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HomeMy WebLinkAbout111-97 RESOLUTION RESOLUTION NO. 111-97 sr M M F fl A RESOLUTION AUTHORIZING THE MAYOR AND CITY ATTORNEY TO PURCHASE FROM THE OFF-STREET PARKING DEVELOPMENT DISTRICT NO. 1 ITS SHARE OF THE PARKING LOT LOCATED BETWEEN EAST AND BLOCK STREETS,FOR AN AMOUNT NOT TO EXCEED$150,000;AND APPROVAL OF A BUDGET ADJUSTMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby authorizes the Mayor and City Attorney to purchase from the Off-street Parking Development District No. 1 its share of the parking lot located between East and Block Streets, for an amount not to exceed $150,000. Section 2. The City Council hereby approves a budget adjustment in the amount of $150,00 increasing Parking Lot Improvements, Acct. No. 4470 9470 5819 00, Project No. 97071 0001 by decreasing Use of Fund Balance,Acct. No. 4470 0947 4999 99. �. ?AS D AND APPROVED this 18th day of November , 1997. • . , •• APPROV : ' '/ .4 B -7. , ti .' Fred Hanna, Mayor ATTEST: By: ,1},C.L, Traci Paul, City Clerk City of Fayetteville,Arkansas Budget Adjustment Form Budget Year Department: Sales Tax Cap Imprvs Fund .. Date Requested Adjustment# 1997 Division: December 31, 1997 Program: Project or Item Requested: Project or Item Deleted: Increase parking lot improvements by None. $16,500 to allow for the purchase of the Off-Street Parking Development District No. One's share of the parking lot located between East & Block Avenue @ Rock Street. Justification of this Increase: Justification of this Decrease: The original budget adjustment #2730 for Sufficient funds are available due $133, 500 was replaced by Resolution 111-97 to sales tax revenue and interest which authorizes a budget adjustment for earnings for 1997 coming in slightly $150, 000. This budget adjustment simply above projections. adds $16,500 to the $133,500 to total to $150,000. Increase Expense(Decrease Revenue) Account Name Amount Account Number Project Number Parking Lot Improvements 16,500 4470 9470 5819 00 97071 1 Decrease Expense(Increase Revenue) Account Name Amount Account Number Project Number Use of Fund Balance 16,500 4470 0947 4999 99 Approval Signatures - Budget Office Use Only Requested By Da - Type: A B C D , /le.._...t&ct,_..)...._.e. : 7, - _. . E dge Coordinator a ate Date of Approval ' Department Director Date Posted to General Ledger Admin ervices Di a for Da Posted to Project Accounting 1/49 f Mayo ! Date Entered in Category Log Blue Copy:Budget&Research / Yellow Copy:Requester DADATAVORMSBA-ADABADJFl97.WK4 MICROFILME ' jIv • 18 '1998 LAMAR PETTUS _. 151 West Dickson Street _— Fayetteville, Arkansas 72701 (501) 443-2363 Facsimile: (501) 443-0390 February 18, 1998 via Hand Delivery Jerry Rose City Attorney CITY OF FAYETTEVILLE Administration Building 113 Mountain Street Fayetteville, AR 72701 Re: Off-Street Parking District No. 1 Dear Mr. Rose: Enclosed is the executed Offer and Acceptance Contract. I question the need for the written contract since the Commission voted to sell and I understand the City voted to buy the parking lot. Please order the Title Policy from a vendor of your choice. In addition, unless you call me, I will assume you will also utilize a surveyor acceptable to the City of Fayetteville. I would hope we could close this transaction on or before March 20, 1998. When Off-Street Parking District No. 1 purchased the property it received a Warranty Deed to a certain a legal description. I am assuming by Paragraph 5, you are stating you expect the District to provide clear title to the deeded legal. The District is not willing to commit to convey title to an actual surveyed legal of the parking lot as it physically exists if that surveyed legal includes more property than the deeded legal. I have to assume the parking lot, as it physically exists, is either located upon land deeded to the District or property which actually belongs to the City of Fayetteville. I do not anticipate Paragraph 5 being a problem, but I also do not want to put the District in a position where it ends up in litigation as a result of some privately S:\LAMARP\D WNTWN PK\LROS E 218 • owned building encroaching onto its lot. 'If that happens, the District will have to make an adjustment to the legal being conveyed and, depending on the quantity of land involved, naturally the price requested. If you have any questions, call me. Sincerely, U"' E. Lamar Pettus ELP/trf L a rn ASS 6"i Enclosures cc: Bobby Lee Odom Thomas D. Stockland Walter Niblock Wesley Murtishaw S:\LAMARP\D WNTWN PK\LROSE.218 • • OFFER AND ACCEPTANCE CONTRACT 1. Buyer, the City of Fayetteville, offers to buy, subject to the terms and conditions set forth herein,the following described property: Lot numbered Eight(8),the north seven(7) feet of equal and uniform width of Lot number Nine(9),Lots numbered Twelve(12), Thirteen (13), Fourteen (14) and Fifteen (15), including the interest in any vacated alley associated with each lot or partial lot, all in Block Numbered Thirty (30) in the Town (now City) of Fayetteville, as designated upon the original plat of said town filed in the Office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas. Also any and all interest in"partnership" or common"walls"which were previously conveyed to the Grantor. Said walls and buildings are no longer in existence. 2. Purchase Price: Subject to the following conditions the Buyer shall pay for the property at closing the total and cash payment of$150,000.00 cash. 3. Conveyance will be made to Buyer by general warranty deed, except it shall be subject to recorded instruments and easements, if any,which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by Seller. 4. Seller shall furnish, at Buyer's cost a policy of title insurance in the amount of the purchase price from a title insurance company as selected by Buyer. 5. Seller agrees to allow Buyer, at Buyer's expense, to survey the property. Seller agrees, at Seller's expense,to cure any title problems which may result from any differences between the recorded legal description of the property and the survey description. Said title problems, if any,must be solved prior to closing to the satisfaction of the buyer. 6. Taxes and special assessments due on or before closing shall be paid by the seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be � 4'.prorated as of closing. �,.pp E or. o• 1,,�a-� '1�t�a�� ao„ I C 9 8 6 7. The location and time of closing shall be agrccd`to by Scllcr and Buyer. 8. Possession of the property shall be delivered to the Buyer on the date of closing all gates, meters and parking meters, if any, shall be the property of the City. 9. All fixtures,improvements, attached equipment, all gates, meters and parking meters, shall be the property of the City and included in the purchase price. 10. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the Seller. 11. This AGREEMENT shall be governed by the laws of the State of Arkansas. 12. This AGREEMENT, when executed by both Buyer and Seller shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements,representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 13. This contract expires, if not accepted, on or before the—day of , 1998. . 1 • OFF-STREET PARKING DISTRICT NO. 1 c G SELLER Co m " N S4 ) Date SELLER Date CITY OF FAYETTEVILLE, ARKANSAS /f/qf Fred Hanna,Mayor Date ATTEST: By: /� —r /2� %� Traci Paul, ity Clerk v 97.vvc. it y 4PF= : Q ,� Y r^ N �y, ✓.., • � .. k gip, {, rat, an: aa;PA.ae,�''�!•ak,,�•,,..:b � .,,'I Form No.1402.92 "''T:`. `s;;:" „7,92) MICROFILMED elALTA Owner's Policy ` Y, 0IE. • POLICY INSURANCE4 irw OF illiitir \ \t ! !ti AF �:a+� r sttto� ---;:--77.,',. . het Afir .. -- zioi, issiTED BY /./W First American Title Insurance Company ,..._:,::: '.,,,:. 4! { rt kip 0.,41 SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE 0t..:1 ' B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California "itiP -: corporation,herein called the Company,insures,as of Date of Policy shown in Schedule A,against loss or damage, O not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: `"° 314 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; i" i_ 4217-, - 4 2. Any defect in or lien or encumbrance on the title; „,;1 = k 3. Unmarketability of the title; <,:;I4 A " 4. Lack of a right of access to and from the land. 41-e' '4L The Company will also pay the costs, attorneys'fees and expenses incurred in defense of the title, as insured, but ( ,l only to the extent provided in the Conditions and Stipulations. • , li, Bronson Abstract Company, Inc. vt' :'i , sT Bronson 3810 Front Street,#5 ` "'' A " k14 ' . Fayetteville,AR 72703 `, ALA x (501)442-2700 »:',;-_. ,<.# Fax:(501)442-8475 :F ,eek:Of \\?a /ilk `r) `,•4 Agent For: 1 First American Title Insurance Company ,i-eir 4114? 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Name of Insured: THE CITY OF FAYETTEVILLE, ARKANSAS, a municipal corporation 2 . The estate or interest in the land described herein and which is covered by this policy is FEE SIMPLE and is at Date of Policy vested in: THE INSURED 3 . The land referred to in this policy is described in the said instrument, is situated in the County of WASHINGTON, State of ARKANSAS, and is identified as follows : Lot Numbered Eight (8) , the North Seven (7) feet of equal and uniform width of Lot Numbered Nine (9) , Lots Numbered Twelve (12) , Thirteen (13) , Fourteen (14) , and Fifteen (15) , including the interest in any vacated alley associated with each lot or partial lot, all in Block Numbered Thirty (30) in the Town (now City) of Fayetteville, as designated upon the original plat of said town filed in the office of the Circuit Clerk and Ex-Officio Recorder of Washington County, Arkansas . COUNTERSIGNED BY: to Ai A BRONSON ABSTRACT COMPANY, INC ********************************* 28 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY ********************************* Policy No.J 745354 SCHEDULE B File No.FATIC 98-9060 This policy does not insure against loss or damage by reason of the following: 1 General taxes for the year 1998 and subsequent years not yet due and payable. 2 Subject to utility easement retained by the City of Fayetteville, Arkansas, being approximately 10 feet in width lying along the vacated alley vacated by Ordinance No. 2578 . 3 Rights or claims of parties in possession, boundary line disputes, overlaps, encroachments, and any other matters not shown by the public records which would be disclosed by an accurate survey and inspection of the land described in Schedule A. 4 Easements, or claims of easements, not shown by the public records . 5 Any lien, or right to a lien, for services, labor or material heretofore of hereafter furnished, imposed by law and not shown by the public records. 6 Taxes or assessments which are not shown as existing liens by either the public records or the records of any taxing authority that levies taxes or assessments on real property. 7 This policy does not insure acreage, any mention thereof is for descriptive purposes only. BRONSON ABSTRACT COMPANY, INC ********************************* 28 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY ********************************* Form No. 1402.92 --- xy , r (10117192) _ ,�. • a,� ALTA Owner's Policy Z�. • 1 POLICY OF TITLE INSURANCE ia^ � xc M � •.s ISSUE!) BY First American Title Insurance Company . t i SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE ., B AND THE CONDITIONS AND STIPULATIONS, FIRST AMERICAN TITLE INSURANCE COMPANY, a California corporation, herein called 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; ' (a" 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, attorneysfees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. r Mk � Bronson Abstract Company, Inc. ` 4 ,mss w m e '� o 3810 Front Street, #5 ,�C w 4- Fayetteville, AR 72703 _` (501) 442-2700 `fir "w Fax: (501) 442-8475 © t ���j C Agent For:+4 First American Title Insurance Company".: • f - First American Title Insurance Company 1 BY PRESIDENT ATTEST ///�'/ /1 `�Z�Yy�wr� _ SECRETARY 745354 ��II''��ITTv�� v v �vr�s"rAP�.�°jf�8 ma�r�F?!v�►?o�_ @u�?r��?�mf$�''!!� �' 2.rr?/4%r,G.J eac/�e� .ark. �f /��r��o fiza7sr��� 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 or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof protection, 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. CONDITIONS AND STIPULATIONS 1. DEFINITION OF TERMS. by this policy which constitutes the basis of loss or damage for any loss or damage caused thereby. and shall state, to the extent possible, the basis of calculating (b) In the event of any litigation, including litigation by The following terms when used in this policy mean: the amount of the loss or damage. If the Company is prejudiced by the failure of the insured claimant to provide the the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been (a) "insured": the insured named In Schedule A, and, subject to any rights or defenses the Company would have required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title had against the named insured, those who succeed to the interest of the named Insured by operation of law as liability or obligation to defend, prosecute, or continue any distinguished from purchase including, but not limited to, litigation, with regard to the matter or matters requiring such as Insured. (c) The Company shall not be liable for loss or heirs, distributees, devisees, survivors, personal represents- proof of loss or damage. fives, next of kin, or corporate or fiduciary successors. In addition, the insured claimant may reasonably be damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written (b) "insured claimant': an insured claiming loss or required to submit to examination under oath by any authorized representative of the Company and shall produce consent of the Company. damage. for examination, inspection and copying, at such reasonable 10. REDUCTION OF INSURANCE; REDUCTION OR \ (c) "knowledge" or "known": actual knowledge, not times and places as may be designated by any authorized constructive knowledge or notice which may be imputed to of the Company, all records, books, ledgers, TERMINATION OF LIABILITY. I \ representative an insured by reason of the public records as defined in this checks, correspondence and memoranda, whether bearing a All payments under this policy, except payments made policy or any other records which impart constructive notice date before or after Date of Policy, which reasonably pertain for costs, attorneys' fees and expenses, shall reduce the of matters affecting the land, to the loss or damage. Further, if requested by any authorized (d) "land": the land described or referred to In representative of the Company, the insured claimant shall amount of the insurance pro tanto. Schedule (A), and improvements affixed thereto which by law grant its permission, in writing, for any authorized rep- constitute real property. The term "land" does not include any resentative of the Company to examine, inspect and copy all 11. LIABILITY NONCUMULATIVE. property beyond the lines of the area described or referred records, books, ledgers, checks, correspondence and mom- to in Schedule (A), nor any right, title, interest, estate or oranda in the custody or control of a third party, which It is expressly understood that the Amount of In- surance under this policy shall be reduced by any amount the r y easement in abutting streets, roads, avenues, alleys, lanes, reasonably pertain to the loss or damage. All information ways or waterways, but nothing herein shall modify or limit designated as confidential by the insured claimant provided Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the the extent to which a right of access to and from the land is to the Company pursuant to this Section shall not be Insured by this policy, disclosed to others unless, in the reasonable judgment of the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or Q • (e) "mortgage": mortgage, deed of trust, trust deed, Company, it is necessary in the administration of the claim, or other security instrument. Failure of the insured claimant to submit for examination lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a (f) "public records": records established under state under oath, produce other reasonably requested information or grant permission ta secure reasonably necessary informs - payment under this policy to the insured owner. • statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to Lion from third parties as required in this paragraph, unless prohibited by law or governmental regulation, shall terminate 12. PAYMENT OF LOSS. purchasers for value and without knowledge. With respect to Section 1(a)(iv) of the Exclusions From Coverage, "public any liability of the Company under this policy onto that claim. (a) No payment shall be made without producing this records" shall also incude environmental protection liens filed in the records of the clerk of the United States district court 6. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or for the district In which the land is located. TERMINATION OF LIABILITY. destruction shall be furnished to the satisfaction of the O • (g) "unmarketability of the title": an alleged or In case of a claim under this policy, the Company shall apparent matter affecting the title to the land, not excluded or have the following additional options: Company. (b) When liability and the extent of loss or damage has excepted from coverage, which would entitle a purchaser of (a) To Pay or Tender Payment of the Amount of the estate or interest described in Schedule A to be released Insurance. been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 P 0 P y from the obligation topurchase by virtue of a contractual ante Topayorteed days thereafter. condition requiring the elivery of arketable title. erwithlany costs, under this policy together with any costs, attorneys' fees and 13. SUBROGATION UPON PAYMENT 2. CONTINUATION OF INSURANCE AFTER expenses incurred by the Insured claimant, which were authorized by the Company, up to the time of payment or OR SETTLEMENT. CONVEYANCE OF TITLE, tender of payment and which the Company is obligated to (a) The Company's Right of Subrogation. The coverage of this policy shall continue in force as Pay of Date of Policy in favor of an insured only so long as the Upon the exercise by the Company of this option, all liability and obligations to the Insured under this policy, other 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. insured retains an estate or interest in the land, or holds an Indebtedness seecured by a purchase money mortgage given than to make the payment required, shall terminate, including byna the insured, or only so long as the any liability or obligation to defend, prosecute, or continue . The Company shall be subrogated to and be entitled to all rights and remedies which the Insured claimant would have purchasePfrom any litinagon, and the policy shall be surrendered to the w X made by the Insured in any transfer or conveyance of the estate or Intertisht. 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 maybe 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 en- cumbrance 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 against 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 forthis 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 (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 bythe 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 Com- pany'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. 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)(C) 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 sub- sequent 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 comple- tion of any appeals therefrom, it shall have fully performed its obligations with respect to that matter and shall not be liable 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 clalmantand 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 Com- pany 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) maybe 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, it any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpret- ing 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 be deemed not to Include that provision 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 the Company 01 114 East Fifth Street, Santa Ana, California 92701, or to the office which issued this policy. N Policy No.J 745354 SCHEDULE A File No.FATIC 98-9060 �iEDlra' / Oad� �GK 3'6 //4' 1pTf ; Amount of insurance: $150,000.00 Premium: STANDARD Date of Policy: MARCH 26, 1998 at 10:26 A.M. 1. Name of Insured: THE CITY OF FAYETTEVILLE, ARKANSAS, a municipal corporation 2. The estate or interest in the land described herein and which is covered by this policy is FEE SIMPLE and is at Date of Policy vested in: THE INSURED 3. The land referred to in this policy is described in the said instrument, is situated in the County of WASHINGTON, State of ARKANSAS, and is identified as follows: Lot Numbered Eight (8), the North Seven (7) feet of equal and uniform width of Lot Numbered Nine (9), Lots Numbered Twelve (12), Thirteen (13), Fourteen (14), and Fifteen (15), including the interest in any vacated alley associated with each lot or partial lot, all in Block Numbered Thirty (30) in the Town (now City) of Fayetteville, as designated upon the original plat of said town • filed in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. 0 ii 0 COUNTERSIGNED BY: BRONSON ABSTRACT COMPANY, INC********************************* 1} 28 EAST CENTER STREET FIRST AMERICAN TITLE FAYETTEVILLE, AR. 72701 INSURANCE COMPANY ********************************* u ., • 2 Subject to utility easement retained by the City of Fayetteville, Arkansas, being approximately 10 feet in width lying along the vacated alley vacated by Ordinance No. 2578. 3 Rights or claims of parties in possession, boundary line disputes, overlaps, encroachments, and any other matters not shown by the public records which would be disclosed by an accurate survey and inspection of the land described in Schedule A. • 4 Easements, or claims of easements, not shown by the public records. 5 Any lien, or right to a lien, for services, labor or material heretofore of hereafter furnished, imposed by law and not shown by the public records. 6 Taxes or assessments which are not shown as existing liens by either the public records or the records of any taxing authority that levies taxes or assessments on real property. 7 This policy does not insure acreage, any mention thereof is for S descriptive purposes only. .. 0 oil BRONSON ABSTRACT COMPANY, INC 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 ************************* ******** FIRST AMERICAN TITLE INSURANCE COMPANY ************************* ******** 1