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201302396
<br />termination (or in the absence) of the FHA - Insured First Mortgage Regulatory Agreement, the
<br />requirement to establish and maintain the Reserve for Replacement shall become fully operative.
<br />4. RESIDUAL RECEIPTS ACCOUNT. From and after the date hereof; but only for
<br />so long as the Mortgaged Property is encumbered by the MAHRA Restructuring Loan, evidenced
<br />and/or secured by a Mortgage Restructuring Note and a Mortgage Restructuring Mortgage (defined
<br />as Note and Security Instrument, respectively, in the corresponding Regulatory Agreement) and/or,
<br />if applicable, the Contingent Repayment Note and a Contingent Repayment Mortgage (defined as
<br />Note and Security Instrument in the corresponding Regulatory Agreement), all provisions in the
<br />Regulatory Agreement, Program Obligations, or HAP Contract, if any, requiring the Borrower to
<br />maintain a Residual Receipts account or fund shall be of no force or effect.
<br />5. M2M DISTRIBUTIONS. From and after the date hereof, but only for so long as
<br />the Mortgaged Property is encumbered by a MAHRA Restructuring Loan, all provisions in the
<br />Regulatory Agreement, Program Obligations (other than those related to M2M), and in the HAP
<br />Contract, with respect to the amount and timing of Distributions to the Borrower shall not apply, and
<br />the amounts and timing of Distributions shall be in accordance with M2M Program Obligations and
<br />this Section 5. Upon satisfaction of the MAHRA Restructuring Loan(s), Distributions shall be
<br />controlled by Program Obligations and the HAP Contract.
<br />a. Annually, the Borrower may take a Distribution of Surplus Cash that remains,
<br />if any, after payment of the Restricted Surplus Cash due under, and as defined in, the
<br />Mortgage Restructuring Note and/or Contingent Repayment Note, in accordance therewith,
<br />subject to the provisions of MAHRA and the MAHRA Regulatory Agreement.
<br />b. During the period of time Borrower may receive Capital Recovery Payments,
<br />the definition of Surplus Cash in subsection 1.gg.(l) of the Regulatory Agreement shall
<br />include an additional item payable in determining Surplus Cash, as item (iii), "Capital
<br />Recovery Payments, if payable ". To the extent provided in the Restructuring Commitment,
<br />a Distribution for a Capital Recovery Payment may be taken monthly by the Borrower,
<br />subject to compliance by the Borrower with all conditions, limitations and restrictions thereto
<br />under MAHRA and/or as may be set forth in the MAHRA Regulatory Agreement, which
<br />include, without limitation, (i) the payment of all obligations of the Project (accounts payable
<br />and accrued, unescrowed expenses), unless funds for payment are set aside or deferment of
<br />payment has been approved by HUD, and (ii) the requirement that there be no outstanding
<br />unresolved HUD audit or management findings (collectively, "CRP Distribution
<br />Conditions "). For the purpose of a Capital Recovery Payment, compliance with the
<br />MAHRA Regulatory Agreement means that all terms and conditions contained in the
<br />MAHRA Regulatory Agreement were satisfied as of the last day of the Payment Period
<br />(defined in the Note), whether or not a Notice to Borrower of a Violation thereunder was
<br />given. In the event that any of the CRP Distributio Conditions have not been satisfied, as
<br />determined by HUD, the Capital Recovery Payments shall not be made, but they shall accrue,
<br />without additional interest, until HUD determines that they may resume. If cash is
<br />insufficient to pay Capital Recovery Payments, as determined by HUD, after HUD's review
<br />Refer to Reg Agrrrt 92466M on MrlyM tRev 01/06/2012 -3-
<br />c t FRBsalVLLAGE
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