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L I (7) 88- 101515 -2- Mortgagor shall not without the written approval of the Secretary: (a) Transfer. dispose of or encumber any of the mortgaged property. Any such transfer shall be only to a person or persons or corporation satisfactory to and approved by HUD. who shalt, by legal and valid instrument in writing:, to be recorded or fLIed in the same rec,ording offi~e in which conveyances of the rrop~rt~ covered by ~he mortgage are re- qUired to be filed or recorded, duly asslIme a! obhgattons under this agreement and under the Notc and Mortgage: (b) Assign. tramfcr, dispose of, or cllcumb~r <Iny personal property, including rents or charges, and shall not disburse or payout an} funds except as provided herein and in the Building Loan Agreement; (c) Remodel. reconstruct, add to. or demolish any part of the mortgaged property or sub- tract from any real or personal property of the project; (d) Pay any compensation or make <Iny distribution of income or other assets to any of its officers, directors Of stockholders; , (e) Enter into any contract or contracts for supervisory or managerial setvices; (0 Reauire. as a condition of occuoancy or leasin\! of any unit in the oroiect. any consider- ation or deposit other than the prepayment of the nrSt month's rent (the gross family con- tribution in Section 8 units) plus a security deposit in an amount not in excess of one month's rent to guarame~ the performal",\! of the covenants of the lease. Any fund collec- ted as security depo-sits shall be kept separate and apart from all other funds of the project in a trust account the amount of which shall at all times equai or exceed the aggregate of all outstanding obligations under said account; (g) Permtt the use ot the dwelling accommodations of the project for any purpose except the use which was originally intended, or permit commercial use greater than that orig- inally approved by HUD; (h) Amend its articles of incorporation or by-laws other than as permitted under the terms of the articles of incorporation approved by HUD. Mortgagor shall maintain the mortgaged premises, accommodations and the grounds apd equipment appurtenant thereto. in good and substantial repair and condition: PROVIDED THAT, in the event aU or any of the buildings covered by the mortgage shall be destroyed or damaged by ftre or other casualty. the money derived from any insurance on the property shall be applied in accordance with the terms of the mortgage. (8) Mortgagor shall not ftle any petition in bankruptcy, or for a receiver, or in insolvency, or for reorganization or composition, or make any assignment for the benefit of creditors or to a trultce for creditors; or permit an adjudication in bankruptcy, the taking possession of the mortgaged property or any part thereof by a receiver, or the seizure and sale of the mortgaged property or any pan thereof under judicial proceS! or pursuant to any power of sale and fail to have such adverse actions set aside within 45 days. (10) Mortgaaor shall nom funds other than project income immediately satisfy or release any muhariit.s lien, attachment. judgmaat lien, or any other lien which attaches to the mortgaged propeny or any personal property used in the operation of the projc<:t, and shall dismiss or have dismissed or vacatcdany receivership. or petition in bankruptcy or assignment for benefi, of creditors, creditors bill or insolvency proceeding involving the project or the mortgaged property. (11) (a) If the Mortg~or has any business or activity other than the project and operation of the mortgaged property, it shall maintain all income and other fund. of the project segregate from any other funds of the mortgagor and segregatcd from an): funds of any other cor- poration or person, Income and other funds of the project shall be expended only for the purposes of the project. (b) Mortgagor shall contract for independent professional management of the project in a manner satisfactory to HUD. Any mallagem~nt contract entered'into by the mortgagor involving the project shall contain a provision that it shall be subject to termination. without penalty ilnd with or without cause, upon wrinen request by HUD addressed to th! Mortgagor and the ma.nagcmenr agent. Upon receipt of such request the Mortgago shall U1lmediately move to terminate the contract within a period of not more than 60 days and shall make arrangements s~tisfactory to HUD for continuing proper managemen of the project. (c) !"leither Mortgagor nor its agents shall make any payment tor services. supphes. or mater. lalS unless such services are actually rendered for the project or such supplies or materials are delivered to the project and are reasonably neceuary for its operation. Payments for such serviccs, or matcrials shall not exceed the amount ordinarily paid for such services, supplies, or materials in thc area where ~he services are rendered or the supplies or mater. ialS furnished. (d) The mortgaged property, equipment. buildings, plans, offices, devices, books. app.uatus, co~tra~ts, r~cords. documents, and all other papers relating thereto shall at all times be m:un~amed In reasonable condition for proper audit and subject to examination .1nd in. ~pectlon ..It olny reasonable timf: by HUD and its duly authorized agents. Mongagor and Its successou. assigns or its agenrs shall reuin copies of ail wriHen contracts or other in- 5trumc~ts whi<:h affecl the mnrtg;aged property. all or any of which may be subject to IJ1spectlon and examination by Hl)D or ItS duly authorized 4lgencs, (9) "