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Schedule B-Section 2 <br />No. 13-21237 <br />Schedule B of the policy or policies to be issued will contain exceptions to the following matters unless the same are <br />disposed of to the satisfaction of the Company (all clauses, if any, which indicate any preference, limitation or <br />discrimination based on race, color, religion, national origin or other protected category are omitted from all building <br />and use restrictions, covenants and conditions, if any, shown herein): <br />A. GAP COVERAGE: Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing <br />in the public records, or attaching subsequent to the effective date hereof but prior to the date the Proposed Insured <br />acquires of record for value the estate or interest or mortgage thereon covered by this Commitment. Note: This <br />exception will be removed from all AL TA policies issued by Burnet Title, if Burnet Title provides insured <br />closing services and the Company requirements as they pertain to "Gap Coverage" have been complied with. <br />B. STANDARD EXCEPTIONS: The following Standard Exceptions will remain on all policies issued unless eliminated <br />in whole or in part by Section B-1 or by Endorsement after the Company has completed a risk assessment which may <br />include a lien audit, property inspection, plat drawing, or other documentation. There will be an additional service fee <br />for any risk assessment requested. <br />1. Rights or claims of parties in possession not shown by the public records. <br />2. Any encroachment; encumbrance, violation, variation or adverse circumstance affecting the Title that would be <br />disclosed by an accurate and complete land survey of the Land. <br />3. Any Lien, or rights to a lien, for services, labor or material heretofore or hereafter furnished, imposed by law <br />and not shown by the public records. <br />C. SPECIAL EXCEPTIONS: <br />1. Any other matter including pending assessments, if any, which would be insured by the owner's title policy but was <br />either assumed or accepted by the Buyer(s) in the deed to the Buyer(s), the Purchase Agreement; or which the <br />Buyer(s) was aware of and did not disclose to Burnet Title in writing prior to closing. <br />2. Assessments and charges, for utility, water, sewer fees or diseased tree removal, levied by the local municipality, to <br />the extent that the fees were incurred prior to the date of closing and were not incurred by the party to be insured. <br />This exception may be removed on residential transactions if Burnet Title closes the transaction and receives <br />satisfactory disclosures and assurances. <br />3. Easements for utility and drainage purposes, as shown on the recorded plat. <br />4. Covenants, conditions, restrictions and provisions as set forth in Document No. 5266530, which does not contain a <br />forfeiture or reversionary clause. (Any restrictions based on race, religion, gender or place of national origin are <br />unenforceable.) <br />5. Rights of the public, the State of Minnesota and of the U.S. Government to use that part of the premises which lies <br />below the high water mark or U.S. Government Harbor line of Lake Minnetonka. Rights, if any, of any riparian owners <br />and of the public to use the surface, sub-surface, and bed of Lake Minnetonka, and any adverse claims based on the <br />assertion that the bed of Lake Minnetonka has changed. <br />6. Riparian rights are neither guaranteed nor insured herein. <br />7. Resolution Document No. 5145572, 5206726 and 5307193. <br />8. Terms and conditions of Permits recorded as Document Nos. 4814241 and 5133879. <br />9. Subject to the lagoon and all incidental rights thereto. <br />RECEIVED <br />MAR 17 2014 <br />.CITY OF ORONO