interest which is             shall come to an Insured hereunder of any           Transamerica Title Ins. Co., 21 Cal. App. 3d
claim of title or interest which is adverse to the title to    adverse to the title to the estate or interest, as insured,      claim of title or interest that is adverse to the   289 (1971) for a discussion on notice to the
the estate or interest as insured, and which might cause       and which might cause loss or damage for which the               Title, [or the lien of the Insured Mortgage]        Insurer.
loss or damage for which the Company may be liable             Company may be liable by virtue of this policy, or (iii)         as insured, and that might cause loss or
by virtue of this policy, or (iii) if title to the estate or   if title to the estate or interest, as insured, is rejected as   damage for which the Company may be
interest as insured, is rejected as. unmarketable.             unmarketable.                                                    liable by virtue of this policy, or (iii) if the
                                                                                                                                Title [or the lien of the Insured Mortgage],
                                                                                                                                as insured, is rejected as Unmarketable Title.

If such prompt notice shall not be given to the                If prompt notice shall not be given to the Company,              If the Company is prejudiced by the failure
Company, then as to such insured all liability of the          then as to the insured all liability of the Company shall        of the Insured Claimant to provide prompt
Company shall cease and terminate in regard to the             terminate with regard to the matter or matters for which         notice, the Company's liability to the Insured
matter or matters for which such prompt notice is              prompt notice is required; provided, however, that               Claimant under the policy shall be reduced
required; provided, however, that failure to notify shall      failure to notify the Company shall in no case prejudice         to the extent of the prejudice.
in no case prejudice the rights of any such insured            the rights of any insured under this policy unless the
under this policy unless the Company shall be                  Company shall be prejudiced by the failure and then
prejudiced by such failure and then only to the extent of      only to the extent of the prejudice.
such prejudice.
                                                                 4. DEFENSE AND PROSECUTION OF
                                                                                                                                 5. DEFENSE AND PROSECUTION
                                                               ACTIONS; DUTY OF INSURED CLAIMANT
                                                                                                                                         OF ACTIONS.
                                                                         TO COOPERATE.

c. The Company shall have the right at its own cost to         a. Upon written request by the insured and subject to            a. Upon written request by the Insured, and         The 1992 policy changed the text to promote
institute and without undue delay prosecute any action         the options contained in Section 6 of these Conditions           subject to the options contained in Section 7       clarity and broke the 1970 provision 3 into
or proceeding or to do any other act which in its              and Stipulations, the Company, at its own cost and               of these Conditions, the Company, at its own        two provisions, provision 3 and 4. The
opinion may be necessary or desirable to establish the         without unreasonable delay, shall provide for the                cost and without unreasonable delay, shall          sections were changed to reflect the usual
title to the estate or interest, as insured, and the           defense of an insured in litigation in which any third           provide for the defense of an Insured in            sequence of events when a claim is tendered.
Company may take any appropriate action under the              party asserts a claim adverse to the title or interest as        litigation in which any third party asserts a       Section 4(a) of the 1992 policy, formerly
terms of this policy, whether or not it shall be liable        insured, but only as to those stated causes of action            claim covered by this policy adverse to the         section 3(a) in the 1970 policy made explicit
thereunder, and shall not thereby concede liability or         alleging a defect, lien or encumbrance or other matter           Insured. This obligation is limited to only         what was implicit under the 1970 policy—
waive any provision of this policy.                            insured against by this policy.                                  those stated causes of action alleging matters      the right of the insurer to select counsel for
                                                                                                                                insured against by this policy.                     the insured, subject to reasonable objection
                                                                                                                                                                                    by the insured.
             1970 ALTA OWNERS                                             1992 ALTA OWNERS                                          2006 ALTA OWNERS                                          COMMENTS


                                                            The Company shall have the right to select counsel of           The Company shall have the right to select         Changes in the 2006 policy have not altered
                                                            its choice (subject to the right of the insured to object       counsel of its choice (subject to the right of     the coverage provided under the earlier
                                                            for reasonable cause) to represent the insured as to            the Insured to object for reasonable cause) to     policies. The addition of defined terms has
                                                            those stated causes of action and shall not be liable for       represent the Insured as to those stated           made the language in this provision easier to
                                                            and will not pay the fees of any other counsel. The             causes of action. It shall not be liable for       read. The change in the reference to Section
                                                            Company will not pay any fees, costs or expenses                and will not pay the fees of any other             7, instead of Section 6 in the 1992 policy, is a
                                                            incurred by the insured in the defense of those causes          counsel. The Company will not pay any              result of reordering of sections in the 2006
                                                            of action which allege matters not insured against by           fees, costs or expenses incurred by the            policy.
                                                            this policy.                                                    Insured in the defense of those causes of
                                                                                                                            action that allege matters not insured against
                                                                                                                            by this policy.

                                                            b. The Company shall have the right, at its own cost, to        (b) The Company shall have the right, in           There is no significant difference between the
                                                            institute and prosecute any action or proceeding or to          addition to the options contained in Section       1970 and the 1992 policies. The only real
                                                            do any other act which in its opinion may be necessary          7, at its own cost, to institute and prosecute     change is the explicit requirement that the
                                                            or desirable to establish the title to the estate or interest   any action or proceeding or to do any other        insurer act diligently. The modifications
                                                            or the lien of the insured mortgage, as insured, or to          act that in its opinion may be necessary or        contained in the 2006 policy do not alter the
                                                            prevent or reduce loss or damage to the insured. The            desirable to establish the Title, as insured, or   coverage afforded in this provision.
                                                            Company may take any appropriate action under the               to prevent or reduce loss or damage to the
                                                            terms of this policy, whether or not it shall be liable         Insured. The Company may take any
                                                            hereunder, and shall not thereby concede liability or           appropriate action under the terms of this
                                                            waive any provision of this policy. If the Company              policy, whether or not it shall be liable to the
                                                            shall exercise its rights under this paragraph, it shall do     Insured. The exercise of these rights shall
                                                            so diligently.                                                  not be an admission of liability or waiver of
                                                                                                                            any provision of this policy. If the Company
d. Whenever the Company shall have brought any              c. Whenever the Company shall have brought an action            exercises its rights under this subsection, it
                                                                                                                            (c) Whenever the Company brings an action
action or interposed a defense as required or permitted     or interposed a defense as required or permitted by the         or asserts a defense as required or permitted
by the provisions of this policy, the Company may           provisions of this policy, the Company may pursue any           by this policy, the Company may pursue the
pursue any such litigation to final determination by a      litigation to final determination by a court of competent       litigation to a final determination by a court
court of competent jurisdiction and expressly reserves      jurisdiction and expressly reserves the right, in its sole      of competent jurisdiction and it expressly
the right, in its sole discretion, to appeal from any       discretion, to appeal from any adverse judgment or              reserves the right, in its sole discretion, to
adverse judgment or order.                                  order.                                                          appeal from any adverse judgment or order.

                                                                                                                               6. Duty of Insured Claimant to
                                                                                                                                         Cooperate

e. In all cases where this policy permits or requires the    In all cases where this policy permits or requires the         a. In all cases where this policy permits or       There is no significant difference between the
Company to prosecute or provide for the defense of any      Company to prosecute or provide for the defense of any          requires the Company to prosecute or               1970, the 1992 and the 2006 policies, except
action or proceeding, the insured hereunder shall secure    action or proceeding, the insured shall secure to the           provide for the defense of any action or           for the following:
to the Company the right to so prosecute or provide         Company the right to so prosecute or provide defense            proceeding and any appeals, the Insured
defense in such action or proceeding, and all appeals       in the action or proceeding, and all appeals therein, and       shall secure to the Company the right to so
therein, and permit the Company to use, at its option,      permit the Company to use, at its option, the name of           prosecute or provide defense in the action or
the name of such insured for such purpose.                  the insured for this purpose.                                   proceeding, including the right to use, at its
                                                                                                                            option, the name of the Insured for this
                                                                                                                            purpose.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                         2006 ALTA OWNERS                                       COMMENTS


Whenever requested by the Company, such insured             Whenever requested by the Company, the insured, at             Whenever requested by the Company, the          The 1992 spells out with more specifity the
shall give the Company all reasonable aid in any such      the Company's expense, shall give the Company all              Insured, at the Company's expense, shall         requirement of the Insured to do any lawful
action or proceeding, in effecting settlement, securing    reasonable aid (i) in any action or proceeding, securing       give the Company all reasonable aid (i) in       act which the Company deems necessary to
evidence, obtaining witnesses, or prosecuting or           evidence, obtaining witnesses, prosecuting or                  securing evidence, obtaining witnesses,          establish title as insured. This change is
defending such action or proceeding, and the Company       defending the action or proceeding, or effecting               prosecuting or defending the action or           carried forward in the 2006 policy. The 1992
shall reimburse such insured for any expense so            settlement, and (ii) in any other lawful act which in the      proceeding, or effecting settlement, and (ii)    and the 2006 policies contain a penalty if the
incurred.                                                  opinion of the Company may be necessary or desirable           in any other lawful act that in the opinion of   Insured fails to cooperate, an penalty implicit
                                                           to establish the title to the estate or interest or the lien   the Company may be necessary or desirable        in the 1970 policy.
                                                           of the insured mortgage, as insured.                           to establish the Title or any other matter as
                                                                                                                          insured.

                                                            If the Company is prejudiced by the failure of the            If the Company is prejudiced by the failure       Note, that Subsection 6(a) in the 2006 policy
                                                           insured to furnish the required cooperation, the               of the Insured to furnish the required           was contained in subsection 4(d) of the 1992
                                                           Company's obligations to the insured under the policy          cooperation, the Company's obligations to        policy and 3(e) of the 1970 policy.
                                                           shall terminate, including any liability or obligation to      the Insured under the policy shall terminate,
                                                           defend, prosecute, or continue any litigation, with            including any liability or obligation to
                                                           regard to the matter or matters requiring such                 defend, prosecute, or continue any litigation,
                                                           cooperation.                                                   with regard to the matter or matters requiring
                                                                                                                          such cooperation.


   4. Notice of Loss- Limitation of Action                           5. Proof of Loss or Damage.                                      4. Proof of Loss

In addition to the notices required under paragraph 3(b)   In addition to and after the notices required under            In the event the Company is unable to            The 1992 policy spells out with much more
of these Conditions and Stipulations, a statement in       Section 3 of these Conditions and Stipulations have            determine the amount of loss or damage, the      clarity what is required in the 1992 policy. It
writing of any loss or damage for which it is claimed      been provided the Company, a proof of loss or damage           Company may, at its option, require as a         requires (a) the proof of loss to be signed and
the Company is liable under this policy shall be           signed and sworn to by the insured claimant shall be           condition of payment that the Insured            sworn to; (b) it requires the statement to set
furnished to the Company within 90 days after such         furnished to the Company within 90 days after the              Claimant furnish a signed proof of loss. The     forth the defect in title, and requires the
loss or damage shall have been determined and no right     insured claimant shall ascertain the facts giving rise to      proof of loss must describe the defect, lien,    insured to state, to the best of the insured’s
of action shall accrue to an insured claimant until 30     the loss or damage. The proof of loss or damage shall          encumbrance or other matter insured against      ability how the amount of loss or damages
days after such statement shall have been furnished.       describe the defect in, or lien or encumbrance on the          by this policy that constitutes the basis of     have been calculated.
                                                           title, or other matter insured against by this policy          loss or damage and shall state, to the extent
                                                           which constitutes the basis of loss or damage and shall        possible, the basis of calculating the amount
                                                           state, to the extent possible, the basis of calculating the    of the loss or damage.
                                                           amount of the loss or damage.
             1970 ALTA OWNERS                                          1992 ALTA OWNERS                                       2006 ALTA OWNERS                                       COMMENTS


                                                                                                                                                                      The changes in the 2006 policy make it much
                                                                                                                                                                      easier for an Insured to submit a claim. It
                                                                                                                                                                      eliminates the requirement of a “sworn” proof
                                                                                                                                                                      of loss. It also dispenses with the
                                                                                                                                                                      requirement that the proof of loss be
                                                                                                                                                                      submitted to the Insurer within 90 days.
                                                                                                                                                                      Under the 2006 policy, the Insurer must
                                                                                                                                                                      attempt to determine the amount of loss to the
                                                                                                                                                                      Insured. If the Insurer deems it necessary to
                                                                                                                                                                      request a signed, but not sworn, proof of loss
                                                                                                                                                                      it may request one from the Insured .


 Failure to furnish such statement of loss or damage      If the Company is prejudiced by the failure of the                                                          The 1992 policy also states that if the insurer
shall terminate any liability of the Company under this   insured claimant to provide the required proof of loss                                                      is prejudiced by the insured’s failure to
policy as to such loss or damage.                         or damage, the Company's obligations to the insured                                                         submit a proof of loss, arguably implicit
                                                          under the policy shall terminate, including any liability                                                   under the 1970 policy, the insurer’s
                                                          or obligation to defend, prosecute, or continue any                                                         obligation to indemnify the insured AND the
                                                          litigation, with regard to the matter or matters requiring                                                  obligation to defend, prosecute or continue
                                                          such proof of loss or damage.                                                                               any litigation terminates.

                                                                                                                                                                      The 2006 policy also eliminates the
                                                                                                                                                                      provisions pertaining to the Insurer’s remedy
                                                                                                                                                                      in the event an Insured refuses to provide a
                                                                                                                                                                      signed proof of loss. Implicit in the policy is
                                                                                                                                                                      the right of the Insurer to withhold payment
                                                                                                                                                                      until the Insured Claimant furnishes the
                                                                                                                                                                      requested proof of loss.


                                                                                                                          6. Duty of Insured Claimant to
                                                                                                                                    Cooperate
                                                          In addition, the insured claimant may reasonably be          6b. The Company may reasonably require         The requirement that the Insured Claimant
                                                          required to submit to examination under oath by any          the Insured Claimant to submit to              submit to an examination under oath and the
                                                          authorized representative of the Company and shall           examination under oath by any authorized       requirement that the Insured Claimant
                                                          produce for examination, inspection and copying, at          representative of the Company and to           produce for examination books and records
                                                          such reasonable times and places as may be designated        produce for examination, inspection and        which pertain to the loss was not contained in
                                                          by any authorized representative of the Company, all         copying, at such reasonable times and places   the 1970 policy. The second paragraph of
                                                          records, books, ledgers, checks, correspondence and          as may be designated by the authorized         Section 5 in the 1992 policy now appears as
                                                          memoranda, whether bearing a date before or after            representative of the Company, all records,    Section 6(b) in the 2006 policy.
                                                          Date of Policy, which reasonably pertain to the loss or      in whatever medium maintained, including
                                                          damage.                                                      books, ledgers, checks, memoranda,             The changes in the language of the 2006
                                                                                                                       correspondence, reports, e-mails, disks,       policy reflect the recognition that more and
                                                                                                                       tapes, and videos whether bearing a date       more transactions and correspondence are
                                                                                                                       before or after Date of Policy, that           electronic in nature; otherwise, there are no
                                                                                                                       reasonably pertain to the loss or damage.      substantive changes in this provision.
             1970 ALTA OWNERS                                           1992 ALTA OWNERS                                       2006 ALTA OWNERS                                        COMMENTS


                                                            Further, if requested by any authorized representative     Further, if requested by any authorized
                                                           of the Company, the insured claimant shall grant its        representative of the Company, the Insured
                                                           permission, in writing, for any authorized                  Claimant shall grant its permission,in
                                                           representative of the Company to examine, inspect and       writing, for any authorized representative of
                                                           copy all records, books, ledgers, checks,                   the Company to examine, inspect and copy
                                                           correspondence and memoranda in the custody or              all of these records in the custody or control
                                                           control of a third party, which reasonably pertain to the   of a third party that reasonably pertain to the
                                                           loss or damage. All information designated as               loss or damage. All information designated
                                                           confidential by the insured claimant provided to the        as confidential by the Insured Claimant
                                                           Company pursuant to this Section shall not be               provided to the Company pursuant to this
                                                           disclosed to others unless, in the reasonable judgment      Section not bedisclosed to others unless, in
                                                           of the Company, it is necessary in the administration of    the reasonable judgment of the Company, it
                                                           the claim.                                                  is necessary in the administration of the
                                                                                                                       claim.


                                                           Failure of the insured claimant to submit for               Failure of the Insured Claimant to submit for
                                                           examination under oath, produce other reasonably            examination under oath, produce any
                                                           requested information or grant permission to secure         reasonably requested information or grant
                                                           reasonably necessary information from third parties as      permission to secure reasonably necessary
                                                           required in this paragraph, unless prohibited by law or     information from third parties as required in
                                                           governmental regulation, shall terminate any liability of   this subsection, unless prohibited by law or
                                                           the Company under this policy as to that claim.             governmental regulation, shall terminate any
                                                                                                                       liability of the Company under this policy as
                                                                                                                       to that claim.


                                                                                                                         7. Options to Pay or Otherwise
    5. Options to Pay or Otherwise Settle                      6. Options to Pay or Otherwise Settle
                                                                                                                          Settle Claims; Termination of
                   Claims                                         Claims; Termination of Liability
                                                                                                                                     Liability.

                                                           In case of a claim under this policy, the Company shall     In case of a claim under this policy, the         The 1992 policy reorganized the provision,
                                                           have the following additional options:                      Company shall have the following additional       and for the most part, did not alter the
                                                                                                                       options:                                          coverage afforded under the 1970 policy.

The Company shall have the option to pay or otherwise      a. To Pay or Tender Payment of the Amount of                (a) To Pay or Tender Payment of the               The 1992 policy moved the provisions in
settle for or in the name of an insured claimant any       Insurance.                                                  Amount of Insurance.                              section 5 of the 1970 policy to section 6 (a)
claim insured against or to terminate all liability and                                                                                                                  and (b) and made more explicit that the
obligations of the Company hereunder by paying or                                                                                                                        insurer has the option of either (a) paying the
tendering payment of the amount of insurance under                                                                                                                       Amount of Insurance to the Insured or (b)
this policy together with any costs, attorneys' fees and                                                                                                                 settling with the Insured and/or a third party.
expenses incurred up to the time of such payment or                                                                                                                      There are no significant changes between the
tender of payment, by the insured claimant and                                                                                                                           1992 and the 2006 policy.
authorized by the Company.
1970 ALTA OWNERS                1992 ALTA OWNERS                                       2006 ALTA OWNERS                                        COMMENTS


                   i. To pay or tender payment of the amount of insurance       (i) To pay or tender payment of the Amount
                   under this policy together with any costs, attorneys'        of Insurance under this policy together with
                   fees and expenses incurred by the insured claimant,          any costs, attorneys' fees and expenses
                   which were authorized by the Company, up to the time         incurred by the Insured Claimant that were
                   of payment or tender of payment and which the                authorized by the Company up to the time of
                   Company is obligated to pay.                                 payment or tender of payment and that the
                                                                                Company is obligated to pay.


                   ii. Upon the exercise by the Company of this option, all     ii) Upon the exercise by the Company of this    The 1992 policy makes explicit that upon
                   liability and obligations to the insured under this          option, all liability and obligations of the    payment of the Amount of Insurance with the
                   policy, other than to make the payment required, shall       Company to the Insured under this policy,       Insured, the Insurer’s obligation to defend the
                   terminate, including any liability or obligation to          other than to make the payment required in      Insured, or to prosecute an action on behalf of
                   defend, prosecute, or continue any litigation, and the       this subsection, shall terminate, including     the Insured, terminates. This right, which is
                   policy shall be surrendered to the Company for               any liability or obligation to defend,          very important to the Insurer, allows an
                   cancellation.                                                prosecute, or continue any litigation.          Insurer to exit litigation that involves matters
                                                                                                                                not covered by the policy, the cost of
                                                                                                                                litigation often being more costly then the
                                                                                                                                expense involved in paying the Amount of
                                                                                                                                Insurance. There are no significant changes
                                                                                                                                between the 1992 and the 2006 policy.


                   b. To Pay or Otherwise Settle With Parties Other than        (b) To Pay or Otherwise Settle With Parties     The 1992 policy added section 6 (b) to make
                   the Insured or With the Insured Claimant.                    Other than the Insured or With the Insured      more explicit that the Insurer has the right to
                                                                                Claimant.                                       enter into settlements with third parties
                                                                                                                                and/or with the Insured. There are no
                                                                                                                                significant changes between the 1992 and the
                                                                                                                                2006 policy.
                                                                                (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. In addition, the Company will
                                                                                pay any costs, attorneys' fees and expenses
                                                                                incurred by the Insured Claimant that were
                                                                                authorized by the Company up to the time of
                                                                                payment and that the Company is obligated
                                                                                to pay; or

                   i. to pay or otherwise settle with other parties for or in   (ii) to pay or otherwise settle with the
                   the name of an insured claimant any claim insured            Insured Claimant the loss or damage
                   against under this policy, together with any costs,          provided for under this policy, together with
                   attorneys' fees and expenses incurred by the insured         any costs, attorneys' fees and expenses
                   claimant which were authorized by the Company up to          incurred by the Insured Claimant that were
                   the time of payment and which the Company is                 authorized by the Company up to the time of
                   obligated to pay; or                                         payment and that the Company is obligated
                                                                                to pay.
             1970 ALTA OWNERS                                          1992 ALTA OWNERS                                        2006 ALTA OWNERS                                        COMMENTS


                                                          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            Upon the exercise by the Company of either        The 1992 policy adds a provision that makes
                                                          options provided for in paragraphs (b)(i) or (ii), the       of the options provided for in subsections        explicit what was implicit under the 1970
                                                          Company's obligations to the insured under this policy       (b)(i) or (ii), the Company's obligations to      policy— that upon settlement of the claim
                                                          for the claimed loss or damage, other than the               the Insured under this policy for the claimed     with the Insured, or a third party, the
                                                          payments required to be made, shall terminate,               loss or damage, other than the payments           Insurer’s obligation to defend the Insured, or
                                                          including any liability or obligation to defend,             required to be made, shall terminate,             to prosecute an action on behalf of the
                                                          prosecute or continue any litigation.                        including any liability or obligation to          Insured, terminates. There are no significant
                                                                                                                       defend, prosecute or continue any litigation.     changes between the 1992 and the 2006
                                                                                                                                                                         policy.

                                                            7. Determination, Extent of Liability and                     8. Determination and Extent of
   6. Determination and Payment of Loss
                                                                         Coinsurance                                                 Liability

                                                          This policy is a contract of indemnity against actual        This policy is a contract of indemnity            The 1992 policy added an opening paragraph
                                                          monetary loss or damage sustained or incurred by the         against actual monetary loss or damage            that reiterates how most courts in the United
                                                          insured claimant who has suffered loss or damage by          sustained or incurred by the Insured              States view a title insurance policy. The
                                                          reason of matters insured against by this policy and         Claimant who has suffered loss or damage          draftsmen also reorganized the section so it
                                                          only to the extent herein described.                         by reason of matters insured against by this      was more logical and sequential. There are
                                                                                                                       policy.                                           no significant changes between the 1992 and
                                                                                                                                                                         the 2006 policy.


a. The liability of the Company under this policy shall   a. The liability of the Company under this policy shall      (a) The extent of liability of the Company        The 1992 policy defines in section 7(a)(ii)
in no case exceed the least of:                           not exceed the least of:                                     for loss or damage under this policy shall not    how “actual loss” is measured under a title
                                                                                                                       exceed the lesser of:                             insurance when a claim has been tendered.
                                                                                                                                                                         There are no significant changes between the
                                                                                                                                                                         1992 and the 2006 policy. The language
                                                                                                                                                                         differences in the 2006 policy are a result of
                                                                                                                                                                         the addition of defined terms to the policy.


i. the actual loss of the insured claimant; or            i. the Amount of Insurance stated in Schedule A; or,         (i) the Amount of Insurance; or

ii. The amount of insurance stated in Schedule A.         ii. the difference between the value of the insured estate   (ii) the difference between the value of the
                                                          or interest as insured and the value of the insured estate   Title as Insured and the value of the the Title
                                                          or interest subject to the defect, lien or encumbrance       subject to the risk insured against by this
                                                          insured against by this policy.                              policy.
1970 ALTA OWNERS                1992 ALTA OWNERS                                        2006 ALTA OWNERS                                       COMMENTS


                   b. In the event the Amount of Insurance stated in                                                            The 1992 policy reintroduced a coinsurance
                   Schedule A at the Date of Policy is less than 80 percent                                                     provision that was formerly contained in the
                   of the value of the insured estate or interest or the full                                                   1962 policy. This clause requires an Insured
                   consideration paid for the land, whichever is less, or if                                                    to become a co-insurer if the Insured
                   subsequent to the Date of Policy an improvement is                                                           underinsures. The co-insurance provision
                   erected on the land which increases the value of the                                                         only applies to indemnity coverage. It does
                   insured estate or interest by at least 20 percent over the                                                   not apply to defense obligations.
                   Amount of Insurance stated in Schedule A, then this
                   Policy is subject to the following:


                   i. where no subsequent improvement has been made, as                                                         The co-insurance provision contained in
                   to any partial loss, the Company shall only pay the loss                                                     Section 7(b) in the 1992 policy has been
                   pro rata in the proportion that the amount of insurance                                                      eliminated in the 2006 policy. The
                   at Date of Policy bears to the total value of the insured                                                    elimination of this provision greatly enhances
                   estate or interest at Date of Policy; or                                                                     the value of the 2006 policy.


                   ii. where a subsequent improvement has been made, as
                   to any partial loss, the Company shall only pay the loss
                   pro rata in the proportion that 120 percent of the
                   Amount of Insurance stated in Schedule A bears to the
                   sum of the Amount of Insurance stated in Schedule A
                   and the amount expended for the improvement.


                   The provisions of this paragraph shall not apply to
                   costs, attorneys' fees and expenses for which the
                   Company is liable under this policy, and shall only
                   apply to that portion of any loss which exceeds, in the
                   aggregate, 10 percent of the Amount of Insurance
                   stated in Schedule A.

                                                                                (b) If the Company pursues its rights under     Subsection 8(b) in the 2006 policy is a new
                                                                                Section 5 and is unsuccessful in establishing   provision that provides benefits to the Insured
                                                                                the Title, as insured,                          when the Insurer elects to pursue its right,
                                                                                                                                (see Condition 5 in the 2006 policy) to take
                                                                                                                                action to eliminate a defect and establish title
                                                                                                                                as insured but is unsuccessful in doing so.
             1970 ALTA OWNERS                                             1992 ALTA OWNERS                                     2006 ALTA OWNERS                                         COMMENTS


                                                                                                                       (i) the Amount of Insurance shall be               Subsection 8(b)(i) increases the Amount of
                                                                                                                       increased by 10%, and                              Insurance available to the Insured by 10%.


                                                                                                                       (ii) the Insured Claimant shall have the right     Subsection 8(b)(ii) gives the Insured the right
                                                                                                                       to have the loss or damage determined either       to elect what point in time the loss or damage
                                                                                                                       as of the date the claim was made by the           is determined. The Insured can elect to have
                                                                                                                       Insured Claimant or as of the date it is           the loss determined as of the date the claim is
                                                                                                                       settled and paid.                                  made— arguably better for the Insured when
                                                                                                                                                                          property values are depreciating. The Insured
                                                                                                                                                                          can also elect to have the loss determined as
                                                                                                                                                                          of the date the claim is settled and paid—
                                                                                                                                                                          arguably better for the Insured when prices
                                                                                                                                                                          are appreciating.


b. The Company will pay, in addition to any loss             c. The Company will pay only those costs, attorneys'      (c) In addition to the extent of liability under   There are no significant differences between
insured against by this policy, all costs imposed upon       fees and expenses incurred in accordance with Section     (a) and (b), the Company will also pay those       the three policies. The changes in the 2006
an insured in litigation carried on by the Company for       4 of these Conditions and Stipulations.                   costs, attorneys' fees and expenses incurred       policy reflect a reordering of the provisions
such insured, and all costs, attorneys' fees and expenses                                                              in accordance with Sections 5 and 7 of these       and a simplification of the language.
in litigation carried on by such insured with the written                                                              Conditions.
authorization of the Company.


                                                                         12(b). Payment of Loss                                12.     Payment of Loss

c. When liability has been definitely fixed in               b. When liability and the extent of loss or damage has    When liability and the extent of loss or           The provision for the timing of payment was
accordance with the conditions of this policy, the loss      been definitely fixed in accordance with these            damage have been definitely fixed in               moved to its own section— Section 12(b) in
or damage shall be payable within 30 days thereafter.        Conditions and Stipulations, the loss or damage shall     accordance with these Conditions, the              the 1992 policy and Section 12 in the 2006
                                                             be payable within 30 days thereafter.                     payment shall be made within 30 days.              Owner's Policy.

             7. Limitation of Liability                                  9. Limitation of Liability                           9. Limitation of Liability

No claim shall arise or be maintainable under this           a. If the Company establishes the title, or removes the   (a) If the Company establishes the Title, or       There are no significant differences between
policy (a) if the Company, after having received notice      alleged defect, lien or encumbrance, or cures the lack    removes the alleged defect, lien or                the 1970, the 1992 and the 2006 policies.
of an alleged defect, lien or encumbrance insured            of a right of access to or from the land, or cures the    encumbrance, or cures the lack of a right of
against hereunder, by litigation or otherwise, removes       claim of unmarketability of title, all as insured, in a   access to or from the Land, or cures the
such defect, lien or encumbrance or establishes the title,   reasonably diligent manner by any method, including       claim of Unmarketable Title, all as insured,
as insured, within a reasonable time after receipt of        litigation and the completion of any appeals therefrom,   in a reasonably diligent manner by any
such notice,                                                 it shall have fully performed its obligations with        method, including litigation and the
                                                             respect to that matter and shall not be liable for any    completion of any appeals, it shall have fully
                                                             loss or damage caused thereby.                            performed its obligations with respect to that
                                                                                                                       matter and shall not be liable for any loss or
                                                                                                                       damage caused to the Insured.
             1970 ALTA OWNERS                                              1992 ALTA OWNERS                                        2006 ALTA OWNERS                                        COMMENTS


(b) in the event of litigation until there has been a final   b. In the event of any litigation, including litigation by   (b) In the event of any litigation, including
determination by a court of competent jurisdiction, and       the Company or with the Company's consent, the               litigation by the Company or with the
disposition of all appeals therefrom, adverse to the title,   Company shall have no liability for loss or damage           Company's consent, the Company shall have
as insured, as provided in paragraph 3 hereof; or             until there has been a final determination by a court of     no liability for loss or damage until there has
                                                              competent jurisdiction, and disposition of all appeals       been a final determination by a court of
                                                              therefrom, adverse to the title as insured.                  competent jurisdiction, and disposition of all
                                                                                                                           appeals, adverse to the Title, as insured.


(c) for liability voluntarily assumed by an insured in        c. The Company shall not be liable for loss or damage        (c) The Company shall not be liable for loss
settling any claim or suit without prior written consent      to any insured for liability voluntarily assumed by the      or damage to the Insured for liability
of the Company.                                               insured in settling any claim or suit without the prior      voluntarily assumed by the Insured in
                                                              written consent of the Company.                              settling any claim or suit without the prior
                                                                                                                           written consent of the Company.


                                                                                                                               10. Reduction of Insurance;
                                                                     10. Reduction of Insurance;
             8. Reduction of Liability                                                                                         Reduction or Termination of
                                                                  Reduction or Termination of Liability
                                                                                                                                        Liability

All payments under this policy, except payments made          All payments under this policy, except payments made         All payments under this policy, except            The 1992 policy restates the provisions
for costs, attorneys' fees and expenses, shall reduce the     for costs, attorneys’ fees and expenses, shall reduce the    payments made for costs, attorneys’ fees and      contained in the 1970 policy; however, the
amount of the insurance pro tanto.                            amount of insurance pro tanto.                               expenses, shall reduce the Amount of              second paragraph regarding production of the
                                                                                                                           Insurance by the amount of the payment.           policy has been moved to section 12(a) in the
                                                                                                                                                                             1992 policy.

                                                                           12(a). Payment of Loss                                 12(a). Payment of Loss

No payment shall be made without producing this               a. No payment shall be made without producing this                                                             The second sentence in Section 8 of the 1970
policy for endorsement of such payment unless the             policy for endorsement of the payment unless the                                                               Owner's Policy was moved to section 12(a) in
policy be lost or destroyed, in which case proof of such      policy has been lost or destroyed, in which case proof                                                         the 1992 policy. There are no differences
loss or destruction shall be furnished to the satisfaction    of loss or destruction shall be furnished to the                                                               between the 1970 and the 1992 policies.
of the Company.                                               satisfaction of the Company.                                                                                   This provision was eliminated in the 2006
                                                                                                                                                                             policy.

           9. Liability Noncumulative                                   11. Liability Noncumulative                             11. Liability Noncumulative

It is expressly understood that the amount of insurance       It is expressly understood that the amount of insurance      The Amount of Insurance shall be reduced          The 1970 policy limited the provision to
under this policy shall be reduced by any amount the          under this policy shall be reduced by any amount the         by any amount the Company pays under any          instances where a claim was paid on a
Company may pay under any policy insuring either (a)          Company may pay under any policy insuring a                  policy insuring a Mortgage to which               mortgage shown as an exception in Schedule
a mortgage shown or referred to in Schedule B hereof          mortgage to which exception is taken in Schedule B or        exception is taken in Schedule B or to which      B or a subsequent mortgage executed by the
which is a lien on the estate or interest covered by this     to which the insured has agreed, assumed, or taken           the Insured has agreed, assumed, or taken         Insured and secured by the property. The
policy, or (b) a mortgage hereafter executed by an            subject, or which is hereafter executed by an insured        subject or which is executed by an Insured        1992 policy broadened the provision to
insured which is a charge or lien on the estate or            and which is a charge or lien on the estate or interest      after Date of Policy and which is a charge or     include mortgages assumed, agreed or taken
interest described or referred to in Schedule A, and the      amount so paid shall be deemed a payment under this          lien on the Title, and the amount so paid         subject to by the insured.
amount so paid shall be deemed a payment under this           policy to the insured owner.                                 shall be deemed a payment to the Insured
policy.                                                                                                                    under this policy.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                               2006 ALTA OWNERS                  COMMENTS


The Company shall have the option to apply to the
payment of any such mortgages any amount that
otherwise would be payable hereunder to the insured
owner of the estate or interest covered by this policy
and the amount so paid shall be deemed a payment
under this policy to said insured owner.




                10. Apportionment                                            8. Apportionment

If the land described in Schedule C consists of two or      If the land described in Schedule [A][C] consists of                           There are no differences between the 1970
more parcels which are not used as a single site, and a     two or more parcels which are not used as a single site,                       and the 1992 policy. This provision applies
loss is established affecting one or more of said parcels   and a loss is established affecting one or more of the                         when (1) an owner’s policy includes two or
but not all, the loss shall be computed and settled on a    parcels but not all, the loss shall be computed and                            more parcels of real estate that are not used as
pro rata basis as if the amount of insurance under this     settled on a pro rata basis as if the amount of insurance                      a single site, (2) the Insurer and the Insured
policy was divided pro rata as to the value on Date of      under this policy was divided pro rata as to the value                         have not agreed on any per parcel value and
Policy of each separate parcel to the whole, exclusive of   on Date of Policy of each separate parcel to the whole,                        included that agreement in the policy, and (3)
any improvements made subsequent to Date of Policy,         exclusive of any improvements made subsequent to                               a covered loss occurs that affects one or
unless a liability or value has otherwise been agreed       Date of Policy, unless a liability or value has otherwise                      more, but not all of the parcels. This
upon as to each such parcel by the Company and the          been agreed upon as to each parcel by the Company                              provision has the effect of limiting the
insured at the time of the issuance of this policy and      and the insured at the time of the issuance of this                            Insured’s maximum recovery for the loss
shown by an express statement herein or by an               policy and shown by an express statement or by an                              incurred on the parcel or parcels affected by
endorsement attached hereto.                                endorsement attached to this policy.                                           the adverse claim by prorating the Amount of
                                                                                                                                           Insurance based on the value of each parcel
                                                                                                                                           as of the Date of the Policy.

                                                                                                                                           Elimination of this provision in the 2006
                                                                                                                                           policy greatly enhances the value of the
                                                                                                                                           Owner's policy. The result will be the same
                                                                                                                                           as if the Insured Claimant obtains a separate
                                                                                                                                           Owner's policy on each separate site together
                                                                                                                                           with a “tie-in” or “aggregation” endorsement.
                                                                                                                                           The Insured can apply the full amount of the
                                                                                                                                           insurance to any separate parcel on which a
                                                                                                                                           covered loss occurs and recover actual loss
                                                                                                                                           up to the lesser of the Amount of the
                                                                                                                                           Insurance or the then full value of the
                                                                                                                                           particular parcel affected by the covered
                                                                                                                                           defect.
             1970 ALTA OWNERS                                            1992 ALTA OWNERS                                       2006 ALTA OWNERS                                        COMMENTS


      11. Subrogation Upon Payment or                             13. Subrogation Upon Payment or                           13. Rights of Recovery upon
                 Settlement                                                  Settlement                                        Payment or Settlement

                                                            a. The Company's Right of Subrogation.                                                                        The heading was added in the 1992 policy
                                                                                                                                                                          and dropped in the 2006 policy.

Whenever the Company shall have settled a claim             Whenever the Company shall have settled and paid a          a. Whenever the Company shall have settled        There are no significant differences between
under this policy, all right of subrogation shall vest in   claim under this policy, all right of subrogation shall     and paid a claim under this policy, it shall be   any of the policies. Subsection 13(a) of the
the Company unaffected by any act of the insured            vest in the Company unaffected by any act of the            subrogated and entitled to the rights of the      2006 policy makes clear that when a claim
claimant.                                                   insured claimant.                                           Insured Claimant in the Title and all other       has been settled, the Insurer is subrogated and
                                                                                                                        rights and remedies in respect to the claim       entitled to stand in the shoes of the Insured
                                                                                                                        that the Insured Claimant has against any         without any need for further documentation.
                                                                                                                        person or property, to the extent of the          The Insurer also has the right to request the
                                                                                                                        amount of any loss, costs, attorneys' fees and    Insured to execute further documentation,
                                                                                                                        expenses paid by the Company. I                   and the Insured must cooperate.


                                                                                                                        f requested by the Company, the Insured
                                                                                                                        Claimant shall execute documents to
                                                                                                                        evidence the transfer to the Company of
                                                                                                                        these rights and remedies. 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 and
                                                                                                                        remedies.

The Company shall be subrogated to and be entitled to       The Company shall be subrogated to and be entitled to
all rights and remedies which such insured claimant         all rights and remedies which the insured claimant
would have had against any person or property in            would have had against any person or property in
respect to such claim had this policy not been issued,      respect to the claim had this policy not been issued. If
and if requested by the Company, such insured               requested by the Company, the insured claimant shall
claimant shall transfer to the Company all rights and       transfer to the Company all rights and remedies against
remedies against any person or property necessary in        any person or property necessary in order to perfect this
order to perfect such right of subrogation and shall        right of subrogation. The insured claimant shall permit
permit the Company to use the name of such insured          the Company to sue, compromise or settle in the name
claimant in any transaction or litigation involving such    of the insured claimant and to use the name of the
rights or remedies.                                         insured claimant in any transaction or litigation
                                                            involving these rights or remedies.
             1970 ALTA OWNERS                                          1992 ALTA OWNERS                                      2006 ALTA OWNERS                                       COMMENTS


If the payment does not cover the loss of such insured    If a payment on account of a claim does not fully cover    If a payment on account of a claim does not     The 1992 policy increased the rights of the
claimant, the Company shall be subrogated to such         the loss of the insured claimant, the Company shall be     fully cover the loss of the Insured Claimant,   insurer to recover from third parties funds
rights and remedies in the proportion which said          subrogated to these rights and remedies in the             the Company shall defer the exercise of its     paid to the insured. The 2006 policy
payment bears to the amount of said loss.                 proportion which the Company's payment bears to the        right to recover until after the Insured        eliminates the proportional remedy and
                                                          whole amount of the loss.                                  Claimant shall have recovered its loss.         makes clear that if a payment of a claim does
                                                                                                                                                                     not make the Insured whole, the Insurer must
                                                                                                                                                                     defer the exercise of its right to recover from
                                                                                                                                                                     third parties until after the Insured has
                                                                                                                                                                     recovered in full.

If loss should result from any act of such insured        If loss should result from any act of the insured                                                          There are no significant differences between
claimant, such act shall not void this policy, but the    claimant, as stated above, that act shall not void this                                                    the 1970 policy and the 1992 policy. The
Company, in that event, shall be required to pay only     policy, but the Company, in that event, shall be                                                           2006 policy deletes the Insurer’s remedy in
that part of any losses insured against hereunder which   required to pay only that part of any losses insured                                                       the event the Insured interferes with the
shall exceed the amount, if any, lost to the Company by   against by this policy which shall exceed the amount, if                                                   Insurer’s subrogation rights, clearly a benefit
reason of the impairment of the right of subrogation.     any, lost to the Company by reason of the impairment                                                       to the Insured.
                                                          by the insured claimant of the Company's right of
                                                          subrogation.

                                                          b. The Company's Rights Against Non-insured                (b) The Company’s right of subrogation          Section 11(b) in the 1992 policy, previously
                                                          Obligors.                                                  includes the rights of the Insured to           not contained in the 1970 policy, allows the
                                                                                                                     indemnities, guaranties, other policies of      Insurer to summit claims in the Insured’s
                                                                                                                     insurance or bonds, notwithstanding any         name to Indemnitors and other Insurers that
                                                                                                                     terms or conditions contained in those          might have obligations to the Insured. There
                                                                                                                     instruments that address subrogation rights.    are no significant differences between the
                                                                                                                                                                     1992 and the 2006 policy.

                                                          The Company's right of subrogation against non-
                                                          insured obligors shall exist and shall include, without
                                                          limitation, the rights of the insured to indemnities,
                                                          guaranties, other policies of insurance or bonds,
                                                          notwithstanding any terms or conditions contained in
                                                          those instruments which provide for subrogation rights
                                                          by reason of this policy.
1970 ALTA OWNERS                1992 ALTA OWNERS                                       2006 ALTA OWNERS                                       COMMENTS


                                     14. Arbitration                                        14. Arbitration

                   Unless prohibited by applicable law, either the             Either the Company or the Insured may           The arbitration provision in the 1992 policy
                   Company or the insured may demand arbitration               demand that the claim or controversy shall      was added in an effort to provide a speedier
                   pursuant to the Title Insurance Arbitration Rules of the    be submitted to arbitration pursuant to the     and cost effective manner to resolve claims
                   American Arbitration Association. Arbitrable matters        Title Insurance Arbitration Rules of the        under the policy.
                   may include, but are not limited to, any controversy or     American Land Title Association (“Rules”).
                   claim between the Company and the insured arising out       Except as provided in the Rules, there shall    The 2006 policy provides that the rules of
                   of or relating to this policy, any service of the           be no joinder or consolidation with claims or   arbitration are those rules set out on the
                   Company in connection with its issuance or the breach       controversies of other persons. Arbitrable      ALTA website (www.alta.org) as opposed to
                   of a policy provision or other obligation.                  matters may include, but are not limited to,    the AAA rules. The 2006 policy also states
                                                                               any controversy or claim between the            that arbitration is limited to only those parties
                                                                               Company and the Insured arising out of or       that are a party to the insurance contract.
                                                                               relating to this policy, any service in         There can be no joinder or consolidation with
                                                                               connection with its issuance or the breach of   claims of third parties.
                                                                               a policy provision, or to any other
                                                                               controversy or claim arising out of the
                                                                               transaction giving riseto this policy.


                   All arbitrable matters when the Amount of Insurance is      All arbitrable matters when the Amount of       The 1992 policy states that either the Insurer
                   $1,000,000 or less shall be arbitrated at the option of     Insurance is $2,000,000 or less shall be        or the Insured may request arbitration when
                   either the Company or the insured. All arbitrable           arbitrated at the option of either the          the Amount of Insurance is $1,000,000 or
                   matters when the Amount of Insurance is in excess of        Company or the Insured. All arbitrable          less. If the Amount of Insurance exceeds
                   $1,000,000 shall be arbitrated only when agreed to by       matters when the Amount of Insurance is in      $1,000,000, both the Insurer and the Insured
                   both the Company and the insured. Arbitration               excess of $2,000,000 shall be arbitrated only   must agree to arbitration.
                   pursuant to this policy and under the Rules in effect on    when agreed to by both the Company and
                   the date the demand for arbitration is made or, at the      the Insured. Arbitration pursuant to this       This provision was modified in the 2006
                   option of the insured, the Rules in effect at Date of       policy and under the Rules shall be binding     policy. The 2006 policy increases the
                   Policy shall be binding upon the parties. The award         upon the parties. Judgment upon the award       Amount of Insurance threshold from
                   may include attorneys' fees only if the laws of the state   rendered by the Arbitrator(s) may be entered    $1,000,000 to $2,000,000 wherein either the
                   in which the land is located permit a court to award        in any court of competent jurisdiction.         Insured or the Insurer can unilaterally send a
                   attorneys' fees to a prevailing party. Judgment upon the                                                    controversy to arbitration.
                   award rendered by the Arbitrator(s) may be entered in
                   any court having jurisdiction thereof.
             1970 ALTA OWNERS                                           1992 ALTA OWNERS                                      2006 ALTA OWNERS                                        COMMENTS


                                                           The laws of the situs of the land shall apply to an                                                          This provision was eliminated in the 2006
                                                           arbitration under the Title Insurance Arbitration Rules.                                                     policy because the rules, and the choice of
                                                                                                                                                                        forum are set forth at the ALTA website.
                                                           A copy of the Rules may be obtained from the
                                                           Company upon request.




                                                            15. Liability Limited to this Policy; Policy              15. Liability Limited to this Policy;
      12. Liability Limited to this Policy
                                                                          Entire Contract                                   Policy Entire Contract



This instrument together with all endorsements and         a. This policy together with all endorsements, if any,     (a) This policy together with all                 The 1992 policy added a provision that states
other instruments, if any, attached hereto by the          attached hereto by the Company is the entire policy and    endorsements, if any, attached to it by the       that in interpreting any provision of the
Company is the entire policy and contract between the      contract between the insured and the Company. In           Company is the entire policy and contract         policy the policy should be construed as a
insured and the Company.                                   interpreting any provision of this policy, this policy     between the Insured and the Company. In           whole. There are no significant differences
                                                           shall be construed as a whole.                             interpreting any provision of this policy, this   between the 1992 policy and the 2006 policy.
                                                                                                                      policy shall be construed as a whole.

Any claim of loss or damage, whether or not based on       b. Any claim of loss or damage, whether or not based       (b) Any claim of loss or damage that arises
negligence, and which arises out of the status of the      on negligence, and which arises out of the status of the   out of the status of the Title or by any action
title to the estate or interest covered hereby or any      title to the estate or interest covered hereby or by any   asserting such claim, shall be restricted to
action asserting such claim, shall be restricted to the    action asserting such claim, shall be restricted to this   this policy.
provisions and conditions and stipulations of this         policy.
policy.

No amendment of or endorsement to this policy can be       c. No amendment of or endorsement to this policy can       (c) Any amendment of or endorsement to
made except by writing endorsed hereon or attached         be made except by a writing endorsed hereon or             this policy must be in writing and
hereto signed by either the President, a Vice President,   attached hereto signed by either the President, a Vice     authenticated by an authorized person, or
the Secretary, an Assistant Secretary, or validating       President, the Secretary, an Assistant Secretary, or       expressly incorporated by Schedule A of this
officer or authorized signatory of the Company.            validating officer or authorized signatory of the          policy.
                                                           Company.

                                                                                                                      (d) Each endorsement to this policy issued at     Subsection 15(d) of the Owner's Policy was
                                                                                                                      any time is made a part of this policy and is     added to make clear that any endorsement to
                                                                                                                      subject to all of its terms and provisions.       the policy is a part of the policy and subject
                                                                                                                      Except as the endorsement expressly states,       to all of the terms and conditions contained in
                                                                                                                      it does not (i) modify any of the terms and       the policy.
                                                                                                                      provisions of the policy, (ii) modify any
                                                                                                                      prior endorsement, (iii) extend the Date of
                                                                                                                      Policy or (iv) increase the Amount of
                                                                                                                      Insurance.
1970 ALTA OWNERS                1992 ALTA OWNERS                                      2006 ALTA OWNERS                                        COMMENTS


                                     16. Severability                                      16. Severability

                   In the event any provision of the policy is held invalid   In the event any provision of this policy, in     The 1992 policy added a severability
                   or unenforceable under applicable law, the policy shall    whole or in part, is held invalid or              provision not found in the 1970 policy.
                   be deemed not to include that provision and all other      unenforceable under applicable law, the           There are no significant differences between
                   provisions shall remain in full force and effect.          policy shall be deemed not to include that        the 1992 and the 2006 policy, other than the
                                                                              provision or such part held to be invalid and     clarification in the 2006 policy that the
                                                                              all other provisions shall remain in full force   provision applies even when only a portion of
                                                                              and effect.                                       a provision has been declared invalid or
                                                                                                                                unenforceable.

                                                                                    17. Choice of Law; Forum

                                                                              (a) Choice of Law: The Insured                    The 2006 policy adds a “choice of law”
                                                                              acknowledges the Company has                      provision. The ALTA determined that this
                                                                              underwritten the risks covered by this policy     provision would be beneficial to all parties
                                                                              and determined the premium charged                given the increased number of national and
                                                                              therefore in reliance upon the law affecting      international transactions. The law of the
                                                                              interests in real property and applicable to      situs of the land described in the transfer
                                                                              the interpretation, rights, remedies or           document or mortgage will govern the
                                                                              enforcement of policies of title insurance of     interpretation, rights, and remedies under the
                                                                              the jurisdiction where the Land is located.       policy.


                                                                              Therefore, the court or an arbitrator shall
                                                                              apply the law of the jurisdiction where the
                                                                              Land is located to determine the validity of
                                                                              claims against the Title that are adverse to
                                                                              the Insured, and in interpreting and
                                                                              enforcing the terms of this policy. In neither
                                                                              case shall the court or arbitrator apply its
                                                                              conflicts of laws principles to determine the
                                                                              applicable law.
                                                                              b) Choice of Forum: Any litigation or other       The “Choice of Forum” provision, introduced
                                                                              proceeding brought by the Insured against         in the 2006 policy, confirms that any
                                                                              the (Company must be filed only in a state or     litigation or other proceeding brought by an
                                                                              federal court within the United States of         Insured against the Insurer must be brought
                                                                              America or its territories having appropriate     in a state or federal court within the United
                                                                              jurisdiction.                                     States or its territories, provided, of course,
                                                                                                                                the court has jurisdiction over the matter at
                                                                                                                                issue.
              1970 ALTA OWNERS                                             1992 ALTA OWNERS                                      2006 ALTA OWNERS                                      COMMENTS


             13. Notices, where sent                                      17. Notices, where sent                               18. Notices, where sent

All notices required to be given the Company and any          All notices required to be given the Company and any       Any notice of claim and any other notice or     There are no significant changes in any of the
statement in writing required to be furnished the             statement in writing required to be furnished the          statement in writing required to be given the   policies. Note, that the first page of the new
Company shall be addressed to it at its main office at        Company shall include the number of this policy and        Company under this Policy must be given to      policy has a provision that instructs the
[fill in address of Insurer], or to the office which issued   shall be addressed to the Company at [fill in address of   the Company at [fill in].                       Insured to this provision in the policy.
this policy.                                                  the Insurer], or to the office which issued this policy.

				
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