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COVERED RISKS(Continued)
<br /> 9. Title being vested other than as stated in Schedule A or being defective (i) to be timely,or
<br /> (a) as a result of the avoidance in whole or in part,or from a court order (i)to impart notice of its existence to a purchaser for value or to
<br /> providing an alternative remedy,of a transfer of all or any part of the a judgment or lien creditor
<br /> title to or any interest in the Land occurring prior to the transaction 1€1. Any defect in or lien or encumbrance on the Title or other matter included
<br /> vesting Title as shown in Schedule A because that prior transfer in Covered Risks 1 through 9 that has been created or attached or has
<br /> constituted a fraudulent or preferential transfer under federal bank- been filed or recorded in the Public Records subsequent to Date of Policy
<br /> ruptcy,slate insolvency,or similar creditors'rights laws;or and prior to the recording of the deed or other instrument of transfer in the
<br /> (b) because the instrument of transfer vesting Title as shown in Schedule Public Records that vests Title as shown in Schedule A.
<br /> A constitutes a preferential transfer under federal bankruptcy, state The Company will also pay the costs,attorneys'fees,and expenses incurred
<br /> insolvency,or similar creditors'rights laws by reason of the failure of in defense of any matter insured against by this Policy,but only to the extent
<br /> its recording in the Public Records provided in the Conditions
<br /> EXCLUSIONS FROM COVERAGE
<br /> The following matters are expressly excluded from the coverage of this policy, (b) not Known to the Company, not recorded in the Public Records at
<br /> and the Company will not pay loss or damage costs, attorneys' fees, or Date of Policy,but Known to the Insured Claimant and not disclosed
<br /> expenses that arise by reason of. in writing to the Company by the Insured Claimant prior to the date
<br /> 1. (a) Any law, ordinance, permit, or governmental regu)ation (including the Insured Claimant became an Insured under this policy,
<br /> those relating to building and zoning)restricting regulating,prohibit- (c) resulting in no loss or damage to the Insured Claimant;
<br /> ing.or relating to (d) attaching or created subsequent to Date of Policy(however,this does
<br /> (i) the occupancy,use.or enjoyment of the Land, not modify or limit the coverage provided under Covered Risk 9 and
<br /> (ii) the character, dimensions, or location of any improvement 10);or
<br /> erected on the Land; (e) resulting in loss or damage that would not have been sustained if the
<br /> (iii) the subdivision of land;or Insured Claimant had paid value for the Title.
<br /> (iv) environmental protection; 4. Any claim,by reason of the operation of federal bankruptcy,state insolvency,
<br /> or the effect of any violation of these laws,ordinances.or governmental regu- or similar creditors' rights laws, that the transaction vesting the Title as
<br /> lations. This Exclusion 1(a) does not modify or limit the coverage provided shown in Schedule A,is
<br /> under Covered Risk 5. (a) a fraudulent conveyance or fraudulent transfer;or
<br /> (b) Any governmental police power.This Exclusion 1(b)does not modify (b) a preferential transfer for any reason not stated in Covered Risk 9
<br /> or limit the coverage provided under Covered Risk S. of this policy.
<br /> 2. Rights of eminent domain. This Exclusion does not modify or limit the 5. Any lien on the Title for real estate taxes or assessments imposed by
<br /> coverage provided under Covered Risk 7 or B. governmental authority and created or attaching between Date of Policy
<br /> 3 Defects,liens,encumbrances,adverse claims,or other matters and the date of recording of the deed or other instrument of transfer in the
<br /> (a) created,suffered,assumed.or agreed to by the Insured Claimant; Public Records that vests Title as shown in Schedule A.
<br /> CONDITIONS
<br /> 1. DEFINITION OF TERMS Insured named in Schedule A for estate planning
<br /> The following terms when used in this policy mean: purposes-
<br /> (a) "Amount of Insurance':The amount stated in Schedule A,as may be (ii) Wan regard to(A),(B),(C),and(D)reserving,however,all rights
<br /> increased or decreased by endorsement to this policy,increased by and defenses as to any successor that the Company would
<br /> Season 8(b). or decreased oy Sections 10 and 11 of these have had against any predecessor Insured.
<br /> Conditions. (e) "insured Claimant":An Insured claiming loss or damage.
<br /> (b) "Date of Policy':The date designated as"Date of Policy'in Schedule A- {f) "Knowledge"or"Known":Actual knowledge,not constructive know-
<br /> (c) "Entity':A corporation,partnership,trust,limited liability company,or ledge or notice that may be imputed to an Insured by reason of the
<br /> other similar legal entity. Public Records or any other records that impart constructive notice
<br /> (d) "Insured":The Insured named in Schedule A. of matters affecting the Title.
<br /> (i) The term"Insured"also includes (g) "Land".The land described in Schedule A.and affixed improvements
<br /> that by law constitute real property. The term "Land' does not
<br /> (A) successors to the Title of the Insured by operation of law include any property beyond the lines of the area described in
<br /> as distinguished from purchase,including heirs,devisees. Schedule A,nor,any right,title,interest.estate,or easement in abutting
<br /> survivors,personal representatives,or next of kin; streets,roads,avenues,alleys,lanes,ways,or waterways,but this
<br /> (B) successors to an Insured by dissolution, merger, con- does not modify or limit the extent that a right of access to and from
<br /> solidation,distribution,or reorganizatlw the Land is insured by this policy.
<br /> (C) successors to an Insured by its conversion to another (h) "Mortgage": Mortgage, deed of trust, trust deed, or other security
<br /> kind of Enbly; instrument,including one evidenced by electronic means authorized
<br /> (D) a grantee of an Insured under a deed delivered without by law.
<br /> payment of actual valuable consideration conveying the (i) "Public Records":Records estabfished under state statutes at Date
<br /> Title of Policy for the purpose of imparting constructive notice of matters
<br /> (1) if the stock shares, memberships, or other equity relating to real property to purchasers for value and without Know-
<br /> interests of the grantee are whoity-awned by the ledge. With respect to Covered Risk 5(d), "Public Records" shall
<br /> named Insured, also include environmental protection liens filed in the records of the
<br /> clerk of the United States District Court for the distract where the
<br /> (2) if the grantee wholly owns the named Insured, Land is located.
<br /> (3) if the grantee is wholly-owned by an affiliated Entity {j) "Title":The estate or interest described in Schedule A.
<br /> of the named Insured, provided the affiliated Entity
<br /> and the named insured are both w tiolty-owned by the (k) "Unmarketable Title":Title affected by an alleged or apparent matter
<br /> same person or Entity,or that would permit a prospective purchaser or lessee of the Title or
<br /> lender on the Title to be released from the obligation to purchase,
<br /> (4) if the grantee is a trustee or beneficiary of a trust lease. or lend of there is a contractual condition requiring the delivery
<br /> created by a written instrument established by the of marketable title.
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