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HomeMy WebLinkAboutOwner's Policy No. 5011400-1166403e, Insured Orange County, for 4801 West Ten Rd., Efland, NC i >I Pst AMERC, Owner's Policy of Title Insurance '�li► F1rstAll2erican Title" ISSUED BY First American Title Insurance Company Owner's Policy POLICY NUMBER 5011400-1166403e Any notice of claim and any other notice or statement in writing required to be given to the Company under this policy must be given to the Company at the address shown in Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE,THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B,AND THE CONDITIONS,FIRST AMERICAN TITLE INSURANCE COMPANY,a Nebraska corporation(the"Company")insures,as of Date of Policy and,to the extent stated in Covered Risks 9 and 10,after Date of Policy,against loss or damage,not exceeding the Amount of Insurance,sustained or incurred by the Insured by reason of: 1. Title being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Title.This Covered Risk includes but is not limited to insurance against loss from (a) A defect in the Title caused by (i) forgery,fraud,undue influence,duress,incompetency,incapacity,or impersonation; (ii) failure of any person or Entity to have authorized a transfer or conveyance; (iii) a document affecting Title not properly created,executed,witnessed,sealed,acknowledged,notarized,or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law; (v) a document executed under a falsified,expired,or otherwise invalid power of attorney; (vi) a document not properly filed,recorded,or indexed in the Public Records including failure to perform those acts by electronic means authorized by law;or (vii) a defective judicial or administrative proceeding. (b) The lien of real estate taxes or assessments imposed on the Title by a governmental authority due or payable,but unpaid. (c) 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.The term"encroachment"includes encroachments of existing improvements located on the Land onto adjoining land,and encroachments onto the Land of existing improvements located on adjoining land. 3. Unmarketable Title. 4. No right of access to and from the Land. (Covered Risks Continued on Page 2) In Witness Whereof,First American Title Insurance Company has caused its corporate name to be hereunto affixed by its authorized officers as of Date of Policy shown in Schedule A. First American Title Insurance Company For Reference: A^—al�e44 File#: 201500290CAF Dennis J.Gilmore Issued By: President Investors Title Commercial Agency, LLC tf �yU 121 North Columbia Street �7 Chapel Hill, INC 27515 Jeffrey S.Robinson Secretary (This Policy is valid only when Schedules A and B are attached) This Jacket was created electronically and constitutes an original document Copyright 2006-2009 American Land Title Association.All rights reserved.The use of this form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association. Form 5011400(7-1-14) Page 1 of 5 ALTA Owner's Policy of Title Insurance(6-17-06) Policy#: 5011400-1166403e COVERED RISKS(Continued) 5. The violation or enforcement of any law,ordinance,permit,or governmental regulation(including those relating to building and zoning)restricting, regulating,prohibiting,or relating to (a) the occupancy,use,or enjoyment of the Land; (b) the character,dimensions,or location of any improvement erected on the Land; (c) the subdivision of land;or (d) environmental protection if a notice,describing any part of the Land,is recorded in the Public Records setting forth the violation or intention to enforce,but only to the extent of the violation or enforcement referred to in that notice. 6. An enforcement action based on the exercise of a governmental police power not covered by Covered Risk 5 if a notice of the enforcement action,describing any part of the Land,is recorded in the Public Records,but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise,describing any part of the Land,is recorded in the Public Records, 8. Any taking by a governmental body that has occurred and is binding on the rights of a purchaser for value without Knowledge, 9. Title being vested other than as stated in Schedule A or being defective (a) as a result of the avoidance in whole or in part,or from a court order providing an alternative remedy,of a transfer of all or any part of the title to or any interest in the Land occurring prior to the transaction vesting Title as shown in Schedule A because that prior transfer constituted a fraudulent or preferential transfer under federal bankruptcy,state insolvency,or similar creditors'rights laws;or (b) because the instrument of transfer vesting Title as shown in Schedule A constitutes a preferential transfer under federal bankruptcy,state insolvency,or similar creditors'rights laws by reason of the failure of its recording in the Public Records (i) to be timely,or (ii) to impart notice of its existence to a purchaser for value or to a judgment or lien creditor. 10. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1 through 9 that has been created or attached or has been filed or recorded in the Public Records subsequent to Date of Policy and prior to the recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The Company will also pay the costs,attomeys'fees,and expenses incurred in defense of any matter insured against by this Policy,but only to the extent provided in the Conditions. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this Records at Date of Policy,but Known to the Insured policy,and the Company will not pay loss or damage,costs,attorneys' Claimant and not disclosed in writing to the Company by the fees,or expenses that arise by reason of: Insured Claimant prior to the date the Insured Claimant 1. (a) Any law,ordinance,permit,or governmental regulation became an Insured under this policy; (including those relating to building and zoning)restricting, (c) resulting in no loss or damage to the Insured Claimant; regulating,prohibiting,or relating to (d) attaching or created subsequent to Date of Policy(however, (i) the occupancy,use,or enjoyment of the Land; this does not modify or limit the coverage provided under (ii) the character,dimensions,or location of any improvement Covered Risk 9 and 10);or erected on the Land; (e) resulting in loss or damage that would not have been (iii) the subdivision of land;or sustained if the Insured Claimant had paid value for the (iv) environmental protection; Title. or the effect of any violation of these laws,ordinances,or 4. Any claim,by reason of the operation of federal bankruptcy,state governmental regulations. This Exclusion 1(a)does not modify insolvency,or similar creditors'rights laws,that the transaction or limit the coverage provided under Covered Risk 5. vesting the Title as shown in Schedule A,is (b) Any governmental police power. This Exclusion 1(b)does not (a) a fraudulent conveyance or fraudulent transfer;or modify or limit the coverage provided under Covered Risk 6. (b) a preferential transfer for any reason not stated in Covered 2. Rights of eminent domain. This Exclusion does not modify or limit Risk 9 of this policy. the coverage provided under Covered Risk 7 or 8. 5. Any lien on the Title for real estate taxes or assessments 3. Defects,liens,encumbrances,adverse claims,or other matters imposed by governmental authority and created or attaching (a) created,suffered,assumed,or agreed to by the Insured between Date of Policy and the date of recording of the deed or Claimant; other instrument of transfer in the Public Records that vests Title (b) not Known to the Company,not recorded in the Public as shown in Schedule A. Form 5011400(7-1-14) Page 2 of 5 ALTA Owner's Policy of Title Insurance(6-17-06) Policy#: 5011400-1166403e CONDITIONS 1. DEFINITION OF TERMS of matters relating to real property to purchasers for value and The following terms when used in this policy mean: without Knowledge. With respect to Covered Risk 5(d), (a) "Amount of Insurance": The amount stated in Schedule A,as may "Public Records"shall also include environmental protection be increased or decreased by endorsement to this policy, liens filed in the records of the clerk of the United States District increased by Section 8(b),or decreased by Sections 10 and 11 of Court for the district where the Land is located. these Conditions. (j) "Title": The estate or interest described in Schedule A. (b) "Date of Policy": The date designated as"Date of Policy"in (k) "Unmarketable Title":Title affected by an alleged or apparent Schedule A. matter that would permit a prospective purchaser or lessee of (c) "Entity": A corporation,partnership,trust,limited liability the Title or lender on the Title to be released from the company,or other similar legal entity. obligation to purchase,lease,or lend if there is a contractual (d) "Insured": The Insured named in Schedule A. condition requiring the delivery of marketable title. (i) The term"Insured"also includes 2. CONTINUATION OF INSURANCE (A) successors to the Title of the Insured by operation of law The coverage of this policy shall continue in force as of Date of as distinguished from purchase,including heirs,devisees, Policy in favor of an Insured,but only so long as the Insured retains survivors,personal representatives,or next of kin; an estate or interest in the Land,or holds an obligation secured by a (B)successors to an Insured by dissolution,merger, purchase money Mortgage given by a purchaser from the Insured, consolidation,distribution,or reorganization; or only so long as the Insured shall have liability by reason of (C) successors to an Insured by its conversion to another kind warranties in any transfer or conveyance of the Title. This policy of Entity; shall not continue in force in favor of any purchaser from the (D)a grantee of an Insured under a deed delivered without Insured of either(i)an estate or interest in the Land,or(ii)an payment of actual valuable consideration conveying obligation secured by a purchase money Mortgage given to the theTitle Insured. (1) if the stock,shares,memberships,or other equity 3. NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT interests of the grantee are wholly-owned by the The Insured shall notify the Company promptly in writing(i)in case named Insured, of any litigation as set forth in Section 5(a)of these Conditions,(ii) (2) if the grantee wholly owns the named Insured, in case Knowledge shall come to an Insured hereunder of any claim (3) if the grantee is wholly-owned by an affiliated Entity of title or interest that is adverse to the Title,as insured,and that of the named Insured,provided the affiliated Entity might cause loss or damage for which the Company may be liable and the named Insured are both wholly-owned by the by virtue of this policy,or(iii)if the Title,as insured,is rejected as same person or Entity,or Unmarketable Title. If the Company is prejudiced by the failure of (4) if the grantee is a trustee or beneficiary of a trust the Insured Claimant to provide prompt notice,the Company's created by a written instrument established by the liability to the Insured Claimant under the policy shall be reduced to Insured named in Schedule A for estate planning the extent of the prejudice. purposes. 4. PROOF OF LOSS (ii) With regard to(A),(B),(C),and(D)reserving,however,all In the event the Company is unable to determine the amount of loss rights and defenses as to any successor that the Company or damage,the Company may,at its option,require as a condition would have had against any predecessor Insured. of payment that the Insured Claimant furnish a signed proof of loss. (e) "Insured Claimant": An Insured claiming loss or damage. The proof of loss must describe the defect,lien,encumbrance,or (f) "Knowledge"or"Known": Actual knowledge,not constructive other matter insured against by this policy that constitutes the basis knowledge or notice that may be imputed to an Insured by reason of loss or damage and shall state,to the extent possible,the basis of the Public Records or any other records that impart of calculating the amount of the loss or damage. constructive notice of matters affecting the Title. 5. DEFENSE AND PROSECUTION OF ACTIONS (g) "Land": The land described in Schedule A,and affixed (a) Upon written request by the Insured,and subject to the options improvements that by law constitute real property. The term contained in Section 7 of these Conditions,the Company,at its "Land"does not include any property beyond the lines of the area own cost and without unreasonable delay,shall provide for the described in Schedule A,nor any right,title,interest,estate,or defense of an Insured in litigation in which any third party easement in abutting streets,roads,avenues,alleys,lanes, asserts a claim covered by this policy adverse to the Insured. ways,or waterways,but this does not modify or limit the extent This obligation is limited to only those stated causes of action that a right of access to and from the Land is insured by this alleging matters insured against by this policy. The Company policy. shall have the right to select counsel of its choice(subject to (h) "Mortgage": Mortgage,deed of trust,trust deed,or other security the right of the Insured to object for reasonable cause)to instrument,including one evidenced by electronic means represent the Insured as to those stated causes of action. It authorized by law. shall not be liable for and will not pay the fees of any other (i) "Public Records": Records established under state statutes at counsel. The Company will not pay any fees,costs,or Date of Policy for the purpose of imparting constructive notice expenses incurred by the Insured in the defense of those causes of action that allege matters not insured against by this policy. Form 5011400(7-1-14) Page 3 of 5 ALTA Owner's Policy of Title Insurance(6-17-06) Policy#: 5011400-1166403e CONDITIONS(Continued) (b) The Company shall have the right,in addition to the options 7. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; contained in Section 7 of these Conditions,at its own cost,to TERMINATION OF LIABILITY institute and prosecute any action or proceeding or to do any In case of a claim under this policy,the Company shall have the other act that in its opinion may be necessary or desirable to following additional options: establish the Title,as insured,or to prevent or reduce loss or (a)To Pay or Tender Payment of the Amount of Insurance. damage to the Insured. The Company may take any To pay or tender payment of the Amount of Insurance under this appropriate action under the terms of this policy,whether or policy together with any costs,attorneys'fees,and expenses not it shall be liable to the Insured. The exercise of these incurred by the Insured Claimant that were authorized by the rights shall not be an admission of liability or waiver of any Company up to the time of payment or tender of payment and provision of this policy. If the Company exercises its rights that the Company is obligated to pay. under this subsection,it must do so diligently. Upon the exercise by the Company of this option,all liability and (c) Whenever the Company brings an action or asserts a defense obligations of the Company to the Insured under this policy, as required or permitted by this policy,the Company may other than to make the payment required in this subsection, pursue the litigation to a final determination by a court of shall terminate,including any liability or obligation to defend, competent jurisdiction,and it expressly reserves the right,in its prosecute,or continue any litigation. sole discretion,to appeal any adverse judgment or order. (b) To Pay or Otherwise Settle With Parties Other Than the Insured 6. DUTY OF INSURED CLAIMANT TO COOPERATE or With the Insured Claimant. (a) In all cases where this policy permits or requires the Company (i) To pay or otherwise settle with other parties for or in the to prosecute or provide for the defense of any action or name of an Insured Claimant any claim insured against proceeding and any appeals,the Insured shall secure to the under this policy. In addition,the Company will pay any Company the right to so prosecute or provide defense in the costs,attorneys'fees,and expenses incurred by the action or proceeding,including the right to use,at its option, Insured Claimant that were authorized by the Company up the name of the Insured for this purpose, Whenever requested to the time of payment and that the Company is obligated by the Company,the Insured,at the Company's expense,shall to pay;or give the Company all reasonable aid(i)in securing evidence, (ii) To pay or otherwise settle with the Insured Claimant the obtaining witnesses,prosecuting or defending the action or loss or damage provided for under this policy,together with proceeding,or effecting settlement,and(ii)in any other lawful any costs,attorneys'fees,and expenses incurred by the act that in the opinion of the Company may be necessary or Insured Claimant that were authorized by the Company up desirable to establish the Title or any other matter as insured. to the time of payment and that the Company is obligated If the Company is prejudiced by the failure of the Insured to to pay. furnish the required cooperation,the Company's obligations to Upon the exercise by the Company of either of the options the Insured under the policy shall terminate,including any provided for in subsections(b)(i)or(ii),the Company's liability or obligation to defend,prosecute,or continue any obligations to the Insured under this policy for the claimed loss litigation,with regard to the matter or matters requiring such or damage,other than the payments required to be made,shall cooperation. terminate,including any liability or obligation to defend, (b) The Company may reasonably require the Insured Claimant to prosecute,or continue any litigation. submit to examination under oath by any authorized 8. DETERMINATION AND EXTENT OF LIABILITY representative of the Company and to produce for This policy is a contract of indemnity against actual monetary loss or examination,inspection,and copying,at such reasonable damage sustained or incurred by the Insured Claimant who has times and places as may be designated by the authorized suffered loss or damage by reason of matters insured against by this representative of the Company,all records,in whatever policy. medium maintained,including books,ledgers,checks, (a)The extent of liability of the Company for loss or damage memoranda,correspondence,reports,e-mails,disks,tapes, under this policy shall not exceed the lesser of and videos whether bearing a date before or after Date of (i) the Amount of Insurance;or Policy,that reasonably pertain to the loss or damage. Further, (ii) the difference between the value of the Title as insured if requested by any authorized representative of the Company, and the value of the Title subject to the risk insured against the Insured Claimant shall grant its permission,in writing,for by this policy. any authorized representative of the Company to examine, (b) If the Company pursues its rights under Section 5 of these inspect,and copy all of these records in the custody or control Conditions and is unsuccessful in establishing the Title,as of a third party that reasonably pertain to the loss or damage. insured, All information designated as confidential by the Insured (i) the Amount of Insurance shall be increased by 10%,an Claimant provided to the Company pursuant to this Section (ii) the Insured Claimant shall have the right to have the loss shall not be disclosed to others unless,in the reasonable or damage determined either as of the date the claim was judgment of the Company,it is necessary in the administration made by the Insured Claimant or as of the date it is settled of the claim. Failure of the Insured Claimant to submit for and paid. examination under oath,produce any reasonably requested (c) In addition to the extent of liability under(a)and(b),the information,or grant permission to secure reasonably Company will also pay those costs,attomeys'fees,and necessary information from third parties as required in this expenses incurred in accordance with Sections 5 and 7 of subsection,unless prohibited by law or governmental these Conditions. regulation,shall terminate any liability of the Company under this policy as to that claim. Form 5011400(7-1-14) Page 4 of 5 ALTA Owner's Policy of Title Insurance(6-17-06) Policy#: 5011400-1166403e CONDITIONS(Continued) 9. LIMITATION OF LIABILITY (a) If the Company establishes the Title,or removes the alleged Insurance Arbitration Rules of the American Land Title Association ("Rules"). Except as provided in the Rules,there shall be no defect,lien,or encumbrance,or cures the lack of a right of joinder or consolidation with claims or controversies of other persons. access to or from the Land,or cures the claim of Arbitrable matters may include,but are not limited to,any controversy Unmarketable Title,all as insured,in a reasonably diligent or claim between the Company and the Insured arising out of or relating manner by any method,including litigation and the completion to this policy,any service in connection with its issuance or the breach of any appeals,it shall have fully performed its obligations of a policy provision,or to any other controversy or claim arising out of with respect to that matter and shall not be liable for any loss the transaction giving rise to this policy. All arbitrable matters when the or damage caused to the Insured. Amount of Insurance is$2,000,000 or less shall be arbitrated at the (b) In the event of any litigation,including litigation by the option of either the Company or the Insured. All arbitrable matters Company or with the Company's consent,the Company shall when the Amount of Insurance is in excess of$2,000,000 shall be have no liability for loss or damage until there has been a final arbitrated only when agreed to by both the Company and the Insured. determination by a court of competent jurisdiction,and Arbitration pursuant to this policy and under the Rules shall be binding disposition of all appeals,adverse to the Title,as insured. upon the parties. Judgment upon the award rendered by the (c) The Company shall not be liable for loss or damage to the Arbitrator(s)may be entered in any court of competent jurisdiction. Insured for liability voluntarily assumed by the Insured in 15. LIABILITY LIMITED TO THIS POLICY;POLICY ENTIRE CONTRACT settling any claim or suit without the prior written consent of (a)This policy together with all endorsements,if any,attached to it by the Company, the Company is the entire policy and contract between the Insured 10. REDUCTION OF INSURANCE;REDUCTION OR TERMINATION and the Company. In interpreting any provision of this policy,this OF LIABILITY policy shall be construed as a whole. All payments under this policy,except payments made for costs, (b) Any claim of loss or damage that arises out of the status of the attomeys'fees,and expenses,shall reduce the Amount of Title or by any action asserting such claim shall be restricted to Insurance by the amount of the payment. this policy. 11. LIABILITY NONCUMULATIVE (c) Any amendment of or endorsement to this policy must be in writing The Amount of Insurance shall be reduced by any amount the and authenticated by an authorized person,or expressly Company pays under any policy insuring a Mortgage to which incorporated by Schedule A of this policy. exception is taken in Schedule B or to which the Insured has (d) Each endorsement to this policy issued at any time is made a part agreed,assumed,or taken subject,or which is executed by an of this policy and is subject to all of its terms and provisions. Insured after Date of Policy and which is a charge or lien on the Except as the endorsement expressly states,it does not(i)modify Title,and the amount so paid shall be deemed a payment to the any of the terms and provisions of the policy,(ii)modify any prior Insured under this policy. endorsement,(iii)extend the Date of Policy,or(iv)increase the 12. PAYMENT OF LOSS Amount of Insurance. When liability and the extent of loss or damage have been 16. SEVERABILITY definitely fixed in accordance with these Conditions,the payment In the event any provision of this policy,in whole or in part,is held shall be made within 30 days. invalid or unenforceable under applicable law,the policy shall be 13. RIGHTS OF RECOVERY UPON PAYMENT OR SETTLEMENT deemed not to include that provision or such part held to be invalid,but (a) Whenever the Company shall have settled and paid a claim all other provisions shall remain in full force and effect. under this policy,it shall be subrogated and entitled to the 17. CHOICE OF LAW;FORUM rights of the Insured Claimant in the Title and all other rights (a) Choice of Law: The Insured acknowledges the Company has and remedies in respect to the claim that the Insured underwritten the risks covered by this policy and determined the Claimant has against any person or property,to the extent of premium charged therefor in reliance upon the law affecting the amount of any loss,costs,attorneys'fees,and expenses interests in real property and applicable to the interpretation, paid by the Company. If requested by the Company,the rights,remedies,or enforcement of policies of title insurance of the Insured Claimant shall execute documents to evidence the jurisdiction where the Land is located. transfer to the Company of these rights and remedies. The Therefore,the court or an arbitrator shall apply the law of the Insured Claimant shall permit the Company to sue, jurisdiction where the Land is located to determine the validity of compromise,or settle in the name of the Insured Claimant claims against the Title that are adverse to the Insured and to and to use the name of the Insured Claimant in any interpret and enforce the terms of this policy. In neither case shall transaction or litigation involving these rights and remedies. the court or arbitrator apply its conflicts of law principles to If a payment on account of a claim does not fully cover the determine the applicable law. loss of the Insured Claimant,the Company shall defer the (b) Choice of Forum: Any litigation or other proceeding brought by the exercise of its right to recover until after the Insured Claimant Insured against the Company must be filed only in a state or shall have recovered its loss. federal court within the United States of America or its territories (b) The Company's right of subrogation includes the rights of the having appropriate jurisdiction. Insured to indemnities,guaranties,other policies of 18. NOTICES,WHERE SENT insurance,or bonds,notwithstanding any terms or conditions Any notice of claim and any other notice or statement in writing required contained in those instruments that address subrogation to be given to the Company under this policy must be given to the rights. Company at First American Title Insurance Company,Attn:Claims 14. ARBITRATION National Intake Center,l First American Way,Santa Ana,CA Either the Company or the Insured may demand that the claim or 92707. Phone:888-632.1642. controversy shall be submitted to arbitration pursuant to the Title Form 5011400(7-1-14) Page 5 of 5 ALTA Owner's Policy of Title Insurance(6-17-06) FIRST AMERICAN TITLE INSURANCE COMPANY ALTA OWNER'S POLICY (06-17-06) COMMERCIAL SCHEDULE A Policy Number: 201500290CAF Policy Date: 0612512015 Time: 09:17. 39 AM Jacket Number: 5011400-1166403 (or the date and time of recording of the instrument vesting insured title, whichever is later) Amount of Insurance: $20,110,000. 00 Address Reference: 4801 W TEN RD EFLAND, NC 27243 1. Name of Insured: ORANGE COUNTY, NORTH CAROLINA, A POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA 2 . The estate or interest in the Land that is insured by this policy is : FEE SIMPLE 3. Title is vested in: ORANGE COUNTY, NORTH CAROLINA, A POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA 4 . The Land referred to in this Policy is in the State of NC County of Orange and described as follows: LOCATION OF GRAVELLY HILL MIDDLE SCHOOL - ORANGE COUNTY, CHEEKS TOWNSHIP BEING ALL OF TRACT 1, CONTAINING 65. 505 ACRES, OF THE ORANGE COUNTY BOARD OF EDUCATION PROPERTY AS RECORDED IN PLAT BOOK 100, PAGE 86, ORANGE COUNTY REGISTRY. ORANGE COUNTY PIN #9844-05-7652 Issued through the Office of: Investors Title Commercial Agency, LLC 308 W. Rosemary Street Chapel Hill,NC 27516 Tel. (919)968-2200 (919)945-2469 /Fax(919)968-2225 (800)653-9811 IA- Authorized Countersignature F IC-517 Page I FIRST AMERICAN TITLE INSURANCE COMPANY Policy No. 201500290CAF 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) that arise by reason of: 1. Taxes are exempt. 2. Subject to matters shown on plats recorded in Plat Book 100 at Pages 149, 150 & 151, Plat Book 100 at Page 86, Plat Book 96 at Page 86, Plat Book 70 at Page 108 and Plat Book 14 at Page 171. 3. Right(s) of Way to Duke Power Company recorded in Book 205 at Page 114, Book 158 at Page 47, Book 450 at Page 125 and Book 543 at Page 559. 4. Sixty Eight (68) foot transmission line Right of Way to Duke Power Company as shown on plats recorded in Plat Book 14 at Page 171, Plat Book 70 at Page 108 and Plat Book 96 at Page 86. 5. Right(s) of Way to North Carolina State Highway Commission recorded in Book 159 at Page 678, Book 186 at Page 653, Book 198 at Page 826, Book 208 at Page 453 and Book 208 at Page 4 68. 6. Cross easements for access roads to school property and adjoining tract for soccer complex recorded in Book 3630 at Page 456 as amended by that certain Declaration of Amended and Revised Easement recorded in Book 4161 at Page 185; and cross easement recorded in Book 3630 at Page 460 as amended by that certain Declaration of Amended and Revised Easement recorded in Book 4161 at Page 181 and as shown on plats recorded in Plat Book 96 at Page 86 and Plat Book 100 at Page 149. 7. Special Use Permits permitting the use of subject property for a public school recorded in Book 3630 at Page 464 and Book 3705 at Page 60. 8. Piedmont Electric Membership Corporation Right of Way Agreement as recorded in Book 4153 at Page 349. 9. Declaration of Easement for Water and Sewer Lines as recorded in Book 4161 at Page FATIC-517 Page 2 FIRST AMERICAN TITLE INSURANCE COMPANY Policy No. 201500290CAF 190. 10. Declaration of Easement for Sewer Lift Station/Sewer Pump Station recorded in Book 4161 at Page 195. 11. Lease to the Orange County Board of Education, recorded in Book 4014 at Page 45; subordinated by Lease Modification and Subordination Agreement with the Orange County Board of Education recorded in Book 5972 at Page 592. 12. 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. The term "encroachment" includes encroachments of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. Paragraph 2 (c) of the Covered Risks is hereby deleted. NOTE: Upon receipt of satisfactory plat of survey and surveyor's report, this exception will be eliminated or amended in accordance with the facts disclosed thereby. AFFIRMATIVE INSURED CLOSING PROTECTION COVERAGE PROVIDED - As to the transaction for which this binder and/or policy is issued, the Company affords insured closing protection as described in the North Carolina Insured Closing Protection Letter (NCTIRB-01-2003) to the Proposed and/or Insured Lender and its successors and/or the Proposed and/or Insured Owner. Said letter is incorporated herein in its entirety. The approved attorney is the Closing Attorney referenced above. Claims under such letter shall be made promptly to the Company at its claims office at P.O. Drawer 2637, Chapel Hill, NC 27515 The Land described in Schedule A number 4 is encumbered by the following mortgage (s) , if any: DEED OF TRUST AND SECURITY AGREEMENT FROM ORANGE COUNTY, NORTH CAROLINA, A POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA, TO REBECCA S. CHAFFIN, TRUSTEE(S) FOR ORANGE COUNTY PUBLIC FACILITIES COMPANY, DATED JUNE 1, 2015, AND RECORDED JUNE 25, 2015, AT 9:17:39 AM IN BOOK 005972 AT PAGE 000576, ORANGE COUNTY REGISTRY, NC, TO SECURE A NOTE OF $20,110,000. 00. FATIC-517 Page 3