Issued By: PLACER TITLE COMPANY Preliminary Report PLACER TITLE COMPANY 1450 HARBOR BLVD., STE. E WEST SACRAMENTO, CA 95691 Escrow Officer: Leslie Rivera Phone: 916-375-3130 Fax: 916-375-3135 Escrow Officer Email: lrivera@placertitle.com Email Loan Docs To: 304edocs@placertitle.com Customer Reference: Property Address: ALAMO GROUP 6737 WATT AVENUE, NORTH HIGHLANDS, CA 95660 In response to the above referenced application for a policy of title insurance, PLACER TITLE COMPANY hereby reports that it is prepared to issue, or cause to be issued, through one of its authorized underwriters, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in the attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in the attached. Copies of the Policy forms should be read. They are available from the office which issued this report. PLEASE READ THE SHOWN OR REFERRED TO BELOW AND THE AND EXCLUSIONS SET FORTH IN THE ATTACHED CAREFULLY. THE AND EXCLUSIONS ARE MEANT TO PROVIDE YOU WITH NOTICE OF MATTERS WHICH ARE NOT COVERED UNDER THE TERMS OF TITLE INSURANCE POLICY AND SHOULD BE CAREFULLY CONSIDERED. IT IS IMPORTANT TO NOTE THAT THIS PRELIMINARY REPORT IS NOT A WRITTEN REPRESENT- ATION AS TO THE CONDITION OF TITLE AND MAY NOT LIST ALL LIENS, DEFECTS AND ENCUM- BRANCES AFFECTING TITLE TO THE LAND. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. Dated as of Title Officer: July 07, 2008 at 7:30 a.m. Rich Alway PRELIM (Revised 2006)
The form of policy of title insurance contemplated by this report is: 2006 ALTA Loan Extended Coverage Policy (6/17/06) The estate or interest in the land hereinafter described or referred to covered by this Report is: A FEE SIMPLE Title to said estate or interest at the date hereof is vested in: ALAMO GROUP IX, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 50% INTEREST ; AM ENGSTROM, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 25% INTEREST AND KNIGHT LANDING LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 25% INTEREST ALL AS TENANTS IN COMMON The land referred to herein is described as follows: SEE EXHIBIT "A" ATTACHED PRELIM.A.LENDER
EXHIBIT "A" LEGAL DESCRIPTION THE LAND DESCRIBED HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SACRAMENTO, UNINCORPORATED AREA, AND IS DESCRIBED AS FOLLOWS: ALL THAT PORTION OF PARCEL 2, AS SHOWN ON THAT CERTAIN PARCEL MAP ENTITLED, "BEING A PORTION OF LOTS 72 AND 73, RIO LINDA SUBDIVISION NO. 6, 16 BM 38", RECORDED IN BOOK 77 OF PARCEL MAPS, AT PAGE 20, RECORDS OF SACRAMENTO COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE NORTH LINE OF SAID PARCEL 2, FROM WHICH POINT OF BEGINNING THE NORTHEAST CORNER OF SAID PARCEL 2, BEARS NORTH 89 DEGREES 02 MINUTES 30 SECONDS EAST 35.00 FEET; THENCE FROM SAID POINT OF BEGINNING SOUTH 01 DEGREES 44 MINUTES 55 SECONDS EAST 195.00 FEET; THENCE NORTH 89 DEGREES 02 MINUTES 30 SECONDS EAST 5.00 FEET TO A POINT ON THE EASTERLY LINE OF SAID PARCEL 2; THENCE ALONG THE BOUNDARIES OF SAID PARCEL 2 THE FOLLOWING THIRTEEN COURSES: (1) SOUTH 26 DEGREES 12 MINUTES 29 SECONDS EAST 137.63 FEET; (2) SOUTH 01 DEGREES 44 MINUTES 55 SECONDS EAST 270.00 FEET; (3) NORTH 88 DEGREES 15 MINUTES 05 SECONDS EAST 108.00 FEET; (4) SOUTH 01 DEGREES 44 MINUTES 55 SECONDS EAST 21.00 FEET; (5) SOUTH 88 DEGREES 15 MINUTES 05 SECONDS WEST 138.00 FEET; (6) NORTH 01 DEGREES 44 MINUTES 55 SECONDS WEST 48.00 FEET; (7) SOUTH 88 DEGREES 15 MINUTES 05 SECONDS WEST 180.00 FEET; (8) NORTH 01 DEGREES 44 MINUTES 55 SECONDS WEST 50.00 FEET (9) SOUTH 88 DEGREES 15 MINUTES 05 SECONDS WEST 282.05 FEET; (10) NORTH 01 DEGREES 44 MINUTES 55 SECONDS WEST 220.00 FEET (11) NORTH 88 DEGREES 15 MINUTES 05 SECONDS EAST 265.00 FEET; (12) NORTH 01 DEGREES 44 MINUTES 55 SECONDS WEST 240.00 FEET AND (13) NORTH 89 DEGREES 02 MINUTES 30 SECONDS EAST 185.08 FEET TO THE POINT OF BEGINNING, AS PER THAT CERTAIN LOT LINE ADJUSTMENT PURSUANT TO RESOLUTION NO. 85-SRC-13 RECORDED MAY 15, 1985, IN BOOK 850515, OFFICIAL RECORDS, PAGE 1462. APN: 208-0153-019 PRE.LEGAL
At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1. 2. 3. TAXES, SPECIAL AND GENERAL, ASSESSMENT DISTRICTS AND SERVICE AREAS FOR THE FISCAL YEAR 2008-2009, A LIEN, NOT YET DUE OR PAYABLE. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5, (COMMENCING WITH SECTION 75) OF THE REVENUE AND TAXATION CODE, OF THE STATE OF CALIFORNIA. ANY UNPAID AMOUNTS NOW OWING FOR UTILITIES, OF RECORD OR NOT, DUE THE COUNTY OF SACRAMENTO OR ANY CITY IN WHICH THE PROPERTY IS LOCATED. AMOUNTS MAY BE ASCERTAINED BY CONTACTING THE COUNTY OF SACRAMENTO AT 916-875-5555 OR THE APPROPRIATE CITY OFFICE. *** NOTE: (FOR PRO-RATION PURPOSES ONLY) TAXES, SPECIAL AND GENERAL, ASSESSMENT DISTRICTS AND SERVICE AREAS, FOR THE FISCAL YEAR 2007-2008: 1ST INSTALLMENT: $13,945.35 PAID 2ND INSTALLMENT: $13,945.35 PAID ASSESSED VALUATIONS: LAND: $1,428,000.00 IMPROVEMENTS: $1,122,000.00 EXEMPTION: $0.00 PARCEL NO.: 208-0153-019 CODE AREA: 79-187 ASSESSMENT NO.: 07374419 4. 5. RIGHTS OF THE PUBLIC AND OF THE THE COUNTY OF SACRAMENTO, AS TO THAT PORTION OF THE HEREIN DESCRIBED PROPERTY LYING WITHIN ELKHORN BOULEVARD, A PUBLIC ROAD. AN EASEMENT OVER SAID LAND FOR ROAD AND UTILITIES AND INCIDENTAL PURPOSES, AS GRANTED SACRAMENTO SUBURBAN FRUIT LANDS COMPANY, A CORPORATION, IN DEED RECORDED NOVEMBER 04, 1913, IN BOOK 392 OF DEEDS, PAGE 208, OFFICIAL THE EXACT LOCATION AND EXTENT OF SAID EASEMENT IS NOT DISCLOSED OF RECORD. 6. AN EASEMENT OVER SAID LAND FOR PUBLIC HIGHWAY OR ROAD AND INCIDENTAL PRELIM.E
PURPOSES, AS GRANTED THE COUNTY OF SACRAMENTO, IN DEED RECORDED MARCH 27, 1962, IN BOOK 4415 PAGE 441, OFFICIAL THE EASTERLY 30 FEET. 7. A NON-EXCLUSIVE FLOATING EASEMENT OVER SAID LAND FOR INGRESS AND EGRESS AND INCIDENTAL PURPOSES, AS GRANTED WILLIAM M. ROSS AND JOHANNA C. ROSS, HUSBAND AND WIFE AND GERALD C. MILLER AND LINDA S. MILLER, IN DEED RECORDED APRIL 13, 1982, IN BOOK 820413 PAGE 559, OFFICIAL A PORTION OF SAID LAND. 8. AN EASEMENT OVER SAID LAND FOR PUBLIC HIGHWAY OR ROAD AND INCIDENTAL PURPOSES, AS GRANTED THE COUNTY OF SACRAMENTO, IN DEED RECORDED OCTOBER 21, 1982, IN BOOK 821021 PAGE 732, OFFICIAL A PORTION OF ELKHORN BOULEVARD. 9. AN EASEMENT OVER SAID LAND FOR UTILITIES AND PLANTING AND MAINTAINING TREES OVER THE AND INCIDENTAL PURPOSES, AS GRANTED THE COUNTY OF SACRAMENTO, IN DEED RECORDED OCTOBER 21, 1982, IN BOOK 821021 PAGE 740, OFFICIAL THE A STRIP OF LAND 12.5 FEET IN WIDTH OVER THE NORTHERLY BOUNDARY.OF THE NORTHERLY 10. AN EASEMENT OVER SAID LAND FOR DRAINAGE AND INCIDENTAL PURPOSES, AS GRANTED THE COUNTY OF SACRAMENTO, IN DEED RECORDED OCTOBER 22, 1982, IN BOOK 821022 PAGE 795, OFFICIAL THE NORTHEASTERLY BOUNDARY.AND EXTENT OF SAID EASEMENT IS NOT DISCLOSED OF RECORD. 11. PROVISIONS AND CONDITIONS SET FORTH IN THE "NOTES" OF THE FOLLOWING MAP: MAP: PARCEL MAP FILED IN BOOK 77 OF PARCEL MAPS, MAP NO. 20.
REFERENCE IS MADE TO A COPY OF SAID MAP FOR FURTHER PARTICULARS. 12. "IMPROVEMENT REQUIREMENTS" BY THE COUNTY OF SACRAMENTO, AS SET FORTH ON THE HEREIN DESCRIBED PARCEL MAP, AS FOLLOWS: STREETS: CLASS "A" (CURB, GUTTER, SIDEWALK AND PAVING) STREET LIGHTS: REQUIRED SEWER: REQUIRED DRAINAGE: REQUIRED 13. 14. THE TERMS, CONDITIONS AND PROVISIONS AS CONTAINED IN THE AGREEMENT ENTITLED "LATERAL SEWER PARTICIPATION", BY AND BETWEEN COUNTY SANITATION DISTRICT NO. 1, AND ALBERTSON'S INC., A DELAWARE CORPORATION, DATED SEPTEMBER 29, 1983, RECORDED OCTOBER 19, 1983, IN BOOK 831019 PAGE 1192, OFFICIAL TERMS, PROVISIONS, COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS, PROVIDED IN THE COVENANTS, CONDITIONS AND RESTRICTIONS, BUT OMITTING ANY COVENANT, CONDITION OR RESTRICTION, IF ANY, BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND ONLY TO THE EXTENT THAT THE COVENANT, CONDITION OR RESTRICTION (A) IS EXEMPT UNDER TITLE 42 OF THE UNITED STATES CODE, OR (B) RELATES TO HANDICAP, BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS, IN DOCUMENT RECORDED OCTOBER 26, 1983, IN BOOK 831026 PAGE 1510, OFFICIAL NOTE: SECTION 12956.1 OF THE GOVERNMENT CODE PROVIDES THE FOLLOWING: "IF THIS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF INCOME AS DEFINED IN SUBDIVISION (P) OF SECTION 12955, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.2 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS." CONTAINS: MORTGAGEE PROTECTION CLAUSE. SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE MODIFIED IN PART BY INSTRUMENT RECORDED MARCH 15, 1984, IN BOOK 840315 PAGE 796, OFFICIAL SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE MODIFIED IN PART BY
INSTRUMENT RECORDED JULY 02, 1986, IN BOOK 860702 PAGE 190, OFFICIAL 15. A NON-EXCLUSIVE FLOATING EASEMENT OVER SAID LAND FOR INGRESS AND EGRESS AND INCIDENTAL PURPOSES, AS GRANTED WILLIAM M. ROSS AND JOHANNA C. ROSS, HUSBAND AND WIFE AND GERALD C. MILLER AND LINDA S. MILLER, IN DEED RECORDED APRIL 9, 1982, IN BOOK 840203 PAGE 527, OFFICIAL A PORTION OF SAID LAND. 16. COMMON AREA MAINTENANCE AGREEMENT, EXECUTED BY NORTH HIGHLANDS PLAZA ASSOCIATES, A CALIFORNIA GENERAL PARTNERSHIP AND ALBERTSON'S INC., A DELAWARE CORPORATION, RECORDED FEBRUARY 03, 1984, IN BOOK 840203 PAGE 535, OFFICIAL SUBJECT TO THE TERMS, CONDITINS AND PROVISIONS CONTAINED THEREIN. SAID INSTRUMENT WAS MODIFIED IN PART BY INSTRUMENT RECORDED MAY 03, 1984, IN BOOK 840503 PAGE 808, OFFICIAL 17. 18. SAID INSTRUMENT WAS MODIFIED IN PART BY INSTRUMENT RECORDED JULY 2, 1986, IN BOOK 860702 PAGE 190, OFFICIAL AN EASEMENT OVER SAID LAND FOR ELECTRICAL FACILITIES AND INCIDENTAL PURPOSES, AS GRANTED SACRAMENTO MUNICIPAL UTILITY DISTRICT, IN DEED RECORDED APRIL 06, 1984, IN BOOK 840406 PAGE 1285, OFFICIAL REFER TO SAID INSTTRUMENT FOR EXACT LOCATION. 19. AN EASEMENT OVER SAID LAND FOR UNDERGROUND PIPES AND INCIDENTAL PURPOSES, AS GRANTED PACIFIC GAS AND ELECTRIC COMPANY, IN DEED RECORDED AUGUST 09, 1984, IN BOOK 840809 PAGE 1366, OFFICIAL REFER TO SAID INSTRUMENT FOR EXACT LOCATION. 20. TERMS, PROVISIONS, COVENANTS, CONDITIONS, RESTRICTIONS AND EASEMENTS, PROVIDED IN THE COVENANTS, CONDITIONS AND RESTRICTIONS, BUT OMITTING ANY COVENANT, CONDITION OR RESTRICTION, IF ANY, BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND ONLY TO THE EXTENT THAT THE COVENANT, CONDITION OR RESTRICTION (A) IS
EXEMPT UNDER TITLE 42 OF THE UNITED STATES CODE, OR (B) RELATES TO HANDICAP, BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS, IN DOCUMENT RECORDED JULY 02, 1986, IN BOOK 860702 PAGE 182, OFFICIAL NOTE: SECTION 12956.1 OF THE GOVERNMENT CODE PROVIDES THE FOLLOWING: "IF THIS DOCUMENT CONTAINS ANY RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, SOURCE OF INCOME AS DEFINED IN SUBDIVISION (P) OF SECTION 12955, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.2 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS." 21. AN INSTRUMENT ENTITLED "DESCRIPTION OF LAND WITHIN THE MCCLELLAN AIR FORCE BASE/WATT AVENUE REDEVELOPMENT PROJECT AREA AND STATEMENT THAT REDEVELOPMENT PROCEEDINGS HAVE BEEN INSTITUTED", RECORDED JANUARY 24, 2001, IN BOOK 2001 01 24, PAGES 47 AND 48, OFFICIAL RECORDS, AND ON THE TERMS AND CONDITIONS CONTAINED THEREIN. AMENDMENT TO REDEVELOPMENT PROCEEDINGS RECORDED AUGUST 20, 2007, IN BOOK 20070820 PAGE 1202, OFFICIAL 22. CONSTRUCTION DEED OF TRUST TO SECURE AN INDEBTEDNESS OF $4,200,000.00, DATED JANUARY 08, 2008, RECORDED FEBRUARY 04, 2008, IN BOOK 20080204 PAGE 1270, OFFICIAL TRUSTOR: ALAMO GROUP IX, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 50% INTEREST; AM ENGSTROM, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 25% INTEREST; AND KNIGHTS LANDING, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO AN UNDIVIDED 25% INTEREST, ALL AS TENANTS IN COMMON TRUSTEE: FREMONT BANK BENEFICIARY: FREMONT BANK LOAN NO.: 3184025 23. THE TERMS, CONDITIONS AND PROVISIONS AS CONTAINED IN THE AGREEMENT ENTITLED "HAZARDOUS SUBSTANCES (CERTIFICATE AND INDEMNITY) AGREEMENT", BY AND BETWEEN ALAMO GROUP IX, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AM ENGSTROM, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, KNIGHTS LANDING, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, DONALD F. GAUBE, THE DONALD AND JANIE GAUBE FAMILY TRUST, MARK ENGSTROM, ANNE STILLE ENGSTROM, ENGSTROM FAMILY TRUST ESTABLISHED MAY 21, 2004, SUSAN CALFEE, KENT N.
CALFEE IRREVOCABLE TRUST I, THE KENT N. CALFEE AND SUSAN CALFEE REVOCABLE TRUST DATED SEPTEMBER 9, 1988, DATED JANUARY 08, 2008, RECORDED FEBRUARY 04, 2008, IN BOOK 20080204 PAGE 1271, OFFICIAL 24. THE REQUIREMENT THAT: A) A CERTIFIED COPY OF THE ARTICLES OF ORGANIZATION (LLC-1 OR LLC-5) FOR ALAMO GROUP IX, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO 50% INTEREST; AM ENGSTROM, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO 25% INTEREST AND KNIGHTS LANDING LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AS TO 25% INTEREST ALL AS TENANTS IN COMMON, A LIMITED LIABILITY COMPANY BE RECORDED PRIOR TO THE ISSUANCE OF ANY POLICY OF TITLE INSURANCE BY THIS COMPANY; B) WE BE PROVIDED WITH A COPY OF THE OPERATING AGREEMENT AND ANY AMENDMENTS THERETO FOR SAID LIMITED LIABILITY COMPANY. 25. ANY RIGHTS OF THE PARTIES IN POSSESSION OF SAID LAND, BASED ON AN UNRECORDED AGREEMENT, CONTRACT OR LEASE, THAT MAY BE DISCLOSED BY INSPECTION AND INVESTIGATION. THIS COMPANY WILL REQUIRE THAT A FULL COPY OF ANY UNRECORDED AGREEMENT, CONTRACT OR LEASE BE SUBMITTED TO US, TOGETHER WITH ALL SUPPLEMENTS, ASSIGNMENTS AND AMENDMENTS, BEFORE ISSUING ANY POLICY OF TITLE INSURANCE. 26. ANY CLAIMS FOR MECHANIC'S LIENS ON SAID LAND THAT MAY BE RECORDED BY REASON OF WORK OF IMPROVEMENT THEREON. ************************* SPECIAL INFORMATION ************************* *** CHAIN OF TITLE REPORT: ACCORDING TO THE PUBLIC RECORDS, NO DEEDS CONVEYING THE PROPERTY DESCRIBED IN THIS REPORT HAVE BEEN RECORDED WITHIN A PERIOD OF 2 YEARS PRIOR TO THE DATE OF THIS REPORT, EXCEPT AS SHOWN HEREIN: GRANT DEED RECORDED IN BOOK 20080204 PAGE 1269, OFFICIAL *** LENDER'S SUPPLEMENTAL ADDRESS REPORT: THE ABOVE NUMBERED REPORT IS HEREBY MODIFIED AND/OR SUPPLEMENTED TO REFLECT THE FOLLOWING ADDITIONAL ITEMS RELATING TO THE ISSUANCE OF AN AMERICAN LAND TITLE ASSOCIATION LOAN FORM POLICY:
PLACER TITLE COMPANY STATES THAT THE HEREIN DESCRIBED PROPERTY IS COMMERCIAL AND THAT THE PROPERTY ADDRESS IS: 6737 WATT AVENUE, NORTH HIGHLANDS, CA 95660 *** NOTICE REGARDING FUNDS DEPOSITED IN ESCROW: CALIFORNIA INSURANCE CODE SECTION 12413.1 REGULATES THE DISBURSEMENT OF ESCROW AND SUB-ESCROW FUNDS BY TITLE COMPANIES. OF THE LAW REQUIRES THAT FUNDS BE DEPOSITED IN THE TITLE COMPANY ESCROW ACCOUNT AND AVAILABLE FOR WITHDRAWAL PRIOR TO DISBURSEMENT. FUNDS DEPOSITED WITH THE COMPANY BY WIRE TRANSFER MAY BE DISBURSED UPON RECEIPT. FUNDS DEPOSITED WITH THE COMPANY VIA CASHIER'S OR TELLER'S CHECKS DRAWN ON A CALIFORNIA BASED BANK MAY BE DISBURSED THE NEXT BUSINESS DAY AFTER THE DAY OF DEPOSIT. IF FUNDS ARE DEPOSITED WITH THE COMPANY BY OTHER METHODS, RECORDING AND/OR DISBURSEMENT MAY BE DELAYED. *** CANCELLATION NOTE: THIS REPORT IS SUBJECT TO A MINIMUM CANCELLATION CHARGE OF $400.00 AS REQUIRED BY SECTION 12404 OF INSURANCE CODE AND RULE BULLETIN NO. NS-35E.