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<br />200702332
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<br />Act of] 964 (Public Law 88-352, 78 Stat. 241), Title VllI of the Civil Rights Act of] 968 (Public Law 90-284,82
<br />Stat. 73) Executive Order 11063, and all requircments imposed by or pursuant to the regulations of the
<br />Department of Housing and Urban Development implementing thcse authoritics (including 24 CFR Parts], ] 00,
<br />and ] ] 0, and Subparts I and M or Part 200).
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<br />]4. 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 certificd mail, addressed to the addresses stated in this Agreements, or
<br />such other addrcsses as may subsequently, upon appropriate written notice thereof to the Secretary, be designated
<br />by the Owners as their legal business address. If such violation is not corrected to the satisfaction ofthe Secretary
<br />within thirty (30) days after the date such notice is mailed or within such furthcr time as the Secretary detennines
<br />is necessary to correct the violation, without further notice the Secretary may declare a default under this
<br />Agreement cftective on the date of such declaration of default and upon such default the Secretary may:
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<br />a) i) Ifthe Secretary hold thc notc dcclare the whole of said indebtedness immediatcly due and payable and
<br />then procced with the foreclosure of the mortgagc;
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<br />ii) If said note is not held by the Secretary - notifY the holder of the note of such default and requcst holder
<br />to declare a default under the note and mortgage, and holder after receiving such notice and request, but
<br />not other wise, at its option, may declare the whole indebtedncss duc, and thereupon proceed with
<br />foreclosure ofthc mortgage, or assign the note and mortgagc to thc Secretary as provided in the
<br />Regulations;
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<br />b) Collect all rents and charges in connection with thc operation of the project and use such collections to pay
<br />the obligations under this Agreement and under the note and mortgagc and the necessary expenses of
<br />preserving the propcrty and operating the projcct;
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<br />c) Take possession ofthc project, bring any action ncccssary to enforce any rights ofthe Owners growing out of
<br />the project operation, and operate the project in accordance with the tenns ofthis Agrcement until such time
<br />as the Secretary in his discretion detennines that the Owners are again in a position to operate the project in
<br />accordance with tenns of this Agreement and in compliance with the requirements ofthe note and mortgage;
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<br />d) Apply to any court, State or Federal, for specific perfonnance of this Agreement, for an injunction against
<br />any violation ofthis Agreement, for the appointment of a receiver to takc over and operate the project in
<br />accordance with the tenns of the Agreement, or for such other relief as may be appropriate, since the injury to
<br />the Secretary arising form a default under any of the tenns ofthis Agrccmcnt would be irreparable and the
<br />amount of damage would be difficult to ascertain.
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<br />]5. As security tor thc payment due under this Agreement to the rescrvc fund for replacement, and to secure the
<br />Secretary because of his liability under the endorsement ofthc note for insurance, and as security for other
<br />obligations under this Agreement, the Owners respectively assign, pledge and mortgage to the Secretary their
<br />rights to the rents, profits, income and charges of whatsoever sort which they may reccive or be entitle to receive
<br />from the operation of the mortgaged propcrty, subject, howeverto any assignment of rents in the insured mortgage
<br />referred to herein. Until a default is declared under this Agreement, however, pennission is granted to Owners to
<br />collect and retain under the provisions of this Agreements such rents, profit, income, and charges, but upon
<br />default this pennission is tenninated as to all rents due or collected thereafter.
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<br />16. As used] this Agreement the tenn:
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<br />(a) "Mortgage" includes "Deed of Trust", "Chattel Mortgage," "Security Instrumcnt," and any other security for
<br />the note identified herein and cndorsed for insurancc or held by the Secretary:
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<br />(b) "Mortgagee" refers to the holder of the mortgage identified herein, its successors and assigns;
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<br />(c) "Owners" refers to thc persons named in the first paragraph hereof and designated as "Owners, their
<br />successors, heirs and assigns";
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<br />(d) "Mortgaged Property" includes all propcrty, real, personal, or mixed, covered by thc mortgage or mortgages
<br />securing the note endorsed for insurance or held by the Secretary;
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<br />(e) "Project" includes the mortgaged property and all its other assets of whatsoever nature ofwhcresoever
<br />situate, used in or owned by the business conducted on said mortgaged propcrty, which business is providing
<br />housing an other activities as are incidental thcreto;
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