STG Preferred Residential Ownership (PRO) Policy Schedule B 1995

This form should not be used if a comparable ALTA version is available. If a comparable ALTA version is available, the most current version of the ALTA form available in each state should be used, unless approved by a Stewart underwriter.

SCHEDULE B

EXCEPTIONS FROM COVERAGE

This policy does not insure against loss or damage (and the Company will not pay costs, attorney's fees or expenses) which arise by reason of:

PART I

1. Taxes or governmental assessments which became due and payable subsequent to Date of Policy or which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.

2. Any covenants, conditions and restrictions (or assessments or charges pursuant thereto or by an Association), whether or not appearing in the public records. This policy insures the insured lender against loss if the Insured is forced by the court order to remove all or part of a house because it violates a covenant, condition or restriction.

3. Any easement or servitude, whether or not appearing in the public records. This policy insures the insured lender against loss if the insured is forced by court order to remove all or part of a house because it extends onto any easement or servitude.

4. Any lease, grant, exception or reservation of minerals or mineral rights, whether or not appearing in the public records. This policy insures the insured lender against loss if the insured's use of the land for residential single family dwelling purposes is affected or impaired by reason of any lease, grant, exception or reservation of minerals or mineral rights or if a house is damaged by the future exercise of any right to use the surface of the land for extraction or development of minerals or mineral rights. This policy does not insure against loss resulting from subsidence or reduction in market value because of minerals or mineral rights.

5. Any discrepancies, conflicts, or shortages in area or boundary lines or nay encroachments or protrusions or over lapping of improvements, whether or not appearing in the public records. This policy insures the insured lender against loss if the insured is forced by court order to remove all or part of a house because it extends onto adjoining land or onto any easement or servitude.

PART II
(Additional Exceptions)