CONTRACT FORECLOSURE GUARANTEE
STEWART TITLE GUARANTY COMPANY
SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE LIMITS OF LIABILITY AND OTHER PROVISIONS OF THE CONDITIONS AND STIPULATIONS HERETO ANNEXED AND MADE A PART OF THIS GUARANTEE, BLANK TITLE INSURANCE COMPANY, a Blank corporation, herein called the Company, for the fee paid for this Guarantee, the amount and effective date of which are shown herein, hereby guarantees the parties herein called the Assured, against actual loss not exceeding the liability amount stated herein which the Assured shall sustain by reason of any incorrectness in the assurance which the Company hereby gives that, according to the public records, on the effective date stated herein,
1. The title to the herein described estate or interest was vested in the vestee named, subject to the matters shown as Exceptions herein, which Exceptions are not necessarily shown in the order of their priority.
2. The necessary parties defendants in an action to foreclose the contract (including, without limitation, the forfeiture remedy provided for under ORS 93.905 et seq.) are as herein stated.
[Witness clause optional]
STEWART TITLE GUARANTY COMPANY
[File No. ]
[Fee $ ]
Effective Date: [at a.m./p.m.]
B. The contract to be foreclosed or forfeited is:
C. The estate or interest in the land hereinafter described or referred to covered by this Guarantee is:
a. A fee.
b. A vendee's interest in the contract referenced in Paragraph B above.
D. Title to said estate or interest at the date hereof is vested in:
a. As to the fee:
b. As to the vendee's interest:
E. The land referred to in this Guarantee is situated in the County of , State of Oregon, and is described as follows:
F. As of the effective date, the premises are subject to the following Exceptions:
G. The necessary parties to be made defendants in a suit to foreclose the contract above referenced, or to be served with notice of default under ORS 93.905 et seq., are:
NOTE: In the event of a non-judicial forfeiture, attention is called to the Federal Tax Lien Act of 1966 (Public Law 89-719) which, among other things, provides that written notice of a non-judicial sale be given to the Secretary of the Treasury or his or her delegate as a requirement for the discharge of a federal tax lien or the divestment of any title of the United States, and establishes a right in the United States to redeem the property within a period of 120 days from the date of such sale.
NOTE: The persons or entities named as necessary parties defendant may not include others whose priority cannot be determined by an examination of the record. Please refer to Exhibit "G" for additional parties whose joinder in the proposed action may be necessary or proper.
CONDITIONS AND STIPULATIONS
1. DEFINITION OF TERMS
The following terms when used in this Guarantee mean:
(a) "Land": the land described, specifically or by reference, in this Guarantee and improvements affixed thereto which by law constitute real property.
(b) "Public records": those records which impart constructive notice of matters relating to said land.
(c) "Date": the effective date.
(d) "The Assured": the party or parties named as the Assured in this Guarantee, or in a supplemental writing executed by the Company.
(e) "Contract": contract for transfer of an interest in real property; however, the term "contract" shall not include earnest money or preliminary sales agreements, options, or rights of first refusal.
2. EXCLUSIONS FROM COVERAGE
The Company assumes no liability for loss or damage by reason of the following:
(a) Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.
(b) Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water.
(c) Title to any property beyond the lines of the land expressly described in the description set forth in this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways on which such land abuts, or the right to maintain therein vaults, tunnels, ramps or any other structure or improvement; or any rights or easements therein unless such property, rights or easements are expressly and specifically set forth in said description.
(d) Defects, liens, encumbrances, adverse claims against the title as guaranteed, or other matters (1) created, suffered, assumed or agreed to by one or more of the Assured; or (2) resulting in no loss or damage to the Assured.
3. PROSECUTION OF ACTIONS
(a) The Company shall have the right at its own cost to institute and prosecute any action or proceeding or do any other act which in its opinion may be necessary or desirable to establish or confirm the matters herein guaranteed; and the Company may take any appropriate action under the terms of this Guarantee whether or not it shall be liable thereunder and shall not thereby concede liability or waive any provision hereof.
(b) In all cases where the Company does so institute and prosecute any action or proceeding, the Assured shall permit the Company to use, at its option, the name of the Assured for such purpose. Whenever requested by the Company, the Assured shall give the Company all reasonable aid in prosecuting such action or proceeding, and the Company shall reimburse the Assured for any expense so incurred.
4. NOTICE OF LOSS - LIMITATION OF ACTION
A statement in writing of any loss or damage for which it is claimed the Company is liable under this Guarantee shall be furnished to the Company within sixty days after such loss or damage shall have been determined, and no right of action shall accrue to the Assured under this Guarantee until thirty days after such statement shall have been furnished, and no recovery shall be had by the Assured under this Guarantee unless action shall be commenced thereon within two years after expiration of said thirty day period. Failure to furnish such statement of loss or damage or to commence such action within the time hereinbefore specified shall be a conclusive bar against maintenance by the Assured of any action under this Guarantee.
5. OPTION TO PAY, SETTLE OR COMPROMISE CLAIMS
The Company shall have the option to pay or settle or compromise for or in the name of the Assured any claim which could result in loss to the Assured within the coverage of this Guarantee, or to pay the full amount of this Guarantee or, if this Guarantee is issued for the benefit of a holder of a mortgage or contract, the Company shall have the option to purchase the indebtedness secured by said mortgage or contract. Such purchase, payment or tender of payment of the full amount of the Guarantee shall terminate all liability of the Company hereunder. In the event after notice of claim has been given to the Company by the Assured the Company offers to purchase said indebtedness, the owner of such indebtedness shall transfer and assign said indebtedness and the mortgage or contract securing the same to the Company upon payment of the purchase price.
6. LIMITATION OF LIABILITY - PAYMENT OF LOSS
(a) The liability of the Company under this Guarantee shall be limited to the amount of actual loss sustained by the Assured because of reliance upon the assurances herein set forth, but in no event shall such liability exceed the amount of the liability stated within this Guarantee.
(b) The Company will pay all costs imposed upon the Assured in litigation carried on by the Company for the Assured, and all costs and attorneys' fees in litigation carried on by the Assured with the written authorization of the Company.
(c) No claim for damages shall arise or be maintainable under this Guarantee (1) if the Company after having received notice of an alleged defect, lien or encumbrance not shown as an Exception or excluded herein removes such defect, lien or encumbrance within a reasonable time after receipt of such notice, or (2) for liability voluntarily assumed by the Assured in settling any claim or suit without written consent of the Company.
(d) All payments under this Guarantee, except for attorney's fees as provided for in paragraph 6(b) hereof, shall reduce the amount of the liability hereunder pro tanto, and no payment shall be made without producing this Guarantee for endorsement of such payment unless the Guarantee be lost or destroyed, in which case proof of such loss or destruction shall be furnished to the satisfaction of the Company.
(e) When liability has been definitely fixed in accordance with the conditions of this Guarantee, the loss or damage shall be payable within thirty days thereafter.
7. SUBROGATION UPON PAYMENT OR SETTLEMENT
Whenever the Company shall have settled a claim under this Guarantee, all right of subrogation shall vest in the Company unaffected by any act of the Assured, and it shall be subrogated to and be entitled to all rights and remedies which the Assured would have had against any person or property in respect to such claim had this Guarantee not been issued. If the payment does not cover the loss of the Assured, the Company shall be subrogated to such rights and remedies in the proportion which said payment bears to the amount of said loss. The Assured, if requested by the Company, shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect such right of subrogation, and shall permit the Company to use the name of the Assured in any transaction or litigation involving such rights or remedies.
8. GUARANTEE ENTIRE CONTRACT
Any action or actions or rights of action that the Assured may have or may bring against the Company arising out of the subject matter hereof must be based on the provisions of this Guarantee.
No provision or condition of this Guarantee can be waived or changed except by a writing endorsed or attached hereto signed by the President, a Vice President, the Secretary, an Assistant Secretary or other validating officer of the Company.
9. NOTICES, WHERE SENT
All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at (FILL IN).
The fee specified within this Guarantee is the total fee for title search and examination and for this Guarantee.
No guidelines are available for this form at this time.