DC Schedule B Tax Exception 1

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

1. Real property taxes subsequent to September 30, 1994, a lien not yet due and payable; and any special assessment that is not due and payable at the effective date of the proposed policy, regardless of when the charges underlying the assessment were incurred.