BH Loan Policy of Title Insurance with Schedules (08-31-2022)

BAHAMAS LOAN POLICY OF TITLE INSURANCE
(Version August 2022)

Issued by STEWART TITLE LIMITED (BAHAMAS)

Agent’s File No.: __________________________________

Policy No.: _______________________________________

Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at the address shown in Section 18 of the Conditions.

COVERED RISKS

SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B, AND THE CONDITIONS, Stewart Title Limited, a corporation incorporated under the laws of England and Wales (the “Company”) insures as of Date of Policy against loss or damage, not exceeding the Amount of Insurance, sustained or incurred by the Insured by reason of:

1. Title being vested other than as stated in Schedule A.

2. Any defect in or lien or encumbrance on the Title.  This Covered Risk includes but is not limited to insurance against loss from a defect in the Title caused by

(i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation;

(ii) failure of any person or Entity to have authorized a transfer or conveyance;

(iii) a document affecting Title not properly created, executed, witnessed, sealed, acknowledged, notarized, or delivered;

(iv) failure to perform those acts necessary to create a document by electronic means authorized by law;

(v) a document executed under a falsified, expired, or otherwise invalid power of attorney;

(vi) a document not properly filed, recorded, or indexed in the Public Records including failure to perform those acts by electronic means authorized by law; or

(vii) a defective judicial or administrative proceeding.

3. Unmarketability of the Title.

4. No right of access to and from the Land.

5. The invalidity or unenforceability of the lien of the Insured Mortgage upon the Title. 

6. The lack of priority of the lien of the Insured Mortgage upon the Title over any other lien or encumbrance.

7. The invalidity or unenforceability of any transfer of the Insured Mortgage, provided the transfer is shown in Schedule A, or the failure of the transfer shown in Schedule A to vest title to the Insured Mortgage in the named Insured transferee free and clear of all liens.

The Company will also pay the costs, attorneys' fees, and expenses incurred in defense of any matter insured against by this Policy, but only to the extent provided in the Conditions.

THIS POLICY IS NOT VALID UNLESS SCHEDULES A & B ARE INCLUDED.

EXCLUSIONS FROM COVERAGE

The following matters are expressly excluded from the coverage of this Policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1.

a)  Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to:

(i) the occupancy, use, or enjoyment of the Land;

(ii) the character, dimensions, or location of any improvement erected on the Land;

(iii) the subdivision of land; or

(iv) environmental protection;  

or the effect of any violation of these laws, ordinances, or governmental regulations.

b) Any governmental police power not excluded by (a) above.

2. Rights of eminent domain, or equivalent rights, conferred under the Laws of The Bahamas, unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy.      

3. Defects, liens, encumbrances, adverse claims, or other matters:

a) created, suffered, assumed, or agreed to by the Insured Claimant, whether or not recorded in the Public Records;

b) not Known to the Company, whether or not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this Policy;

c) resulting in no loss or damage to the Insured Claimant;

d) attaching or created subsequent to Date of Policy; or

e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim that arises under bankruptcy, insolvency or similar creditors’ rights laws.

5. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of the Insured as of the Date of Policy, or the inability or the failure of the subsequent owner of the indebtedness to comply with applicable doing-business laws, decrees or regulations of the Commonwealth of The Bahamas, including the International Persons Landholding Act.

6. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law or any equivalent concept under the laws of the Commonwealth of The Bahamas.

7. Any and all taxes, service charges, rent charges or assessments assessed or assessable on the tax rolls for the current and subsequent years and for any prior years for which the Government of the Commonwealth of The Bahamas or any other authorized entity may audit and review and issue new or revised invoices.

8. Any inaccuracy in the area, square footage or acreage of the Land. The Company does not insure the area, square footage or acreage of the Land.

9. Discrepancies, variations, conflicts in boundary lines, violations, encroachments, overlaps, easements or claims of easements, evidence of occupation or possession other than by vendor, or any other facts that an accurate survey or inspection of the Land would disclose.

10. Any rights, interests or claims of parties in possession of the Land not shown by the Public Records.

11. Any mining/exploration and/or precious metals/coal/mineral/oil/gas rights reserved by The Crown and rights reserved by the Government of The Bahamas.

12. The rights, if any, of the public or the Commonwealth of The Bahamas to any use of the Land seaward of the natural line of vegetation, mean high tide or water line acquired by a) previous adverse use or by virtue of local custom with respect to the special nature of the seaside beaches, as a public beach or recreation area, or b) by virtue of any law or statute.

13. Lack of Title to any of the Land that is seaward of the mean high tide or water line.

14. Any dispute as to the boundaries caused by a change in the location of any water body within or adjacent to the Land prior to the Date of Policy and any adverse claim to all or part of the Land that is at the Date of Policy or was previously under water.

15. Any adverse claim to any portion of the Land which has been created by artificial means or has accreted to such portion so created.

16. The exceptions and limitations contained in Section 15 of The Quieting Title Act of 1959.

17. Custom duties, if any, levied by the Government of The Bahamas.

18. Lack of compliance with the provisions and conditions of The International Persons Landholding Act 1993 (as amended) that may apply after the Insured obtains a Certificate of Registration or Permit from the Investments Board of The Bahamas approving the Insured’s purchase of the Land.

19. Lack of compliance with the Stamp Act. The Company does not assume liability for payment of any Stamp Tax or Duty.

20. The rights of the public and public utility companies, if any, to the use of all private roads, rights of way or easements forming a part of the Land, and commonly used by the public and public utility companies, including all causeways, bridges, footpaths, pathways, beach access, other roadways and beaches.

CONDITIONS

1. DEFINITION OF TERMS

The following terms when used in this Policy mean:

a) “Amount of Insurance”: The amount stated in Schedule A, as may be increased or decreased by endorsement to this Policy, increased by Section 8(b) or decreased by Section 10 of these Conditions.

b) “Date of Policy”: The date designated as “Date of Policy” in Schedule A.

c) “Entity”: A corporation, partnership, trust, limited liability company, or other similar legal entity.

d) “Indebtedness”: The obligation secured by the Insured Mortgage including one evidenced by electronic means authorized by law, and if that obligation is the payment of a debt, the Indebtedness is the sum of:

(i) the amount of the principal disbursed as of Date of Policy;

(ii) the amount of the principal disbursed subsequent to Date of Policy;

(iii) the construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the Land or related to the Land that the Insured was and continued to be obligated to advance at Date of Policy and at the date of the advance;

(iv) interest on the loan;

(v) the prepayment premiums, exit fees, and other similar fees or penalties allowed by law;

(vi) the expenses of foreclosure and any other costs of enforcement;

(vii) the amounts advanced to assure compliance with laws or to protect the lien or the priority of the lien of the Insured Mortgage before the acquisition of the estate or interest in the Title;

(viii) the amounts to pay taxes and insurance; and

(ix) the reasonable amounts expended to prevent deterioration of improvements;

but the Indebtedness is reduced by the total of all payments and by any amount forgiven by an Insured.

e) “Insured”: The Insured named in Schedule A.

(i) The term "Insured" also includes:

(A) the owner of the Indebtedness and each successor in ownership of the Indebtedness, whether the owner or successor owns the Indebtedness for its own account or as a trustee or other fiduciary, except a successor who is an obligor under the provisions of Section 12(c) of these Conditions;

(B) the person or Entity who has “control” of the “transferable record,” if the Indebtedness is evidenced by a “transferable record,” as these terms are defined by applicable electronic transactions law;

(C) successors to an Insured by dissolution, merger, consolidation, distribution, or reorganization;

(D) successors to an Insured by its conversion to another kind of Entity;

(E) a grantee of an Insured under a deed delivered without payment of actual valuable consideration  conveying the Title:

(1) if the stock, shares, memberships, or other equity interests of the grantee are wholly-owned by the named Insured,

(2) if the grantee wholly owns the named Insured, or

(3) if the grantee is wholly-owned by an affiliated Entity of the named Insured, provided the affiliated Entity and the named Insured are both wholly-owned by the same person or Entity;

(F) any government agency or instrumentality that is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the Indebtedness secured by the Insured Mortgage, or any part of it, whether named as an Insured or not;

(ii) With regard to (A), (B), (C), (D), and (E) reserving, however, all rights and defenses as to any successor that the Company would have had against any predecessor Insured.

f) "Insured Claimant": An Insured claiming loss or damage.

g) “Insured Mortgage”: The Mortgage described in paragraph 3 of Schedule A.

h) "Knowledge" or "Known": Actual knowledge, not constructive knowledge or notice that may be imputed by reason of the Public Records or any other records that impart constructive notice of matters affecting the Title.

i) "Land": The land described in Schedule A, and affixed improvements that by law constitute real property.  The term "Land” does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is insured by this Policy.

j) "Mortgage": Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by electronic means authorized by law.

k) "Public Records": The records established under the Registration of Records Act of The Bahamas; The Bahamas Vacation Plan and Time-Sharing Act, 1999; Land Surveyors Act; and the records of the Supreme Court of The Bahamas.

l) “Title”: The estate or interest described in Schedule A.

m)

(i) "Unmarketable Title”:  An alleged or apparent matter, recorded in the Public Records, affecting the Title to the Land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable Title.

(ii) The Company shall not be liable for any loss or damage by reason of the alleged unmarketability of Title arising from any claim challenging the validity of Title so long as the Company or any other title insurance company shall be ready, willing and able to issue its policy of title insurance to a purchaser or lender, for an Insured Amount at the premium rates then in effect, and including cover substantially the same as the Policy issued herein insuring the estate or interest.

2. CONTINUATION OF INSURANCE

The coverage of this Policy shall continue in force as of Date of Policy in favor of an Insured after acquisition of the Title by an Insured or after conveyance by an Insured, but only so long as the Insured retains an estate or interest in the Land, or holds an obligation secured by a purchase money Mortgage given by a purchaser from the Insured, or only so long as the Insured shall have liability by reason of warranties in any transfer or conveyance of the Title.  This Policy shall not continue in force in favor of any purchaser from the Insured of either (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. 

3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT

The Insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured of any claim of title or interest that is adverse to the Title or the lien of the Insured Mortgage, as insured, and that might cause loss or damage for which the Company may be liable by virtue of this Policy, or (iii) if the Title or the lien of the Insured Mortgage, as insured, is rejected as Unmarketable Title. If the Company is prejudiced by the failure of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the Policy shall be reduced to the extent of the prejudice.

4. PROOF OF LOSS

In the event the Company is unable to determine the amount of loss or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumbrance, or other matter insured against by this Policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basis of calculating the amount of the loss or damage. 

5. DEFENSE AND PROSECUTION OF ACTIONS

a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third party asserts a claim covered by this Policy adverse to the Insured. This obligation is limited to only those stated causes of action alleging matters insured against by this Policy. The Company shall have the right to select counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured as to those stated causes of action.  It shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs, or expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this Policy.

b) The Company shall have the right, in addition to the options contained in Section 7 of these Conditions, at its own cost, to institute and prosecute any action or proceeding or to do any other act that in its opinion may be necessary or desirable to establish the Title or the lien of the Insured Mortgage, as insured, or to prevent or reduce loss or damage to the Insured. The Company may take any appropriate action under the terms of this Policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this Policy. If the Company exercises its rights under this subsection, it must do so diligently.

c) Whenever the Company brings an action or asserts a defense as required or permitted by this Policy, the Company may pursue the litigation to a final determination by a court of competent jurisdiction, and it expressly reserves the right, in its sole discretion, to appeal any adverse judgment or order. 

6. DUTY OF INSURED CLAIMANT TO COOPERATE

a) In all cases where this Policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding and any appeals, the Insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, including the right to use, at its option, the name of the Insured for this purpose.

b) Whenever requested by the Company, the Insured, at the Company's expense, shall give the Company all reasonable aid (i) in securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act that in the opinion of the Company may be necessary or desirable to establish the Title, the lien of the Insured Mortgage, or any other matter as insured. If the Company is prejudiced by the failure of the Insured to furnish the required cooperation, the Company's obligations to the Insured under the Policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation.

c) The Company may reasonably require the Insured Claimant to submit to examination under oath by any authorized representative of the Company and to produce for examination, inspection, and copying, at such reasonable times and places as may be designated by the authorized representative of the Company, all records, in whatever medium maintained, including books, ledgers, checks, memoranda, correspondence, reports, e-mails, disks, tapes, and videos whether bearing a date before or after Date of Policy, that reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the Insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect, and copy all of these records in the custody or control of a third party that reasonably pertain to the loss or damage. All information designated as confidential by the Insured Claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the Insured Claimant to submit for examination under oath, produce any reasonably requested information, or grant permission to secure reasonably necessary information from third parties as required in this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this Policy as to that claim.

7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY

In case of a claim under this Policy, the Company shall have the following additional options: 

a) To Pay or Tender Payment of the Amount of Insurance or to Purchase the Indebtedness.

(i) to pay or tender payment of the Amount of Insurance under this Policy together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment or tender of payment and that the Company is obligated to pay; or

(ii) to purchase the Indebtedness for the amount of the Indebtedness on the date of purchase, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of purchase and that the Company is obligated to pay.

When the Company purchases the Indebtedness, the Insured shall transfer, assign, and convey to the Company the Indebtedness and the Insured Mortgage, together with any collateral security.

b) To Pay or Otherwise Settle With Parties Other Than the Insured or With the Insured Claimant.

(i) to pay or otherwise settle with other parties for or in the name of an Insured Claimant any claim insured against under this Policy.  In addition, the Company will pay any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or

(ii) to pay or otherwise settle with the Insured Claimant the loss or damage provided for under this Policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay.

Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii), the Company's obligations to the Insured under this Policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation. 

8. DETERMINATION AND EXTENT OF LIABILITY

This Policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this Policy. 

a) The extent of liability of the Company for loss or damage under this Policy shall not exceed the least of:

(i) the Amount of Insurance,

(ii) the Indebtedness,

(iii) the difference between the value of the Title as insured and the value of the Title subject to the risk insured against by this Policy as of the date the claim was made by the Insured Claimant, or

(iv) if a government agency or instrumentality is the Insured Claimant, the amount it paid in the acquisition of the Title or the Insured Mortgage in satisfaction of its insurance contract or guaranty.

b) If the Company pursues its rights under Section 5 of these Conditions and is unsuccessful in establishing the Title or the lien of the Insured Mortgage, as insured,

(i) the Amount of Insurance shall be increased by 10%, and

(ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the date the claim was made by the Insured Claimant or as of the date it is settled and paid.

c) In the event the Insured has acquired the Title in the manner described in Section 2 of these Conditions or has conveyed the Title, then the extent of liability of the Company shall continue as set forth in Section 8(a) of these Conditions.

d) In addition to the extent of liability under (a), (b), and (c), the Company will also pay those costs, attorneys' fees, and expenses incurred in accordance with Sections 5 and 7 of these Conditions. 

9. LIMITATION OF LIABILITY

a) If the Company establishes the Title, or removes the alleged defect, lien, or encumbrance, or cures the lack of a right of access to or from the Land, or cures the claim of Unmarketable Title, or establishes the lien of the Insured Mortgage, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused to the Insured.

b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals, adverse to the Title or to the lien of the Insured Mortgage, as insured.

c) The Company shall not be liable for loss or damage to the Insured for liability voluntarily assumed by the Insured in settling any claim or suit without the prior written consent of the Company.

10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY

a) All payments under this Policy, except payments made for costs, attorneys’ fees, and expenses, shall reduce the Amount of Insurance by the amount of the payment.  However, any payments made prior to the acquisition of Title as provided in Section 2 of these Conditions shall not reduce the Amount of Insurance afforded under this Policy except to the extent that the payments reduce the Indebtedness.

b) The voluntary satisfaction or release of the Insured Mortgage shall terminate all liability of the Company except as provided in Section 2 of these Conditions. 

11. PAYMENT OF LOSS

When liability and the extent of loss or damage have been definitely fixed in accordance with these Conditions, the payment shall be made within 30 days.

12. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT

a) The Company's Right to Recover

Whenever the Company shall have settled and paid a claim under this Policy, it shall be subrogated and entitled to the rights of the Insured Claimant in the Title or Insured Mortgage and all other rights and remedies in respect to the claim that the Insured Claimant has against any person or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company.  If requested by the Company, the Insured Claimant shall execute documents to evidence the transfer to the Company of these rights and remedies.  The Insured Claimant shall permit the Company to sue, compromise, or settle in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or litigation involving these rights and remedies.

If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss.

b) The Insured's Rights and Limitations

(i) The owner of the Indebtedness may release or substitute the personal liability of any debtor or guarantor, extend or otherwise modify the terms of payment, release a portion of the Title from the lien of the Insured Mortgage, or release any collateral security for the Indebtedness, if it does not affect the enforceability or priority of the lien of the Insured Mortgage.

(ii) If the Insured exercises a right provided in (b)(i), but has Knowledge of any claim adverse to the Title or the lien of the Insured Mortgage insured against by this Policy, the Company shall be required to pay only that part of any losses insured against by this Policy that shall exceed the amount, if any, lost to the Company by reason of the impairment by the Insured Claimant of the Company's right of subrogation.

c) The Company's Rights Against Noninsured Obligors

The Company’s right of subrogation includes the Insured’s rights against non-insured obligors including the rights of the Insured to indemnities, guaranties, other policies of insurance, or bonds, notwithstanding any terms or conditions contained in those instruments that address subrogation rights.

The Company's right of subrogation shall not be avoided by acquisition of the Insured Mortgage by an obligor (except an obligor described in Section 1(e)(i)(F) of these Conditions) who acquires the Insured Mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond, and the obligor will not be an Insured under this Policy. 

13. ARBITRATION

Either the Company or the Insured may demand that the claim or controversy shall be submitted to arbitration pursuant to the Title Insurance Arbitration Rules of the American Land Title Association (“Rules”).  Except as provided in the Rules, there shall be no joinder or consolidation with claims or controversies of other persons.  Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the Insured arising out of or relating to this Policy, any service in connection with its issuance or the breach of a Policy provision, or to any other controversy or claim arising out of the transaction giving rise to this Policy.  All arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be arbitrated at the option of either the Company or the Insured.  All arbitrable matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by both the Company and the Insured.  Arbitration pursuant to this Policy and under the Rules shall be binding upon the parties.  Judgment upon the award rendered by the Arbitrator(s) may be entered in any court of competent jurisdiction.

14. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT

a) This Policy together with all endorsements, if any, attached to it by the Company is the entire Policy and contract between the Insured and the Company.  In interpreting any provision of this Policy, this Policy shall be construed as a whole.

b) This Policy is not an abstract of Title or a report of the condition of Title.  The Company’s liability for any claim out of Loss or Damage, even if alleging negligence or negligent misrepresentation, that arises out of any matter covered by this Policy shall be restricted to the terms of this Policy.  The Company shall not be liable under this Policy for any indirect, special, or consequential damages.

c) Any amendment of or endorsement to this Policy must be in writing and authenticated by an authorized person, or expressly incorporated by Schedule A of this Policy.

d) Each endorsement to this Policy issued at any time is made a part of this Policy and is subject to all of its terms and provisions.  Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the Policy, (ii) modify any prior endorsement, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. 

15. SEVERABILITY

In the event any provision of this Policy, in whole or in part, is held invalid or unenforceable under applicable law, the Policy shall be deemed not to include that provision or such part held to be invalid, but all other provisions shall remain in full force and effect. 

16. CHOICE OF LAW; FORUM

a) Choice of Law: The Insured acknowledges the company has underwritten the risks covered by this policy and determined the premium charged therefore in reliance upon the law affecting interests in real property and applicable to the interpretation, rights, remedies, or enforcement of policies of title insurance of the jurisdiction where the Land is located. Therefore, the court or an arbitrator shall apply the law of the jurisdiction where the Land is located to determine the validity of claims against the Title or the lien of the Insured Mortgage that are adverse to the Insured and to interpret and enforce the terms of this policy. In neither case shall the court or arbitrator apply its conflicts of law principles to determine the applicable law.

b) Choice of Forum:  Any litigation or other proceeding brought by the Insured against the Company shall be filed in the Bahamas. The Insured is permitted only to have the case heard by a judge and not by a jury.

17.  NOTICES, WHERE SENT

Any notice of claim and any other notice or statement in writing required to be given to the Company under this Policy must be given to the Company at: Stewart Title Limited, P.O. Box N-1936, Nassau, Bahamas, Attention: Legal, with a copy to: stlbahamas@stewart.com

In witness whereof, Stewart Title Limited has caused this policy to be signed and sealed by its duly authorized officer as of the Date of this Policy shown in Schedule A.  This policy is only valid when it bears an authorized Stewart Agent countersignature.

STEWART TITLE LIMITED:

_____________________________________

Authorized Signatory for Stewart Title Limited

Countersigned by Authorized Stewart Agent:

_____________________________________

Authorized Signatory of Agent

Agent: _____________________________________

Address: ___________________________________

BAHAMAS LOAN POLICY OF TITLE INSURANCE – SCHEDULE A

Name and Address of Title Insurance Company:

Stewart Title Limited
11 Haymarket
London, United Kingdom
SW1Y 4BP

Date of Policy:

Amount of Insurance:

1. Name of Insured:

2.

(a) The estate or interest in the Land described or referred to in this Policy and covered herein is an estate or interest designated as follows:

(b) Title to the Equity of Redemption in the Land described or referred to in this Policy is, as of the Date of Policy, vested in:

3. The Insured Mortgage is described as follows:

           

4. The Land referred to in this policy is described as follows:

BAHAMAS LOAN POLICY OF TITLE INSURANCE – SCHEDULE B

EXCEPTIONS FROM COVERAGE

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

1. Terms, provisions, covenants, conditions, restrictions, reservations, stipulations, easements, rights of way, charges, assessments and/or liens set forth or referred to in the following:

a. Insert particulars of registered instruments.

2. Any interest in the property of the government of the Bahamas pursuant to the Acquisition of Land Act.  Any adverse claim file in connection therewith by any party.

3. Any loss or damage which may arise as a result of the parcels being subject to any restraint or confiscation orders pursuant to the Proceeds of Crime Act, 2000.

4. Rights of a spouse to the matrimonial home pursuant to the Inheritance Act, 2002.