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Regulatory Agreement Multifamily Housing Projects Instructions to Closing Attorney U.S. Depar(ment of Houuing 200006301 and Urban Development Office of Housing Federal Housing Commissioner Under Sections 207, 220, 221(d)(4), 231 and 232, Except Nonprofits 1. Form ofMortgagor Sara Jones Trust," be I isted in paragraph 17as"Mr. Jones, individu- a. Corporate Mortgagor- any form ofCorporatcChartermaybeused ally," and sign theAerecmcntas "Mr- Jones,trusteeoftheSaraJones which: Trust." This would make the Sara Jones Trust responsible for carrying ( I )contains nothing inconsistent with the Regulatory Agreement, out the provisions oftbc Regulatory Agreement, but Mr. J ones would (2)gives the corporation powers necessary to operate the project be responsible individually only for his own acts. and execute the note and mortgage, and 4. In all cases involving the issuance of a comniiUncnt to insure there (3)spccificaly authorizes the execution ofthc regulatory Agree- shall be added to the mortgage a provision substantially as follows: mcnt. "The Regulatory Agrccmcnt of even date herewith entered into Suggested charter provisions to accomplish the above purposes between the Mortgagor; (Grantors) herein and the Secretary of arc attached. Housing and Urban Development which is being recorded simulta- b. Partnership Mortgagor- Unless all general partners execute the ncously herewith, is incorporated in and made a part ofthis mortgage Regulatory Agreement, a copy of the partnership agrcemcnt (decd of trust). Upon default under the Regulatory Agreement and should be furnished and should be furnished and should be upon request by the Secretary, the Mortgagee, at its option, may examined to determine that it contains nothing inconsistent with declare this mortgage (decd of trust) in default and may declare the the Regulatory Agreement. It should further contain a provision whole of the indebtedness secured hereby to he Line and payable_" substantially as follows: If the mortgage is already on record, it should he modified to "The partnership is authorized to execute a note and mortgage incorporate the Regulatory Agreement. Ordinarily this may be done inordcrto secure aloantobeinsurcdh y the Secretary off-lousing byascparatc Modification Agrccnicntcxceutcdbythcmortgagorand and Urban Development and to execute a Regulatory Agreement mortgagee. and othcrdocuments rcquiredhy the Secretary in connection with 5, The Regulatory Agreement shall he executed by the Mortgagor and such loan. Any incoming genera partner shall as a condition of Sccrctary and recorded at the expense of the. Mortgagor prior to receiving an interest in the partnership agree to be bound by the endorsement for insurance, prior to consent to a conveyance in note, mortgage, and Regulatory Agreement andothcrdocuments existing insured mortgage cases, or prior to the conveyance to it required in connection with the FHA insured loan to the same purchaser in sacs cases. extent and on the same terms as the other general partners. Upon any dissolution, no title or right to possession and control of the 6. Since the requirements for execution vary from state to state, space project, and norighttoco llectthcrentsthcrcfroimshallpasstoany is left at the end ofthc printed frm for proper exccution .Generally, person who is not bound by the Regulatory Agreement in a manner acknowledgment by each party will be required and the form of satisfactory to the Sccrctary. acknowledgment used in the mortgage or decd of trust would he c. Trust -any Trust Agreement before itisfinaly accepted generally acceptable. should: 7. If the mortgage is insured pursuant to Section 232, Par. 4 of the ( I) Givethetrustecthc powers necessary tocxecute the note and Regulatory Agreement shall be stricken andthc deletion appropriatcly mortgage; approved by the parties. (3)specifically authorize the execution of the Regulatory ° Agree- ment S. The Agreement is to he executed in the namc of the Sccrctary by the (3)contain nothing inconsistent with the Regulatory Agreement: Field Office Manager. l4)prohihit the transfer of beneficial interest priorto completion 9. A legal description of the property shall be attached. ofthc project without the prior written consent of the Secretary and prohibitthctransfcrofsuch interest subscquenttocomple_ 10. Whenever this Agreement is executed by a person not liable for the tion of the project unless the new beneficiary ° assumes and payment of the note and mortgage, such person shall be listed in agrees to he bound by the Regulatory Agreement; and Paragraph 17. If all persons executing this Agreement arc so liable. {S)rcquircthat the Sccrctary be advised ten ( IL)) days priorto any the word "none" should be inserted in Paragraph 17 or Paragraph 17 proposed transfers of beneficial interests. should he stricken in its entirety. 2. The Section of the National Housing Act under which the mortgage 11. In the event the project is to be insured under section 232, and the was originally endorsed for insurance or the fact that the mortgage owner is to lease the pro.jcct, the lessee shall execute FHA Form No. originally was aSccrctary -held purchase money mortgage shall beset 2 466 -nhl- out in the heading of the Agreement undcrthc item "mortgage_' 12, The dollaramounttobe inserted in the first paragraph of 2(a) is Ill 2 3. The names of all mortgagors including all beneficiaries of any trust the annual Rcserve for Replacements recited in the commitment - shall be set out in the first unnumbered paragraph of the Agreement Corporate Charter Provisions in the place for listing the names ofthe parties. Where an,, such person Article Purposes is signing the Agreement as trustee or in sonic other represcmativc capacity, thisfact shall becicarly set out both inthisfirstparagraph The purpose for which the corporation isformedandthebusincsstobecarricd and in an identical manner at the end of the Agreement where such on and the objectives to be effected by it arc: person signs. The namc of the person signing in a representative Section 1. (a) To create a private corporation to construct or to acquire a capacity should also beset out in his individual capacity inParagraph housing project orprojects, andto operate the same: (b)tocnablcthefinancing 17. (ore sample: a party may lie designated. `Mr. Jones, as trustee of of the construction of such rental housing with the assistance of mortgage form HUD -92466 (10 -85) Replaces FHA -2466 which may be used until supply exhausted Pagel of 6 ref Handbook 4571.1