Loading...
HomeMy Public PortalAbout20-C-A-8 Site Control - 1 - Truckee Development Associates, LLC 1201 Pine Street, Suite 151 Oakland, California 94607 t: 510 547 2122 f: 510 547 2125 Exhibit C-A-8: Site Control RE: HCD Prop 1c IIG 2013 August 5, 2013 Mr. Eugene Lee, The QIP and CIP are both located on parcel 19-420-71 in the Town of Truckee, CA. This parcel is owned by Truckee Development Associates, LLC. Please see attached grant deed and preliminary title report. Order Number: 0131-616992ala Page Number: 1 First American Title First American Title Company 6683 Owens Drive Pleasanton, CA 94588 This report has been amended/updated to reflect the following matters: [ ] No changes made to the report other than the Effective Date [ ] Property address has been revised [ ] Vesting has been revised [ ] Legal Description has been revised [ X ] Taxes have been updated [ X ] Original item number(s) 2, 2a, 2b, 2c and 22 have been removed [ X ] New item number(s) 27 have been added [ X ] Original item number(s) 1 and 21 have been revised [ X ] Other: New Informational Notes Item Nos. 1 through 5 have been added Order Number: 0131-616992ala Page Number: 2 First American Title Updated First American Title Company 6683 Owens Drive Pleasanton, CA 94588 Escrow Officer: Diane Burton (DB) Phone: (925)738-4050 Fax No.: (866)648-7806 E-Mail: dburton@firstam.com Owner: Truckee Development Associates, LLC Property: Vacant Land Truckee, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company 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 referred to as an Exception below 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 and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowners Policies of Title Insurance which establish a Deducti ble Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. 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 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. Order Number: 0131-616992ala Page Number: 3 First American Title Dated as of July 31, 2013 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: To Be Determined A specific request should be made if another form or additional coverage is desired. Title to said estate or interest at the date hereof is vested in: Truckee Development Associates, LLC, a Delaware limited liability company The estate or interest in the land hereinafter described or referred to covered by this Report is: A fee. The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1. General and special taxes and assessments for the fiscal year 2013-2014, a lien not yet due or payable. 2. Intentionally Deleted 2a. Intentionally Deleted 2b. Intentionally Deleted 2c. Intentionally Deleted 3. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 4. The land lies within the boundaries of proposed community facilities District 2008-1, as disclosed by an assessment district map filed in Book 1, Page 135 of assessment and community facilities districts, recorded September 9, 2008 as Instrument No. 2008-0022282 of Official Records. 5. Any rights, interests, or easements in favor of the public, which exist or are claimed to exist over any portion of said land covered by water. Order Number: 0131-616992ala Page Number: 4 First American Title 6. Rights of the public in and to that portion of the land lying within church street, state highway 267 and old highway 40 (Glenshire Drive), public roads. 7. Any lack of abutter rights which may exist. 8. A license for eight and ten inch sanitary sewer pipes and septic tanks on said land as granted to the Truckee Sanitary District in Instrument recorded March 20, 1929, in Book 2, Page 107, Official Records. 9. An easement for drainage channel and incidental purposes, recorded March 18, 1974 in Book 682, Page 83 of Official Records. In Favor of: County of Nevada Affects: A portion of said land. Refer to said document for full particulars The location of the easement cannot be determined from record information. 10. The effect of an easement over said land for power line right of way and incidental purposes, in deed recorded December 22, 1983, as Document No. 83-33048, Official Records. Affects a portion of the Easterly 40 feet Wherein the grantor does not appear to have any interest of record in said property. The legal description appears to be incorrectly affecting a portion of said property. 11. An easement for road and incidental purposes, recorded December 22, 1983 as Instrument No. 83-33052 of Official Records. In Favor of: Robert B. Denney, Jr., his successors and assigns Affects: A portion of said land. Refer to said document for full particulars The location of the easement cannot be determined from record information. 12. An easement shown or dedicated on the map filed or recorded April 23, 1991 as Book 10, Page 293 of Record of Surveys For: Water lines and incidental purposes. Affects: As shown on said map For: Balloon track right of way and incidental purposes. Affects: As shown on said map . For: Sanitary sewer and incidental purposes. Affects: As shown on said map . For: Overhead power lines, poles with anchor and incidental purposes. Affects: As shown on said map . For: Fence line and incidental purposes. Affects: As shown on said map . Order Number: 0131-616992ala Page Number: 5 First American Title 13. The fact that the land lies within the boundaries of the Truckee Redevelopment Agency Project Area, as disclosed by the document recorded November 17, 1998 as Instrument No. 98-038475 of Official Records. Document(s) declaring modifications thereof recorded September 13, 2007 as Instrument No. 2007-0028937-00 of Official Records. Document(s) declaring modifications thereof recorded February 23, 2010 as Instrument No. 2010-0004110 of Official Records. Document(s) declaring modifications thereof recorded March 23, 2011 as Instrument No. 2011- 0007234 of Official Records. 14. An easement for railroad, rail and related equipment, facilities, transportation systems, pipelines, communication systems, lines and facilities of every kind and nature and incidental purposes, recorded January 9, 2004 as Instrument No. 2004-0000833 of Official Records. In Favor of: Union Pacific Railroad Company, a Delaware corporation Affects: A portion of said land. The location of the easement cannot be determined from record information. 15. Covenants, conditions, restrictions and easements in the document recorded January 9, 2004 as Instrument No. 2004-0000833 of Official Records, but deleting any covenant, condition, or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, sexual orientation, familial status, disability, handicap, national origin, genetic information, gender, gender identity, gender expression, source of income (as defined in California Government Code § 12955(p)) or ancestry, to the extent such covenants, conditions or restrictions violation 42 U.S.C. § 3604(c) or California Government Code § 12955. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 16. A right of first refusal in favor of Truckee Railyard LLC, a California Limited Liability Company as contained in or disclosed by a document recorded January 9, 2004 as Instrument No. 2004- 0000835 of Official Records. The terms and provisions contained in the document entitled Memorandum of Assignment of Right of First Refusal recorded April 5, 2004 as Instrument No. 2004-0012473-00 of Official Records. 17. An easement for railroad, rail and related equipment, facilities, transportation systems, pipelines, communication systems, lines and facilities of every kind and nature and incidental purposes, recorded December 28, 2005 as Instrument No. 2005-0051708 of Official Records. In Favor of: Union Pacific Railroad Company, a Delaware corporation Affects: A portion of said land The location of the easement cannot be determined from record information. Order Number: 0131-616992ala Page Number: 6 First American Title 18. An easement for ingress and egress and incidental purposes, recorded December 28, 2005 as Instrument No. 2005-0051708 of Official Records. In Favor of: Union Pacific Railroad Company, a Delaware corporation Affects: A portion of said land The location of the easement cannot be determined from record information. 19. Covenants, conditions, restrictions and easements in the document recorded December 28, 2005 as Instrument No. 2005-0051708 of Official Records, but deleting any covenant, condition, or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, sexual orientation, familial status, disability, handicap, national origin, genetic information, gender, gender identity, gender expression, source of income (as defined in California Government Code § 12955(p)) or ancestry, to the extent such covenants, conditions or restrictions violation 42 U.S.C. § 3604(c) or California Government Code § 12955. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 20. A right of first refusal in favor of Truckee Development Associates, LLC, a Delaware Limited Liability Company as contained in or disclosed by a document recorded December 28, 2005 as Instrument No. 2005-0051709 of Official Records. 21. A deed of trust to secure an original indebtedness of $6,500,000.00 recorded August 22, 2007 as Instrument No. 2007-0026685 of Official Records. Dated: August 16, 2007 Trustor: Truckee Development Associates, LLC, a Delaware Limited Liability Company Trustee: MacDonald Auxiliary Corporation Beneficiary: The Mechanics Bank A document recorded May 16, 2011 as Instrument No. 2011-0011717 of Official Records provides that the deed of trust or the obligation secured thereby has been modified. A document recorded December 21, 2012 as Instrument No. 20120034743 of Official Records provides that the deed of trust or the obligation secured thereby has been modified. 22. Intentionally Deleted 23. The terms and provisions contained in the document entitled Covenant and Environmental Restriction on Property Truckee Railyard Theater Block executed by and between Truckee Development Associates LLC and California Regional Water Quality Control Board for the Lahontan Region recorded May 19, 2009 as Instrument No. 2009-0012544 of Official Records. 24. The terms and provisions contained in the document entitled Covenant and Environmental Restriction on Property Truckee Railyard Hotel Parcel executed by and between Truckee Development Associates LLC and California Regional Water Quality Control Board for the Lahontan Region recorded February 05, 2010 as Instrument No. 2010-0002897 of Official Records. Order Number: 0131-616992ala Page Number: 7 First American Title 25. The Terms, Provisions and Easement(s) contained in the document entitled "Agreement Granting Right of Entry and Permanent Easement for Drainage and Related Purposes" recorded July 12, 2011 as Instrument No. 2011-0016132 of Official Records. Document re-recorded October 2, 2012 as Instrument No. 20120026268 of Official Records. 26. The terms and provisions contained in the document entitled "Covenant and Environmental Restriction on Property Truckee Railyard Theater Block" recorded January 12, 2012 as Instrument No. 20120000872 of Official Records. 27. A Deed of Trust to secure an original indebtedness of $1,500,000.00 recorded December 21, 2012 as Instrument No. 20120034745 of Official Records. Dated: December 11, 2012 Trustor: Truckee Development Associates, LLC a Delaware limited liability company Trustee: First American Title Company Beneficiary: Gerson Bakar, Trustee of The Gerson Bakar 1984 Trust Notes: a. If this deed of trust is to be eliminated in the policy or policies contemplated by this report/commitment, we will require all of the following prior to the recordation of any documents or the issuance of any policy of title insurance: i. Original note and deed of trust. ii. Payoff demand statement signed by all present beneficiaries. iii. Request for reconveyance signed by all present beneficiaries. b. If the payoff demand statement or the request for reconveyance is to be signed by a servicer, we will also require a full copy of the loan servicing agreement executed by all present beneficiaries. c. If any of the beneficial interest is presently held by trustees under a trust agreement, we will require a certification pursuant to Section 18100.5 of the California Probate Code in a form satisfactory to the Company The terms and provisions contained in the document entitled "Subordination and Intercreditor Agreement" recorded December 21, 2012 as Instrument No. 20120034744 of Official Records. A document entitled "Assignment of Leases" recorded December 21, 2012 as Instrument No. 20120034746 of Official Records, as additional security for the payment of the indebtedness secured by the deed of trust recorded December 21, 2012 as Instrument No. 20120034745 of Official Records. 28. Water rights, claims or title to water, whether or not shown by the public records. 29. Rights of parties in possession. Prior to the issuance of any policy of title insurance, the Company will require: Order Number: 0131-616992ala Page Number: 8 First American Title 30. With respect to Truckee Development Associates, LLC, a Delaware limited liability company: a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC-1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records; d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate: (i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require Order Number: 0131-616992ala Page Number: 9 First American Title INFORMATIONAL NOTES Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction. 1. General and special taxes and assessments for the fiscal year 2012-2013. First Installment: $2,107.17, PAID Penalty: $0.00 Second Installment: $2,107.17, PAID Penalty: $0.00 Tax Rate Area: 03053 A. P. No.: 19-420-68-000 Affects: Portion of Parcel One 2. General and special taxes and assessments for the fiscal year 2012-2013. First Installment: $16,499.64, PAID Penalty: $0.00 Second Installment: $16,499.64, PAID Penalty: $0.00 Tax Rate Area: 03053 A. P. No.: 19-420-69-000 Affects: Portion of Parcel Two 3. General and special taxes and assessments for the fiscal year 2012-2013. First Installment: $7,480.88, PAID Penalty: $0.00 Second Installment: $7,480.88, PAID Penalty: $0.00 Tax Rate Area: 03051 A. P. No.: 19-420-70-000 Affects: Portion of Parcel Two Order Number: 0131-616992ala Page Number: 10 First American Title 4. General and special taxes and assessments for the fiscal year 2012-2013. First Installment: $6,785.08, PAID Penalty: $0.00 Second Installment: $6,785.08, PAID Penalty: $0.00 Tax Rate Area: 03053 A. P. No.: 19-420-71-000 Affects: Portion of Parcel One 5. General and special taxes and assessments for the fiscal year 2012-2013. First Installment: $772.29, PAID Penalty: $0.00 Second Installment: $772.29, PAID Penalty: $0.00 Tax Rate Area: 03053 A. P. No.: 19-420-72-000 Affects: Portion of Parcel Two 6. The property covered by this report is vacant land. 7. According to the public records, there has been no conveyance of the land within a period of twenty-four months prior to the date of this report, except as follows: None The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. Order Number: 0131-616992ala Page Number: 11 First American Title LEGAL DESCRIPTION Real property in the City of Truckee, County of Nevada, State of California, described as follows: PARCEL ONE: ALL THAT REAL PROPERTY SITUATE IN SECTION 10 AND 15, TOWNSHIP 17 NORTH, RANGE 16 EAST, MOUNT DIABLO MERIDIAN, CITY OF NEVADA, STATE OF CALIFORNIA, LYING EAST OF THE EASTERLY LINE OF CALIFORNIA STATE HIGHWAY NO. 267 AND NORTH OF THE NORTHERLY LINE OF THAT CERTAIN 400 FOOT WIDE RIGHT-OF-WAY GRANTED TO THE CENTRAL PACIFIC RAILROAD COMPANY, BY ACT OF CONGRESS AND BEING A PORTION OF THE LAND SHOWN AND DELINEATED ON THAT CERTAIN RECORD OF SURVEY FILED IN BOOK 10 OF SURVEYS, AT PAGE 293, IN THE OFFICE OF THE NEVADA COUNTY RECORDER AND BEING FURTHER DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SECTION 15, THENCE FROM SAID POINT OF BEGINNING, PROCEEDING ALONG THE EAST LINE OF SAID SECTION, SOUTH 00 49’ 26" WEST, A DISTANCE OF 159.69 FEET TO A POINT SITUATE ON THE AFOREMENTIONED NORTHERLY LINE OF THE RAILROAD CONGRESSIONAL GRANT; THENCE ALONG SAID NORTHERLY GRANT LINE, SOUTH 70 00’ 21" WEST, A DISTANCE OF 951.20 FEET TO THE EASTERLY RIGHT-OF-WAY LINE OF CALIFORNIA STATE HIGHWAY NO. 267; THENCE LEAVING SAID GRANT LINE, ALONG SAID HIGHWAY RIGHT-OF-WAY LINE, FROM A RADIAL LINE WHICH BEARS SOUTH 51 36’ 30" EAST, 169.55 FEET ALONG THE ARC OF A 540.00 FOOT RADIUS NON-TANGENT CURVE TO THE LEFT THROUGH A CENTRAL ANGLE OF 17 59’ 23"; THENCE CONTINUING ALONG SAID HIGHWAY RIGHT-OF-WAY LINE, NORTH 20 24’ 07" EAST, A DISTANCE OF 123.11 FEET TO AN INTERSECTION WITH THE SOUTHERLY RIGHT-OF-WAY LINE OF CHURCH STREET, SO CALLED; THENCE LEAVING THE RIGHT-OF-WAY OF STATE HIGHWAY NO. 267 AND PROCEEDING ALONG THE SOUTHERLY RIGHT-OF-WAY LINE OF CHURCH STREET, NORTH 65 26’ 07" EAST, A DISTANCE OF 299.84 FEET; THENCE CONTINUING ALONG SAID STREET RIGHT-OF-WAY LINE, SOUTH 20 13’ 46" EAST, A DISTANCE OF 57.70 FEET; THENCE CONTINUING ALONG SAID STREET RIGHT-OF-WAY, NORTH 69 46’ 14" EAST, A DISTANCE OF 130.93 FEET; THENCE ALONG SAID STREET RIGHT-OF-WAY LINE AND THE NORTHERLY PROLONGATION THEREOF, NORTH 20 13’ 46" WEST, A DISTANCE OF 100.98 FEET TO AN INTERSECTION WITH THE NORTH LINE OF SAID SECTION 15; THENCE ALONG SAID SECTION LINE, NORTH 88 14’ 01" EAST, A DISTANCE OF 70.40 FEET; THENCE LEAVING SAID SECTION LINE, NORTH 46 48’ 01" EAST A DISTANCE OF 200.00 FEET; Order Number: 0131-616992ala Page Number: 12 First American Title THENCE NORTH 31 10’ 31" EAST A DISTANCE OF 315.49 FEET TO AN INTERSECTION WITH THE EAST LINE OF AFOREMENTIONED SECTION 10; THENCE ALONG SAID SECTION LINE, SOUTH 00 49’ 26" EAST, A DISTANCE OF 397.17 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM ALL MINERALS AND ALL MINERALS RIGHTS OF EVERY KIND AND CHARACTER, LYING BELOW A DEPTH OF 500 FEET NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, OIL AND GAS AND RIGHTS THERETO BELOW 500 FEET BENEATH THE SURFACE OF THE PROPERTY, TOGETHER WITH THE SOLE EXCLUSIVE AND PERPETUAL RIGHT TO EXPLORE FOR, REMOVE AND DISPOSE OF SAID MINERALS BY ANY MEANS OR METHODS SUITABLE TO GRANTOR, ITS SUCCESSORS AND ASSIGNS, BUT WITHOUT ENTERING UPON OR USING THE SURFACE OF THE PROPERTY OR ANY OTHER PORTION THEREOF ABOVE A DEPTH OF 500 FEET, AND IN SUCH MANNER AS NOT TO DAMAGE THE SURFACE OF SAID LANDS OR TO INTERFERE WITH THE USE THEREOF BY GRANTEE, ITS SUCCESSOR OR ASSIGNS, AS RESERVED BY UNION PACIFIC RAILROAD COMPANY, A DELAWARE CORPORATION BY GRANT DEED RECORDED DECEMBER 28, 2005, AS DOCUMENT NO.2005-0051708 OFFICIAL RECORDS OF NEVADA COUNTY. THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS CONSISTENT WITH THE AFOREMENTIONED RECORD OF SURVEY FILED IN BOOK 10 SURVEYS, AT PAGE 293 IN THE OFFICE OF THE NEVADA COUNTY RECORDER. PARCEL TWO: ALL THAT CERTAIN REAL PROPERTY SITUATE THE COUNTY OF NEVADA, CITY OF TRUCKEE, BEING PORTIONS OF SECTIONS 11 AND 14, TOWNSHIP 17 NORTH, RANGE 16 EAST, MOUNT DIABLO MERIDIAN AND BEING A PORTION OF THAT CERTAIN TRACT OF LAND SHOWN AND DELINEATED ON THAT CERTAIN RECORD OF SURVEY RECORDED IN BOOK 10 OF SURVEYS PAGE 293 OF THE OFFICIAL RECORDS OF NEVADA COUNTY, AND BEING FURTHER DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE NORTHERLY LINE OF UNION PACIFIC RAIL ROAD’S 400 FOOT WIDE RIGHT-OF-WAY PER CONGRESSIONAL GRANT, AND THE EAST LINE OF THE WEST ONE-HALF OF SECTION 11; THENCE FROM SAID POINT OF BEGINNING, ALONG THE NORTHERLY LINE OF AFOREMENTIONED UNION PACIFIC TO A POINT SITUATE ON THE WESTERLY LINE OF SECTION 14 OF SAID TOWNSHIP AND RANGE; THENCE LEAVING SAID RAILROAD RIGHT-OF-WAY LINE, PROCEEDING ALONG SAID WESTERLY LINE OF SECTION 14 AND THE WESTERLY LINE OF SECTION 11 OF SAID TOWNSHIP AND RANGE NORTH 00 49’ 26" WEST A DISTANCE OF 811.70 FEET; THENCE NORTH 81 30’ 46" EAST A DISTANCE OF 2.37 FEET; THENCE SOUTH 66 34’ 58" EAST A DISTANCE OF 144.18 FEET; THENCE NORTH 64 38’ 41 EAST A DISTANCE OF 561.37 FEET TO A POINT SITUATE ON THE SOUTHERLY RIGHT-OF-WAY LINE OF GLENSHIRE DRIVE; THENCE ALONG SAID SOUTHERLY RIGHT-OF-WAY NORTH 85 51’ 30" EAST A DISTANCE OF 318.09 FEET TO A POINT OF CURVATURE; THENCE CONTINUING ALONG SAID SOUTHERLY RIGHT-OF-WAY, 290.28 FEET ALONG THE ARC OF 5040.00 FEET RADIUS TANGENT CURVE TO THE LEFT THROUGH A CENTRAL ANGLE OF 03 Order Number: 0131-616992ala Page Number: 13 First American Title 18’ 00"; THENCE CONTINUING ALONG SAID RIGHT-OF-WAY, NORTH 82 33’ 30" EAST A DISTANCE OF 382.59 FEET; THENCE LEAVING SAID SOUTHERLY RIGHT-OF-WAY, SOUTH 20 09’ 30" EAST A DISTANCE OF 328.33 FEET; THENCE NORTH 70 00’ 21" EAST A DISTANCE OF 942.03 TO A POINT SITUATE ON THE EASTERLY LINE OF THE WESTERLY ONE-HALF OF SAID SECTION 11; THENCE ALONG SAID EASTERLY LINE SOUTH 00 46’ 06" EAST A DISTANCE OF 158.86 FEET TO THE TRUE POINT OF BEGINNING. EXCEPTING THEREFROM ALL MINERALS AND ALL MINERALS RIGHTS OF EVERY KIND AND CHARACTER, LYING BELOW A DEPTH OF 500 FEET, NOW KNOWN TO EXIST OR HEREAFTER DISCOVERED, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, OIL AND GAS AND RIGHTS THERETO BELOW 500 FEET BENEATH THE SURFACE OF THE PROPERTY, TOGETHER WITH THE SOLE EXCLUSIVE AND PERPETUAL RIGHT TO EXPLORE FOR, REMOVE AND DISPOSE OF SAID MINERALS BY ANY MEANS OR METHODS SUITABLE TO GRANTOR, ITS SUCCESSORS AND ASSIGNS, BUT WITHOUT ENTERING UPON OR USING THE SURFACE OF THE PROPERTY OR ANY OTHER PORTION THEREOF ABOVE A DEPTH OF 500 FEET, AND IN SUCH MANNER AS NOT TO DAMAGE THE SURFACE OF SAID LANDS OR TO INTERFERE WITH THE USE THEREOF BY GRANTEE, ITS SUCCESSOR OR ASSIGNS, AS RESERVED BY UNION PACIFIC RAILROAD COMPANY, A DELAWARE CORPORATION BY GRANT DEED RECORDED JANUARY 9, 2004, AS DOCUMENT NO. 2004-0000833 OFFICIAL RECORDS OF NEVADA COUNTY. APN: 19-420-68 (Affects a portion of Parcel One), 19-420-69 (Affects a portion of Parcel Two), 19-420-70 (Affects a portion of Parcel Two), 19-420-71 (Affects a portion of Parcel One) and 19- 420-72 (Affects a portion of Parcel Two) Order Number: 0131-616992ala Page Number: 14 First American Title Order Number: 0131-616992ala Page Number: 15 First American Title NOTICE Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub-escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier’s checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier’s checks, or certified checks whenever possible. If you have any questions about the effect of this new law, please contact your local First American Office for more details. Order Number: 0131-616992ala Page Number: 16 First American Title EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 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: 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 notice 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. 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 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) 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. 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. 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 their 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. 2. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY FORM B - 1970 SCHEDULE OF EXCLUSIONS FROM COVERAGE 1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions of area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or Order Number: 0131-616992ala Page Number: 17 First American Title 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. 3. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY FORM B - 1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 2 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: 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. 2. Any facts, rights, interests, 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. 3. Easements, claims of easement or encumbrances 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 public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law and not shown by the public records. 4. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE 1. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant, (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent insurance is afforded herein as to any statutory lien for labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy). 4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any subsequent owner of the indebtedness to comply with applicable "doing business" laws of the state in which the land is situated. 5. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association Lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy, the exclusions set forth in paragraph 4 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: 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. 2. Any facts, rights, interests, 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. 3. Easements, claims of easement or encumbrances 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 public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. Order Number: 0131-616992ala Page Number: 18 First American Title 6. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE 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 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) 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 (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 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 inability or failure of any subsequent owner of the indebtedness, to comply with the 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 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 of 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 record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 7. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 6 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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. 2. Any facts, rights, interests, 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. 3. Easements, claims of easement or encumbrances 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 public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 8. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY - 1992 Order Number: 0131-616992ala Page Number: 19 First American Title 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 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. 9. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY - 1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 8 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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. 2. Any facts, rights, interests, 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. 3. Easements, claims of easement or encumbrances 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 public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 10. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY - 1987 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 building and zoning ordinances and also laws and regulations concerning: * land use * land division * improvements on the land * 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: Order Number: 0131-616992ala Page Number: 20 First American Title * 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. 11. EAGLE PROTECTION OWNER’S POLICY CLTA HOMEOWNER’S POLICY OF TITLE INSURANCE - 2008 ALTA HOMEOWNER’S POLICY OF TITLE INSURANCE - 2008 Covered Risks 16 (Subdivision Law Violation). 18 (Building Permit). 19 (Zoning) and 21 (Encroachment of boundary walls or fences) are subject to Deductible Amounts and Maximum Dollar Limits of Liability 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 those portions of any law or government regulation concerning: a. building b. zoning c. land use d. improvements on the land e. land division f. environmental protection This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 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 limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded 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, 8.e., 25, 26, 27 or 28. 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 21 LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owners Coverage Statement as follows: Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount or $5,000.00 (whichever is less) $10,000.00 Covered Risk 18: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 19: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 21: 1% of Policy Amount or $2,500.00 (whichever is less) $5,000.00 12. THIRD GENERATION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (1/01/08) Order Number: 0131-616992ala Page Number: 21 First American Title 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, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or(iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); 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 an Insured to comply with applicable doing business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 13. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys’ fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that 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 an Insured to comply with applicable doing- business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors? rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or Order Number: 0131-616992ala Page Number: 22 First American Title (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). 14. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 13 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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. (a) Taxes or assessments that 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; (b) proceedings by a public agency that 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 that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and 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. 15. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY - 2006 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, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection;or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 (however, this does not modify or limit the coverage provided under Covered Risks 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors? rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. 16. AMERICAN LAND TITLE ASSOCIATION OWNER’S POLICY - 2006 WITH REGIONAL EXCEPTIONS First American Title When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 15 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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. (a) Taxes or assessments that are not shown as existing liens by the records of anytaxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that 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 that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and 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. PRIVACY POLICY We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First Americans Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information.  2001 The First American Corporation All Rights Reserved