Loading...
HomeMy WebLinkAbout102-87 RESOLUTIONRESOLUTION NO. 102-87 A RESOLUTION AUTHORIZING THE PURCHASE OF 20 ACRES LOCATED AT THE NORTHEAST CORNER OF THE INTERSECTION OF TOWNSHIP AND OLD WIRE ROAD FROM FLOY M. GULLEY FOR $125,000. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Board of Directors hereby authorizes the purchase of 20 acres located at the northeast corner of the intersection of Township and Old Wire Road from Floy M. Gulley for $125,000. The legal description of the property authorized for purchase hereby is attached hereto marked Exhibit "A" and made a part hereof. Section 2. That the Mayor and City Clerk are hereby authorized and directed to execute a promissory note to Floy M. Gulley in the amount of $125,000 payable in. -ten .annual install- ments of $12,500, without interest, the first payment to be due upon execution of said promissory note. A copy of the promissory note authorized for execution hereby is attached hereto marked Exhibit "B" and made a part hereof. Section 3. To secure the aforesaid promissory note, the Mayor and City Clerk are hereby authorized and directed to execute a mortgage conveying Floy M. Gulley a security interest in the aforesaid property. A copy of the mortgage authorized for execution hereby is attached hereto marked Exhibit "C" and made a part hereof. // PASSED AND APPROVED this / Syl//�� day ofOdle41"1-4444-<1987. f ..• _ 1, s 1erk • • WARRANTY DEED KNOW ALL MEN BY THESE PRESENTS: That I, Floy M. Gulley, for and in consideration of the sum of One Dollar ($1.00) to me in hand paid by the City of Fayette- ville, Arkansas, a Municipal Corporation, do hereby grant, bargain and sell unto the said City of Fayetteville, Arkansas, its heirs and assigns, the following described land, situate in Washington -County, State of Arkansas, -to -wit: Part of the SE 1/2 of the SW 1/4 of Section 36, T17N, R3OW of the Fifth Principal Meridian in Washington County, Arkansas being more particularly described as follows, to -wit: Commencing at the Southwest Corner of said SE 1/4, SW 1/4, thence S 88°48'E 192.50 Feet, thence N O1°12'E 205.33 Feet to the Point of Beginning, thence N 0°21'38"W 526.62 Feet to the East R/W of Old Wire Rd. thence N 47°01'10"E 237.68 Feet, thence S 56°14'24"E 154.56 Feet, thence N 39°10'47"E 255.79 Feet thence N 27°57'44"E 397.65 Feet, thence S 47°43'48"E 859.92 Feet, thence S O1°00'E 600.00 Feet, thence N 88°50'- 49"W 1294.18 Feet to the Point of Beginning: Containing 24.16 acres more or less subject to R/W and easements of record, as per plat on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County,`Arkansas TO HAVE AND TO HOLD the said lands and apppurtenances thereunto the said City of Fayetteville, Arkansas, its heirs and assigns, forever. And Floy M. Gulley, does hereby covenant that she is lawfully seized of said land and- 'premises; that the same is unincumbered, and she will forever warrant and defend the title to the said lands against all legal claims whatever. WITNESS my hand this day of Floy M. Gulley ACKNOWLEDGEMENT STATE OF ARKANSAS COUNTY OF WASHINGTON , 1987. BE IT REMEMBERED, That on this day came before the undersigned, a Notary Public within and for the County aforesaid, duly commis- sioned and acting, Floy M. Gulley, to me well known to be the Grantor in the foregoing Deed, and stated that she had executed the same for the consideration and purposes therein mentioned and set forth. Witness my hand and seal as such Notary Public this day of , 1987. My Commission expires: Notary Public • December 15, 1987 PROMISSORY NOTE Fayetteville, Arkansas For value received the undersigned promises to pay to the order of Floy M. Gulley the sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00) with no interest thereon from the date hereof until paid, with principal payable in ten (10) annual installments of $12,500.00 each, thefirstsuch installment being due and payable on December 15, 1987 and an installment being due and payable on December 15th of each succeeding year thereafter until said principal is paid in full. The Maker herein, at its option, may pay the whole or any part of this note on any installment paying date. In the event of default in the payment of any installment of principal the entire unpaid principal indebtedness, aforesaid shall, at the option of the payee herein, become immediately due and payable without notice. The Maker of this note hereby waives presentment for payment, notice of nonpayment and protest and consent that the time for payment of the above indebtedness, or of any installment thereof, may be extended without notice and agree to pay a reasonable attorney's fee if this note is placed in the hands of an attorney for collection. ATTEST By: City Clerk CITY 0YETTEVILLE/ARKANSAS / / M yor • • MORTGAGE (CORPORATION) KNOW ALL MEN BY THESE PRESENTS: That the City of Fayetteville, Arkansas, for good and valuable consideration, does hereby grant, bargain, sell and convey unto Floy M. Gulley and unto her heirs and assigns forever, the following real estate, situate in Washington County, State of Arkansas, to -wit: Part of the SE 1/2 of the SW 1/4 of Section 36, T17N, R30W of the Fifth Principal Meridian in Washington County, Arkansas -being more particularly described as follows, to -wit: Commencing at the Southwest Corner of said SE 1/4, SW 1/4, thence S 88°48'E 192.50 Feet, thence N O1°12'E 205.33 Feet to the Point of Beginning, thence N 0°21'38"W 526.62 Feet to the East R/W of Old Wire Rd. thence N 47°01110"E 237.68 Feet, thence S 56°14'24"E 154.56 Feet, thence N 39°10'47"E 255.79 Feet thence N 27°57'44"E 397.65 Feet, thence S 47°43'48"E 859.92 Feet, thence 5 O1°00'E 600.00 Feet, thence N 88°50'- 49"W 1294.18 Feet to the Point of Beginning: Containing 24.16 acres more or less subject to R/W and easements of record, as per plat on file in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas To have and to hold the same unto the said Floy M. Gulley and unto her heirs and assigns, together with all and singular the appurtenances and improvements thereunto belonging; and the said City of Fayetteville, Arkansas hereby covenants with the said Floy M. Gulley that it will forever warrant and defend the title of said property against all lawful claims. WHEREAS, the City of Fayetteville, Arkansas is justly indebted unto the said Floy M. Gulley in the sum of ONE HUNDRED TWENTY-FIVE THOUSAND DOLLARS ($125,000.00), evidenced by a promissory note dated December 15, 1987. Now, if the City of Fayetteville, Arkansas shall pay said moneys, at the times and in the manner aforesaid, then the above conveyance shall be null and void. And in case of non-payment, then the said grantee or her assigns, agent or attorney in fact, shall have power to sell said property at public sale, to the highest bidder for cash, at front door of Courthouse in the City of Fayetteville, County of Washington and State of Arkansas, public notice of the time and place of said sale having been first given 15 days, by advertising in some newspaper published in said County, at which sale the said grantee or her assigns, agent or attorney in fact, may bid and purchase as any third person might do. And the said grantee or her assignee is authorized to convey said property to anyone purchasing at said sale; and the recitals of his deed of grantee or her assignee is authorized to convey said property to anyone purchasing at said sale; and the recitals of his deed of conveyance shall be take as prima facie true. And the proceeds of said sale shall be applied, first, to the payment of all costs and expenses attending said sale; second to the payment of said debt and interests; and the remainder, if any shall be paid to said grantor. All right of redemption or appraisement of said property in case this mortgage is foreclosed either by order of court or by power contained in this mortgage is hereby expressly waived. Witness our hands as Mayor and City Clerk of the City of Fayetteville, Arkansas this 15th day of December 1987. ATTEST By: City Clerk CITY O•.4 YETTEVIL E,/ARKANSAS By or • ACKNOWLEDGMENT STATE OF ARKANSAS ) ss. COUNTY OF WASHINGTON) On this day of , 19 , before under- signed, a Notary Public, duly commissioned, qualified and acting, within and for the said County and State, appeared in person the within named Marilyn Johnson and Suzanne C. McWethy to me per- sonally known, who stated that they were the Mayor and City Clerk, respectively, of the City of Fayetteville, Arkansas, a municipal corporation, and were duly authorized in their respective capaci- ties to executethe foregoing instrument for and in the named and behalf of said municipal corporation, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal this day of - , 1987. My Commission Expires: Notary Public II H11.1111311 I 01110111.11 II II II Arkansas Title Insurance Company OWNER'S POLICY OF TITLE INSURANCE POLICY NUMBER 202- 008618 SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS CONTAINED IN SCHEDULE 13 AND THE PROVISIONS OF THE CONDITIONS AND STIPULATIONS HEREOF, ARKANSAS TITLE INSURANCE COMPANY, an Arkansas 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, and cost, attorneys' fees and expenses which the Company may become obligated to pay heieundef; sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested otherwise than as stated therein; 2. Any defect in or lien or encumbrance on such title; 3. Lack of a right of access to and from the land; or 4. Unmarketability of such title. - IN WITNESS WHEREOF, the Arkansas Title 'Insurance Company has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company. Attest:. Secretary _ ARKANSAS TITLE INSURANCE COMPANY By President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy: I. (a) Governmental police power. (b) Any law, ordinance or governmental regulation relating to environmental protection. (c) 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 change in the dimensions or area of the land .or any parcel of which the land is or was a part. (d) The effect of any violation of the matters excluded under (a), (b), or (c) above, unless notice of a defect, lien or encumbrance resulting from a violation has been recorded at Date of Policy in those records in which under state statutes, deeds, mortgages; judgment liens or lis pendens must be recorded in order to impart constructive notice to purchasers of the land for value and without knowledge. 2. Rights of eminent domain 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 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. 1111111111111 American Land Title Association Owner's Policy - 1970 - Form B (Amended 10-17-70 and 3-30-84) Form 1005-31 Face Page (Revd. 4-84) Valid Only If Schedules A, B and Cover Are Attached ORIGINAL 331)0, ap!su1 panulluo3 suogelndiIS putt suo!l!puoj •Jayeadagl sAep 0£ wily) algr.Aed ay Heys a3ewep to sso! ay) •Aayod sup ;o suo!Ipuo3 3141 tl!m aaurpJoaae u! pax; A!auuyap uaaq sty Auntie!! uay\ (a) .Auedwoj ay) ;o uognndoy;ne 03110) 31.11 REM pommy yans Ay uo 11301133 uoge8gg w sasuadxa pue say; sAaudone 'S1v3p He put) •p3Jnsu yans do; Auedwoj 391 Aq uo paule3 uogp,Ygy w p3Jnsu ue uodn pasodw! s)son He 'Anood sly[ Aq lsue8r. palnsu! 5501 Aue 0) uo!1!ppe w •,(ed ppm Aurdwoj 341, (q) •y aInpay's w papas anuemsu! ;0 1pfOWP, awl Jo auewwp pang)) ay) 10 ',sol [cope awl :;o ;seal ay) paaaxa asea ou u! Heys Aollod sip[ Japun Auedwoj ay, ;o Aiy!ge!I awl On SSO1 A0 1N3WAVd ONV NOI1VNIWa3130 '9 'Auedwoj ay) Ay pazuoytne pue lumina palnsui awl Ay •luawAed ;o iapual Jo luawAed tons jo any awl of do palma -w sasuadxa pue say; ,sdawolle •51503 hue tum iaylaSol AWI0d s1yl lapun aawunsu1 JO lunowe 3141 ;o luawAud 3uuapual l0 8u!Aed Aq lapunalay Auedwoj 3141 ;o suoye8ygo pue A1!pgey 11e aleu!wlal 01 Jo lsulete palnsu! w!up ,Aur, Annuity palnsu! tie jo aweu ay' w Jo Jo; 311)35 asimlaylo do And 01 uo!ldo ay) anew Heys Auedwoj awl SWIMIO 31113S 3SIMH3H10 HO AVd 01 SNOI1d0 'S 'atewep .10 ssol yans 01 se Amiod sly[ Japun AuedwoJ awl jo Holwell Rue aleu!wla) }legs a3ewep Jo ssol ;o luawalels tons ys!wn; 01 asjed -payswm; uaaq aney Heys luawalels yans Jaye sAep of lyun luew!e a paJnsul we 01 and33e Heys uoyae ;o 114'.10 ou pue pau!wlalap uaaq aney Heys a8ewep do ssoi yans lave sdep 06 wy1!m Auedwoj 391 01 pays!uin; aq pets Apiod s!y) Japun alge!l s! Auedwoj awl paw!ep Si p 143114) do; a2ewep do ssol ,Cue jo 8u!ylm u! luawalels a `suo!le(ndys pue suoy!puoj asayl jo (q)E ydedJuded iapun pannbad sa3!lou awl of uoglppe u1 N0113Y d0 NOI1V11WI1 — SSO1 i0 33110N 3. -paddeou1 os asuadxa Aue do; palnsw yans asJngw!ai Heys Auedwoj awl pue '8u!paaaoid 10 uoyae yans 8u!pua;ap Jo 8uynaas0Jd 10 'sassaul!m 8u!welg0 'aouapma 8uunaas 'luawanps 8uyoalla u! `8upaaaold do uoyae tons due u! pie algeuoseaJ pe Auedwoj ay1 ani3 Heys passu yans `AuedwoJ ay) Aq palsanbad Janauaq, *asodlnd yans Jo; pamsw yans jo aweu awl 'uoydo sl! le 'asn 0) AuedwoJ ay) I!wnd pue 'u!adayl sleadde HE pue 'Supaaaold to uoyae yans u! asua;ap apuold l0 alnaasodd os 01 1g511 ay) Auedwoj ay) 01 ampas Heys iapunaiay pamsw! ay) `8wpaaa -old Jo uoipe Aue ;o asua;ap ay) Jo; apmold to alnaasold 01 Aued -woj ay) samlbad Jo spwlad Aayod sl41 3.1345) sacra lie ul (a) '131110 JO [maw -8pn( aslanpe Aue woJ; lradde of 'uogafslp Nos 511 w '14 !i awl SOAJ3Sal Alssaldxa pun uo!p!psunf lualadwoa ;o woo e Aq uoneww -Jalap rut of 0014133014 tons Aue ansind Aew Auedwoj awl 'Amlod sit) ;o suonmold ay) Ay pau!wdad Jo palwbal se asua;ap a pasodlalu! Jo uoyae Auu Woody aney Heys Auedwoj ay) JanauayM (p) Aoyod sly[ 10 uolsuodd Aue anlem JO Apllgey apaauoa Agadayl lou Heys pue 'JapunaJayl awe!' aq Heys 1! lou do Jaylaym 'Aayod sup ;o stun) ay) Japun uouar, aleudoldde Aue ale) Aew Auedtuoj ay) pue. •pamsw se lsaJalw Jo alelsa awl 01 ally awl ysogeisa of algrnsap 10 Alessaaau aq Aew uow!do 51! u! yalym 1313 daylo Aue op 01 10 8upaaooJd .10 uoyam Aue alnaasold Amp anpun Jnoy1!m pue 3]1)11450! 011503 UMO sl! 113 11480 ay) aney new Auedwoj an (a) L-900141 • •awpnfadd tans 40 lualxa ay) 01 'quo uayl put) amyl!' yam Aq pap!pnfodd 3q Hpys Auudwoj ay) ssa[un Aaood sol .lapun pamsw tons ,Cur, ;o sly3u 3141 ampnladd asea ou w pegs A;you 01 adept); ley) 131)3)014 'papmo.1d :padwbaa s! 33!100 Idwo.rd yans goyim Jo; SJ3Iew 10 131111001 3141 01 p1e0a1 w almwwJal pun aseao !legs Aut)dwoj at1 ;0 Al!I!gl?I 1111 Palnsw yans of se uayl 'Auedwoj awl 01 uani8 ay lou Heys a)you idwo.d 113115 ;} 'a[grlay1ewun se papafad s! •pamsw se •15alalw JO 311153 3141 01 awl 1! (1)l) Jo 'A000d 5141 40 311iJ1n Ay algey aq Amu Aurdwoj 3141 winos 1o; a2ewep Jo ssol 351103 l43!w yaiym pw1'pamsu sr'Isadalu! 10 alelsa 041 01 31111 041 01 ;NM -pe s! wino) 1s31alu! Jo any ;o Luria Auu jo lapunalay palnsw ue 01 moo weds reds 33paImnuy asea w (u) `atoge (e) It! 141,0; ps se p3sod -dalul sl asua;ap JO wthay sl au!paaaoid 10 uoyae Alit) 35113 1)1 (I) 3u11U1m w Andwold Auedwoj 3141 A;you Heys pamsul awl, (q) 'A000d sly[ Aq swe8r pamspl .1a1lew J01110 Jo 'aau13Jywn3ua 'nay 'pa;ap pa3ape ur uodn papuno; si uoiled!ly 1431)5 Aryl 1031x3 ay 01 'pue[ ryes W IsadaID! JO alelsa ay) ;o ales 1! 10; 338.1lno3 a 3310;03 of uoyae ue ui passu! UL' Ismr3r pasodlaluy asua;ap a Jo •palnsw yans lsue2e paauawwoo siwpaaDoad JO 5001)313 ;0 Suusisuoa uoge8gil IIt) w palnsw ue JO asua;ap 341 Jo; apmold yetis'Ae[ap anpun lnoypm pue 1503 umo 511 1e 'Suedwoj awl (e) 1NvWIV13 038f1SNI NY A8 N3A10 38 01 WItllo AO 33110N—SNOII3V d0 NOIlf133SONd ONY 3SN3d30 'E •passu! yans 0) uanB a2e81Jow Aauow aseyn -And a Ay pampas ssaupalgapuy awl do lsalalu do aielsa pis laypa ;o pommy tons woJ; Jaseyomd Aue ;o lone; a 3310; u! 31)0140011 lou Heys Am[od 514) 'Janamot 'pap!nodd :183133U1 do alelsa tons 40 aatwAanuo3 JO la;sued Aue u! palnsu! dons Aq apew Aluelle.m jo slueuan03;o uosead Aq Anne!) anew Heys palnsw tons se Suo1 os 10 'passu! dons wow daseyoud a Aq 031)!8 02e811ow Aauow aseynmd Aq painaas ssaupalgapu! ue smog 10 'purl awl u! 3saJalu! 10 3)11)53 ue 5Ulelal passuy yans se 8001 os passu! ue ;o done; u! Aa1pd 40 aled jo se 03.10; ul anuquo3 ins A3ood sup ;o a2edano3 0111 31111 30 33NVA3AN03 831AV 3ONVNfSNI d0 NOI1VONI1NO3 •Z 'pue( 11!135 0) 8uye!al s1011ew ;o 33!100 3A9a11Jls -UO3 ldedw! mei Aq 1l314M SpJoJal 35041 :,spaooaJ nygnd,• (;) 'ltlawnJ3Sul AnJI)Das law to 'paap lsml 'Ism) ;o paap `a2e811ow :,,am81dow (a) •A3Hod sun Aq passu! 5! pue[ ay) wow pue 01 5833313;o 19811 r y31ym 01 1031X3 awl um!) l0 A;!pow Heys u!alay 130!14100 Inc 'sdemJalem do sdem 'sauel 'slope 'sanuane 'spew 'spans 8uginge u! ;uatuasea to alelsa Isa131ul 'ally 748u Aue Jou 'y alnpayas w 01 paJda;ai do paquosap Apeoypads Bade ay) ;o sally ay) puodaq Auadoid Aue apnpu! lou saop „pue[„ UM) ay) 'Jana.moy 'papinold :AUadodd [cad alnlusuoa mel Ay yaws 01313141 paxlge sluawanoddwl pue 'y alnpayas u! anuaaa;ai Aq Jo Apeaypads 'paqu3sap puri 3141 :,,puri„ (p) spJooad aygnd Aue ;o uoseai Ay passty ue of palndw aq Aew y3!tm annou 10 a8palmoul angpndsuoa lou 'a2pa!moul[ lenge : „a8paI.mou[„ (a) 'lapunalay aSewup JO sso! 8uww[a pamsw! ue :„tuewlep palnsu!„ (q) '5Jn5533311S AllUnp; Jo aleioddoa l0 'un) ;o 1x30 'satyr) -uasaddad pwosdad •sdon!nmS 'saasuap `saalnquls!p '51)314 '01 'wow lou Any '3ulpnau aseyamd woJ; pagsw2ugsrp 513 .der.[ JO uwjUJado Aq palnsw yans ;o 1saJa1111 3141 01 1133331)5 oym 350141 'padmw pawuu awl lsuiir peg aney Aew Auedwoj 3141 sasua;ap Jo slg811 Aur 0) pafgns 'pue 'y a[npawas u! paweu pamsw! ay) :„pamsw„ (r.) :ueaw Aayod sup u! pasn uaym scald 8u!mopo; awl SNOI.LV'IRdIIS ONV SNOI.LIUMOJ SWH31 d0 NOI1INId30 '1 • • Al nsT Tide ranee Company PodAcyHEgOLE g�of3- 1 ile No.AR 87-2188 Amount of insurance: $125, 1700 4730 Premium; STANDARD Date of Policy; DECEMBER 311 1987 AT 11:41 A. 1. -Name of .Insured: THE CITY OF FAYETTEV_ILLE/ ARKANSAS 2. The estate or interest in the land described herein and 4hiestatech is covered by this policy is fee simple and is at Date of Policy vested in: THE CITY OF FAYETTEVILLE/ ARKANSAS, a Municipal Corporation 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 EIS follows: Part of the SE 1/4 of the SW 1/4 of Section 36, T17N, Rance 30W of the Fifth Principal Meridian in Washington County, Arkansas/ being more particularly describers a=_. fol lows, to -wit; Commencing at the Southwest corner of said SE 1/4 SW 1/4, thence South 88 degrees 48- minutes East. 192.50 feet, thence North O 1 degrees 12 minutes. East 2.05.33 feet to the point of beginning, thence North +7t degrees 21 minutes 38 seconds West 526.62 feet to the East right of way of O ld Wire Road, thence North 47 degrees 01 minutes 10 seconds. East 237.68 feet, thence South 56 degrees. 14 minutes 24 seconds. East. 154.56 feet, thence North 39 degrees 10 minutes 47 seconds East 255.79 feet, thence North 27 degrees 57 minutes. 44 seconds East 397.65 feet, thence South 47 degrees 43 minutes 48 seconds East 859.92 feet, thence South 01 degrees 00 minutes East 600.00 feet, thence North 88 degrees 50 =minutes 49 seconds West 1294.18 feet to the pc.int c•f beginning, containing 24..16 acres, more or less/ subject to right of ways and.;eas.ement,s of -record COUNTERSIGNED BY1___ P.RO.NEQN ABSTRACT COMPANY, INC 28 EAST CENTER STREET FAYETTEVILLE, AR. 72701 • ARKANSAS TITLE INSURANCE' COMPANY CONDITIONS AND STIPULATIONS (Continued) 7. LIMITATION OF LIABILITY No claim shall arise or be maintainable under this policy (a) if the Company, after having received notice of an alleged defect, lien or encumbrance insured against hereunder, by litigation or other- wise, removes such defect, lien or encumbrance or establishes the title, as insured, within a reasonable time after receipt of such notice; (b) in the event of litigation until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, as insured, as provided in paragraph 3 hereof: or. (c) for liability voluntarily assumed by an insured in settling any claim or suit without prior written consent of the Com- pany. 8. REDUCTION OF LIABILITY All payments under this policy, except payments made for costs, attorneys' fees and expenses, shall reduce the amount of the insurance pro tanto.. No payment shall be made without producing this policy for endorsement of such -payment unless the policy be lost or de- stroyed, in which case proof of such •loss or destruction shall be fur- nished to the satisfaction of the Company. 9. • LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring either (a) a mortgage shown or referred to in Schedule B hereof which is a lien on the estate or interest covered by this policy, or Ib) a mortgage hereafter executed by an insured which is a charge or lien on the estate or interest described or referred to in Schedule A. and the amount so paid shall be deemed a paymen under this policy. The Company shall have the option to apply to the payment of any such mortgages any amount that otherwise would be payable. hereunder to the insured owner of the estate or interest covered by this policy and the amount so paid shall be deemed a payment under this policy to said insured owner. 10. APPORTIONMENT If the and described in Schedule A consists of two or more parcels which are not used as a single site, and a loss is established affecting one or more of said parcels but not all, the loss shall be computed and settled on a pro rata basis as if the amount of insur- ance under this policy was divided pro rata as to the value on Date of Policy of each separate parcel to the whole, exclusive of any improvements made subsequent to Date of Policy, unless a liability or value has otherwise been agreed upon as to each such parcel by the Company and the insured at the time of the issuance of this policy and shown by an express statement herein or 'by an endorsement attached hereto. 11. SUBROGATION UPON PAYMENT OR SETTLEMENT • Whenever the Company shall have settled a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be sub- rogated to and be entitled to all rights and remedies which such insured claimant would have had against any person or property in respect to such claim had this policy not been issued, and if re- quested by the Company, such insured claimant shall transfer to the Company all -rights and remedies against any person or properly necessary in order to perfect such right of subrogation and shall permit the Company to use the name of such insured claimant in any transaction or litigation involving such rights or remedies. If the payment does not cover the Toss of such insured claimant, the Company shall he subrogated to such rights and remedies in the proportion which said payment bears to the amount of said loss. If loss should result from any act of such insured claimant, such 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 hereunder which shall exceed the amount, if any, lost to the Com- pany by reason of the impairment of the right of subrogation. 12. LIABILITY LIMITED TO THIS POLICY This instrument together with all endorsements and other instru- ments, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. Any claim of loss or damage, whether or not based on negli- gence, andwhicharises out of the status of the title to the estate or interest covered hereby or any action asserting such claim, shall be restricted to the provisions and conditions and stipulations of this policy. No amendment of or endorsement to this policy can be made except by writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secre- tary, or validating officer or authorized signatory of the Company. 13. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to Arkan- sas Title Insurance Company, 122 Main Street, Pine Bluff, Arkansas 71601, and Commonwealth Land Title Insurance Company, Eight Penn Center, Philadelphia, Pennsylvania 19103. REINSURANCE As additional protection to the insured, an automatic reinsurance agreement exists between Arkansas Title Insurance Company and Common-. wealth Land Title Insurance Company, a Pennsylvania corporation, duly authorized to transact the business of title insurance in the State of Arkansas. Commonwealth Land Title Insurance Company by terms of said reinsurance agreement assumes a portion of the loss risk hereinafter a primary retention of loss risk by Arkansas Title Insurance Company. A certificate of reinsurance is available upon request. - American Land Title Association Owner's Policy - 1970 - Form B (Rev. 10-17-70 and 10-17-84) Cover Page 1 -'Form 1005-30 Valid Only If Schedules A and B Are Attached - r 0 0 0 v Z m W cD T Z T > O n1 m m 0� 30IJJO 3WOH O Matrir • '11111 II II • This pc< Policy Na.202-008.618 SCHEDULE B File NO.OR 87-2188 cy does not insure against loss or damage by reason of the fol ow • Rights or claims of parties other than Insured in actual possession of any or all of the property. Unrecorded easements, discrepancies or conflicts in boundary lines, shortage in area and encroachments_. which an accurate and complete survey would disclose, • 3 tlrsfiled mechanics) or materialraen's liens. 4 Lass arising from security interest evidenced by financing statements filed of record, as of the effective date hereof, under the Arkansas ~Uniform Commercial Code and Judgement Liens and other liens of record in any United State=_. District Court or Bankruptcy Court in the State of Arkansas/ as.. of the effective date. Less arising from Oil/ Gas_. or other Minerals/ conveyed/ retained, assigned or any other activity caused by the sub -surface rights or ownership, including but not limited to the right of ingress_. or egress for said sub -surface purposes. 6 General Taxes. for the year 1987 and subsequent years not yet due and payable. n 7 Right of way granted to the City of Fayetteville. Arkansas/ filed for record February 25/ 1969 at 2:05 P. M,/ irs record bock 754 at page 362 of the records of Washington County/ Arkansas. 8 Right of way :wanted to the City of Fayetteville, Arkane.as/ filed for record April 18/ 1972 at 2:85 P. M./ in record book 830 at page 952 of the records.c<f Washington County/ Arkansas, Easement granted to Southwestern Bell Telephone Company filed for record April 11/ 1985 at 11:43 P. M./ in record bock 1136 at pate 859 of the records of Washington County/ Arkansas, 10 Mortgage c<f insured premises. from the City of Fayetteville/ Arkansas., to Flay M. Gulley/ recorded in record book 1254 at page 208 of the records of Washington County/ Arkansas, BRONSON ABSTRACT COMPANY/ INC 28 EAST CENTER STREET FAY£/ EVILLE1/ AR. 72701 ***************** ARKANSAS TITLE INSURANCE COMPANY *�:**********************