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-12- 200702332 (1) Within 90 days following the end of each fiscal year HUD shall be furnished with a complete annual financial report based upon an examination of the books and records of Owner prepared in accordance with the requirements of HUD, certified to by an officer of the Owner and, when required by HUD, prepared and certified by a Certified Public Accountant, or other person acceptable to HUD. (g) At the request of HUD, its agents or designees, employees, or attorneys, the Owner shall give specific answers to questions upon which information is desired from time to time relative to the income, assets, liabilities, contracts, operation, and condition of the property and the status of the Mortgages and any other information with respect to the Owner or the mortgaged property and of the project which may be requested. (h) All rents and other receipts of the project shall be deposited in the name of the project in a bank, whose deposits are insured by the FDIC, Savings Association Insurance Fund, or the National Credit Union Share Insurance Fund. Such funds shall be withdrawn only in accordance with the provisions of this Agreement for expenses of project. Any person receiving funds of the project shall immediately deposit such funds in the project bank account and failing so to do in violation of this Agreement shall hold such funds in trust. Any person receiving property of the project in violation of the Agreement shall immediately deliver such property to the project and failing so to do shall hold such property in trust. (i) Owner shall at all times, if required by the laws of the jurisdiction, maintain in full force and effect a license to operate the project from the State and/or other licensing authority. Owner shall lease any portions of the project only on terms approved by HUD. 6. Amendment and Revision of Paragraph 16 (1) of the Regulatory Agreement. From and after the date hereof, but only for so long as the mortgaged property is encumbered by a mortgage securing the MAHRA Restructuring Loan, (a) the definitions and terms for "Surplus Cash" and "Residual Receipts" contained in Sub-Paragraph 16 (f) of this Regulatory Agreement shall be referred to and defined collectively as "Surplus Cash," and (b) definitions for "Capital Recovery Payments" and "Incentive Performance Fee" shall be added, respectively, as Sub-Paragraphs 16. (n) and (0), and such changes and additional definitions shall read as follows: 16. (1) "Surplus Cash" shall mean, any cash remaining at the end of each fiscal year of the Owner after: (1) the payment of: (i) All sums due or currently required to be paid under the terms of (a) the mortgage or deed of trust and/or the note secured thereby ("First Mortgage"), if any, the lien for which is prior to the lien(s) securing the MAHRA Restructuring Loan, and, (b) if applicable, subordinate FHA insured or HUD held mortgages with cash flow priority ("Priority Cash Flow Indebtedness") to the Mortgage Restructuring Note and Contingent Payment Note; (ii) all amounts required to be deposited in the reserve fund for replacements; (iii) all other obligations of the mortgaged property other than the First Mortgage and Priority Cash Flow Indebtedness, unless funds for payment are set aside or deferment of payment has been approved by the Secretary, and (iv) the Capital Recovery Payments, as defined and set forth herein; and (2) the segregation of: (i) an amount equal to the aggregate of all special funds (including a Section 8 Recapture Agreement Escrow Fund, if applicable) required to be maintained by the project; and (ii) all tenant security deposits held. HUD-92465 (7-77)