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<br />200702332
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<br />b) A violation of the terms of the Housing Assistance Payments Contract may be construed to constitute a
<br />default hereunder in the sole discretion of the Secretary.
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<br />c) In the event said Housing Assistance Payments Contract expires or terminates before the expiration or
<br />termination ofthis Agreement, the provisions of this paragraph 9 and any other reference to said contract, to
<br />Section 8 and to Section 8 units contained herein shall be self-canceling and shall no longer be effective as of
<br />the date of (he expiration or termination of the Housing Assistance Payments Contract.
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<br />10. Owners shall maintain the mortgaged premises, accommodations and the grounds and equipment appurtenant
<br />thereto, in good repair condition. In the event all or any ofthe buildings covered by the mortgage shall be
<br />destroyed or damaged by fire or other casualty, the money derived from any insurance on the property shall be
<br />applied in accordance with the terms of the insured mortgage.
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<br />II. Owners shall not file any petition in bankruptcy or for a receiver or in insolvency or for reorganization or
<br />composition, or make any assignment for the benefit of creditors or to a trustee for creditors, or permit an
<br />adjudication in bankruptcy or the taking possession of the mortgaged property or any part thereof under judicial
<br />process or pursuant to any power of sale, and fail to have such adverse actions set aside with forty-five (45) days.
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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 written
<br />request by the Secretary. Upon such request, 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 the amount ordinarily paid for such services,
<br />supplies or materials furnished.
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<br />c) The mortgaged property, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records,
<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 of the Secretary. Owners shall keep copies of all written contracts or other instruments
<br />which affect 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 of the operations of the 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 complete
<br />annual financial report based upon an examination ofthe books and records of mortgagor prepared in
<br />accordance with the requirements of the Secretary, certified to by an oflicer 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 Secretary.
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<br />o At request of the Secretary, or duly authorized agents of the Secretary, the Owners shall Curnish monthly
<br />occupancy reports and shall give specific answers to questions upon which information is desired Crom time
<br />to time relative to the income, assets, liabilities, contract, operation, and condition of the property and the
<br />status of the insured mortgage.
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<br />g) All rents and other rcccipts of the project shall be deposited in the name oCthe project in a bank, whose
<br />deposits are insured by the F.D.I.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 />above. Any Owner receiving Cunds ofthe 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 of this
<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 indebtedness has not been satisfied.
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<br />h) If mortgage is insured under 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, ineluding Title VI OF THE Civil Rights
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