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200605646 ii) If said note is not held by the Secretary. notifY the holder ofthe note of such default and request holder to declare a default under the note and mortgage, and holder after receiving such notice andrequest, but not other wise, at its option, may declare the whole indebtedness due, and thereupon proceed with foreclosure ofthe mortgage, or assign the note and mortgage to the Secretary as provided in the Regulations; b) Collect all rents and charges in connection with the operation of the project and use such collections to pay the obligations under this Agreement and under the note and mortgage and the necessary expenses of preserving the property and operating the project; c) Take possession of the project, bring any action necessary to enforce any rights ofthe Owners growing out of the project operation, and operate the project in accordance with the terms ofthis Agreement until such time as the Secretary in his discretion determines that the Owners are again in a position to operate the project in accordance with terms ofthis Agreement and in compliance with the requirements ofthe note and mortgage; d) Apply to any court, State or Federal, for specific performance of this Agreement, for an injunction against any violation ofthis Agreement, for the appointment of a receiver to take over and operate the project in accordance with the terms ofthe Agreement, or for such other relief as may be appropriate, since the injury to the Secretary arising form a default under any of the terms of this Agreement would be irreparable and the amount of damage would be difficult to ascertain. 15. As security for the payment due under this Agreement to the reserve fund for replacement, and to secure the Secretary becausc of his liability under the endorsement ofthe note for insurance, and as security for other obligations under this Agreement, the Owners respectively assign, pledge and mortgage to the Secretary their rights to the rents, profits, income and charges of whatsoever sort which they may receive or be entitle to receive from the operation ofthe mortgaged property, subject, however to any assignment of rents in the insured mortgage referred to herein. Until a default is declared under this Agreement, however, permission is granted to Owners to collect and retain under the provisions of this Agreements such rents, profit, income, and charges, but upon default this permission is terminated as to all rents due or collected thereafter. 16. As used I this Agreement the term: (a) "Mortgage" includes "Deed of Trust", "Chattel Mortgage," "Security Instrument," and any other security for the note identified herein and endorsed for insurance or held by the Secretary: (b) "Mortgagee" refers to the holder of the mortgage identified herein, its successors and assigns; (c) "Owners" refers to the persons named in the first paragraph hereof and designated as "Owners, their successors, heirs and assigns"; (d) "Mortgaged Property" includes all property, real, personal, or mixed, covered by the mortgage or mortgages securing the note endorsed for insurance or held by the Secretary; (e) "Project" includes the mortgaged property and all its other assets of whatsoever nature of wheresoever situate, used in or owned by the business conducted on said mortgaged property, which business is providing housing an other activities as are incidental thereto; (f) "Surplus Cash" (profit-motivated Owner) or "Residual Receipts" (nonprofit Owner) means any cash remaining at the end ofa semiannual and annual fiscal period after: (1) the payment of: (i) All sums due or currently required to be paid under the terms of any mortgage or note insured or held by the Secretary; (ii) All amounts required to be deposited in the reserve fund for replacements; (iii) All obligations of the project other than the insured mortgage unless funds for payment are set aside or deferment of payment has been approved by the Secretary; and (2) the segregation of. (i) An amount equal to the aggregate of all special funds required to be maintained by the project; (ii) All tenant security deposits held: 5