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(a) The extent of liability of the Company for loss or damage under this 14. ARBITRATION
<br /> policy shall not exceed the lesser of Either the Company or the Insured may demand that the claim or
<br /> (i) the Amount of Insurance;or controversy shall be submitted to arbitration pursuant to the Title
<br /> (ii) the difference between the value of the Title as insured and the Insurance Arbitration Rules of the American Land Title Association
<br /> value of the Title subject to the risk insured against by this policy. ("Rules') Except as provided in the Rules, there shall be no joinder or
<br /> (b) If the Company pursues its rights under Section 5 of these Conditions consolidation with claims or controversies of other persons. Arbitrable
<br /> and is unsuccessful in establishing the Title,as insured, matters may include, but are not limited to, any controversy or claim
<br /> (i) the Amount of Insurance shall be increased by 10%,and between the Company and the Insured arising out of or relating to this
<br /> (ii) the Insured Claimant shall have the right to have the loss or policy, any service in connection with its issuance or the breach of a
<br /> damage determined either as of the date the claim was made by policy provision, or to any other controversy or claim arising out of the
<br /> the Insured Claimant or as of the date it is settled and paid. transaction giving rise to this policy.All arbitrable matters when the Amount
<br /> (c) In addition to the extent of liability under(a)and(b).the Company will of Insurance is $2.000,000 or less sha€t be arbitrated at the option of
<br /> also pay those costs. attorneys' fees. and expenses incurred in either the Company or the Insured.Ail arbitrable matters when the Amount
<br /> accordance with Sections 5 and 7 of these Conditions. of insurance is in excess of$2,000,1)00 shall be arbitrated only when
<br /> agreed to by both the Company and the Insured.Arbitration pursuant to
<br /> 9. LIMITATION OF LIABILITY this policy and under the Rules shall be binding upon the parties.Judgment
<br /> (a) If the Company establishes the Title.or removes the alleged defect, upon the award rendered by the Arbitrator(s) may be entered in any
<br /> lien,or encuftrance,or cures the lack of a right of access to or from court of competent jurisdiction.
<br /> the Land,or cures the claim of Unmarketable Title,all as insured,in
<br /> a reasonably diligent manner by any method,including litigation and 15. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT
<br /> the completion of any appeals,it shall have fully performed its obli- (a) This policy together with all endorsements,if any, attached to it by
<br /> gallons with respect to that matter and shat€not be liable for any loss the Company is the entire policy and contract between the Insured
<br /> or damage caused to the insured. and the Company. In interpreting any provision of this policy, this
<br /> (b) In the event of any litigation,including litigation by the Company or policy shall be construed as a whole.
<br /> with the Company's Consent,the Company shall have no liability for (b) Any claim of loss or damage that arises out of the status of the Title
<br /> foss or damage until there has been a final determination by a court or by any action asserting such claim shall be restricted to this policy.
<br /> of competent junsdiction,and disposition of all appeals,adverse to (c) Any amendment of or endorsement to this policy must be in writing
<br /> the Title,as insured. and authenticated by an authorized person,or expressly incorporated
<br /> (c) The Company shall not be liable for loss or damage to the Insured for by Schedule A of this policy.
<br /> liability voluntarily assumed by the Insured in settling any claim or (d) Each endorsement to this policy issued at any time is made a part of
<br /> suit without the prior written consent of the Company this policy and is subject to all of its terms and provisions.Except as
<br /> the endorsement expressly states,it does not(t)modify any of the
<br /> 10 REDUCTION OF INSURANCE; REDUCTION OR TERMINATION terms and provisions of the policy.(ii)modify any prior endorsement,
<br /> OF LIABILITY (iii)extend the Date of Policy,or(iv)increase the Amount of Insurance.
<br /> All payments under this policy,except payments made for costs,attorneys'
<br /> fees,and expenses,shalt reduce the Amount of Insurance by the amount 16 SEVERABILITY
<br /> of the payment. In the event any provision of this policy,in whole or in part,is held invalid
<br /> or unenforceable under applicable law,the policy shall be deemed not to
<br /> 11. LIABILITY NONCUMULATIVE include that provision or such part held to be invalid,but all other provisions
<br /> The Amount of Insurance shall be reduced by any amount the Company shall remain in full force and effect.
<br /> pays under any policy insuring a Mortgage to which exception is taken in
<br /> Schedule B or to which the Insured has agreed, assumed, or taken 17 CHOICE OF LAW;FORUM
<br /> subject,or which is executed by an Insured after Date of Policy and which (a) Choice of Law: The Insured acknowledges the Company has
<br /> is a charge or lien on the Title,and the amount so paid shall be deemed a underwritten the risks covered by this policy and determined the
<br /> payment to the insured under this policy. premium Charged therefor in reliance upon the law affecting interests
<br /> in real property and applicable to the interpretation,rights,remedies,
<br /> 12. PAYMENT OF LOSS or enforcement of policies of title insurance of the jurisdiction where
<br /> When liability and the extent of loss or damage have been definitely fixed the Land is located.
<br /> in accordance with these Conditions,the payment shall be made within 30 Therefore,the court or an arbitrator shall apply the law of the juris-
<br /> days. diction where the Land is located to determine the validity of claims
<br /> against the Title that are adverse to the Insured and to interpret and
<br /> 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT enforce the terms of this policy. In neither case shall the court or
<br /> (a) Whenever the Company shall have settled and paid a claim under arbitrator apply its Conflicts of law principles to determine the appli-
<br /> this policy, it shall be subrogated and entitled to the rights of the cable law.
<br /> Insured Claimant in the Title and all other rights and remedies in (b) Choice of Forum:Any litigation or other proceeding brought by the
<br /> respect to the claim that the Insured Claimant has against any person Insured against the Company must be filed only in a state or federal
<br /> or property,to the extent of the amount of any loss,costs,attorneys' court within the United States of America or its territories having
<br /> fees and expenses paid by the Company. If requested by the appropriate jurisdiction.
<br /> Company,the Insured Claimant shall execute documents to evidence
<br /> the transfer to the Company of these rights and remedies. The 18. NOTICES,WHERE SENT
<br /> Insured Claimant shall permit the Company to sue,compromise,or Any notice of claim and any other notice or statement in writing required 10
<br /> settle in the name of the Insured Claimant and to use the name of the be given t0 the Company under this policy must be given to the Company
<br /> Insured Claimant in any transaction or litigation involving these rights at Claims Department,Pro.Box 2029,Houston,Texas 77252-2029
<br /> and remedies.
<br /> If a payment on account of a claim does not fully Cover the loss of the
<br /> Insured Claimant,the Company shall defer the exercise of its right to
<br /> recover until after the Insured Claimant shall have recovered its loss.
<br /> (b) The Company's right of subrogation includes the rights of the Insured
<br /> to indemnities, guaranties, other policies of insurance, or bonds,
<br /> notwithstanding any terms or conditions contained in those instru-
<br /> ments that address subrogalion rights.
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