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HomeMy WebLinkAboutAD05-332 - Insurance Certificate - Springboard Holdings, LLC - Schweet Rieke & Linde, PLLC - Title Insurance - Kent City Center Garage - 10/01/2010 Form No 140292 A M E p C (10117/92) ALTA Owner's Policy ` 1100063UO10700 5 POLICY OF TITLE INSURANCE y ISSUED BY s z_ FirstAmerican 77de Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND _.. THE CONDITIONS AND STIPULATIONS,FIRST AMERICAN TITLE INSURANCE COMPANY,a California corporation herein called 'ra the Company, insures,as of Date of Policy shown in Schedule A,against loss or damage, not exceeding the Amount of Insurance < stated in Schedule A, sustained or incurred by the insured by reason of " 1 Title to the estate or interest described in Schedule A being vested other than as stated therein, 2 Any defect in or lien or encumbrance on the title, 3 Unmarketability of the title, '',4 4 Lack of a right of access to and from the land The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the - extent provided in the Conditions and Stipulations .0 Firs t Am erican Title Insurance Company » BY PRESIDENT q p ATTEST SECRETARY MOV8 u s 1002021- ALTA OWNER'S POLICY (10/17/92) SCHEDULE A FILE NO: 4365805 REFERENCE: BINGO INVESTMENTS AMOUNT OF INSURANCE: $4,660,000.00 PRLIIIIIM: $6,323.00 SALES TAX: $600.64 DAI E OF POLICY: OCTOBER 1,2010 at 1:43 PM 1. NANIEOFINSURED: THE CITY OF KENT,A WASHINGTON MUNICIPAL CORPORATION 2. THE ESTATE OR INTEREST IN THE LAND DESCRIBED WHICH IS COVERED BY THIS POLICY IS: A FEE 3. TITLE TO THE ESTATE OR INTEREST IN THE LAND IS VESTED IN: THE CITY OF KENT,A WASHINGTON MUNICIPAL CORPORATION 4. THE LAND REFERRED TO IN THIS POLICY IS DESCRIBED AS FOLLOWS: (SEE EXHIBIT "A" ATTACHED) SCHEDULE B EXCEPTIONS FROM COVERAGE I HIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY ( OS I S, A FTORNEY'S FEES 012 EXPENSES)NN HICH ARISE BY REASON OF: SECTION ONE: I TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING \UTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS ANY FACTS RIGHTS, INTEREST, OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF SAID LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF 1 EASEMENTS,CLAIMS OF EASEMENTS OR ENCUMBRANCES WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS 4 DISCREPANCIES,CONFLICTS IN BOUNDARY LINES,SHORTAGE IN AREA ENCROACHMENTS,OR ANY OTHER FACTS \\HK I I A(ORRL( I SURVEY WOULD DISCLOSE,AND WHICH ARE NOT SIIOWN BY 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 UNDI-R (A), (B)OR iC) ARE SHOWN BY THE PUBLIC RECORDS,(D)INDIAN TRIBAL CODES OR REGULATIONS, INDIAN IRLAIYORABORIGINAI RIGIIIS, INCLUDING EASEMENTS OR EQUITABLE SERVIFUDES 6 ANY LIEN OR RIGHT TO ALIEN, FOR SERV ICES, LABOR OR MATERIAL THERETOFORE OR HEREAFTER FURNISHED, IMPOSED BY LAW AND NOT SHOWN BY THE PUBLIC RECORDS 7 ANY SERVICE, INSTALLATION, CONNECTION, MAINTENANCE, CONSTRUCTION, TAP OR REIMBURSEMENT (11 ARGFS%COSTS FOR SEWER, WATER,GARBAGE OR ELECTRICITY SECTION TWO: I LIABILITY FOR ASSESSMENTS AND/OR PERSONAL PROPERTY TAXES,IF ANY 2 GENERAL TAXES THE FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH THE SECOND HALF BECOMES DELINQUENT AFTER OCTOBER 31 ST YEAR 2010 AMOI!NT BILLED $3,496.45 AMOUNT PAID $0.00 AMOUNT DUE $3,496.45,PLUS INTEREST AND PENALTY,IF DELINQUENT TAX AC COUNT NO 982570-0520 ASSFSSFD VALUE OF LAND $270,600.00 ASSLSSLD VALUE OF IMPROVEMENT 50.00 AFFEC 1 S NEW LOT A DELINQUENT GENERAL TAXES YI-AR 2009 AMOUNT $3,390.08 AMOUNT PAID 50.00 AMOI NT DUE $3,390.08, PLUS INTEREST AND PENALTY TAX AC COUNT NO 982570-0520 AFFLC US NEW LOT A 4 DELINQUENT GENERAI T AXES YEAR 2008 AMO[ NT $4,040.16 AMOI NT PAID $0 00 AMOCNT DUE 54,040.16, PLUS INTEREST AND PENALTY TAX AC COUNT NO 982570-0520 AFFLC 1S NEN LOTA 5 DELINQUENT GENERAL TAXES Y L A R 2007 AMOUNT $2,986.63 AMOUNT PAID $1,493.32 .AMOL NT DUE $2,015.96, PLUS INTEREST AND PENALTY TAX ACC'OUNTNO 982570-0520 AFFECTS NEN LOT 6 GENERAL TAXES THE FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH THE SECOND HALF BECOMES DELINQUENT AFTER OCTOBER 3IST YEAR 2010 AMOUNT BILLED $1,007.59 AMOUNT PAID $0.00 AMOUNT DUE $1,007.59,PLUS INTEREST AND PENALTY,IF DELINQUENT TAY ACCOUNTNO 982570-0515 ASSESSED VALUE OF LAND $79,200.00 ASSESSED VALUE OF IMPROVEMENT $0.00 AFFECT S NEW LOT B 7 DELINQUENT GENERAL TAXES YEAR 2009 AMOUNT 51,066.18 AMOUNT PAID $0.00 AMOI�N I DC E 51,066.18 PLUS INTEREST AND PENALTY TAXAC COUNT NO 982570-0515 AFFI CTS NEW LOT B 8 DELINQUENT GENERAL TAXES YEAR 2008 AMOUNT S1,270.30 AVIOI TNT PAID $0.00 AMOL,NT DUE $1,270.30,PLUS INTEREST AND PENALTY 1 A\ A( COUNT NO 982570-0515 AFFF(TS NLN LOFB l) DELINQUENT GENERAL TAXES YEAR 2007 AMOUNT $977.15 AMOL'NT PAID $488.58 AMOI NT DUE $659.57, PLUS INTEREST AND PENALTY TAX ACCOUNT NO 982570-0515 AFFFCI S NEW LOT B In GENERAL TAXES THE FIRST HALF BECOMES DELINQUENT AFTER APRIL 30TH THE SECOND HALF BECOMES DELI\QL-ENT AFTER OCTOBER 31 ST YEAR 2010 AMOI NT BILLED 54,700.57 AMOLN I' PAID $0.00 AMOL,A I DUE $4,700.57, PLUS INTEREST AND PENALTY, IF DELINQUENT FA\ ACCOUN I NO 982570-0505 ASSI SSED VALUE OF LAND $372,500.00 ASSLSSFD VALUE OF IMPROVEMENT $0.00 AFFECTS NEW LOT 11 DELINQUENT GENERAL TAXES YEAR 2009 AMOUNT $4,530.91 AMOUNT PAID 50.00 AMOUN"I DUE 54.530.91, PLUS INTEREST AND PENALTY FAN ACCOUNT NO 982570-0505 41 FECTS NEW LOT C 12 DELINQUENT GENERAL TAXES. YEAR 2008 AMOUNT $5,402.42 AMOUNT PAID 50.00 AMOUNT DUE S5,402A2, PLUS INTEREST AND PENALTY TAX 1CCOUNTNO 982570-0505 \I11FClS NEN LOTC 13 DELINQUENT GENERAL TAXES YEAR 2007 AMOUNT S4,160.51 AMOUNT PAID S2,080.26 AMOtiNT DUE $2,808.34, PLUS INTEREST AND PENALTY TAX ACCOUNT NO 982570-0505 AIFLCI'S NEN LOFC 14 RESTRICTIONS, CONDITIONS,DEDICATIONS,NOTES, EASEMENTS AND PROVISIONS,IF ANY,AS CON FAINED AND/OR DELINEATED ON THE FACE OF THE PLAT OF THE YESLER'S FIRST ADDITION RECORDED IN VOLUME 5 OF PLATS, PAGE 64, IN KING COUNTY, WASHINGTON 15 EASEMENT, INCLUDING TERMS AND PROVISIONS CONTAINED THLREIN RECORDING INFORMATION MAY 27, 1946 UNDER RECORDING NO 3572715 FOR SEN L12 PIPE AFFLCIS INLN' LO C A)AS DESCRIBED THEREIN 16 EASEMENT, INCLUDING TERMS AND PROVISIONS CONTAINED THEREIN RECORDING INFORMATION JUNE 17, 1976 UNDER RECORDING NO 7606170770 IN FAVOR OF PUGET SOUND POWER&LIGHT COMPANY,A WASHINGTON CORPORATION FOR PAD MOUNT SWITCHES AND VAULT WITH NECESSARY APPURTENANCES AFFECTS AS DESCRIBED THEREIN 17 FHE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "ORDINANCE NO.3608" RI�CORDED At GUST 7,2003 RI CORDING NO 20030807000823 IS RECIPROCAL PARKING EASEMENT AND THE TERMS AND CONDITIONS THEREOF BY AND BETWEEN: CI l) OF KENT AND MEEKER STREET LAW BUILDING,A WASHINGTON LIMITED Ll ABILTY COMPANY RL( ORDED NON EMBER 4, 2004 AS INSTRUMENT NUMBER 20041104001169. AFFLCIS POR I ION OF LOT A 19 LASL MENT, INCLUDING TERMS AND PROVISIONS CONTAINED THEREIN RLC ORDING INFORMATION JANUARY 6,2005 UNDER RECORDING NO 20050106000575 IN FAVOR OF PUGET SOUND ENERGY, INC.,A WASHINGTON CORPORATION FOR ONE OR MORE ELECTRIC U'I ILITY SYSTEMS AFFECTS (NEN' LOT A)AS DESCRIBED THEREIN ?0 THE TERMS AND PROVISIONS CONTAINED IN THE DOCUMENT ENTITLED "ORDINANCE NO.3764" RECORDED NOVEMBER 1, 2005 RF( ORDING NO 20051101001577 )1 I ERMS CON ENANTS, CONDITIONS AND RESTRICTIONS AS CONTAINED IN RECORDED LOT LINE 1DIL SI MENT(BOUNDARY LINE REVISION) LLA NO LL-2005-37 RECORDED JANUARY 10,2006 RECORDING INFORMATION 20060110002592 22 COVENANTS,CONDITIONS RESTRICTIONS AND/OR EASEMENTS RFC ORDED J IN I ARY 10,2006 Rl C ORDING NO 20060110002607 ', THE T ERMS PROVISIONS AND EASEMENT(S)CONTAINED IN THE DOCUMENT ENTITLED "MFC HANK M ROOMS AND RELATED EASEMENTS AGRFEMENT" RECORDED JITLY 28,2006 REC ORDI\G NO 20060728002540 14 THE TERMS, PROVISIONS AND EASEMENT(S) CONTAINED IN THE DOCUMENT ENTITLED "PARKING I \SEMEN f AGREEMEN I" RLCORDLD JLLY 28,2006 RECORDING NO 20060728002541 25 COVENANTS,CONDITIONS, RESTRICTIONS AND/OR EASEMENTS RECORDED JUNE 5, 2008 RECORDING NO 20080605000430 AFFECTS NEW LOI C END OF SCHEDULE B EXHIBIT " _ H BIT A ALL THAT CERTAIN LAND SITUATED IN THE STATE OF WASHINGTON, COUNTY OF KING,DESCRIBED AS FOLLOWS NEW LOTS A,B AND C,CITY OF KENT LOT LINE ADJUSTMENT NO LL-2005-37,RECORDED JANUARY 10 2006 UNDER RECORDING NO 200601 10002592 IN KING COUNTY, WASIiINGTON EXCLUSIONS FROM COVERAGE "land" does not include any property beyond the lines of the area described or The following matters are expressly excluded from the coverage of this policy and referred to in Schedule (A), nor any right, title, interest, estate or easement in the Company will not pay loss or damage, costs, attorneys' fees or expenses abutting streets, roads, avenues, alleys, lanes, ways or waterways but nothing which arise by reason of herein shall modify or limit the extent to which a right of access to and from the 1 (a) Any law, ordinance or governmental regulation (including but not land is insured by this policy limited to building and zoning laws, ordinances, or regulations) (e) "mortgage' mortgage, deed of trust, trust deed, or other security restricting, regulating, prohibiting or relating to(i)the occupancy, use, Instrument or enjoyment of the land, (ii) the character, dimensions or location of (f) "public records" records established under state statutes at Date of any improvement now or hereafter erected on the land,(ui)a separation Policy for the purpose of imparting constructive notice of matters relating to real in ownership or a change in the dimensions or area of the land or any property to purchasers for value and without knowledge With respect to Section parcel of which the land is or was a part, or (iv) environmental 1(a)(ivl of the Exclusions From Coverage, "public records" shall also include protection, or the effect of any violation of these laws, ordinances or environmental protection liens filed in the records of the clerk of the United States governmental regulations, except to the extent that a notice of the district court for the district in which the land is located enforcement thereof or a notice of a defect, lien or encumbrance (g) "unmarketabihty of the title" an alleged or apparent matter affecting the resulting from a violation or alleged violation affecting the land has title to the land, not excluded or excepted from coverage, which would entitle a been recorded in the public records at Date of Policy purchaser of the estate or interest described in Schedule A to be released from the (b) Any governmental police power not excluded by(a)above,except to the obligation to purchase by virtue of a contractual condition requiring the delivery extent that a notice of the exercise thereof or a notice of a defect, lien or of marketable title encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. 2 Rights of eminent domain unless notice of the exercise thereof has been The coverage of this policy shall continue in force as of Date of Policy in recorded in the public records at Date of Policy, but not excluding from favor of an insured only so long as the insured retains an estate or interest in the coverage any taking which has occurred prior to Date of Policy which would land, or holds an indebtedness secured by a purchase money mortgage given by be binding on the rights of a purchaser for value without knowledge a purchaser from the insured,or only so long as the+nsured shall have liability by 3 Defects, liens,encumbrances,adverse claims or other matters reason of covenants of warranty made by the insured in any transfer or (a) created,suffered,assumed or agreed to by the insured claimant, conveyance of the estate or interest This policy shall not continue in force in favor (b) not known to the Company, not recorded in the public records at Date of any purchaser from the insured of either (i)an estate or interest in the land, or of Policy but known to the insured claimant and not disclosed in (ii)an indebtedness secured by a purchase money mortgage given to the insured writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. , (c) resulting in no loss or damage to the insured claimant, The insured shall notify the Company promptly in writing (i) in case of any (d) attaching or created subsequent to Date of Policy or litigation as set forth in Section 4(a)below, (ii) m case knowledge shall come to (e) resulting in loss or damage which would not have been sustained if the an insured hereunder of any claim of title or interest which is adverse to the title insured claimant had paid value for the estate or interest insured by this to the estate or interest as insured and which might cause loss or damage for policy which the Company may be liable by virtue of this policy,or(w)if title to the estate 4 Any claim, which arises out of the transaction vesting in the Insured the or interest, as insured, is rejected as unmarketable If prompt notice shall not be estate or interest insured by this policy, by reason of the operation of federal given to the Company, then as to the insured all liability of the Company shall bankruptcy, state insolvency, or similar creditors' rights laws, that is based terminate with regard to the matter or matters for which prompt notice is required, on provided, however, that failure to notify the Company shall in no case prejudice (i) the transaction creating the estate or interest insured by this policy the rights of any insured under this policy unless the Company shall be being deemed a fraudulent conveyance or fraudulent transfer,or prejudiced by the failure and then only to the extent of the prejudice, (u) the transaction creating the estate or interest insured by this policy 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED being deemed a preferential transfer except where the preferential CLAIMANT TO COOPERATE. transfer results from the failure (a) to timely record the instrument of transfer, or (a) Upon written request by the insured and subject to the options (b) of such recordation to impart notice to a purchaser for value or a contained in Section 6 of these Conditions and Stipulations,the Company, at its judgment or lien creditor own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or CONDITIONS AND STIPULATIONS interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or other matter insured against by this policy The Company 1. DEFINITION OF TERMS. shall have the right to select counsel of its choice (subject to the right of the The following terms when used in this policy mean insured to object for reasonable cause)to represent the insured as to those stated (a) "insured" the insured named in Schedule A,and,subject to any rights causes of action and shall not be liable for and will not pay the fees of any other or defenses the Company would have had against the named insured,those who counsel The Company will not pay any fees,costs or expenses ncurred by the succeed to the interest of the named insured by operation of law as distinguished insured in the defense of those causes of action which allege matters not insured from purchase including, but not limited to, heirs, distributees, devisees, against by this policy survivors personal representatives, next of kin, or corporate or fiduciary (b) The Company shall have the right, at its own cost, to institute and successors prosecute any action or proceeding or to do any other act which in its opinion may (b) "insured claimant" an insured claiming loss or damage be necessary or desirable to establish the title to the estate or interest as insured, (c) "knowledge"or"known" actual knowledge, not constructive knowledge or to prevent or reduce loss or damage to the insured The Company may take any or notice which may be imputed to an insured by reason of the public records as appropriate action under the terms of this policy whether or not it shall be liable defined in this policy or any other records which impart constructive notice of hereunder, and shall not thereby concede liability or waive any provision of this matters affecting the land policy If the Company shall exercise its rights under this paragraph, it shall do so (d) "land" the land described or referred to in Schedule (A), and diligently improvements affixed thereto which by law constitute real property The term (c) Whenever the Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company any litigation, and the policy shall be surrendered to the Company for may pursue any litigation to final determination by a court of competent cancellation jurisdiction and expressly reserves the right, in its sole discretion,to appeal from (b) To Pay or Otherwise Settle With Parties Other than the Insured or With any adverse judgment or order the Insured Claimant (d) In all cases where this policy permits or requires the Company to (i) to pay or otherwise settle with other parties for or in the name of prosecute or provide for the defense of any action or proceeding,the insured shall an insured claimant any claim insured against under this policy,together with any secure to the Company the right to so prosecute or provide defense in the action costs, attorneys' fees and expenses incurred by the insured claimant which were or proceeding, and all appeals therein, and permit the Company to use, at its authorized by the Company up to the time of payment and which the Company is option the name of the insured for this purpose Whenever requested by the obligated to pay, or Company the insured, at the Company's expense, shall give the Company all (u) to pay or otherwise settle with the insured claimant the loss or reasonable aid (Q in any action or proceeding, securing evidence, obtaining damage provided for under this policy,together with any costs,attorneys'fees and witnesses, prosecuting or defending the action or proceeding, or effecting expenses incurred by the insured claimant which were authorized by the Company settlement, and (it) in any other lawful act which in the opinion of the Company up to the time of payment and which the Company is obligated to pay may be necessary or desirable to establish the title to the estate or interest as Upon the exercise by the Company of either of the options provided for in insured If the Company is prejudiced by the failure of the insured to furnish the paragraphs (b)(i) or (u), the Company's obligations to the insured under this requved cooperation, the Company's obligations to the insured under the policy policy for the claimec loss or damage, other than the payments required to be shall terminate, including any liability or obligation to defend, prosecute, or made,shall terminate including any liability or obligation to defend prosecute or continue any litigation, with regard to the matter or matters requiring such continue any litigation cooperation 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. 5. PROOF OF LOSS OR DAMAGE This policy is a contract of indemnity against actual monetary loss or In addition to and after the notices required under Section 3 of these damage sustained or incurred by the insured claimant who has suffered loss or Conditions and Stipulations have been provided the Company,a proof of loss or damage by reason of matters insured against by this policy and only to the extent damage signed and sworn to by the insured claimant shall be furnished to the herein described Company within 90 days after the insured claimant shall ascertain the facts giving (a) The liability of the Company under this policy shall not exceed the least of rise to the loss or damage The proof of loss or damage shall describe the defect (i) the Amount of Insurance stated in Schedule A, or in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state,to the extent (n) the difference between the value of the insured estate or interest as possible, the basis of calculating the amount of the loss or damage If the insured and the value of the insured estate or interest subject to the defect, lien or Company is prejudiced by the failure of the insured claimant to provide the encumbrance insured against by this policy required proof of loss or damage,the Company's obligations to the insured under (b) In the event the Amount of Insurance stated in Schedule A at the Date the policy shall terminate including any liability or obligation to defend, of Policy is less than 80 percent of the value of the insured estate or interest or the prosecute,or continue any litigation,with regard to the matter or matters requiring full consideration paid for the land whichever is less, or if subsequent to the Date such proof of loss or damage of Policy an improvement is erected on the land which increases the value of the In addition, the insured claimant may reasonably be required to submit to insured estate or interest by at least 20 percent over the Amount of Insurance examination under oath by any authorized representative of the Company and stated in Schedule A,then this Policy is subject to the following shall produce for examination, inspection and copying, at such reasonable times (i) where no subsequent improvement has been made as to any and places as may be designated by any authorized representative of the partial loss, the Company shall only pay the loss pro rata in the proportion that Company, all records, books, ledgers, checks, correspondence and memoranda, the Amount of Insurance at Date of Policy bears to the total value of the insured whether bearing a date before or after Date of Policy, which reasonably pertain to estate or interest at Date of Policy, or the loss or damage Further, if requested by any authorized representative of the (n) where a subsequent improvement has been made,as to any partial Company, the insured claimant shall grant its permission, in writing, for any loss, the Company shall only pay the loss pro rata in the proportion that 120 authorized representative of the Company to examine, inspect and copy all percent of the Amount of Insurance stated in Schedule A bears to the sum of the records, books ledgers, checks correspondence and memoranda in the custody Amount of Insurance stated in Schedule A and the amount expended for the or control of a third party, which reasonably pertain to the loss or damage All improvement information designated as confidential by the insured claimant provided to the The provisions of this paragraph shall not apply to costs,attorneys fees and Company pursuant to this Section shall not be disclosed to others unless, in the expenses for which the Company is liable under this policy,and shall only apply reasonable judgment of the Company, it is necessary in the administration of the to that portion of any loss which exceeds, in the aggregate, 10 percent of the claim Failure of the insured claimant to submit for examination under oath, Amount of Insurance stated in Schedule A produce other reasonably requested information or grant permission to secure (c) The Company will pay only those costs, attorneys' fees and expenses reasonably necessary information from third parties as required in this paragraph, incurred in accordance with Section 4 of these Conditions and Stipulations unless proh�brted by law or governmental regulation, shall terminate any liability of the Company under this policy as to that claim B. APPORTIONMENT 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; If the land described in Schedule (A)(C) consists of two or more parcels TERMINATION OF LIABILITY which are not used as a single site,and a loss is established affecting one or more of the parcels but not all, the loss shall computed and settled a pro rota In case of a claim under this policy, the Company shall have the following basis as if the Amount of Insurance underr t this policy was divided pro rota as to additional options the value on Date of Policy of each separate parcel to the whole,exclusive of any (a) To Pay or Tender Payment of the Amount of Insurance improvements made subsequent to Date of Policy, unless a liability or value has To pay or tender payment of the amount of insurance under this policy otherwise been agreed upon as to each parcel by the Company and the insured at together with any costs, attorneys' fees and expenses incurred by the insured the time of the issuance of this policy and shown by an express statement or by claimant, which were authorized by the Company, up to the time of payment or an endorsement attached to this policy tender of payment and which the Company is obligated to pay Upon the exercise by the Company of this option,all liability and obligations g. LIMITATION OF LIABILITY. to the insured under this policy, other than to make the payment required, shall (a) It the Company establishes the title or removes the alleged defect, hen terminate, including any liability or obligation to defend, prosecute, or continue or encumbrance,or cures the lack of a right of access to or from the land or cures Policy Page 3 the claim of unmarketability of title,all as insured,in a reasonably diligent manner to pay only that part of any losses insured against by this policy which shall by any method including litigation and the completion of any appeals therefrom, exceed the amount, it any, lost to the Company by reason of the impairment by it shall have fully performed its obligations with respect to that matter and shall the insured claimant of the Company's right of subrogation not be liable for any loss or damage caused thereby (b) The Company's Rights Against non-insured Obligors. (b) In the event of any litigation including litigation by the Company or The Company's right of subrogation against noninsured obligors shall exist with the Company's consent, the Company shall have no liability for loss or and shall include, without limitation, the rights of the insured to indemnities, damage until there has been a final determination by a court of competent guaranties, other policies of insurance or bonds notwithstanding any terms or jurisdiction, and disposition of all appeals therefrom, adverse to the title as conditions contained in those instruments which provide for subrogation rights insured by reason of this policy (c) The Company shall not be liable for loss or damage to any insured for ARBITRATION. liability voluntarily assumed by the insured in settling any claim or suit without 14 the prior written consent of the Company Unless prohibited by applicable law,either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules ci the 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF American Arbitration Association Arbitrable matters may include, but are not LIABILITY limited to,any controversy or claim between the Company and the insured arising All payments under this policy, except payments made for costs,attorneys' out of or relating to this policy,any service of the Company in connection w,:h its fees and expenses,shall reduce the amount of the insurance pro tanto issuance or the breach of a policy provision or other obligation All arbitrable matters when the Amount of Insurance is$1,000,000 or less shall be arbitrated at 11. LIABILITY NONCUMULATIVE. the option of either the Company or the insured All arbitrable matters when the Amount of Insurance is in excess of$1,000,000 shall be arbitrated only when It is expressly understood that the Amount of Insurance under this policy agreed to by both the Company and the insured Arbitration pursuant to this shall be reduced by any amount the Company may pay under any policy insuring policy and under the Rules in effect on the date the demand for arbitration is made a mortgage to which exception is taken in Schedule B or to which the insured has or at the option of the insured, the Rules in effect at Date of Policy shall be agreed, assumed, or taken subject, or which is hereafter executed by an insured binding upon the parties The award may include attorneys' fees only if the laws and which is a charge or lien on the estate or interest described or referred to in of the state in which the land is located permit a court to award attorneys'fees to Schedule A,and the amount so paid shall be deemed a payment under this policy a prevailing party Judgment upon the award rendered by the Arbitrator(s)may be to the insured owner, entered in any court having jurisdiction thereof The law of the situs of the land shall apply to an arbitration under the Title 12. PAYMENT OF LOSS. Insurance Arbitration Rules (a) No payment shall be made without producing this policy for A copy of the Rules may be obtained from the Company upon request endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the 15 LIABILITY LIMITED TO THIS POLICY, POLICY ENTIRE CONTRACT. Company (a) This policy together with all endorsements, if any, attached hereto by (b) When liability and the extent of loss or damage has been definitely fixed the Company is the entire policy and contract between the insured and the in accordance with these Conditions and Stipulations, the lass or damage shall Company In interpreting any provision of this policy, this policy shall be be payable within 30 days thereafter construed as a whole (b) Any claim of loss or damage,whether or not based on negligence, and 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim,shall be restricted to this policy (a) The Company's Right of Subrogation. (c) No amendment of or endorsement to this policy can be made except by Whenever the Company shall have settled and paid a claim under this policy, a wnting endorsed hereon or attached hereto signed by either the President, a all rights of subrogation shall vest in the Company unaffected by any act of the Vice President the Secretary, an Assistant Secretary, or validating officer or insured claimant The Company shall be subrogated to and be entitled to all rights authorized signatory of the Company and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued If requested by 16. SEVERABILITY. the Company, the Insured claimant shall transfer to the Company all rights and In the event any provision of the policy is held invalid or unenforceable remedies against any person or property necessary in order to perfect this right of under applicable law,the policy shall be deemed not to include that provision and subrogation The Insured claimant shall permit the Company to sue,compromise all other provisions shall remain in full force and effect 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 or remedies 17. NOTICES, WHERE SENT. If a payment on account of a claim does not fully cover the loss of the Insured claimant, the Company shall be subrogated to these rights and remedies All notices required to be given the Company and any statement in writing required in the proportion which the Company's payment bears to the whole amount of the to be furnished the Company shall Include the number of this policy and shall be loss addressed to the Company at 1 First American Way,Santa Ana,California 92707,or to the If loss should result from any act of the insured claimant, as stated above, office which Issued this policy that act shall not void this policy,but the Company,in that event,shall be required POLICYOF TITLE INSURANCE �6 3 n ✓Yp y Schweet Rieke & linde, �« Bridging the gap in Creditor's Rights Law �y \ Thomas S Linde tomlinde(a?sRvXwUco4n Direct Line (206) 381-0125 �• November 19, 2010 Mr Tom Brubaker City Attorney City of Kent 220 4th Avenue South Kent, WA 98032 Re Springboard Holdings, L.L.C. 313 W Harrison Street Kent, WA 98032 Dear Tom: Enclosed for your records please find the original Owners Policy. I have enjoyed working with you on this matter. Please do not hesitate to contact me if I can be of assistance on any matter in the future. Thanks Tom Very truly yours, Thomas S Linde TSL enclosure v � i 575 S Michigan Street Seattle,WA 98108 p 206 2751010 f 206 381-0101 www schweetlaw com 1