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LLA-Moxley Properties-Cupertino and Mark R. Santoro, 21949 & 21951 Lindy Ln, APNS: 356-25-016, 356-25-017RECORDING REQUESTED BY City of Cupertino WHEN RECORDED MAIL TO City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 NO FEE IN ACCORDANCE WITH GOV. CODE 6103 DOCUMENT: 17410140 IWIWI��IVi�IM!V�i'�I�i�l�lFees .... TaxesCop i ... , BRENDA DAVIS SANTA CLARA COUNTY RECORDER Recorded at the request of Stewart Title of California (SPACE ABOVE THIS LINE FOR RECORDER'S USE) Pages: 34 * No Fees LOTLINE ADJUSTMENT, MOXLEY PROPERTIES-CUPERTINO, A CALIFORNIA LIMITED PARTNERSHIP, (PARCEL 1), APN 356-25-016, 21949 LINDY LANE, AND MARK R. SANTORO, AN UNMARRIED MAN, (PARCEL 2), APN 356-25-017, 21951 LINDY LANE Original For Fast Endorsement LOT LINE ADJUSTMENT Property Owners: Moxley Properties -Cupertino, a California Limited Partnership, (Parcel 1), APN 356-25-016, 21949 Lindy Lane, and Mark R. Santoro, an Unmarried Man, (Parcel 2), APN 356-25-017, 21951 Lindy Lane ACTION BY THE CITY ENGINEER APPROVING A LOT LINE ADJUSTMENT BETWEEN TWO OR MORE ADJACENT PARCELS BE IT RESOLVED BY THE CITY ENGINEER OF THE CITY OF CUPERTINO: A request for a lot line adjustment between Parcels 1 and 2, as designated on the attached plat and descriptions marked Exhibit "A", and attached hereto, has been submitted by the record owners of the above properties (as shown in Exhibit "B", attached) of the City of Cupertino with the request that an adjustment of lot lines be approved by the City Engineer. The City Engineer hereby finds that the lot line adjustment requested is between two or more adjacent parcels, that the land taken from one of the parcels is added to the adjacent parcel and that a greater number of parcels than originally existed would not be created. Based on the above facts and findings and by the authority of Section 18.08.010H of the City of Cupertino Municipal Code and Section #66412d of the Subdivision Map Act, said lot line adjustment is hereby approved. This lot line adjustment shall be totally null and void without further act of the City of Cupertino, in the event that the change in title interest of ownership (including lien holder interest) is not recorded by Grant Deeds within twelve (12) months from the approved date and/or in the event that any change in title interest of ownership (including lien holder interest) from the specified on the preliminary title report designated on Exhibit "B" and attached hereto, occurs prior to the recordation of the grant deed conveying the real property in conformity to Exhibit "A". Approved this 101h day of September , 2003. GLENN W. GOEPFERT CITY ENGINEER CITY OF CUPERTINO �� _ �.r•� Existing Parcel No.l All that real property situate ion the City of Cupertino, County of Santa Clara, State of California, described as follows: Beginning at an iron pipe set at the intersection of the center line of Lindy Lane with the section line between Sections 22 and 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian; thence along the center line of Lindy Lane, the following courses and distances: North 50 Degrees 46 Minutes East, 146.51 feet to a -% inch iron pipe; thence North 83 Degrees 57 minutes East, 213.25 feet to a -'k- inch iron pipe; thence North 60 Degrees 31 Minutes East, 105.02 feet to a -3-4 inch iron pipe; and thence North 88 Degrees 39 Minutes East, 236.15 feet to a railroad spike at the true point of beginning of this description; thence from said true point of beginning leaving Lindy Lane and running along the center line of a 20 foot driveway the following courses and distances: North 60 Degrees 16 Minutes West, a distance of 318.27 feet to a 3/4 inch iron pipe; thence North 67 Degrees 32 Minutes West a distance of 96.06 feet to a 3, inch iron pipe; thence North 24 Degrees 17 Minutes East a distance of 166.17 feet to a point from shich the iron pipe bears North 89 Degrees 50 Minutes West 19.64 feet; thence leaving said 20 foot driveway South 89 Degrees 50 Minutes East a distance of 251.12 feet to an iron pipe; thence South 00 Degrees 10 Minutes West a distance of 234.39 feet to an iron pipe; thence South 22 Degrees 40 Minutes East a distance of 120.25 feet to the true point of beginning, being a portion of the Southeast Quarter of Section 23, township 7 South, Range 2 West, Mount Diablo Base and Meridian, and also being a portion of the 1.647 acre parcel of land delineated upon the Map of Record of Survey thereof, on file in the office of the Recorder of the County of Santa Clara, State of California, in Book 77 of Maps at Page 28. Containing 1.613 acres more or less. No. 4953 Expires 12/31/05 I I - Existing Parcel No. 2 All that real property situate ion the City of Cupertino, County of Santa Clara, State of California, described as follows: Beginning at an iron pipe set at the intersection of the center line of Lindy Lane with the section line between Sections 22 and 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian; thence leaving Lindy Lane and running along a fence North 1 Degree 19 Minutes East, 284.66 feet to an iron pipe which is 5.29 feet easterly at right angles from said Section line between said Sections 22 and 23; thence leaving said fence North 73 Degrees 41 Minutes East, 293.17 feet to an iron pipe; thence North 17 Degrees 50 Minutes East, 159.23 feet to an iron pipe at the true point of beginning of this description; thence from said true point of beginning North 00 Degrees 10 Minutes East a distance of 235.19 feet to an iron pipe; thence S 89 Degrees 50 Minutes East a distance of 317.40 feet to an iron pipe; thence South 00 Degrees 10 Minutes West a distance of 235.19 feet to an iron pipe; thence North 89 Degrees 50 Minutes 00 Seconds West a distance of 317.40 feet to the true point of beginning, and being a portion of the Southwest one quarter of Section 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian. Containing 1.714 acres more or less. No. 4953 Expires 12/31/o5 ? *r in i yak, Adjusted Parcel No. 1 All that real property situate in the City of Cupertino, County of Santa Clara, State of California, described as follows: Beginning at the Southeast corner of parcel as shown on the Record of Survey Map filed for record in Book 77 of Maps at Page 28, Santa Clara County Records; thence North 60 Degrees 16 Minutes 00 Seconds West, a distance of 318.27 feet; North 67 Degrees 32 Minutes 00 Seconds West a distance of 96.06 feet; thence North 24 Degrees 17 Minutes 00 Seconds East a distance of 149.80 feet; thence South 89 Degrees 50 Minutes 00 Seconds East a distance of 129.62 feet; thence North 16 Degrees 05 Minutes 09 Seconds East a distance of 15.60 feet; thence South 89 Degrees 50 Minutes 00 Seconds East a distance of 123.95 feet; thence South 00 Degrees 10 Minutes 00 Seconds West a distance of 234.39 feet; thence South 22 Degrees 40 Minutes 00 Seconds East a distance of 120.25 feet to the point of beginning. Containing 1.569 acres more or less. No. 4953 Expires 12/31/05 Adjusted Parcel No. 2 All that real property situate in the City of Cupertino, County of Santa Clara, State of California, described as follows: Beginning at the Northeast corner of parcel as shown on the Record of Survey Map filed for record in Book 77 of Maps at Page 28, Santa Clara County Records; thence North 00 Degrees 10 Minutes 00 Seconds East a distance of 235.19 feet; thence South 89 Degrees 50 Minutes 00 Seconds East a distance of 317.40 feet; thence South 00 Degrees 10 Minutes 00 Seconds West a distance of 235.19 feet; thence North 89 Degrees 50 Minutes 00 Seconds West a distance of 170.53 feet; thence South 16 Degrees 08 Minutes 05 Seconds West a distance of 15.60 feet; thence North 89 Degrees 50 Minutes 00 Seconds West a distance of 129.70 feet; thence North 24 Degrees 17 Minutes 00 Seconds East a distance of 16.37 feet; thence North 89 Degrees 50 Minutes 00 Seconds West a distance of 19.59 feet to the point of beginning. Containing 1.758 acres more or less. No. 4953 Expires 12/31105 W 0 0 0 0 1 tr=60' �o' M istingg 1.714 acres -isted 1.758 acres NDS OF SANTORO 'N 356-25-1` 7 19.59 -' �J 127.19' 123.95' S 89-50 E 1 .Q. S16'05'09"W 15.60' Existing 1.613 acres / Adjusted 1.569 acres M LANDS OF MOXLEY N / APN 356-25-16 / W i z o 0 \ z 96 06 \ LEGEND: \ \ 20. EXISTING BOUNDARY PROPOSED BOUNDARY.�� \ \ Fq EXISTING STRUCTURE ------------ \ \ \ `F't'T PROPOSED STRUCTURE \ \ i 2 EXHIBIT "B" \ \ A PLAT TO ACCOMPANY A DESCRIPTION \ \ \ WESTFALL ENGINEERS, INC. 14583 BIG BASIN WAY, SARATOGA 2002-049 -1 U No. 4953 Expires 12/31/05 LINDY LANE Adliance Title PRELIMINARY REPORT ORDER NO. 11014705-007- WM Nelson Engineering 21801 Stevens Creek Blvd. #7 Cupertino, CA 95014 Attn.: Morey Nelson Escrow Branch: 901 Campisi Way EXHIB11 Campbell, CA 95008 (408) 559-3424 Fax (408) 377-0284 Escrow Officer: Wayne Miyahara/ep Ref. No: D.R.EJMAP FILING Property Address: 21949 Lindy Lane Cupertino, CA 95014 APN: 356-25-016 ARB : 356-25-016 In response to the above referenced application for a policy of title insurance, this Company reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit A attached. Please read the exceptions shown or referred to below and the Exceptions and Exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report (and any supplements hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The form of policy of title insurance contemplated by this report is: Escrow Only Dated as of January 10, 2001 at 7:30 a.m. - ,� �- , �� _ C�---Title Officer The estate or interest in the land hereinafter described or referred to covered by this Report is: A FEE as to Parcel(s) One AN EASEMENT as to Parcel(s) Two Title to said estate or interest at the date hereof is vested in: Moxley Properties -Cupertino, a California Limited Partnership The land referred to in this Report is situated in the State of California, County of Santa Clara and is described as follows: (See "Legal Description" Schedule C attached) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy would be those as shown on the following pages. NOTE: THIS REPORT IS SPECIFICALLY FOR D.R.E. PROCESSING AND MAP FILING PURPOSES ONLY. IF A SALE OR REFINANCE OF THE HEREIN DESCRIBED PROPERTY IS CONTEMPLATED, AN ESCROW MUST BE OPENED AND A NEW PRELIMINARY TITLE REPORT ISSUED. Fe4re4-'R1 Page No. 2 File No. 11014705-007- WM 1. TAXES for the fiscal year 2001-2002, a lien not yet due or payable. 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5, (commencing with Section 75) to the Revenue and Taxation Code of the State of California. 3. Rights of the public, if any, over that portion of said land which lies within the bounds of Lindy Lane. 4. An easement affecting the portion of said land and for the purpose stated herein and incidental purposes as shown or dedicated by the map filed for record December 31, 1956 in Book 77 of Maps, at Page 28. (A) For: Future Street Affects: Southerly 20 feet of said land (B) For: Driveway Affects: as shown on the map 5. An easement affecting the portion of said land and for the purpose stated herein and incidental purposes, In Favor Of: San Jose Abstract and Title Co., a California corporation For: Ingress and Egress and Public Utilities Recorded: November 21, 1957 in Book 3942, Page 265, Official Records Affects: the Southwesterly 10 feet and the Northwesterly 10 feet of said land 6. An easement affecting the portion of said land and for the purpose stated herein and incidental purposes, In Favor Of: Pacific Gas and Electric Company, a California corporation For: Public Utility Easement Recorded: March 14, 1959 in Book 4383, Page 340, Official Records Affects: the Southeasterly 10 feet of the Northwesterly 15 feet and the Northeasterly 10 feet of the Southwesterly 15 feet of said land 7. An Acknowledgement and Waiver, subject to the terms and conditions contained in the instrument Dated: February 27, 1995 Executed by: Robert W. Moxley Recorded: May 01, 1995 in Book N 837, Page 933, Official Records 8. Rights of parties in possession of said land by reason of unrecorded leases, or rental agreements, if any. Page No. 3 File No. 11014705-007- WM 9. The requirement that this company be provided with evidence that Moxley Properties - Cupertino, a Limited Partnership remains in existence and is in compliance with the Revised Limited Partnership Act of the State of California. Whether said partnership has or has not elected to be governed by said act, a Certificate of Limited Partnership must be filed in the Office of the Secretary of State as required by said act and this company requires that a certified copy thereof be recorded in the Office of the Recorder of the County of Santa Clara. NOTES: a. Date last insured: none shown b. This report does not reflect requests for notice of default, requests for notice of delinquency, subsequent transfers of easements, and similar matters not germane to the issuance of the policy of title insurance anticipated hereunder. c. If this company is requested to disburse funds in connection with this transaction, Chapter 598 of 1989 Mandates of the California Insurance Code requires hold periods for checks deposited to escrow or sub -escrow accounts. Such periods vary depending upon the type of check and anticipated methods of deposit should be discussed with the escrow officer. d. No endorsement issued in connection with the policy and relating to covenants, conditions or restrictions provides coverage for environmental protection. e. For the purposes of policy issuance, no items will be eliminated on the basis of an indemnity agreement or other agreement satisfactory to the company as insurer. f. No known matters otherwise appropriate to be shown have been deleted from this report, which is not a policy of title insurance, but a report to facilitate the issuance of a policy of title insurance. g. Prior to the issuance of a Parcel Map or Subdivision Map Guarantee for the County of Santa Clara, this Company will require a copy of the tentative Map which is to be recorded, for examination and retention in our file. h. TAXES for the fiscal year 2000-2001, alien, shown as follows: Ist Installment $584.37 Paid 2nd Installment $584.37 Paid Assessor's Parcel No. 356-25-016 Code Area 13 -0 16 Land $38,322.00 IMP $60,870.00 PP NONE Exempt NONE i. There is an additional $10.00 fee for recording a deed with a Legal Description other than an entire lot on a recorded final map. Page No. 4� File No. 11014705-007- WM According to the public records, no Deeds conveying the property described in this report have been recorded within a period of two (2) years prior to the date of this report, except as shown herein -- Grantor: Robert W. Moxley, an unmarried man Grantee: Bret Craig Moxley as Trustee, or his successor(s) of The Robert Walter Moxley Trust Agreement Dated February 11, 1999 Recorded: February 17, 1999 under Recorder's Series No. 14658831, Official Records Grantor: Bret C. Moxley, Trustee or his successor(s) of the Robert Walter Moxley Trust Agreement Dated February 11, 1999 Grantee: Moxley Properties — Cupertino, a California Limited Partnership Recorded: January 04, 2000 under Recorder's Series No. 15110692, Official Records Page No. S File No. 11014705-007- WM SCHEDULE C LEGAL DESCRIPTION All that certain real property situate in the City of Cupertino, County of Santa Clara, State of California, described as follows: PARCEL ONE: Beginning at an iron pipe set at the intersection of the center line of Lindy Lane with the section line between Sections 22 and 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian; thence along the center line of Lindy Lane, the following courses and distances: N. 50' 46' E. 146.51 feet to a 3/4 inch iron pipe; thence N. 83' 57' E. 213.25 feet to a 3/4 iron pipe; thence N. 60' 31' E. 105.02 feet to a 3/4 inch iron pipe; and thence N. 88' 39' E. 236.15 feet to a railroad spike at the true point of beginning of this description; thence from said true point of beginning leaving Lindy Lane and running along the center line of a 20 foot driveway the following courses and distances: N. 60' 16' W, 318.27 feet to a 3/4 inch iron pipe; thence N. 67' 32' W. 96.06 feet to a 3/4 inch iron pipe; and thence N. 24' 17' E. 166.17 feet to a point from which the iron pipe bears N. 89' 50' W. 19.64 feet; thence leaving said 20 foot driveway, S. 89' 50' E. 251.12 feet to an iron pipe; thence S. 0° 10' W. 234.29 feet to an iron pipe; thence S. 22' 40' E. 120.25 feet to the true point of beginning, being a portion of the Southwest quarter of Section 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian, and also being a portion of the 1.647 acre parcel of land delineated upon the Map of Record of Survey thereof, on file in the office of the Recorder of the County of Santa Clara, State of California, in Book 77 of Maps, at page 28. PARCEL TWO: A non-exclusive right of way for ingress and egress and for the installation and maintenance of public utilities over and along a strip of land 10 feet wide lying Southwesterly of and adjacent to the Southt�est:,rly lines thereo and also, over an,l along a strip of .Land 10 feet wide lying Northwesterly of and adjacent to the Northwesterly line of said above described parcel of land. ARB No: 356-25-016 APN No: 356-25-016 EXHIli f r O g 4 M �n Y• o5: j�() q o v x \o md1 0 v D A m e zo 30V oNI� _ I � 3 rsc •� I \ I(� z LA I�•li R o !� ., • I: �r 20 R/1Y 235. 11 "• m_ ai o o n n n Z � e Z o �� o m/ Ij o � 2)1 ]) sy 02\ I� 4158 1411 i n Y go• • - Y 2 35 1 10 u 305.37 - 01 o' Yl (0 \ v r1 u 1 32 �.._• roA6o -.. r inn .T r oti t`.�1.• 1 � D 1 I\ �\ v m r s p ' _ ZII01 I� J - 2448415 IE7 O �34� rc1�e11i o ; T-•-T••_T... f 1' l ti eo m I CA �y I Ico I F ° W A a to t !+ m ..22 SZ .Ip' 46/2 11 60.6] 70 � 10 i 10 ]�l0 4 _ kQ11 rr]OS v..89 /� //26/ I/217 "15J IItI « o —TERRA BELLA--0. -----_—DR IVE - cil A -i a? -< olm jge Z �O : '.m l m� w / c� im zUlo O z = a � D 11 it c4o z Nn N Un EXHIBIT "A" 01 t LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS Note: This Exhibit reflects the matters which are excluded and excepted from coverage in the 1990 CLTA Standard Coverage Policy and the 1992 ALTA Extended Coverage Loan Policy with ALTA endorsement - Form i Coverage. If the issuance of any other type of policv is anticipated, the escrow officer should be contacted to determine the applicable exclusions and exceptions. 1992 AMERICAN LAND TITLE ASSOCIATION EXTENDED COVERAGE LOAN POLICY WITH ALTA ENDORSEMENT - FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or locations of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land had been recorded in the public records at Date of policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at date of policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at date of policy, but not excluding from coverage any taking which has occurred prior to Date of policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, 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 (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory liens for services, labor or materials, or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at date of policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at date of policy, or the inabilin or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability 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. 6. Any statutory lien for services, labor or materials (or the claim or priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from the improvement or work related to the land which is contracted for and commenced subsequent to date of policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at date of policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws that is based on (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (i i) subordination of the interest of the insured mortgagee as the result of the application of the doctrine of equitable subordination: or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer accept where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to purchaser for value or a judgment or lien creditor. EXHIBIT "A" - continuedf� El`yll CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or locations of any improvement now or hereafter erected on the land; (ii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land had been recorded in the public records at date of policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at date of policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at date of policy, but not excluding from coverage any taking which has occurred prior to date of policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at date of policy, but created, suffered, assumed or agreed to by the insured claimant: (b) not known to the Company, 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 which would not have been sustained if the insured claimant had paid value for the insured mortgage or the estate of interest insured by this policy. Unenforceability of the lien of the mortgage because of the inability or failure of the insured at date of policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability 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. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE 1. 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. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the maters excepted under (a), (b) or (c) are shown by the public records. EXH01 E IWA Sanctity of Contract STEWART TITLE OF CALIFORNIA, INC., SANTA CLARA DIVISION 12820 SARATOGA-SUNNYVALE ROAD SARATOGA, CA 95070 (408) 867-6230 www.stewartsc.com MEMBER CALIFORNIA LAND TITLE ASSOCIATION PRELIMINARY REPORT FSBO-No Agent 12820 Saratoga -Sunnyvale Rd. Saratoga, CA 95070 Attn: Glori Jarnagan /Phone: (408)867-6230 Order Number: 34376726 Your Reference: Property Address: 21951 LINDY LANE, CUPERTINO, CA In response to the above referenced application for a Policy of Title Insurance, Stewart Title of California, Inc. hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referenced to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions, and Stipulations of said Policy forms. The printed exceptions and exclusions from the coverage of said policy or policies are set forth in the attached list. Copies of the policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report, (and any supplements or amendments thereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance a binder or commitment should be requested. Dated as of June 26, 2003 at 7:30 A.M. Ricardo Reyna, Title Officer When replying, please contact Glori Jarnagan, Escrow Officer Stewart Title of California, Inc. Escrow Department 12820 Saratoga -Sunnyvale Road, Saratoga, CA 95070 (408) 867-6230 Fax: (408) 867-6057 www.stewartse.com ItEEXH I 34376726 PRELIMINARY REPORT The form of Policy of Title Insurance contemplated by this report is: California Land Title Association Standard Coverage Policy American Land Title Association Loan Policy SCHEDULE A The estate or interest in the land hereinafter described or referred to covered by this report is: A FEE AS TO PARCEL ONE AND AN EASEMENT AS TO PARCEL TWO Title to said estate or interest at the date hereof is vested in: Mark R. Santoro, an unmarried man Continued on next page -1- 34376726 LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Santa Clara, City of CUPERTINO, described as follows: PARCEL ONE: BEGINNING at an iron pipe set at the intersection of the center line of Lindy Lane with the section line between Sections 22 and 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian; thence leaving Lindy Lane and running along a fence N. 1 19' E. 284.66 feet to an iron pipe which is 5.29 feet Easterly at right angles from said section line between said Sections 22 and 23; thence leaving said fence N. 73 41' E. 293.17 feet to an iron pipe; thence N. 17 50' E. 159.23 feet to an iron pipe at the true point of beginning of this description; thence from said true point of beginning N. 0 10' E. 235.19 feet to an iron pipe; thence S. 89 50' E. 317.40 feet to an iron pipe; thence S. 0 10' W. 235.19 feet to an iron pipe; and thence N. 89 50' W. 317.40 feet to the true point of beginning, and being a portion of the Southwest one quarter of Section 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian. PARCEL TWO: TOGETHER with and as appurtenant to the above described parcel of land, a non-exclusive right of way for ingress and egress and for the installation and maintenance of public utilities, over and along a strip of land 20 feet wide, the center line of which is described as follows: BEGINNING at an iron pipe set at the intersection of the center line of Lindy Lane with the section line between Sections 22 and 23, Township 7 South, Range 2 West, Mount Diablo Base and Meridian; thence along the center line of Lindy Lane the following courses and distances; N. 50 46' E. 146.51 feet to a 3/4 inch iron pipe; thence N. 83 57' E. 213.25 feet to a 3/4 inch iron pipe; thence N. 60 31' E. 105.02 feet to a 3/4 inch iron pipe; thence N. 88 39' E. 236.15 feet to a railroad spike at the true point of beginning of the center line to be described; thence from said true point of beginning leaving Lindy Lane N. 60 16' W. 318.27 feet to a 3/4 inch iron pipe; thence N. 67 32' W. 96.06 feet to an iron pipe; and thence N. 24 17' E. 166.17 feet to a point on the Southerly line of the above described parcel of land at a point distant thereon S. 80 50' E. 19.61 feet from an iron pipe at the Southwesterly corner thereof. Excepting from said strip of land all that portion thereof lying within the limits of Lindy Lane. Continued on next page -2- 34376726 APN/ARB: 356-25-017 End of Legal Description Continued on next page -3- 34376726 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: A. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes, to be levied for the fiscal year 2003 - 2004 which are a lien not yet payable. B. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California. 1. An easement for thereto as set To/Grantee : Purpose Recorded Affects the purpose shown below and forth in a document: San Jose Abstract & Title Corporation Ingress and egress and for and maintenance of public November 21, 1957 in Book of Official Records. rights incidental Co., a California the installation utilities 3942 at Page 259 Westerly and Southerly portions of said land 2. An easement for the purpose shown below and rights incidental thereto as set forth in a document: To/Grantee Pacific Gas and Electric Company, a California Corporation Purpose An underground main or pipe line with the right of ingress thereto and egress therefrom Recorded April 14, 1959 in Book 4383 at Page 339 of Official Records. Affects The Westerly and Southerly portion of said land 3. The matters contained in an instrument Entitled Acknowledgement and Waiver Dated February 23, 1995 By and Between: Edward H. Haschert upon the terms and conditions and covenants therein provided Recorded May 1, 1995 in Book N837 at Page 915, of Official Records 4. Any rights, easements, interest or claims, affecting the portion of said land and for the purposes stated herein, including incidental purpose, as by a physical inspection of said land. For: pole and overhead wires Continued on next page -4- H� B� U U 34376726 Affects:Southerly portion of said land S. Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby: Amount $1,100,000.00 Dated April 11, 2002 Trustor Mark R. Santoro Trustee Citibank Service Corp., A California Corporation Beneficiary: Citibank, F.S.B. Recorded April 26, 2002 as Instrument No. 16234794, Official Records Address PO Box 9206, MS81026, Farmington Hills, MI 48333-9206 Loan No. 000011233878 6. Matters which may be disclosed by an inspection or by a survey of said land satisfactory to this Company, or by inquiry of the parties in possession thereof. 7. Rights of parties in possession of said land by reason of any unrecorded leases. END OF EXCEPTIONS Typist Initials: LCH Print date: July 10, 2003 Continued on next page -5- r NOTES General and special taxes for the fiscal year 2002/2003 have been paid, including personal property taxes, if any. 1st Installment $721.53 2nd Installment $721.53 APN No. 356-25-017 Supplemental taxes for the fiscal year issued pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California, for fiscal year 2002/2003 Tract No. 13 016 Parcel No. 356-25-017-H2 Activity Date 1st Installment: $NONE 2nd Installment: $77.66 PAID Supplemental taxes for the fiscal year issued pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California, for fiscal year 2002/2003 Tract No. 13 016 Parcel No. 356-25-017-11 Activity Date April 26, 2002 1st Installment: $1,788.92 PAID 2nd Installment: $1,788.92 PAID Supplemental taxes for the fiscal year issued pursuant to the provisions of Chapter 3.5 (commencing with Section 75) of the Revenue and Taxation Code of the State of California, for fiscal year 2002/2003 Tract No. 13 016 Parcel No. 356-25-017-12 Activity Date April 26, 2002 1st Installment: $10,509.27 PAID 2nd Installment: $10,509.27 PAID Affidavit Death of Trustee Decedent Edward Herbert Haschert Recorded February 7, 2002 Under Serial No. 16098687, Official Records There are no conveyances affecting said land recorded within two (2) years of the date of this report, except the following: Grantor Sunny S. Solis, Trustee of the Haschert Family Trust dated November 21, 1994, Trust B, as to an undivided 600/640 interest; Sunny S. Solis, trustee of the haschert Family Trust dated November 21, 1994, Trust A Continued on next page -6- EXHBn a 34376726 as to an undivided 40/640 interest Grantee Mark R. Santoro, an unmarried man Recorded: April 26, 2002 instrument No. 16234793 of Official Records There have been no conveyances of said land recorded within 24 months prior to the date of this report. None of the items shown in this report will cause the company to decline to attach CLTA Indorsement form 100 to the ALTA Loan Policy, when issued. There is located on said land: Single Family Dwelling known as: 21951 LINDY LANE CUPERTINO, CA SHORT TERM RATE: YES COUNTY OF SANTA CLARA RECORDING FEES The Recording Fees for The County of Santa Clara as follows: $7.00 for the first page of a document, plus $7.00 for each additional title over one, plus $3.00 for each additional page (provided all pages of the document measure 8-1/2" x 11" and comply with recording requirements), except for deeds of trust assignments of deeds of trust, reconveyance, requests for notice, requests for notice of delinquencies and notice of defaults. Deeds of Trust, Reconveyance, Requests for Notice of Delinquencies and Notices of Defaults are $9.00 for the first page of the document, plus $7.00 for each additional title over one, plus $3.00 for each additional page (provided all pages of the document measure 8-1/2" x 11" and comply with recording requirements). A Substitution of Trustee and Full Reconveyance, as combined document is $18.00 for the first page of the document, plus $3.00 for each additional page (provided all pages of the document measure 8-1/2" x 11" and comply with recording requirements). The recording fee for a Release of Tax Lien from the State of California, The County of Santa Clara, or a City is $11.00. The recording fee for Release of Tax Lien from the I.R.S. is $7.00. When recording a lien, judgment, or abstract of judgment add Continued on next page -7- C Xr-10 11 34376726 $3.00 per owner or debtor. There is a Survey Monument Preservation Fee of $10.00 charged on the recording of all deeds containing a description other than that of a condominium or a complete lot shown on a subdivided tract (this fee is not charged on easements). Documents that are not 8-1/2 " x 11" and that do not comply with recording requirements are subject to an additional fee of $3.00 for each page. TRANSFER TAX RATE: The Transfer Tax Rate for the County of Santa Clara is based on $1.10 per $1,000 (or 55 cents per $500) of total consideration given for the property, less liens and encumbrances remaining of record. In addition to the transfer tax charged by the County of Santa Clara, the Cities of Mountain View, San Jose and Palo Alto have a Transfer Tax Rate based on $3.30 per $1,000 (or $1.65 per $500) of total consideration given for the property, less liens and encumbrances remaining of record. STATE OF CALIFORNIA DOCUMENT REQUIREMENTS: Any instrument, paper, or notice submitted for recording should be on 8-1/2" x 11" white paper, preferably 161b bound or heavier. They should be in block print, preferably minimum 10-point type on the first page and 8 point on subsequent pages. All printing or writing should be limited to one side of a page. Any document submitted for recording shall have at least 1/2" margin on each vertical side. In addition, the top 2-1/2" of the first page shall be reserved for recording information, with the left 3-1/2" used by the public to show the name of the person requesting recording and the name and address to which the document is to be returned following recording. The right-hand portion of the space is for use by the recorder only. Any document submitted must indicate the title or titles of the document(s) contained therein. Those title must appear on the first page directly below the space reserved for the recorder. All information required by the statute which provides for the creation of the document must be there. In addition, all recording requirements must be met. Any document which contains sheet or sheets which do not measure 8-1/2" x 11" or that do not comply with recording requirements may be subject to recording penalty of $3.00 for Continued on next page -8- EXH0111 Ins 34376726 every page of that document. PRELIMINARY CHANGE OF OWNERSHIP REPORT (PCOR): A Preliminary Change of Ownership Report must be completed by the transferee (buyer) prior to the transfer of property in accordance with the provisions of Section 480.3 of the Revenue and Taxation Code. The Preliminary Change of Ownership Report should be submitted to the recorder concurrent with the recordation of any document effecting a change of ownership. If a document evidencing a change of ownership (i.e. Deed, Affidavit -Death Joint Tenant) is presented to the recorder for recording with a preliminary change of ownership report, the recorder may charge an additional $20. Continued on next page -9- 34376726 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub -escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available prior to disbursement. Funds received by Stewart Title of California, Inc. (Stewart Title) via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub -escrow funds received will be deposited with other escrow funds in one or more non -interest bearing escrow accounts in a financial institution selected by Stewart Title. Stewart Title may recieve certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Stewart Title shall have no obligation to account to the depositing party in any manner for the value of, or pay to such party, any benefit received by Stewart Title. Such benefits shall be deemed additional compensation to Stewart Title Title for its services in connection with the escrow or sub -escrow. -10- Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc. Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc. We may collect nonpublic personal information about you from the following sources: * Information we receive from you, such as on applications or other forms. * Information about your transactions we secure from our files, or from our affiliates or others. * Information we receive from a consumer reporting agency. * Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to the following types of nonaffiliated companies that perform marketing services on our behalf or with whom we have joint marketing agreements: * Financial service providers such as companies engaged in banking, consumer finance, securities and insurance. * Non -financial companies such as envelope stuffers and fulfillment service providers. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. CLTA PRELIMINARY REPORT FORM EXHIBIT A CLTA PRELIMINARY REPORT FORM LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS SCHEDULE B 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 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 WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING OR ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OR POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTEND THAT A NOTICE OF THE EXERCISE THEREOF OR NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) WHETHER OR NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, 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 WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE OR FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4. UNENFORCEABLILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OR INDEBTEDNESS, TO COMPLY WITH THE APPLICABLE DOING BUSINESS LAWS, OF THE STATE IN WHICH THE LAND IS SITUATED. i. INVALIDITY OR UNENFORCEABILITY 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. S. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY OR THE TRANSACTION CREATING THE INTEREST OF THE INSURED LENDER, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY OR SIMILAR CREDITORS' RIGHTS LAWS. EXCEPTIONS FROM COVERAGE 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: 1. 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. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR WHICH MAY BE ASSERTED BY PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 1 OF 6 CLTA PRELIMINARY REPORT FORM 2. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS' FEES, AND EXPENSES RESULTING FROM: 1. GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENTAL REGULATION. THIS INCLUDES BUILDING AND ZONING ORDINANCES AND ALSO LAWS AND REGULATIONS CONCERNING: * LAND USE * IMPROVEMENTS ON THE LAND * LAND DIVISION * ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS WHICH APPEAR IN THE PUBLIC RECORDS AT POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE ZONING COVERAGE DESCRIBED IN ITEMS 12 AND 13 OF COVERED TITLE RISKS. 2. THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: * A NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUBLIC RECORDS ON THE POLICY DATE * THE TAKING HAPPENED PRIOR TO THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING 3. TITLE RISKS: * THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU * THAT ARE KNOWN TO YOU, BUT NOT TO US, ON THE POLICY DATE - - UNLESS THEY APPEARED IN THE PUBLIC RECORDS * THAT RESULT IN NO LOSS TO YOU * THAT FIRST AFFECT YOUR TITLE AFTER THE POLICY DATE - - THIS DOES NOT LIMIT THE LABOR AND MATERIAL LIEN COVERAGE IN ITEM 8 OF COVERED TITLE RISKS 4. FAILURE TO PAY VALUE FOR YOUR TITLE. 5. LACK OF A RIGHT: ■ TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBED AND REFERRED TO IN ITEM 3 OF SCHEDULE A OR * IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH YOUR LAND THIS EXCLUSION DOES NOT LIMIT THE ACCESS COVERAGE IN ITEM 5 OF COVERED TITLE RISKS. EXCEPTIONS FROM COVERAGE 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: 1. ANY RIGHTS, INTERESTS, OR CLAIMS OF PARTIES IN POSSESSION OF THE LAND NOT SHOWN BY THE PUBLIC RECORDS. 2. ANY EASEMENTS OR LIENS NOT SHOWN BY THE PUBLIC RECORDS. THIS DOES NOT LIMIT THE LIEN COVERAGE IN ITEM 8 OF COVERED TITLE RISKS. 3. ANY FACTS ABOUT THE LAND WHICH A CORRECT SURVEY WOULD DISCLOSE AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. THIS DOES NOT LIMIT THE FORCED REMOVAL COVERAGE IN ITEM 12 OF COVERED TITLE RISKS. 4. ANY WATER RIGHTS OR CLAIMS OR TITLE TO WATER IN OR UNDER THE LAND, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 2 OF 6 CLTA PRELIMINARY REPORT FORM 3. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE EXCLUSIONS AND COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COSTS, ATTORNEY'S FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, 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 (EXCEPT TO THE EXTENT THAT THIS POLICY INSURES THE PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIAL OR TO THE EXTENT INSURANCE IS AFFORDED HEREIN AS TO THE ASSESSMENTS FOR STREET IMPROVEMENTS UNDER CONSTRUCTION OR COMPLETED AT DATE OF POLICY); OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE. 4. UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. S. INVALIDITY OR UNENFORCEABILITY 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. 6. ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS (OR THE CLAIM OF PRIORITY OF ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS OVER THE LIEN OF THE INSURED MORTGAGE) ARISING FROM AN IMPROVEMENT OR WORK RELATED TO THE LAND WHICH IS CONTRACTED FOR AND COMMENCED SUBSEQUENT TO DATE OF POLICY AND IS NOT FINANCED IN WHOLE OR IN PART BY PROCEEDS OF THE INDEBTEDNESS SECURED BY THE INSURED MORTGAGE WHICH AT DATE OF POLICY THE INSURED HAS ADVANCED OR IS OBLIGATED TO ADVANCE. 7. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (I) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (II) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OR EQUITABLE SUBORDINATION; OR (III) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORDED THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 3 OF 6 CLTA PRELIMINARY REPORT FORM THE ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE. IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS: EXCEPTIONS FROM COVERAGE 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: 1. 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. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CALIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4, DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. 4. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, 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 WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (I) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (II) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 4 OF 6 CLTA PRELIMINARY REPORT FORM THE ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE. IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS: EXCEPTIONS FROM COVERAGE 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: 1. 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. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLIICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. 5. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6-2-98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-17-98) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS' FEES, AND EXPENSES RESULTING FROM: 1. GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENT REGULATION. THIS INCLUDES ORDINANCES, LAWS AND REGULATIONS CONCERNING: A. BUILDING B. ZONING C. LAND USE D. IMPROVEMENTS ON LAND E. LAND DIVISION F. ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS IF NOTICE OF THE VIOLATION OR ENFORCEMENT APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 14, 15, 16, 17, OR 24. 2. THE FAILURE OF YOUR EXISTING STRUCTURES, OR ANY PART OF THEM, TO BE CONSTRUCTED IN ACCORDANCE WITH APPLICABLE BUILDING CODES. THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OF BUILDING CODES IF NOTICE OF THE VIOLATION APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE. 3. THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: A. NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE; OR B. THE TAKING HAPPENED BEFORE THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING. 4. RISKS: A. THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU, WHETHER OR NOT THEY APPEAR IN THE PUBLIC RECORDS; B. THAT ARE KNOWN TO YOU AT THE POLICY DATE, BUT NOT TO US, UNLESS THEY APPEAR IN THE PUBLIC RECORDS AT THE POLICY DATE; C. THAT RESULT IN NO LOSS TO YOU; OR D. THAT FIRST OCCUR AFTER THE POLICY DATE - THIS DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 7, S.D, 22, 23, 24 OR 25. 5. FAILURE TO PAY VALUE FOR YOUR TITLE. 6. LACK OF A RIGHT: A. TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBED AND REFERRED TO IN PARAGRAPH 3 OF SCHEDULE A; AND B. IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH THE LAND. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 11 OR 18. REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 5 OF 6 6. "GOLD" COMPREHENSIVE PROTECTION LOAN POLICY OF TITLE INSURANCE EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 17, 34, AND 41. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 17, 34, AND 41. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, 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 (THIS EXCLUSION FROM COVERAGE 3 (D) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 7, 8, 15, 16, 18, 21, 22, 24, 25, 26, 28, 29, 30, 32, 33, 34, 35, 38, 39, AND 40); (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE. 4. UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. INVALIDITY OR UNENFORCEABILITY 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 ANY CONSUMER CREDIT PROTECTION OR TRUTH -IN -LENDING LAW, 6. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (A) THE TRANSACTION CREATING THE ESTATE OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (B) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OF EQUITABLE SUBORDINATION; OR (C) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE; (I) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER; OR (II) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. 7. TAXES, ASSESSMENTS, COSTS, CHARGES, DAMAGES AND OTHER OBLIGATIONS TO THE GOVERNMENT SECURED BY STATUTORY LIENS THAT BECOME A LIEN ON THE LAND SUBSEQUENT TO DATE OF POLICY, BUT THIS EXCLUSION 7 DOES NOT LIMIT THE COVERAGE OF INSURING PROVISION 34. REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 6 OF 6 U �lu N d ► z v U c0 O trJN �O 1. $lf) w ► I'Q O p O• c m� Ow o <I> (gyp ° Ala N � N ~ o -� can) p V883U) -0 ° o OL i OL OL i 9909 w I 2699 Oh'LS ° ' U a) O _ j of b) �; '�� �� r`� mI a► 01l > Q L110 vt I In I n n ► h � n �I +0�,5, `Lt\ Q /� � ° � h Leal .at ' OS.' U _ to 60'll2 �' GCS Q �afe 1j2� � o ti8 110L N a OS'S01 ( is I ... LL 4 :0 2 J I U r2 __...— J- _... _ _ Ls ✓' 3L11 30M Lo . N r- w z LO' Q r O Lq ► �' I O a N► F- z Z ml O O ON r !� yHry t- \Q / —`, \ m + N � LINDY_,__. �g Y PLACE i 61 J )