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d. Disbursements from the Reserve for Replacement shall only be made after consent, in writing, of HUD. In the event of a Declaration of Default under the terms of the Security Instrument, pursuant to which the Indebtedness has been accelerated, a written notification by HUD to Borrower of a violation of this Agreement or at such other times as determined solely by HUD, HUD may direct the application of the balance in such account to the amount due on the Indebtedness as accelerated or for such other purposes as may be determined solely by HUD. e. In the case of a transfer of the Mortgaged Property where the Project is already subject to a Security Instrument insured or held by HUD as of the date hereof, and this Agreement is now being executed by Borrower as of the date hereof, the Reserve for Replacement now to be established shall be equal to the amount due to be in such account under this Agreement, and payments hereunder shall begin with the first payment due on the Security Instrument after acquisition, unless some other method of establishing and maintaining the account is approved in writing by HUD. f. Upon Borrower's full satisfaction of all HUD obligations, Borrower shall receive any monies remaining in the Reserve for Replacement. 11. RESIDUAL RECEIPTS. Section 221(d)(3) and 231 Non - Profit, Public Body, and Limited Dividend Borrowers shall establish and maintain, in addition to the Reserve for Replacement, a Residual Receipts account by depositing with Lender the Residual Receipts within ninety (90) days after the end of the annual fiscal period within which such receipts are realized. Such account shall be held by Lender or by a safe and responsible depository designated by Lender in accordance with Program Obligations, in an interest - bearing account which shall be insured or guaranteed by a federal agency and in accordance with Program Obligations. The Residual Receipts shall be under the control of HUD, and shall be disbursed only on the direction of HUD, which shall have the power and authority to direct that the Residual Receipts, or any part thereof, be used for such purpose as it may determine. 12. PROPERTY AND OPERATION; ENCUMBRANCES. 201302393 a. Borrower shall deposit all Rents and other receipts of the Project in connection with the financing of the Project, including equity or capital contributions required under the Firm Commitment or otherwise advanced for the purpose and as part of the Mortgaged Property, in the name of the Project in a federally insured depository or depositories and in accordance with Program Obligations. (Equity or capital contributions shall not include certain syndication proceeds, such as proceeds from Low Income Housing Tax Credit transactions used to repay bridge loans from members /partners of Borrower, all as more fully set forth in Program Obligations.) Such funds shall be withdrawn only in accordance with the provisions of this Agreement for Reasonable Operating Expenses of the Project or for Distribution of Surplus Cash or as reimbursement of advances as permitted by Sections 14 and 15 below; or for permitted deposits authorized by this Agreement or for any other reason authorized under this Agreement. Any person or entity receiving Mortgaged Property other than for payment of Reasonable Operating Expenses, authorized Distributions of Surplus Cash, or for any reason authorized under Section 36 of this Agreement, shall immediately deliver such Mortgaged Property to the Project and failing so to do shall hold such Mortgaged Property in trust. Previous editions are obsolete Replaces form RD -92466 (11/02) MR- Regulatory Agreement RD- 92466M (Rev. 4/11) Page 11 FRENCH VLLAGE