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P-109 (2).___ ~_ ; . ,- _~, ~~~~.:~~, ~~E ~~~ . . . _As. ~~~~ ~ ~ -. ~- ~'~ ~re . /~ ~ w. ~. 53036 -,~~~ ;'~~ ~ c. s The PACIFIG Ei~CTRIC Ft~II~?AY CC,B~PAI~tY, a eorporation organized ta~der the la~s ef the 3tate of Gali~or~i.a, aad having its principal place of business in the L`ity of I~os Angele~, wtate o.~ California, t2~e part~r of the tisst parta does herebp ~raxr~ to ~ CITY Q~ SANTA ~{~dIGA, a mucsi.cipal corporat.3.on of tYbs State of California, the party of the second part, all that rsal property situatad irs the Cit~ of Saz~ta ~onica, C,aunty af Loe .Angeles~ State of Califoraia, deseMbed as feLlvws: ~~, PAFtCEL 1: ~ots 1 and 23 and the nor~heaster],v 5 feet cP lcts 2 and 21a. irs block nD" of the Centxal Be$ch `1'raet~ in the city af Sa,nta ~tonica, cotmty c+f ~os Atigeles ~ state of ~alifcrnia, as psr ~ap reeorded ~.n boek 7g i~ges 77 and 78 of ~3.scellaneoas ~ecord~ in the a#Yiae of the cozutty recc~rder of said county, PARCEL lAs The snuth~ester3y 20 feet of lats 2 aad 2t~.~ hlock "D" of the Central Bea~h R`ract, in the eity' e~f Ssata 9~onica~ cour~ty of Lo~ Angeles, state of Ca.lifcrnia, as per map recerded 3n baok '7~ I~Be 77 oP 3diseellanaous Bscords~ ~.n the csf~ice oP the cotatsty recorder cY said cot~ty. ~'S~ that portion of the northwest half of (~and Avenue as s~~ on said map xhich aci,jcins ~aid sontY~esterly 2Q Peet of sa3d l,~t ?Ja.. PAR,CLI~ 18: The northeaster7y 5 feet of lotg 3 aud ~5 3.a block "D~ 3a the Ceatral Beaeh 'i'raet, in the city oP Santa ~fon3.ca, couat~ of Los Angeles, sta~e of California~ as per map reeorded 3n book 7~ pages 7? ~d 78 of ~iseel- laneous Recorda in tba oifice of t~ conatg recorder of saia eottrny'. AIS(? that portion of the nort~esterl~ hal.~ of ~and Av~rnie as sho~ on said mag ~rhich ad,jo3.n~ said northessterly 5 feet of saa.d lat z5. . PAEtGE~, 2A: The northeasterly 30 feet ~f ltits 43 ~d 54 cf tha t~cean ~ave 3'ract, ~.n the eity af Sayata ~oniaa, caunt,p of Los Ange2es and state of Galifo~.a~ as p~r map recorded in book 84 page 1 of ~is~e7:1ane4us ~eeflrds in tk~e affice of the count~ reeorder of said eoUnty. kI.SQ that portion of ~d A~er~ue,/~0 feet veids, as sho~m on $aid map and that~ pertion of t,~ra 20 fQOt a11e3r 1:Ting betvrean said 2ots, as sho~rn on sa.id map rhich ad,~oins those port3.ons of the atao~a described lots• P~tG'~L 2B: The nortl~aaterl3r 25 feet of lot~ 41 and ~2 and th~ south~esterly 10 feet csf lots 1+3 e,nd 54 of the dceaa ~Fave Tract, 3n the cit~ of Saata 3~on3.ca, co~ty cf Los Angales, st~te of ealifozni.a, as per map reaorded in book 81~, page 1 oP ~3.see1laaeous Rscords in the o~fice cY the county recorder of said ~ounty. ~ ~ ~ .~ .~ ^i` .-~. ~-~~~~3:~ ~~ ~~ ALSf} that portion of the southeast,er2~r Fialf' di t~and Aven~e and that pc~rtion of 'the 20 foot al.~.ey ly~.ng betr~een said lots as stx~~ on said map ~hich ad~oirt those portioas of the above deseribed lots. FARC~L 3s Lota 29, 28 and the uortl~easterl~ 15 feet of le~t 27 of ~cear~~'ark Tract, in the eity of Santa ~nica, conn~y of I,css_Angeles, state of California, as per map recorded ia bc,ok ?2 page 18 of ~isee7laneous &ecords, in the office of the county~ re~orcter o~ said cso~tg. EXCEPTING Yrom lot 2Q, that partion included ~'3.thin the ],atxd desc~.bsd in the deed frors Los ~Ange]as Pacific Com~y to the Gity of Santa ~nica, recorded on FebrUa~ry 15, 190q as ~nstxunent ~a. 215 in book 36l}8 page 22 oP Desda, for the earteasion of St~,rf Street and ~ill Street. PAFtG~ !~s That pcrt3.on a~ the IiancY~ La Ba]1ona, in ths citg of Sastta ~onica, cotinty of 7~os Ange2es, state of Ca]3farm3.a, described ae fo].l.o~s: That portian of the 3t~ foot strip of land marked "Lcs Angeles Paci~3.e ~lectric R. R. &ight of ~ay~ an the map ot.the Cresceat Bay 3'ract, r~corded 3.a b+ook 2 pages 13 and 1G. at mape, in the oPPieg of the caunt~ recorder of said eot~rrt~, e~ctenrling fram the aartheasterly prolongat.ion oP the north'resterly liae of ~'ier Avenue, as sh~~m on said raap, tc~ tYie northeasterly p~olongation af the center line of the ?A foct al].ay ad~o3.nin,g block 2 of said Crescent Bay Traet oa the northwe9t. EXCLPTI~G there~re~a ~tho~e portia~s thereoY nov~ inclucied ~ittxi~ the lines o~ Snrf ~trset, Hi11 Strest antl Ashland Avenue, as deseribed ia the deed ~rom I~os Angeles Pacific Ccampar~y, to the City~ af Saniya ~doniea, recorded on Febx~ary 15, 19fJ9 as Instr~nent Na. 2I.5 in boak 361~8 page 22 of Daeds. ALS4 EX~EPTING tha.t portian ineluded with3.n F'ier Avenne, concle~ed for the v~ide~ing of Pier Aveaue by fina.l decree of candemaation entered ia Case Ato. $4$26, Superior Court, a cart3.tied copy~ thereof being recc~rded i~ book 556~ P~Se 139 of I:?eed3, AF~St~ ~CC,~P`PIRTG tl~.t por~.ion incZuded ~ritY~in. Kinney Avenue con~ed b3~ final decree of eondemnation en~t,ered in Case AiQ. 292227 5uperior Court, a eertified eopy theraof being reeorded in book 311i.35 Fage 259, ~~ficial, ~ecord~ of said co~tntg. PARC]~L 5= ~. atrip 0f ].aad 25 feet in vai.dth immediate],p ad- 3oinin~ the ri~t of ~ay of the Lcss Angeles & Paeifie Fiai.l,- road Canpauy of Ga73foraia, recorded in baok 15~A page 11l~ of I~sd3, in the offiae o~ the county raeorder of said co~tnty, o~ the vrestar3,g~ or ocean side ~hareo~', be3rtg a strip throu~.i the Crescer~t Ba~y~ Tract, i.r~ the citg of 3suta ~do~.i.ca, ~ocu~t~ of I,~s ~ngeles, state of Galifornia, as per map recc~rded i.n book 2 pa~es 13 an,d 14 ef ~a.ps ~ iri the o~fiee of the cat~tty recorder of sa3d eounty, and being 7.c>'t 54. in block 2, lot~ 53 and 54 ~ block 3, lots lFti arr~d 55 in b]ACk k, lots 43 and 1~. in bl~oc~c 5 ana 1at t+5 ixi block 6 of said Creseeat Ba~ Tract. ~2~ ~ - - - _ ~ . ,, J .- .' ~ -~ ~~fJK~~~s~?~. ~AGE ~~~ . '~ AIS(~ that portion csf the southea~terly 10 feet of 3urf Plaeey at~d ~hose port3ons of H3.}1 3treet, Hi71 Place, Fta..ymond Aveune, Raymond Pla~ce and Ashland Py.ace and K3aae~r Plece, as shoro+n on said map ~hic~ ac~joia said lcts. PARCEI, 6: ~t~at port3.on of the ~aricho I~a Ba1.]..ana, ia the city of Sauta ~n3.ea, eAUnty of Las Ange]ss, state of Ca]iforz~.a, described as Yollc~vr~: That portion of .ttie 30 foot strip of ].and marked ~I+os Angeles & Pacific Electric Cots Ri~t of 6Yag" on the map of the Re- p1a~ of ttse Bay Vis~ Tract~ recorded in book 1 pages 1 arxi 2 af l~aps~ iri tl~a off3.ce of the county recorder of said couctty, extending fram the southesater].p boundarg line oY the citg of Santa ~oniea to the northeas~eriy~p~o].c~ngation of the south- ; eassterly line of ~'ier dveaue, as sho~m on said map. EXG~.fiPTING thereYrasm tbat portion thereof zyow iacluded ~rit~in the liz~es of 3~arine utreet as describsd in th~ deed Yz~cam I.os Angeles Pacific Ra3.lroad Gv~patay, to tl~ Gity cf Sant,a ~nica, recc>rded on Sept~ber 28, 1q~3 as Inatr~-ent &o. ~.U6 in baok 1901 Fa88 153 0~ Deeds, ALSQ ~CEP'rING t,hat portion 3xie7uded vei~thin Pier Aver~ue~ co~- de~ed for the ~3.danisig of pi.er Avenue by Sina3 decree of eoads~tna.tiors eatered iti Case No, 8/~.g26 Sup~ior Caurt, a certifi~d copy thereof being recarded 3.n bc~ols 55b8 pa8e 139 of Deeds. PARC~I. ?s That portion of the 25 foot str3.p of land marload "~ie~exwed Strip~ on the map of the Replat AP t}~e Bay Vie~ '1'z~act, 3n the dty of San~a. ~oz~.ca.~ co~ty oP Lus ~ugales at,ate of Cal~~arza3.a, as per map recorded in boer~ 1 page~ ~l a~-d 2 of ~ags~ 3.u the c~'fice of the co~~ reeorder of said cotur~g, extea~d9rig fro~a the southeasterly bonndasy ]ine of' the Citg of Santa E~onica, tti the northeasterlg ~o3ongat3on of the northa~esterl.y 13ne of lat t~la. in blcek 9 af said traet. FXCEPTING there~om ttiat portion thereof no~ ixtel~zded wi.thin the lines of ~e Street, as descr3.bed isi the dsed fxrom ~ An~elas, Ocean Park and Santa l€onica Railway ~pa~,g~ t+~ ths Gity af Santa ~donica, recorded on Septecaber 2$, 19t?3i as Instrv~nsnt No. 1~5 in boc>k 1$97 I~b"~ ~+ of IDeeds. AISO ~XGEPTEN~ that portion included within Pier Aver~ue can- de~n~d ~or the ~sidenirag of Fi~ Aeen~e, by f3sia7. decree of eond~nnation enterc~d is~ Case ~o. 8ta.8?6, 5upericrr Gourt, a eertiYied copy thereef bein~g recorded 3.n bock ~5b8 page ],39 of Deeds. EXt~PTII~~r at~d resex~ing, hawever, to the 4antc+r, its snccessors and assi~s, forever, the title and exeiusive r~.~t ~o all of tY~ minera7.~ and mineral ora~ of every kind and chasacter no~ i~owm t~,c3 exi.st cr hereafter cU.scovered upon, witl~3n or under],pi.ng said land or that may be produced tt~refram 3.ncludi.ng, v~thaut ].imiting the ~enerality oY the forego3ag, aI1 petrole~, oil, natural gas arni other hydroaarbon substances and products derived t~ierefx~am~ together w3.th tY~ excl~sive aaid perpetctal right oY said t~ant~r~ its suecessors and assi~r-s, of ir~ess a.nd egrsss beneatt~ss tha st~face cf ~aid 7and ta explore fcr, e~raet, mine and r~ove the sa~e, azsd ~o malm snch use of tha ~aid land beneatl~ the surfacs as is necessarg or ~sefnl in eonnection there~ith, which ~.se may ineS~ide Iateral or alaz~t drilLi.n~s di~~i~g, bor3.ngs or s~g oY well.a, _3.. ~v _ . , . _ r'i °;';- Qc~4~~~~ ~AG~ ~'~ shafts ar tvnns]s; pQ°ovided t~erevsr, ~hat sai,d ~antor, its s~zecsssors and assigas, shall not usa the sur~aca oY said land is the e~rai~e;~~ ang of aaid rights aad sha11 r~t disttiu°b the surtace oY said lesd ~r a~p impmave~~rts the~a ~r r~vs or i~xpa5s~ the lateral or sub~acen~ stappox~t c~f aaid land or atiy iml~rwvffies~s therean.. Grantc>rs are ree~ervir~g fY~crs~tage right.~ to aaid ~operty ~ittain tbs ~olongation of Graad Ave~usa t~^and P]ace, Surf 3treet, ~ixusey Pla.ce and jEsrine. Place, noa°t~heasterly, StTB~CT to easements, restr3.e~,ioxi~, reserv'ations~ coxuli:tions aad cwex~,nts o~ record and to ta~es for the fiscal ypar 195Q-51 a~d subseqt~t 3rears. The above des~ribed land hereby ca~eyad is ncst nacessarg or u~fu7. ~.n the perPo~ance of tho duties of said first~~t~ ~o t,he pu~lie, IN ~I3'NFS~S ~fIA~iEf1F' the ~ai.d ~y 'of the first paxt has heretanto caused its corpcsrate name aiui seal t~c~ be affixed b~ its ~'resit~e~ and ~3ecratary, thereunto du7.p authorized this~~ day o~~ ber ' 19 53 . PdCI~TG ~l~ ' ,~idY>' ~ . , " ~~Fi~+a`t:s~ H~ Tai ~;u~"s:iaTi0ld ~~ .~eeicle ~t ""; .. _._____.._._..__L.>_= s~----- z9 ~ ~ ~: ~ r„~~. /'.%v :, , /~._ ~. _~ u y bh > _ , ~..m._,,.~.!f,'=-S- "~'~""~ :'~~j~?~L -l . ~ .. ~ GITY k'Nt:iR:E£~ ~ ...~ ~~~~ ~~ . Assis~ant Setex~eta~'y' "` ACKNOWLEDGMENT - GORP. - PRES. @ SBC. - WoLCOTiS FOrtM 226 - REV. 72•51~~„ p,. B., __.. j ,497.03 ~ ~ ~ <:i i` r. _. ~ -~ ~ r"' - :~ 1012 6-53 California Land Title Association Sfandard Coverage Policy Form Copyri9ht 1950 .~ . l./ Fee $ ~ 7 ~-~; L: ~ POLICY OF TITLE INSLTRANCE ISSUED BY TITLE INSURANCE AND TRUST COMPANY OF LOS ANGELES Title Insurance and Trust Company, a corporation, of Los Angeles, California, herein called the Com- pany, for a valuable consideration paid for this policy of title insurance, the number, date, and amount of which are shown in Schedule A, does hereby insure the parties named as Insured in Schedule A, together with the persons and corporations included in the definition of "the insured" as set forth in the stipulations of this policy, against loss or damage not exceeding the amount stated in Schedule A which the insured shall sustain by reason of : l. Title to the land described in Schedule A being vested, at the date hereof, otherwise than as herein stated; or 2. Unmarketability, at the date hereof, of the title to said land of any vestee named herein, unless such unmarketability exists because of defects, liens, encumbrances, or other matters shown or referred to in Schedule B; or 3. Any defect in, or lien or encumbrance on, said title, existing at the date hereof, not shown or referred to in Schedule B; or 4. An}' defect in the execution of any mortgabe or deed of trust shown in Schedule B securing an indebtedness, the owner of which is insured by this policy, but only insofar as such defect affects the lien or charge of such mortgage or deed of trust upon said land; or 5. Priorit~•, at the date hereof, o~~er any such mortga~e or deed of trust, of any lien or encumbrance upon said land, except as shown in Schedule B, ~uch mortgage or deed of trust bein~ ~how-n in the order of its priority in Fart Two of Schedule B; all subject, however, to Schedules A and B and the Stipulations herein, all of which schedules and stipulations are hereby made a part of this policy. In Witness l~hereof, Title Insurance and Trust Company has caused its corporate name and seal to be hereunto afTixed by its duly authorized officers on the date shown in Schedule A. TITLE INSURANCE AND TRUST COMPANY hy '7y `~'~~~,~~ ~~.~-~G.~+ ~} PRESIDENT ~I~~~~¢^'` ~~~~d~~'~~~~ .Attest SECRETARY F~ ~,_.~ .. _ . '~ ti ,;.fk~s .r ~ t~b 1012A 8-53 Caiifornla Land Title Association ~ STandard Coverage Policy Form . S L' H~` D'U.L ~' A , Copyrieht 1950 Amount ~5400. t?~ . Date Februar;~ 17, 195~F at 8 a. m. INSURED CITY OF SANTA Mf?NICA, a municipal corporation, l. The title to said land is, at the date hereof, vested in: CITY OF SAN~A MONICA, a municipal corporation. 1 + • Policy No. 3$$5~23-A 2. Descrigtion of land in the county of Los Angeles, state of California, title to which is insured by this policy: Lots l and 23 a.nd the northeasterly 5 feet of lots 2 and 2~ in 'block "D" of the Central Beach Trac~, in ~he ci~y of Santa Monica, co~n~y of Los Angeles, state of Ca13.fornia, as per ma.p reeorded in book 78 pages 77 and 78 of Miaeella- neous Recards, in ~h~ office of the county reeorder of said eounty. v'~XCEPTINGr the title and exclu~~.ve right ~o all of ~he rninerals and mineral ores of' every k3.nd and eharacter now known ~o exist or ~hereafter discovered upon, within, or tinderlying said land or ~hat rnay be produced therefrom, 3.nclud3.r~g without lim3.ting the ~ene~ality of the forego3n~, all pe~roleum, oil, na.tural ~as and other hydrocarbon sub- atane~s and produc~s derived theref~om, but without the right of surface entry, as exeepted and reserved by the ~~an~tors 3.n various deeds reeorded Febr~ary 17, 1954. • ~ r • ' ~ • . . . ~ • t0i2B 8-53 Califoroia Land Title Association Standard Coverage Poliq Form ~py~,9"t„5° SCHEDULE B This policy does not insure against lass by reason of the matters shown or referred to in this Scheduie except to the extent that the owner of any mortgage or deed of trust shown in Part Two is expressly insured in paragraphs numbered 4 and 5 on page 1 of this policy. PART .ONE: Tlus part of Schedule B refers to matters which, if anq such egist, may affect the tide to said land, but which are not shown in this policy: 1. Taxes or sesessments wbich are not ahown as eusting liena by the records of any tasing agency or by the pubIic records; and easements, liena or encumbrattcea which are not shown by the public records. 2. Rigbxa or claims of peraona in possession of said land which ate not shown by the public recorda. 3. Any facts, righta, interests, or claims which are not ahowtt by the public recorda but which could be ascertained by an in~pection of said land, or by making inqniry of persons in possesaion thereof, or by a conect survep. 4. Mining claims, reservationa in patents, water rights, claims or title to water. 5. Any laws, governmental acts or regulations, including but not limited to zoning ordinances, restricting, regulating or prohibiting the occupancy, use or enjoyment of the land or any improvement thereon, or any zoning ordinancea pmhibiting a reduction in the dimensiona or area, or sepazation in ownership, of any lot or parcel of land; or the effect of any violstion of any such restrictions, regulations or prolubitions. PAxT Two: This part of Schedule B shows liens, encumbrances, defects and other matters a$ecting the tide to said land or to which said title is subject: 1. Second ina~allment of general and special county and city taxes for the fiscal y~ar 1953-195~, ~o~ering this ar~d other prope~ty, Code Area ~+792, Pareel No. 128-~3-X, amoun~ ~2451.81. Included are levies for San~a Monica Munic3.pa1 Improvement Diat~ict No. 1, ~reated for Ci~y Park. 2. A sale, eovering th3.s and oth~r property, to ~h~ State of Ca].ifornia, for eounty and e~.ty t~es for the f3.sca1 year i951-1952, Assessment No. 709013, ~nd subsequent d~linquencies. Amo~,nt to redeem pr~.or to ~ebruary 28, 195~+, ~+~~, 367•83 • 3. The exc~lusive and perpe~ual right of 3.n~ress and egr~ss beneath the surface of said land to explo~e for, ~x~rae~, m~.ne, and remove the minerals a~.d m~.neral ores of every kind and cha~acter including ~.11 petroleum, oil, natural gas and other hydroca~bon substanees, and to ma.ke sueh use of ~he said land ber~eath the aurface as is necessary or useful 3.n conneetion therewith, which us~ may inelud~ lateral or slant drilling, diggin~, borin~, or sink3.ng of we11s, shafts, or tunnels, provided however, that the grantor, 3.ts auecessors and assigns shall no~ use ~h~ surfaee of said land in ~he exercise nf any of said rights and shall no~ dist~rb the surface of said land or any improvemen~s thereon or remav~ or impair the lateral or aub~acent support of aaid la.rid or improvements thereon, att reserved in varioua de~ds, recorded February 17, ~.95~. ~F. The effect of the following recital; "Grantors a~e ._~ ~~ ! ! reserv3.ng fron~age rights to said property ~v~thin the prolon@;~.'~ion of Grand Avenue, Grand Place, Surf Stree~, Kinney P3ace and N~arine Plaee, northeasterl~r", as ~ontained 3.n deed cove~3.ng thi~ and other proper~y, from Th~ Pacifie Electrie Rai7.way Company, a~orporation, record~d February 17, Z95~. ~ io~s-c s-ss California Land Title Association Standard~Covera9e Policy Form Copyright 1950 1. SCOPE OF COVERAGE TMia policy doea~not insure againat, and the Company will not be liable for losa or damage created _by ur ariaing out oE any of the.following: (a) de[ecte, liena, elaima, encumbrancea, or otAer matten whieh result in no pecuniary loee to the insured; (b) defects, liena, enenmbrancea, or othec mattere created or oceurring eubaequent to the date hereof; (c) defecte, liene, encumbrances, or ot6er mattere created or euRered by the inaured claiming such lose or damage; or (d) defects, liena, claima, encumbrhncea, or other matten e:ieting at the date of thia policy end known to t6e insured claiming auc6 loea or damage, either et the date of tLie policy or st the date suc6 insured claim• ant acquired en eetate or intereet ineured by thie policy, unleee auch de(ecq lien, claim, encumbraace ot other matter s6a11 hare~been diacloaed to t6e Company in writing prior to tLe isauance oE thie policy or appeered at the date of thie policy on the publie recorde. Any ~righta or defensea of t6e Company againat a named ineured ehall be equally svailable againet any peroon or corporation.w6o ehall become~an iosured hereunder aaaucceasor ot sveL named innuzed.~ ~ ?. DEFENSE OF ACTIONS. NOTICE OF ACTIONS OR CLAIMS TO 6E GIVEN BY THE INSURED The Company at its own coat ehall defend the ineured in all litigation conaiating of actiona or proceedinge againet the inaured, or defenaee, restraining ordere; or iujunctione interpoaed againat a 3orecloeure or esle oE uid land ia aatietaction of any indebtednees, the ovner of whic6 ie inaured by thie policy, vhich litiga- tion ie (ounded upon a defect, lien, encumbrance, or otLer matter ineured ~gainet by this policy, and ~may punue sucL litigation to final determination in the court of leet reeort. In caee any euch litigation ehall become known to any inaured, or in case know~ledge ehall come to ~any inaured of any claim of title or intereet which is adverae. to the title as inaured. or which. mig6t cauee .loee or~ damage Eor which t6e Company ~hall or may be liable by virtue of thie policy, euch inaured ehall aotify the Compauy thereoE in writing. If euch notice ahall not be giveu to the Company at least two days before the appearance day in ~ny euch litigaEioM or if auch inaured e6a11 not, in wri[ing, prompdy no[ify the Company of any de(ect, lien, encumbrence, or other matter ineured againet, or of any euch adveree tlaim whicL ehall come to the knowledge of ~auch inaured, in reapect to whic6 lose or damage ie apprehended, then all IiaGility oi the Company as to each inaured Laving auc6 knowledge ahall~ ceeee and terminate; provided, howeveq t6at failuce to no notifq t6e Company eLall in no caee prej- udice the claim of any inaured unlesa the Company ehall be actually prejudiced by auch failure. The Com- pany ehall have the rigLt to inetitute and proeecute any action, or proceeding or do any other ect ~vhich, in iro opinion, may be neceeaary or deeirable to establiah the tide, or any ineured lien~~or cherge, ao iaeuzed. In all caeee where tLie policy permite or requiree t6e Company to proeecute or defead any action or proceeding, tLe ineured ahall eecure to it in writing the righe to eo proeecute or defend euch action or proceeding, and all appeale therein, and permit it to use, at ite option, the aame of the ineured for euch purpoee. Whenever requeeted by tLe Company the ineured e6a11 aeeiet the Company in any euch action or proceeding, in eHecting eettlement, eecuring evi• dence, obtaining witneeaee, proaecuting or defending suc6 action or proceeding, to euc6 eztent and in-euc6 manner ae ie deemed desirable by the Compaay, and the Company shall reimburae the ineured for any ezpenee eo incurred. The Company ehaU be eubrogated to and be entitled to dl costs and attorneys' fep in• STIPULATIONS eurred or ezpended by the Company,-w~6ich may be recoversble by the ineured in eny litiguion car:ied on by the Company on behalE of the ineured. T6e word "knowledge" in this paragraph means sclual knowledge, ~nd does no[ reter to conatructive knowl• edge or notice which may be imputed ro the inaurcd by t6e public records. 3. NOTICE OF LOSS. LIMITATION OF ACTION A etatement in writing of any loes or dsmage for w6ich it is claimed the Company ia liable under t6is~ policy ahsll be furniahed to tAe Company within eizty daye- a(ter euch lose or damage s6a11 have been secertained. No action or proceeding Ior the recovery of any euch ]osa or damage ehall be inetituted or mainuined egainat t6e Company until after full compliance by t6e inaured wit6 all the conditiom imposed on the insured by thie policy, nor unleee commenced within twelve months a[ter receipt by the Company of such written ~tatemenp ~ •. O/TION TO /AY, SETTLE, OR COIMROM{SE ClA1M5 The Company reaerves the option to psy, setde, or compromise for, or in the name of, the ineured, any claim iqeured againet or to pay thie policy in full st any time, end payment or tender oE yayment oE the fu^ amount of thia policy, together with sll accrued coate which the Company is obligsted Lereunder to. pey,- ahall terminate al( liability oE the Company here- under, including all obligatione of the Company with reepect to any litigation pending and eub~equent coets thereoE, S. SU6ROGATION UION -AYMENT OR SETTLE- MENT Whenever the Company ehall 6ave setded a claim under tLia policy, it ehall be eubrogated to and be entifled to all righte, eecuritiee, and romedies wLich t6e inaured would have had againet eny peroon or property in reepect to euc6 cl~im, had thie policy aot beea ieaued. If t6e payment doee not eover the loes of the inaured, the Company shsll be eubrogated to euc6 rig6te, eecuritiea, and remediee in the proportion which eaid payment bean to t6e amount of eaid loee. In either event the insured ehall tranefer, or esuBe to be tranaferred, to t6e Company such right~, eecuritiee, and remediee, snd ehall permit We Company to ase t6e name of t6e imured in eny traneaction or litigatim ~iuvolving euch righte, eecurities, or remedies. 6. OPTION TO PAY INSURED OWNER OF IN- DE6TEDNE55 AND 6ECOME OWNER OF SECURITY The Company hae the right and option, in caee any loee ie claimed under thie policy by an ineured owner of an indebtedneae eecured by mortgage or deed of trueq to pay euch~ ineured the indebtedneas of tLe mortgagor or truetor under aaid mortgage or deed oE truet, together ~with all coete which the Company is obligated Lereunder to pay, in wLich ceae the Com- pany s6a11 become the owner oE, and euc6 ineured ehall at once seeign and treuafer w~tLe Company, said mortgage or deed of truet and the indebtedneea there- by eewred, and ~ euch payment ehall- terminrte all liability uuder t6is policy to suc6 in~u:ed. 7. PAYMENT OF LOSS AND COSTS OF LITIGATION. INDORSEMENT OF PAYMENT ON ~OIICY The Company will pay, in addition to any loe~ insured againat by t6ie policy, all coete impoeed upou the in- aured in litigation carried on by tLe Compan~ tor the ineured, md in litigation urried on by the ineured witL tLe written ~uthoris~tion oE the Compen7, but oot 5 ~ ot6enriee. The liability of t6e Compsny undm t6i~ policy ehsll in no case exceed, in all, the aetual loe~ o[ the ineuied and coate which~the Company is obligated hereunder to pay, and in no case e6a11 eucL total liability exceed t6e amount of thie policy and esid coeb. All paymente under this policy ehall roduce the amount oE the inaurance pro tanto, and payment of loes or damage to an inaured owner oE indebtednees shall reduce, to [hat eztent, the liability~of tLe Compmy to the ineured owner of eaid land. No psyment may be demanded by any inaured without producing t6ie policy for indoraement of auch payment. !. MANNER OF YAYMENT OF LOSS TO INSURED Loae under this policy s6a11 be psyable, 6rat, to m~ ineared owner of indebtednesa eecured by mortgaQe or deed oE truat ahown in Schedule B, in order of priority therein ehown, and iE euch ownerehip veeta in more t6an one, payment ehall be made retably as their reapective intereete may appeay and thereafter eny loee ehall be payable to the other inaured, and H more t6an one, then to suc6 inaured ratably ae their reepec- tive intereete may appeer. If there be no such ineured owner o! indebtedneee, any loes ehall be payable to t6e ineured, and if ~mom than one, to euch imured rstably aa their reepective intereete mey appear. 9. DEFINITION OF TERMS TLe folloving terme when ueed in t6ie policy me~n: (s) "mmed inaured": the pereona tnd corporetione named a~ inaured in Se6edule A of this policy; (b) "t6e ineurcd": auch named ineured together with (1) esch eucceeeor in ownerehip of eny indebtednees eecured by any mortgage or deed of ~trust ehown in Sc6edule B, the owner of which indebtednees is named 6eroia as an insured, (2) any euch owner or succeesor in ownerehip oE any euc6 indebtedneee who acquires the land deacribed in Schedule A or any part thereof, by lawful meane in eatiafaction ot e~id indebtedneee or any pert thereof, (3) any governmental sgency or inetrumentelity icquiring eaid land under an ineurance contract or guanntee inauring or guer• . anteeing eaid indebtednese or any part thereof, and (4) any peroon or corporation deriving an eeute or intereet in eaid land aa an heir or devisee of a named inaured or by reseon of the dieeolution, merger, or coneolidation of a corporate named insured; (c) "land": t6e land deecribed epecifically or bY reference in Sc6edule A and improvemente all'ized thereto wLich by laM conatitute real property; (d) "date": tLe ezact day, hour and minute epeci6ed in the firot line of Schedule A(uolesa the contezt clearly requiree s diHerent meaning) ;(e) "tezing agency": the State and eac6 county, city and county, city and,dietrict in which naid land or eome part thereof ie eituated that leviee tazee or aeseeemente on real property; (f) ~"public recorda": those public recorde which, under the recording lawa, impart conetruc[ive potice of maP ten relating to eaid I~nd.. 10. WRITTEN INDORSEMENT REpUIRED TO CHANGE POLICY No provieion or condition oE t6ie policy can be waived or changed ezcept by writing indoreed 6eroon or ab tacLed 6ereto eigned by The Preaident, a Vice Preei- dent, the Secretap, or an Aaeietant Secret~ry of the Company, 11. NOTICES, WHERE SENT Al1 notices rtquired to be given the Company and any eutement in writing~requirod to be fumiahed the Com• pany s6all be addmeed to it at the office whic6 ieeued t6u polic7.