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<br />200605646
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<br />12. a) Any management contract entered into by Owners or any of them involving the project shall contain a
<br />provision that, in the event of default hereunder, it shall be subject to termination without penalty upon writtcn
<br />request by the Secretary. Upon such requcst, Owners shall immediately arrange to terminate the contract within a
<br />period of not more than thirty (30) days and shall make arrangements satisfactory to the Secretary for continuing
<br />proper management of the project.
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<br />b) Payment for service, supplies, or materials shall not exceed thc amount ordinarily paid for such services,
<br />supplies or materials furnished.
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<br />c) Thc mortgaged property, equipment, buildings, plans, offices, apparatus, dcviccs, books, contracts, rccords,
<br />documents, and other papers relating thereto shall at all times be maintained in reasonable condition for
<br />proper audit and subject to examination and inspection at any reasonable time by the Secretary or duly
<br />authorized agents ofthe Secretary. Owners shall keep copies of all written contracts or other instruments
<br />which affcct the mortgaged property, all or any of which may be subject to inspection an examination by the
<br />Secretary or duly authorized agents of the Secretary,
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<br />d) The books and accounts ofthe operations ofthe mortgaged property and of the project shall be kept in
<br />accordance with the requirements of the Secretary.
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<br />e) Within sixty (60) days following the end of each fiscal year, the Secretary shall be furnished with a complctc
<br />annual financial report based upon an examination of the books and records of mortgagor prepared in
<br />accordance with the requirements of the Secretary, ccrtified to by an officer or responsible Owner and, when
<br />required by the Secretary, prepared and certified by a Certified Public Accountant, or other person acceptable
<br />to the Sccretary.
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<br />t) At request ofthe Secretary, or duly authorized agents of the Secretary, the Owners shall furnish monthly
<br />occupancy reports and shall give specific answers to questions upon which information is desired from time
<br />to time relative to the incomc, assets, liabilities, contract, operation, and condition of the property and the
<br />status of the insured mortgagc.
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<br />g) All rents and other receipts ofthe project shall be deposited in the name of the project in a bank, whose
<br />deposits are insured by the F.D.1.C. Such funds shall be withdrawn only in accordance with the provisions of
<br />this Agreement for expenses of the project or for distributions of surplus cash as permitted by Paragraph 8(e)
<br />abovc. Any Owner receiving funds of the project other than by such distribution of surplus cash shall
<br />immediately deposit such funds in the project bank account and failing so to do in violation ofthis
<br />Agreement shall hold such funds in trust. Any Owner receiving property of the project in violation of this
<br />Agreement shall immediately deliver such property in trust. At such time as the Owners shall have lost
<br />control and/or possession of the project, all funds held in trust shall be delivered to the mortgagee to the
<br />extent that the mortgage indebtedncss has not been satisfied.
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<br />h) If mortgage is insured undcr Section 231, Owners or Lessee shall at all times maintain in full force and effect
<br />from the State or other licensing authority such license as may be required to operate the project as housing
<br />for the elderly.
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<br />13. Owners will comply with the provisions of any Federal, State, or local law prohibiting discrimination in housing
<br />on the grounds of race, color, religion or creed, sex, or national origin, including Title VI OF THE Civil Rights
<br />Act of 1964 (Public Law 88-352, 78 Stat. 241), Title VIII ofthc Civil Rights Act of 1968 (Public Law 90-284,82
<br />Stat. 73) Executive Order 11063, and all requirements imposed by or pursuant to the regulations of the
<br />Department of Housing and Urban Development implementing these authorities (including 24 CFR Parts I, 100,
<br />and 110, and Subparts I and M or Part 200).
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<br />14. Upon a violation of any of the above provisions of this Agreement by Owners, the Secretary may give written
<br />notice, thereof, to Owners, by registered or certified mail, addressed to the addresses stated in this Agreements, or
<br />such othcr addresses as may subsequently, upon appropriatc written notice thereofto the Secretary, be designated
<br />by the Owners as their legal business address. If such violation is not corrected to the satisfaction of the Secretary
<br />within thirty (30) days after the date such notice is mailed or within such further time as the Secretary determines
<br />is necessary to correct the violation, without further notice the Secretary may declare a default under this
<br />Agreement effective on the datc of such declaration of default and upon such default the Sccrctary may:
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<br />a) i) If the Secretary hold the note declarc the whole of said indebtedness immediately due and payable and
<br />then proceed with the foreclosurc ofthe mortgage;
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