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201302390 <br />4 <br />Capital Recovery Payments may not be taken or retained, but they shall accrue, <br />without additional interest, until the next annual review by HUD of the Borrower's <br />audited annual financial statement confirms, as determined by HUD, that there is <br />sufficient cash then available to resume the Capital Recovery Payments. HUD's <br />determination will include the amount of cash then available to the Borrower for <br />payment toward accrued Capital Recovery Payments. <br />c. To the extent provided in the Restructuring Commitment, a Distribution <br />for an Incentive Performance Fee may be earned and taken annually by the <br />Borrower, subject to compliance by the Borrower with all conditions, limitations and <br />restrictions thereto under MAHRA and /or as may be set forth in the MAHRA <br />Regulatory Agreement, which include, without limitation, (i) the payment of all <br />obligations of the Project (accounts payable and accrued, unescrowed expenses), <br />unless funds for payment are set aside or deferment of payment has been approved <br />by HUD, and (ii) the requirement that there be no outstanding unresolved HUD audit <br />or management findings (collectively, "IPF Distribution Conditions "). For the <br />purpose of an Incentive Performance Fee, compliance with the MAHRA Regulatory <br />Agreement means that all terms and conditions contained in the MAHRA Regulatory <br />Agreement were satisfied as of the last day of the Payment Period, whether or not a <br />Notice to Borrower of a Violation thereunder was given. In the event that any of the <br />IPF Distribution Conditions have not been satisfied as of the last day of the <br />Payment Period, other than the payment of the Restricted Surplus Cash that is due, <br />and for the Incentive Payment to be retained must be paid, by the Payment Date <br />(defined in the Mortgage Restructuring Note), the Incentive Performance Fee for <br />that Payment Period shall neither be taken nor accrue, and if taken shall be <br />returned. In the event that Incentive Performance Fee Conditions have been <br />satisfied but Surplus Cash is insufficient to pay the Incentive Performance Fee or <br />any portion thereof, the Incentive Performance Fee or portion thereof shall neither <br />be taken nor accrue, and if taken shall be returned. <br />d. Without limiting the foregoing, CRP Distribution Conditions and IPF <br />Distribution Conditions specifically include Subsections 14.a, b, and c. of the <br />Regulatory Agreement, and Distributions may not be taken if there is an Event of <br />Default under the FHA - Insured First Mortgage Loan or a conventional first mortgage <br />loan, which may be superior in priority to the MAHRA Restructuring Loan(s). <br />6. MODIFICATION. Except as specifically modified by this Rider, the <br />Regulatory Agreement is in full force and effect in accordance with its terms. <br />7. RELEASE OF MAHRA REGULATORY AGREEMENT. HUD hereby agrees <br />that, upon the request of the Borrower made on or after the date of either the satisfaction <br />Rider (HUD- 92466M) on First 01/05/12 <br />