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��14�1��� <br /> 13 <br /> acquire an Affiliate or �antract t� enter int� any affiliation with any party exc�pt as <br /> othervvise appro�ed by H U D. <br /> c. B�rrower sha[� satisfy or obtain a release �f any me�hanic's li�n, attachment, <br /> judgment iien, or any other lien that attaches ta the Mortgag�d Praperty or any �art <br /> ther�of. <br /> d. Penaltfes, including but not limited to delinqu�nt tax penalties, sha�l not be pai� from <br /> the Project. <br /> e. Borrawer shall pramptly notify HUD of the app�intm�nt of any r�ceiver f�r the <br /> Project, th� filing of a petition in bankruptcy or inso��en�y or for r�organ�zatinn. <br /> f. Barrawer shall keep the Mortgaged Property insured at a!I times in acc�rdance with <br /> th� Security I nstrum�nt and Pr�gram �bligations, and �orr�w�r shal� n�tify H U D af all <br /> paym�nts r�cei��d fr�m an �nsurer. <br /> g. Borrower shall n�t�fy HUD vf any action ar proceed�n� reiating to any cond�mnation <br /> ar �th�r taking, or can�eyance in lieu there�f, of al� or any part of the M�rtgaged <br /> Pr�perty, whether direct or indirect candemnation. <br /> h. Borrower shali notify HUD of any litigat��n pr�ceeding filed against Borr�wer or the <br /> Pr��ect, �r any I�tigati�n �roceed ing filed by Borrower. <br /> �3.SE�URITY DEPt]SITS. Any funds collected as s�curity d�posits shall be k�pt �a} <br /> se�arate and apart fr�m all other funds af th� Project; ��} in �nterest bearing trust <br /> accounts, to the extent required �y State or ��cal faw; and �c} �n an amount which sha�� <br /> at afl times equal ar ex�eed the aggregate of a!I �utstanding ablE�atinns und�r said <br /> acc�unt. Secur�ty depasit account interest shall be paid on a pr� rata basis to tenants <br /> or appf��d ta sums due under their leases up�n th� terminati�n of their tenancy in th� <br /> Pra�ect. The us� �f tenant security dep�sits for Pro��ct �p�rations is �roh�b�ted unl�ss <br /> the t�nant has forf�it�d the d�p�s�t. <br /> �4.D15TRIBUTI�NS. Borr�wer shall not mak� �r take, ar receive and retain, n�r allow <br /> anyAffiliate �r Pr�ncipa� to recei�e �r retain any Distri�ut��n of assets or any �ncome of <br /> any kind of the Project, except fr�m Surplus Cash or in accordance w�th Pr�gram <br /> �bfigationS. aistribut�ons ar� ga�erned �y the follvwing conditions: <br /> a. No Distr�buti�n shall be made or taken fr�m ��rrowed funds. Distributi�ns shal! n�t <br /> b� tak�n �rior ta the ��mpl�ti�n af the Pr�je�t. D�stributians shaii not be taken aft�r <br /> HUD has gi��n Not�ce to Borrower of a Violat�an under this Agr�ement or an Event of <br /> Defau�� occurs under the N�t� or Security Instrument. Distributions shall not be tak�n <br /> when a Pr�j�ct �s under a farb�arance agreement. <br /> Previaus ed€tions a��absvlete; Regufatory Agr�ement HIJD-92466M(Re�.Q41�1} <br /> Replaces form HUD-92465�111fl�} <br />