Page 316 - ALTA Endorsements Guide

ADDENDUM RETURN TO TABLE OF CONTENTS

Loan Policy of Title insurance
[2021 v. 01.00 (07-01-2021)]

9. LIMITATION OF LIABILITY
SAMPLE
a. The Company fully performs its obligations and is not liable for any loss or damage caused to the Insured if the Company accomplishes any of the
following in a reasonable manner:
i. removes the alleged defect, lien, encumbrance, adverse claim, or other matter;
ii. cures the lack of a right of access to and from the Land;
iii. cures the claim of Unmarketable Title; or
iv. establishes the lien of the Insured Mortgage,
all as insured. The Company may do so by any method, including litigation and the completion of any appeals.
b. The Company is not liable for loss or damage arising out of any litigation, including litigation by the Company or with the Company’s consent, until
a State or federal court having jurisdiction makes a final, non-appealable determination adverse to the Title or to the lien of the Insured Mortgage.
c. The Company is not 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.
d. An Insured Claimant must own the Indebtedness or have acquired the Title at the time that a claim under this policy is paid.
e. The Company is not liable for the content of the Transaction Identification Data, if any.

10. REDUCTION OR TERMINATION OF INSURANCE
a. All payments under this policy, except payments made for costs, attorneys’ fees, and expenses, reduce the Amount of Insurance by the amount
of the payment. However, any payment made by the Company prior to the acquisition of the Title as provided in Condition 2 does not reduce the
Amount of Insurance afforded under this policy, except to the extent that the payment reduces the Indebtedness.
b. When the Title is acquired by the Insured as a result of foreclosure or deed in lieu of foreclosure, the amount credited against the Indebtedness
does not reduce the Amount of Insurance.
c. The voluntary satisfaction or release of the Insured Mortgage terminates all liability of the Company, except as provided in Condition 2.

11. PAYMENT OF LOSS
When liability and the extent of loss or damage are determined in accordance with the Conditions, the Company will pay the loss or damage within 30
days.

12. COMPANY’S RECOVERY AND SUBROGATION RIGHTS UPON SETTLEMENT AND PAYMENT
a. Company’s Right to Recover
i. If the Company settles and pays a claim under this policy, it is subrogated and entitled to the rights and remedies 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, entity, or property to the fullest extent permitted by law, but limited to the amount of any loss, costs, attorneys’
fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant must execute documents to transfer
these rights and remedies to the Company. The Insured Claimant permits 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.
ii. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company defers the exercise of its
subrogation right until after the Insured Claimant fully recovers its loss.
b. Company’s Subrogation Rights against Obligors
The Company’s subrogation right includes the Insured’s rights against Obligors including the Insured’s rights to repayment under a note,
indemnity, guaranty, warranty, insurance policy, or bond, despite any provision in those instruments that addresses recovery or subrogation
rights. An Obligor cannot avoid the Company’s subrogation right by acquiring the Indebtedness as a result of an indemnity, guaranty, warranty,
insurance policy, or bond, or in any other manner. The Obligor is not an Insured under this policy. The Company may not exercise its rights
under Condition 12.b. against a Government Mortgage Agency or Instrumentality.
c. 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 the action does not affect the enforceability or priority of the lien of the Insured Mortgage.

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