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RE- RECOBUtU RECEIVED 200008000 U.S. Deparrment of Houui 200006301 ,.Regulatory Agreement '�@UG 3 1 � and Urban Development Multifamily Housing Projects Office of Housing Commissioner � Instructions to Closing Attorney Federal Housing U H U Under Sections 207, 220, 221(d)(4), 231 and 232, Except Nonprofits 00108 1. Form of Mortgagor Sara JoncsTrust," be I isted in paragraph 17 as "Mr. Jones, individu- a. Corporate Mortgag or -any form of Corporate Charter may be used ally:' an d sign the Agrccmcnt as '"Mr. Jones, trustee ofthe Sara Jones which: Trust-" Tb is would make the Sara Jones Trust responsible fore arrying (I )contains nothing in con sistcntwiththe Regulatory Agreement. outthe provisions ofthcRcguIatoryAgrccmcnt ,but Mr. Jon cswould (2)givcs the corporation powers necessary tot, per-atc 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 commitment to insure there (3)spccifi call y authorizes the execution of the regulatory Agree- shall he added to the mortgagc a provision substantially as follows: ment. "The Regulatory Agreement of even date herewith entered into Suggested charter provisions to accomplish the above purposes between the Mortgagors (Grantors) herein and the Sccrctary of are 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 of this mortgage Regulatory Agrccmcnt, it copy of the partnership agreement (decd of trust). Upon default under the Regulatory Agrccmcnt 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 due and payable." substuntial]v us follows: If the mortgagc is ah-eady on record, it should be modified to "The partnership is authorized to execute a note and mortgagc incorporatethc Regulatory Agreement, Ordinarily this may be done inorderto secure aloa ntobcinsurcdbythcSccrctaryofHousing byascparatcMociificationAgrccntcntcxceutcdby the mortgagorand and Urban Development and to execute a Regulatory Agreement mortgagee. and othcrdocumcnts rcyuiredby the Secretary in connection with 5. The Rcgulatory Agreement shall be executed by the Mortgagorand such loxn. Any incoming general partner shall as a condition of Secretary 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 conscnt to a conveyance in note, mortgage. and Regulatory Agreement and other documents existing insured mortgage cases, or prior to the conveyance to a required in connection with the FHA insured loan to the same purchaser in sales 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 rcquirentcnts forexceution vary front state to state, space pro.icct, and norighttoco llcctthcrcntsthcrcfr (,m shall passtoany isl cftat the end ofthc printcdformforpn ,perexecution.Gcncrally, person who isnot boundby the RcgulatoryAgrccntcntinamanner acknowledgment by each party will be required and the form of satisfactory to the Secretary. acknowledgment used in the mortgage or decd of trust would he c. Trust -any Trust Agrccmcntbeforc it is finally accepted generally acceptable. should: 7. If the mortgage is insured pursuant to Section 232, Par. 4 of the ( I )Give the trustee the powers necessary to execute the note and Regulatory Agrccmcnt shall be stricken andthe deletion appropriately mortgagc: approved by the parties. (3)specifically authorize the execution ofthc Regulatory Agree - ntent: 8. The Agrccmcnt is to he executed in the name ofthe Sccrctary In the (3)contain nothing inconsistent with the Regulatory Agreement: Field Office Manager. (4)prohibitthe transfer ofbeneficial interest priorto completion 9. A legal description ofthe property shall be attached. ofthcpro.icet without the priorwrittcn consent ofthe Secretary and prohibitthetransfcrofsuch interest subsequenttocomplc- 10. Whenever this Agreement is exceuted by a person not liable for the tion of the project unless the new beneficiary assunus and payment of the note and mortgagc, such person shall be listed in agrees to be bound by the Regulatory Agreement; and Paragraph 17. If all persons executing this Agreement arc so liable, (5)rcquircthat the Sccrctary be advised ten ( 10) days prior to any the word "none" should he inserted in Paragraph 17 or Paragraph 17 proposed transfers of beneficial interests. should be stricken in its entirety. 2. The Section ofthc National Housing Act under which the mortgage 11. In the event the project is to be insured under scetion 232, and the was originally endorsed for insurance or the fact that the mortgage owner is to ]case the pro,iect, the lessee shall execute FHA Form No. originally wasaSceretary- hcldpurchasc money mortgage shall beset 2466-nhl. out in the heading ofthc Agreement undcrthc item "mortgagc." 12, The dollar amounttobe inserted in the first paragraph 42(a) is 1/12 3. The names of all mortgagors including all beneficiaries of any trust the annual Reserve for Replacements recited in the commitment. shall be set out in the first unnumbered paragraph ofthc Agrccmcnt Corporate Charter Provisioms in the placcforlisting the names ofthc parties. Whcrcany such person Article Purpexses is signing the Agreement as trustee or in some other representative capacity, this fact shall be clear]\, set out both in this first paragraph The purpose for which the corporation isformcdandthebusincsstobc carried and in an identical manner at the end ofthe Agreement where such on and the objectives to be effected by it arc: person signs. The name of the person signing in a representative Section 1. (a) To create a private corporation to construct or to acquire a capacity should also be set out in his individual capacity in Paragraph housing project orpr( Jects, andtooperatethe same: (b)to enable the financing 17. Forcxample: a party may be designated, "Mr. Jones, astrustec 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 urttil supply exhausted Page 1 of 6 ref Handbook4571.1