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RE- RECORQSD
<br />200008000
<br />duly authorized agents. Owners shall keep copies of all written 10. Owners will comply with the provisions of any Federal, State, Or
<br />contracts or other instrurncnts which affect the mortgaged local law prohibiting discrimination in housing on the grounds of
<br />property, all or any of which may he subject to inspection and race, color, religion or creed, sex, or national origin, including Title
<br />examination by the Secretary or his duly authorized agents. Vlll of the Civil Rights Act of 1908 (Public Law 9I1 -234; 32 Stat. 73),
<br />as amended, Executive Order 11003, and :ill requirements imposed
<br />(d) The hooks and account~ of the operations of the mortgaged
<br />by or pursuant to the regulations of the Department of Housing and
<br />property and of the project shall be kept in accordance with the Urban Development implementing these authorities (including 24
<br />requirements of the Sccrctary. CPR Parts I 107 and 110, and Subparts 1 and M of Part 2M).
<br />(e) Within sixty (60) days following the end of each fiscal year the 11. Upon a violation Jury of the above provisions of this Agreement by
<br />Secretary shall be furnished with a complete annual financial Owners, the Sccrctary may give written notice thereof, to Owners, by
<br />report based upon an examination of the books and records Of registered or ee rifled mail, addressed to the addresses stated in this
<br />mortgagor prepared in accordance with the requirements of the Agreement, Or such other addresses as may subsequently. upon
<br />Sccrctary, prepared and certified to by an officer or responsible
<br />appropriate written notice thereof to the Sccrctarv, be designated by
<br />Owner and, when required by the Sccrctary', prepared and the Owners as their Icjal business address. If such violation is not
<br />certified by a Certified Public Accountant or other person corrected to the satisfaction of the Sccrctary within thirty 1 {}) days
<br />acceptable to the Sccrctary. [-
<br />after the date such notice is mailed or within such further time as the
<br />(f) At request of the Sccrctary, his agents, emplovecs, Or attorncvs, Sccrctary determines is ncccssary to correct the violation, without
<br />the Owncrs shall furnish monthly occupancy reports and shall further notice the Secretary may dcclarc a default under this Agree -
<br />give specific answers to questions upon which information is ment effective on the date of such declaration of default and upon
<br />desired from time to tine relative to income, assets, liabilities, such default the Sccrctary may:
<br />contracts, operation, and condition of the property ad the status
<br />Of the insured mortgage. (a) (i) If the Sccrctary holds the note - declare the whole of said
<br />indebtedness immediately due and payable and then pro -
<br />(g) All rents and other receipts of the projcct shall be deposited in Iced with the foreclosure of the mortgage;
<br />the name of the projcct in afinancial institution, whose deposits (ii) If said note is not held by the Sccrctary - notify the holder
<br />are insured by an agency of the Federal Government. Such funds
<br />of the note of such default and request holder to declare a
<br />shall be withdrawn only in accordance with the provisions of this default underthc not and mortgage, and holder after recciv-
<br />Agreement for expenses of the project or for distributions Of
<br />rng such notice and request but not otherwise, at its option,
<br />surplus cash as permitted by paragraph 6(e) above. Any Owner may declare the whole indebtedness due, and thereupon
<br />receiving funds of the projcct other than by such distribution of proceed with foreclosure of the mortgage, or assign the note
<br />surplus cash shall imnudiately deposit such funds i the projcct
<br />and mortgage to the Sccrctary as provided in the Rcgulu-
<br />bank account and failing so to do in violation of this Agreement
<br />[ions:
<br />shall hold such funds in trust. Any Owner receiving property of
<br />the projcct in violation of this Agreement shall hold such funds (b) Collect all rents and charges in connection with the Operation of
<br />in trust. At such time as the Owners shall have lost control and/ the projcct and use such collections to pay the Owners' obliga-
<br />or possession of the pruject all funds held in trust shall be tions underthis Agreement and under the note and mortgage and
<br />delivered to the mortgagcc to the extent that the moruage the ncccssary expenses of preserving the property and Operating
<br />indebtedness has not been satisfied. the projcct.
<br />(h) If the mortgage is insurcd under Seetion 233: (c) Take possession of the projcct bring any action necessary to
<br />enforce any rights of the Owners growing out of the project
<br />(I) The Owners or lessees shall at all times maintain in full
<br />operation, and Operate the projcct in accordance with the terms
<br />force and effect from the state or other licensing authority of this Agrccmcnt until such time as the Sccrctary in his
<br />such license as may be required to operate the project as a
<br />o
<br />discretion determines that the Owners arc again in a position to
<br />nursing home and ~hall not lease all or part of the projcct m
<br />operate the projcct in accordance with the terms of this Agree-
<br />ment and in compliance with the requirements Of the note and
<br />(2) The Owners shall suitably equip the project for nursing mortgage.
<br />home operations. (d) Apply to any court, State or Fcdcral, for specific performance of
<br />(3) The Owners shall execute it Security Agrccmcnt and Fi- this Agrcenuut for an injunction against any violation Of the
<br />nancing Statement (or other form of chattel lice) upon all Agreement, for the appointment of a receiver to take over and
<br />items of equipment, except as the Sccrctary may exempt, operate the projcct in accordance with the terms of the Agree -
<br />which arc not incorporated as security for the insured nun[ or for such other relief as may be appropriate, since the
<br />mortgage. The Security Agreement and Financing State- injury to the Sccrctary arising from a default under any of the
<br />meet shall constitute it first lien upon such equipment and terms ofthis Agreement would he irreparable and the amount of
<br />shall run in favor ofthc mortgagee as additional security for damage would be difficult to ascertain.
<br />the insured mortgage. 12. As security for the payment due under this Agreement to the reserve
<br />(i) If the mortgage is insured under Section 231, Owners fund for replacements, and to secure the Sccrctary because of his
<br />or lessees shall at all tines maintain in full force and liability under the endorsement of the rote for insurance, and as
<br />effect from the state or other licensing authority such security for the other obligations under this Agreement, the Owners
<br />license as may he required to operate the projcct as respectively assign, pledge and mortgage to the Secretary their rights
<br />housing for the elderly. to the rents, profits, income and charges Of whatsoever sort which
<br />they may receive Or be entitled to receive from the operation of the
<br />Replaces FHA -2466 which may be used until supply exhausted Page 5 of 6 form HUD-92466 4571. )
<br />ref Handbook4571.3
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