CLTA Oil Leasehold (Amended 12/6/85) 1

CLTA Oil Leasehold Form (Amended 12/6/85)

Amount $                        Premium $                       Policy No.

STEWART TITLE GUARANTY COMPANY

 

a corporation, herein called the Company,

for a valuable consideration paid for this

 

POLICY OF TITLE INSURANCE

 

does hereby insure

 

together with any person or corporation deriving an estate or interest in the leasehold described in Schedule A, as an heir or devisee of a named insured, or by reason of the dissolution, merger, or consolidation of a corporate named insured, against loss or damage not exceeding

 

which the Insured shall sustain

 

by reason of title to the leasehold in the land described in Schedule A being vested, at the date hereof, otherwise than as shown in paragraph 3 of Schedule A; or

 

by reason of any defect in the title to said leasehold existing at the date hereof, unless shown in Schedule B; or

 

by reason of any assignment of, or lien or encumbrance upon, the leasehold hereby insured, unless said assignment, lien, or encumbrance is shown in Schedule B; or

 

by reason of title to said land being vested otherwise than as shown in paragraph 2 of Schedule A, at the time of the recordation of the lease described in Schedule A; or

 

by reason of the priority, at the date hereof, over the leasehold hereby insured, of any lien or encumbrance upon said land, unless such lien or encumbrance is shown in 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 Whereof, STEWART TITLE GUARANTY COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers on

 

STEWART TITLE GUARANTY COMPANY

 

By                   SPECIMEN                            President

Attest                 FORM                                  Secretary

  

SCHEDULE A

  

[1.]       The "leasehold", title to which is insured by this policy, consists of those rights and interests in the land described in paragraph 4 of Schedule A, which are set forth in and are demised, granted, or otherwise conveyed to the lessee by the terms of that certain

       

[2.]       The title to said land, at the time of the recording of said lease, was vested in

      

[3.]       The title to the leasehold described in paragraph 1, at the date hereof, is vested in

      

[4.]       The land, subject to said lease, and which is referred to in this policy as "said land", is described as:

    

SCHEDULE B

 

PART ONE:  The Company does not, by this policy, insure against loss by reason of:

(a)        Easements or liens which are not shown by the public records (1) of the District Court of the Federal District, (2) of the county, or (3) of the city, in which said land or any part thereof is situated;

(b)        Rights or claims of persons in possession of said land which are not shown by those public records which impart constructive notice;

(c)        Any facts, rights, interests, or claims which are not shown by those public records which impart constructive notice and which could be ascertained by an inspection of said land, or by making inquiry of persons in possession thereof, or by a correct survey;

(d)       Water rights, claims or title to water;

(e)        Any governmental acts or regulations restricting, regulating, or prohibiting the occupancy or use of said land or any building or structure thereon;

(f)        Failure to comply with the terms, covenants, and condition of the lease described in Schedule A.

    

PART TWO:  Defects, liens, and encumbrances, affecting the title to the land described in Schedule A, at the date of the recordation of said lease and still existing at the date of this policy:

      

PART THREE:  Defects, liens, and encumbrances, in addition to those set forth under Part Two of this schedule, affecting the title to the leasehold described in paragraph 1 of Schedule A:

    

STIPULATIONS

 

SCOPE OF COVERAGE      1.  This policy does not insure against, and the Company will not be liable for loss or damage created by or arising out of any of the following:  (a) defects, liens, or encumbrances which result in no pecuniary loss to the insured; (b) defects, liens, or encumbrances created subsequent to the date hereof;  (c) defects, liens, or encumbrances created or suffered by the insured claiming such loss or damage; or (d) defects, liens, or encumbrances existing at the date of this policy and known to the insured claiming such loss or damage, either at the date of this policy or at the date such insured claimant acquired an estate or interest insured by this policy, unless such defect, lien, or encumbrance shall have been disclosed to the Company in writing prior to the issuance of this policy, or unless such defect, lien, or encumbrance appeared of record, at the date of this policy, on those public records which impart constructive notice.  Any rights or defenses of the Company against a named insured shall be equally available against any person or corporation who shall become an insured hereunder as successor of such named insured.

 

DEFENSE OF ACTION       2.  The Company at its own cost shall defend the insured in all actions or proceedings against the insured founded upon a defect, lien, or encumbrance insured against by this policy, and may pursue such litigation to final determination in the court of last resort.  In case any such action or proceeding is begun, or in case any claim of title or interest adverse to the title as insured, which claim might cause loss or damage for which the Company hall or may be liable by virtue of this policy, is made to the insured, the insured shall at once notify the Company thereof in writing.  NOTICE OF ACTIONS OR CLAIMS TO BE GIVEN BY THE INSURED If such notice shall not be given to the Company at least five days before the appearance day in any such action or proceeding or if such insured shall not, in writing, promptly notify the Company of any such claim made to it, then all liability of the Company to all named insured shall cease and terminate; provided, however, that failure to so notify shall in no case prejudice the claim of the insured unless the Company shall be actually prejudiced by such failure.  When, in the Company's opinion, it is necessary or desirable to institute and prosecute any action or proceeding or do any other act to establish the title as insured, it shall notify the insured in writing to elect whether or not such action or proceeding shall be instituted and prosecuted or such other act be done and the insured shall, in writing, promptly notify the Company of the election made, and if such election is that such action or proceeding shall not be instituted and prosecuted or such act shall not be done, then all liability of the Company under this policy, with respect to the subject matter of such proposed action or proceeding or other act, shall cease and terminate;  but if any insured shall not notify the Company of such election within ten days after the mailing of said notice then all insured shall be deemed to have waived such right of election, and the Company shall have the right to institute and prosecute such action or proceeding or to do such other act.  In all cases where there is more than one named insured, no election shall bind the Company unless such an election is the unanimous action of all the named insured.  In all cases where this policy permits or requires the Company to prosecute or defend any action or proceeding, the insured shall secure to it in writing the right to so prosecute or defend such action or proceeding, and all appeals therein, and permit it to use, at its option, the name of the insured for such purpose.  Whenever requested by the Company the insured shall assist the Company in any such action or proceeding, in effecting settlement, securing evidence, obtaining witnesses, prosecuting or defending such action or proceeding to such extent and in such manner as is deemed desirable by the Company, and the Company shall reimburse the insured for any expense so incurred.  The insured may, at the cost and expense of the insured, associate counsel with counsel for the Company in the defense or prosecution of any such litigation or action brought or defended by the Company.  In any such association of counsel, the counsel for the Company shall have the right to control and direct such litigation.  The Company shall be subrogated to and be entitled to all costs and attorneys' fees incurred or expended by the Company, which may be recoverable by the insured in any litigation carried on by the Company on behalf of the insured.  In any case wherein the insured shall associate counsel with counsel for the Company, any recoverable costs and attorneys' fees in excess of the amount of costs and attorneys' fees incurred or expended by the Company in prosecuting or defending such action or proceeding shall belong to the insured.

 

RIGHT TO PAY, SETTLE, OR COMPROMISE CLAIMS            3.  The Company shall have the right to pay, settle, or compromise, for or in the name of the insured, at the Company's sole expense, any claim insured against by this policy after first giving the insured ten days' notice in writing of its intention so to do, and unless any named insured objects, in writing, to such payment, settlement, or compromise prior to the expiration of the ten-day period after mailing of said notice, the liability under this policy shall be reduced by the amount of the payment, settlement, or compromise.  If any one of the insured shall notify the Company, in writing, within such ten-day period, that it objects to such payment, settlement, or compromise then all liability of the Company to all named insured for any loss arising out of such claim shall cease and terminate.

 

OPTION TO PAY IN FULL 4.  The Company reserves the option to pay this policy in full at any time, and payment or tender of payment of the full amount of this policy, together with all accrued costs which the Company is obligated hereunder to pay, shall terminate all liability of the Company hereunder, including all obligations of the Company with respect to any litigation pending and subsequent costs thereof.

 

SUBROGATION UPON PAYMENT OR SETTLEMENT 5.  Whenever the Company shall have settled a claim under this policy, it shall be subrogated to and be entitled to all rights, securities, and remedies which the insured would have had against any person or property in respect to such claim, had this policy not been issued.  If the payment does not cover the loss of the insured, the Company shall be subrogated to such rights, securities, and remedies in the proportion which said payment bears to the amount of said loss.  In either event the insured shall transfer, or cause to be transferred, to the Company such rights, securities, and remedies, and shall permit the Company to use the name of the insured in any transaction or litigation involving such rights, securities, or remedies.  Nothing contained in this policy shall be deemed to entitle the Company to be subrogated to any right, title, interest, or estate of the insured in the leasehold insured by this policy.

 

NOTICE OF LOSS    6.  A statement in writing of any loss or damage for which it is claimed the Company is liable under this policy shall be furnished to the Company within sixty days after such loss or damage shall have been ascertained.  LIMITATION OF ACTION No action or proceeding for the recovery of any such loss or damage shall be instituted or maintained against the Company until after full compliance by the insured with all the conditions imposed on the insured by this policy, nor unless commenced within twelve months after receipt by the Company of such written statement.

 

PAYMENT OF LOSS AND COSTS OF LITIGATION, ENDORSEMENT OF PAYMENT ON POLICY       7.  The Company will pay, in addition to any loss insured against by this policy, all costs imposed upon the insured in litigation carried on by the Company for the insured, and in litigation carried on by the insured with the written authorization of the Company, but not otherwise.  The liability of the Company under this policy shall in no case exceed, in all, the actual loss of the insured and costs which the Company is obligated hereunder to pay, and in no case shall such total liability exceed the amount of this policy and said costs.  All partial payments made under this policy, not objected to by the insured, shall reduce the amount of the insurance pro tanto.  No payment may be demanded by the insured without producing this policy for endorsement of such payment.  If there be more than one insured any loss shall be payable to such insured ratably as their respective interests may appear.

 

LEASEHOLD INSURANCE           8.  This policy does not insure against, and the Company will not be liable for any loss which the insured may sustain as to any interest in said land which the insured may sustain as to any interest in said land which the insured may have or may hereafter acquire other than that described in paragraph 1 of Schedule A.

 

MANNER OF GIVING NOTICE    9.  Any notice to be given to the insured by the Company may be mailed to the insured whose names appear on the first page of this policy at the address appearing herein, or at any address subsequently furnished in writing to the Company at its head office by the insured, or in the absence of such address, such notice may be mailed to such insured to the county seat of the county in which said land, or the major portion thereof, is situate.

 

WRITTEN ENDORSEMENT REQUIRED TO CHANGE POLICY        10.  No provision or condition of this policy can be waived or changed except by writing endorsed hereon or attached hereto signed by the President, a Vice President, the Secretary, or an Assistant Secretary of the Company.

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