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Title Insurance Terrace View Park/PoolTRANSNATION TITLE INSURANCE COMPANY 105 W. 3RD SPOKANE, WASHINGTON 99201 (509) 922 -2222 Direct Line: (509) 227 -6511 Fax (509) 926 -1519 Prepared for: -/ By : ��' ✓,✓ �' J CITY OF SPOKANE VALLEY Michelle Erwin, Title Officer ATTN: BILL merwin @landam.com 11707 E. SPRAGUE - STE. 106 RE: Order No.: ME- 259388 Customer Ref: TERRACE VIEW PK /P.O. 3075 SCHEDULE A EFFECTIVE DATE: March 14, 2003 at 8:00 A.M. 1. Policy or policies to be issued: Amount (a) ALTA Owner's Policy $100,000.00 Premium $500.00 Tax exempt (Standard) Proposed Insured: CITY OF SPOKANE VALLEY, a municipal corporation. 2. Title to fee simple estate or interest in said land is at the effective date hereof vested in: SPOKANE COUNTY, a political subdivision of the State of Washington by Warranty Deeds recorded December 18, 1963 and January 25, 1968 under Recording Nos. 984231E and 342959C. 3. The land referred to in this Commitment is situated in the County of Spokane, State of Washington, and described as follows: See Legal Description Page 1 of 4 LEGAL DESCRIPTION PARCEL 1• Order No. ME- 259388 The West three - fourths of the Southwest quarter of the Southeast quarter of the Northeast quarter, EXCEPT the South 30 feet; AND EXCEPT the West 30 feet in Section 27, Township 25 North, Range 44 East, W.M.; Situate in the County of Spokane, State of Washington. PARCEL 2• The East one quarter of the Southwest quarter of the Southeast quarter of the Northeast quarter of Section 27, Township 25 North, Range 44 East, W.M.; EXCEPT the South 30 feet conveyed to Spokane County by deed dated July 24, 1952, recorded August 18, 1952 under Auditor's File No. 1191133; Situate in the County of Spokane, State of Washington. END OF SCHEDULE "A" *************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** THE FOLLOWING INFORMATION IS PROVIDED FOR CONVENIENCE ONLY: (Parcel Nos. 45271.9007 and 9008) [Abbreviated Description: PTN. SW SE NE 27- 25 -441 Page 2 of 4 Order No. ME- 259388 SCHEDULE B REQUIREMENTS. Instruments necessary to create the estate or interest to be insured must be properly executed, delivered and duly filed for record. EXCEPTIONS. Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company. A. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment. B. Standard exceptions set forth in inside of back cover. C. Special exceptions: 1. Real Estate Excise Tax pursuant to the authority of RCW Chapter 82.45 and subsequent amendments thereto. As of the date herein, the tax rate for said property is 1.78 %. 2. General taxes, as follows, together with interest, penalty and statutory foreclosure costs, if any, after delinquency: (1st half delinquent on May 1; 2nd half delinquent on November 1) Tax Account No. Year Amount Billed Amount Paid Principal Balance 45271.9007 2003 $80.00 $00.00 $80.00 (Affects 27 -25 -44 W3/4 of SW1 /4 of SE1 /4 of NE1 /4 Exc. Rd. R /W) 45271.9008 2003 $112.00 $00.00 $112.00 (Affects 27 -25 -44 E1 /2 of SW1 /4 of SE1 /4 of NE1 /4 Exc. Rd. R /W) (The above taxes include Aquifer Protection and Stormwater fees) 3. ANY UNPAID ASSESSMENT OR CHARGES, AND LIABILITY FOR FURTHER ASSESSMENTS OR CHARGES BY VERA IRRIGATION DISTRICT NO. 15. 4. The land herein described is carried on the tax rolls as exempt, however, it will become taxable from the date of execution of a conveyance to a taxable entity and subject to the lien of real property taxes for the balance of the year 2003. Tax Account Nos.: 45271.9007 and 9008 5. Unrecorded leaseholds, if any; rights of vendors and holders of security interests on personal property installed upon said property; and rights of tenants to remove trade fixtures at the expiration of the term. Page 3 of 4 Order No. ME- 259388 END OF EXCEPTIONS INVESTIGATION SHOULD BE MADE TO DETERMINE IF THERE ARE ANY SERVICE, INSTALLATION, MAINTENANCE OR CONSTRUCTION CHARGES FOR SEWER, WATER OR ELECTRICITY. IN THE EVENT THIS TRANSACTION FAILS TO CLOSE, A CANCELLATION FEE WILL BE CHARGED FOR SERVICES RENDERED IN ACCORDANCE WITH OUR RATE SCHEDULE. NOTE 1: This property may be subject to a charge by Spokane County for sewer construction, referred to as a Capital Facilities Rate (CFR). This charge is in addition to the monthly charge for sewer services. Please contact the Division of Utilities Billing Section for information (509) 477 -3604. NOTE 2: According to the application for title insurance, the proposed insured(s) is /are City of Spokane Valley. We find no pertinent matters of record against the name(s) of said party(ies) . NOTE 3: -° Property Address ;r� Balfour,!P k For verification of address, please call the City Pudic— Wo.rks-- Depatr�tment at 625 -6300 or the County Public Works Department at 47,73675. NOTE 4: Unless otherwise requested, the\ connection with this commitment w case of standard lender's coverage 1990. The policy committed for or at the office which issued the c policy form (s) referred to in this upon request. NOTE 5: Transfer is to be according to ENCLOSURES: Vesting Sketch sac forms of policy to be issued in 11 be ALTA 1992 policies, or, in the the CLTA Standard Coverage Policy - �Fequested may be examined by inquiry ommitment. A specimen copy of the commitment will be furnished promptly statute. Page 4 of 4 t.N � ' . ^ ^�^ " T EE Rm of / . ky The Grantor, DOROTHY E. NElL3 ` a single woman, of Puyz County of Pierce, State ofuashingtun, for and in consideratic . Six Thousand Dollars ($6000,00) in hand paid, conveys and war, i f the State f to SPOKANE COUNTY. amuniyjpaJ. �qurpprat on o e u e o ^ ` whose address 1x 3pnkone County Courthouse, 1115 Nest Drnadxu} 3onkone , Uoshi nntnn the following described real estate. SitL in the County of S okun ~ state of Hushinqton: The east quorter nf the southwesk quarter of the ,�� °' southeast quarter of the northeast quarter of se-Un, 27, town g 25 north, range 44 east' N.M., in Snokane County, Washington. EXC[PT the south ]x feet conveyed to Spokane County by deed dated July 24 1952, recorded August 18. ` under auditor's file Nn, 119113D. 7 3D. Subject to: No exceptions. ' Dated this ay of January, ~ JT87L OF NAQ|}M0N ) I3. Cuun1y of/C� l, the the a4c undcrsi"ncd, u Notary Public �n and for the "omud County and 3tnte,'do hereby certify that on this x of January, 1968, personul]ya!ppaared before me Dorothy E. Wei .���`^``�/`�»� a single mnman, to me,kn own to be the individual described io � who executed the wtthfn ins±rument, and ackoowledoed that she ' sigbed and sealed the same as hpr free and voluntary act and d for the usos and purposes therein mentioned. Qv�» o"'ier '* and ^yHrw `'^T thp //` �nd n'xr / — - laut above writ��n. «^:� mm �w'�^ ,vo/yc E m �.; i% �� : •:. V LLJ -� t., L` g MAIL TO -This dood Is statutory tormm...toP o In "nuts of Wasbiustou only -- �t A &ED .,:. The Grantors MICHAEL H. DAMASCUS and HEM DAMASCUS, his wife, xhae® address i E. 11519 Alki Avenue of Spokane County State of Washington for and In consideration of. Ten Thousand sad no /!40ths ($10,000.00) in hand paid, oonvq and warrant to SPOWE COUNTY9 a political subdivision Of the State of Washington, whose address is . Spokane, Washingtt the following described raw 04tste, situated in the County of Spokane State of A The west three- fourths of the southwest quarter.ot the southeast quarter of the northeast quarter,.- LKCEPT. the south 30 feet AltD EXCEPT the Vest 30 feet in aootion 27, t&wnship 25 north, range 44 east, W.M., in Spokane BoEfy`p- Washington x Subject to - NO,'-.'E 1 t i I t........ _ _. lot J Dated this 18th day of December 11b R. t:. Excise Tax E)uvrt /fit Oats 19 fa ap County Troastuot �"' STATE OF WASHiNt;TON, - .— �....^.._.._. County of Spokane I, the undersigned, a Notary Public in and for the above Wanted Oou•nty and State, do hesebj that on this 18th day of Deeeiaber 1986j 4breonaliy appeared be MICHAEL H. DAMASCUS and HEhEBi xtAKP•;CUi, his wife to me known to be the Individual Is described is and who wxec ii. td the within inetrutneat, and ackac that their etgned and sealed the rnra$ their try and voluntary act and deed, for the t Put'Po0.�pantioaed. i�vbk�z�, �:�H•V;A hived and tticJai sea! the da, .ud ,ear. last above written. ��� � �� q kr� .e r � 18�y'� y n�F' """t � x rr51 s s sb w �f ° •.n r �{1 f � T14CJ S�� %$ X ► }s� , t{ to the Shttie of Warhtpgtan, rttrnatdpration oflhe trcncfits aril trther >aalw►!e consraeraao,r�, app �'i4d f@ `., .' u ....,.,,.w .t +. h. r , -».qtr M. W _ ✓ - .. �5 aviiereof is';herri►y acknntvirlgrd, Aq f >haatad r ... have .. E graard, bttrbtned, sold and conveyrd.. and try these presents do grant, barg.rtn �ell.`and nivt� Spokanr Gqunty, ttie #oltowyng dicnl►cd "ptircel of. nd, xituateri its Spokane t gaunt }, rn thr. 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I.rw.osow�+r�uw+a►.w.,;.�a+aorc wsr.ta,.rr�ww,.ws7yh -' yr,s..- cµ...L.n+"„ -,s u..uK,N¢.s;...�.a... -.c:a ;i f IIt1 - xt pp � 1i'�yv!°yrHn r �7`} T Et07W" AT X. >� .Q..,GN^aTS I � T,�(, #� 1•. t wt ,�� r hi�Utrr d #, ��le,01141t and �RaRtM , f in thek�.+laie rdtratlonti, ttfM!�ljtltchtngtan, rn`iyrrrstdtrattrnr of the�bR7t efttt• 'arid other`: vaivabie euttn zr r +hercc�:,f� herciiy acicni�atrrigt•ii (.ati4.t;Olt�fr } bar atned sold aid cpnveyed and(# the presents do );rants larlam u!1 and r+r tta. ry , kane Cttunt ut thr �trtr c "r savit County, !hg g�ltalttnb;�escnirevi p3rtel `'4f lands tRuatk i Tn Spy 2, c `�r yj 1 C Pill er feet pane rm S�Q!sldt of Etta fiaralttl w rth � �i �w A zi4rTpho# land �� r 13trentf'1'�ht32'th AYIlni1! } zoetebtttDtuataA rH 4ss .r G h `•ti rot' - - r `' for- ttj� -� va e r i as 51 rYC7ed',< niald ;as shawn`tn the ftrtd nott and un thr uffiOat plat thcKrrrf the uNite er{ the IHikaati sots Mein.° Llie:,aitll.3D tart n' tisa Sg 2C4 aS Lha� 1, n ttt't r, _R7t RA A►:3i 'oo f>t�, 311 a' tti� s* 1 the 5 7 r r 1Vrltth ltatr! �*+ �� �l °, >i Secttt3n a t Towns top—­,­ j x : : / .. irrtTiM1R(h t i3C ?I 1) tl►e +an�r unto tl le" sar.1 Six�l.�ne ;� t�uttt { ar the,: T7 {areYeir Y , ( t P ot�• grand .sand +r a) thr� !tt' wrtness Wlterro{ Ya htrr itcrertntj� srt t (TdrFr tt marrtrd tur►xt hw atgttr +t It Dnrh hnntfrnd and trite' a } �+rutcvtl✓+a �.,.' eh 't" •' �x'_":' r 1 -.i � r � y r. } f� i t¢ &p¢1 Kr Air t OF N%A$lit1G70} 9 l�unti of &I knn�i A -it 19 '2 to tare rnw Oa ,rarsonatl }° tads iAdivldu Michael `!. 1lotsato 9 and Helen : 11Gil� yx+raoa411y t[nOrrp to rnp to tre thr : " J ^v e =ecate�t be, 104 F44t1b in »trrra3� rat an3t aCl.l sr im_A v3du s .iEhe ugid lartrumrnt to bn the trne4andnniuu4nrY, act and dwzd pL said .t+r <ityas sad' purt!oar,'tr her�tiq RS ntl3inc d antlttNUt�,it/i �ii�tTrirTtiaHt� 'ixil'%XrT�#f�r�#rs':fl��x�w to W1tAe�a H'he r +bE 1 hart Ap►rontn r+. t nrs hand and aA ofllctat stag t nd ? rKr fl 3pvn .r +V At) % r t� t itor � ,4 "S S •.;, d6 ztn anchor the SitPir wtlt :hhl ago ¢n, { z S., 44 . - -> �,�.3„�..yl�• 4sCSVM +1x� >�.� fY'fiv' -.�__ S +r1+WMxV^'- R`2p�� � ,�,wye� a+Y.c',+.F,vi.)+brea- • *sinXia +�.+. - E"Mast�'� s . f� y • - '� 1 � j.. F 3 ..lam E F � Y M � 1 ,f C j � ,q � ,1 RWD IN THE MATTER OF the Darknell Road S.R.P.No.20 1g.18,1938 by Resolution of the Hoard of petitioned for �• �tY commissioners and others. iTtGIHSBR KNOW AL:. UFN HY THESE PRESENTS,That Lorena D.Grove, OI ER AUD unmarried of the COUNTY OF SPOKANE in the STATE OF WASHrROTON, "AD DBP in consideration of the benefits end other valuable considers- 'AD SDSOV D8P bons, and the sum of °fifteen Dollars her by the County of Spokane,the receipt whereof IS hereby acknowledged, has granted 1R Et -% �7/ bargained,sold and conve ed and b these ' 9i;rif;: ; � � � °� Y • Y Presents do grant,bar- s gain,sell and convey unto said SPOKANE COUNTY,the following des- cribed parcel of land,situated in SPOKANE' COUNTY,ln the STATB iIP:GTOH,to -tcit A strip of land 30 feet wide on east side of and parallel with center line of said road or so much thereof as lies within said 30 foot strip,as surveyed for the above d road,se shown in the field notes and on the offlclei plat thereof on Ella In the office POKbHE COUNTY SNGINELrR, being the west 30 feet of the west three- fourths of the eouth- rter of the southeast quarter of the northeast quarter S.W.M. of Section 27 .'ownehip 25,North, TO HAVE AND TO HOLD the same,unto the said SPOKANE COUNTY for the purposes of a oad forever.Provided however,that in the event said road is not esteglished as a county hin two years Prom date of this lnstrument,then this deed to beds null and void. IN WITNESS WHEREOF I have hereunto set "!Y hand rand seal this 7 day of Nov.1935. I OWA LORENA D.GROVE (SEAL) SS GUTHRIE On this 7th day of November A.D. 1535,before me personally appeared wrene ;:,Grove ly known to me to be the, person who executed the foregoing lnttrurnent and acknowledged kA 140 Sq 0-32 4, 0 \41% T, COWTIty, CONDO 641".v W *4 O'A, orj./. C.5mve a d 60 1 4F .0 0,9 c .41 - T ,any asguin,--, 4TY L-d to tills sketc... i, ar. a=watc survey Ll 11. N S" : SNATION T-11 7 F IN M INSURANCE WPAINX f� sketch 1 -4, • �itlh out cllargc, for your 4, inlComlation. It isno' show all ruatlers relat--d to t!i-. Ling. but not lim"t"' to, are d;=miens, ancro-whments, or loccat'cmofbc,un` s.). s sot part ofncf dos il icy foAich it is NO UABILITY for en,-v matll r C -vetch. Refarence Should be msd to an accuidte survey for furaw information OWNER'S POLICY OF TITLE INSURANCE Issued by Transnation Title Insurance Company aLandAmerica Transnation Title Insurance Company is a member of the LandAmerica family of title insurance underwriters. Transnation SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, TRANSNATION TITLE INSURANCE COMPANY, an Arizona corporation, herein called 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. 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. IN WITNESS WHEREOF, TRANSNATION TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. Attest: Secretary TRANSNATION TITLE INSURANCE COMPANY EE INC 04 SEPT. 16, 1991 �� By: f/ 4BIIOIAp *� EXCLUSIONS FROM COVERAGE President 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 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: (a) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (b) 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: (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. NM1 PA 10 ALTA Owner's Policy (10/17/92) Face Page ORIGINAL Form 1190 -56A Valid only if Schedules A and B and Cover are attached CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. The following terms when used in this policy mean: (a) "insured ": the insured named in Schedule A, and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distributees, devisees, survivors, personal representatives, next of kin, or corporate or fiduciary successors. (b) "insured claimant ": an insured claiming loss or damage. (c) "knowledge" or "known ": actual knowledge, not constructive knowledge or notice which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land. (d) "land ": the land described or referred to in Schedule A, and improvements affixed thereto which by law constitute real property. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule A, nor any right, title, interest, estate or easement in abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing herein shall modify or limit the extent to which a right of access to and from the land is insured by this policy. (e) "mortgage ": mortgage, deed of trust, trust deed, or other security instrument. (f) "public records ": records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public records" shall also include environmental protection liens filed in the records of the clerk of the United States district court for the district in which the land is located. (g) "unmarketability of the title ": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would entitle a purchaser of the estate or interest described in Schedule A to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title. 2. CONTINUATION OF INSURANCE AFTER CONVEYANCE OF TITLE. The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land, or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured, or only so long as the insured shall have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest. This policy shall not continue in force in favor of any purchaser from the insured of either (i) an estate or interest in the land, or (ii) an indebtedness secured by a purchase money mortgage given to the insured. 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT. The insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in Section 4(a) below, (ii) in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate or interest, as insured, and which might cause loss or damage for which the Company may be liable by virtue of this policy, or (iii) if title to the estate or interest, as insured, is rejected as unmarketable. If prompt notice shall not be given to the Company, then as to the insured all liability of the Company shall terminate with regard to the matter or matters for which prompt notice is required; provided, however, that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT TO COOPERATE. (a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third party asserts a claim adverse to the title or 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 shall have the right to select counsel of its choice (subject to the right of the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured by this policy. (b) The Company shall have the right, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shall be liable hereunder, and shall not thereby concede liability or waive any provision of this policy. If the Company shall exercise its rights under this paragraph, it shall do so diligently. (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 may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discretion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to so prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its option, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i) in any action or proceeding, securing evidence, obtaining witnesses, prosecuting or defending the action or proceeding, or effecting settlement, and (ii) in any other lawful act which in the opinion of the Company may be necessary or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the failure of the insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such cooperation. 5. PROOF OF LOSS OR DAMAGE. In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giving rise to the loss or damage. The proof of loss or damage shall describe the defect 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 possible, the basis of calculating the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requiring such proof of loss or damage. In addition, the insured claimant may reasonably be required to submit to examination under oath by any authorized representative of the Company and shall produce for examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representative of the Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or after Date of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, the insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custody or control of a third party, which reasonably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Section shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third parties as required in this paragraph shall terminate any liability of the Company under this policy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY. In case of a claim under this policy, the Company shall have the following additional options: (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, attorneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which the Company is obligated to pay. Upon the exercise by the Company of this option, all liability and obligations to the insured under this policy, other than to make the payment required, shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, and the policy shall be surrendered to the Company for cancellation. (b) To Pay or Otherwise Settle With Parties Other than the Insured or With the Insured Claimant. (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay; or (ii) to pay or otherwise settle with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the claimed loss or damage, other than the payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigation. Conditions and Stipulations Continued Inside Cover B1190 -56A A3�- 008.1013 • CONTROL NO. 14321 CONDITIONS AND STIPULATIONS 7. DETERMINATION, EXTENT OF LIABILITY AND COINSURANCE. This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described. (a) The liability of the Company under this policy shall not exceed the least of: (i) the Amount of Insurance stated in Schedule A; or, (ii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy. (b) In the event the Amount of Insurance stated in Schedule A at the Date of Policy is less than 80 percent of the value of the insured estate or interest or the full consideration paid for the land, whichever is less, or if subsequent to the Date of Policy an improvement is erected on the land which increases the value of the insured estate or interest by at least 20 percent over the Amount of Insurance stated in Schedule A, then this Policy is subject to the following: (i) where no subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that the amount of insurance at Date of Policy bears to the total value of the insured estate or interest at Date of Policy; or (ii) where a subsequent improvement has been made, as to any partial loss, the Company shall only pay the loss pro rata in the proportion that 120 percent of the Amount of Insurance stated in Schedule A bears to the sum of the Amount of Insurance stated in Schedule A and the amount expended for the improvement. The provisions of this paragraph shall not apply to costs, attorneys' fees and expenses for which the Company is liable under this policy, and shall only apply to that portion of any loss which exceeds, in the aggregate, 10 percent of the Amount of Insurance stated in Schedule A. (c) The Company will pay only those costs, attorneys' fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations. 8. APPORTIONMENT. If the land described in Schedule A consists of two or more parcels 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 be computed and settled on a pro rata basis as if the amount of insurance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement or by an endorsement attached to this policy. 9. LIMITATION OF LIABILITY. (a) If the Company establishes the title, or removes the alleged defect, lien or encumbrance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasonably diligent manner by any method, including litigation and the completion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby. (b) In the event of any litigation, including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company. 10. REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF LIABILITY. All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. 12. PAYMENT OF LOSS. (a) No payment shall be made without producing this policy for 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 Company. NM 1 PA 10 ALTA Owner's Policy (10- 17 -92) Cover Page Form 1190 -58 (Continued) (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be. payable within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR SETTLEMENT. (a) The Company's Right of Subrogation. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights 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 the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. 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 in the proportion which the Company's payment bears to the whole amount of the loss. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non - insured Obligors. The Company's right of subrogation against non - insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. 14. ARBITRATION Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its 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 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 agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 15. LIABILITY LIMITED TO THIS POLICY; POLICY ENTIRE CONTRACT. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and 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. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 16. SEVERABILITY. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall he deemed not to include that provi- sion and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to: Consumer Affairs Department, P.O. Box 27567, Richmond, Virginia 23261 -7567. ORIGINAL Valid Only If Face Page, Schedules A and B Are Attached SCHEDULE A Amount of Insurance: $100,000.00 Policy No. Z- 259388 Premium: $ 500.00 Date of Policy: January 13, 2004 at 8:00 A.M. 1. Name of Insured: CITY OF SPOKANE VALLEY, a municipal corporation. 2. The estate or interest in the land described herein and which is covered by this policy is: FEE SIMPLE 3. The estate or interest referred to herein is at Date of Policy vested in. THE NAMED INSURED 4. The land referred to in this policy is described as follows: PARCEL 1: The West three - fourths of the Southwest quarter of the Southeast quarter of the Northeast quarter, EXCEPT the South 30 feet; AND EXCEPT the West 30 feet in Section 27, Township 25 North, Range 44 East, W.M.; Situate in the County of Spokane, State of Washington. PARCEL 2• The East one quarter of the Southwest quarter of the Southeast quarter of the Northeast quarter of Section 27, Township 25 North, Range 44 East, W.M.; EXCEPT the South 30 feet conveyed to Spokane County by deed dated July 24, 1952, recorded August 18, 1952 under Auditor's File No. 119113B; Situate in the County of Spokane, State of Washington. Countersigned: Authorized Officer or Agent Owner's Standard Policy Policy No. Z- 259388 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: STANDARD EXCEPTIONS 1. Taxes or assessments which are not now payable or 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, or claiming to be 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 of the land would disclose, and which are not shown by the public records. 5. Any lien, or right to a lien, for labor, material, services or equipment, or for contributions to employee benefit plans, or liens under Workmans' Compensation Acts, not disclosed by the public records. 6. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) Indian treaty or aboriginal rights, including, but not limited to, easements or equitable servitudes; or, (d) water rights, claims or title to water, whether or not the matters excepted under (a), (b) , (c) or (d) are shown by the public records. 7. Right of use, control or regulation by the United States of America in the exercise of powers over navigation; any prohibition or limitation on the use, occupancy or improvement of the land resulting from the rights of the public or riparian owners to use any waters which may cover the land or to use any portion of the land which is now or may formerly have been covered by water. 8. Any service, installation, connection, maintenance or construction charges for sewer, water, electricity, or garbage collection or disposal, or other utilities unless disclosed as an existing lien by the public records. 2 Owner's Standard Policy SPECIAL EXCEPTIONS Policy No. Z- 259388 1. ANY UNPAID ASSESSMENT OR CHARGES, AND LIABILITY FOR FURTHER ASSESSMENTS OR CHARGES BY VERA IRRIGATION DISTRICT NO. 15. 2. The land herein described is carried on the tax rolls as exempt, however, it will become taxable from the date of execution of a conveyance to a taxable entity and subject to the lien of real property taxes for the balance of the year 2003. Tax Account Nos.: 45271.9007 and 9008 3. Unrecorded leaseholds, if any; rights of vendors and holders of security interests on personal property installed upon said property; and rights of tenants to remove trade fixtures at the expiration of the term. 4. This property may be subject to a charge by Spokane County for sewer construction, referred to as a Capital Facilities Rate (CFR) This charge is in addition to the monthly charge for sewer services. cmb END OF EXCEPTIONS 3