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discharging the debt hereby secured. Permission is hereby given to
<br />Mortgagor so long as no default exists hereunder, to collect such
<br />rents, profits and income for use in accordance with the provisions
<br />of the Regulatory Agreement;
<br />5. That upon default hereunder Mortgagee shall be entitled to the
<br />appointment of a receiver by any court having jurisdiction, without
<br />notice, to take possession and protect the property described herein
<br />and operate same and collect the rents, profits and income there-
<br />from,
<br />6. That at the option of the Mortgagor the principal balance secured
<br />hereby may be adjusted on terms acceptable to the Mortgagee if
<br />partial prepayment results from an award in condemnation in accor-
<br />dance with provisions of paragraph 8 herein, or from an insurance
<br />payment made in accordance with provisions of paragraph 7 herein,
<br />where there is a resulting loss of project income;
<br />7. That the Mortgagor will keep the improvements now existing or
<br />hereafter erected on the mortgaged property insured against loss by
<br />fire and such other hazards, casualties, and contingencies, as may be
<br />stipulated by the Mortgagee, and all such insurance shall be evi-
<br />denced by standard hire and Extended Coverage Insurance policy or
<br />policies, in amounts not less than necessary to comply with the
<br />applicable Coinsurance Clause percentage, but in no event shall the
<br />amounts of coverage be less than eighty per centrum (80 %) of the
<br />insurable values or not less than the principal sum of the Mortgage,
<br />whichever is the lesser, and in default thereof the Mortgagee shall
<br />have the right to effect insurance. Such policies shall be endorsed
<br />with standard Mortgagee Clause with loss payable to the Mortgagee,
<br />as interest may appear, and shall be deposited with the Mortgagee;
<br />That if the premises covered hereby, or any part thereof shall be
<br />damaged by fire or other hazard against which insurance is held as
<br />hereinabove provided, the amounts paid by any insurance company,
<br />to the extent of the principal sum remaining, shall be paid to the
<br />Mortgagee, and, at his /her option, may be applied to the debt or
<br />released for the repairing or rebuilding of the premises;
<br />8. That all awards of damages in connection with any condemnation for
<br />public use or injury to any of said property are hereby assigned and
<br />shall be paid to Mortgagee, and Mortgagee is hereby authorized, in
<br />the name of Mortgagor, to execute and deliver valid acquittance
<br />thereof and to appeal from any such award;
<br />9. That it is lawfully seized and possessed of said real estate in fee
<br />simple and has good right to convey same;
<br />10. To keep said premises in good repair, and not to do, or permit to be
<br />done, upon said premises, anything that may impair the value
<br />thereof, or of the security intended to be effected by virtue of this
<br />instrument; that it will not make any structural alterations to the
<br />building without the written consent of the Mortgagee; to pay to the
<br />Mortgagee, or deposit in an escrow account acceptable to the
<br />Mortgagee, as hereinafter provided, until the final maturity date, a
<br />sum sufficient to pay all taxes and special assessments that hereto-
<br />fore or hereafter may be lawfully levied, assessed or imposed by any
<br />taxing body upon the said land, or upon the Mortgagor or Mortgagee
<br />on account of the ownership thereof to the extent that provision has
<br />not been made by the Mortgagor for the payment of such taxes and
<br />special assessments as hereinafter provided in subparagraph 17;
<br />H. In case of the refusal or neglect of the Mortgagor to make such
<br />payments, or to satisfy any prior lien or encumbrances, or to keep
<br />said premises in good repair, the Mortgagee may pay such taxes,
<br />assessments, and insurance premiums, when due, and may make
<br />such repairs to the property herein mortgaged as in the Mortgagee's
<br />discretion he /she may deem necessary for the proper preservation
<br />200509637
<br />additional indebtedness, secured by this Mortgage, to be paid out
<br />of the proceeds of the sale of the mortgaged premises, if not
<br />otherwise paid by the Mortgagor, and shall bear interest at the rate
<br />to be specified by the Mortgagee from the date of advance until
<br />paid, and shall be due and payable on demand;
<br />12. It is expressly provided, however (all other provisions of this
<br />Mortgage to the contrary notwithstanding), that the Mortgagee
<br />shall not be required nor shall he /she have the right to pay,
<br />discharge, or remove any tax, assessment, or tax lien upon or
<br />against the premises described herein or any part thereof or the
<br />improvements situated thereon, so long as the Mortgagor shall, in
<br />good faith, contest the same or the validity thereof by appropriate
<br />legal proceedings brought in a court of competent jurisdiction,
<br />which shall operate to prevent the collection of the tax, assessments,
<br />or lien so contested and the sale or forfeiture of the said premises or
<br />any part thereof to satisfy the same, but in the event of a tax contest,
<br />the Mortgagor shall deposit with the Mortgagee an amount estimated
<br />by the Mortgagee sufficient to satisfy all taxes, penalties, interest, and
<br />costs which may reasonably accrue during such contest;
<br />13. That it will not voluntarily create or permit to be created against the
<br />property subject to this Mortgage any lien or liens inferior or
<br />superior to the lien of this Mortgage and further that it will keep
<br />and maintain the same free from the claim of all persons supplying
<br />labor or materials which will enter into the construction of any all
<br />buildings now being erected or to be erected on said premises;
<br />14, That the improvements about to be made upon the premises above
<br />described and all plans and specifications comply with all munici-
<br />pal ordinances and regulations made or promulgated by lawful
<br />authority, and that the same will upon completion comply with all
<br />such municipal ordinances and regulations and with the flues of
<br />applicable fire rating or inspection organization, bureau, associa-
<br />tion, or office. In the event the Mortgagor shall at any time fail to
<br />comply with such rules, regulations, and ordinances which are now
<br />or may hereafter become applicable to the premises above de-
<br />scribed, after due notice and demand by the Mortgagee, thereupon
<br />the principal sum and all arrears of interest and other charges
<br />provided for herein, shall at the option of the Mortgagee become
<br />due and payable;
<br />15. The Mortgagor covenants and agrees that so long as this Mortgage
<br />and the said note secured hereby are outstanding, it will not execute
<br />or file for record any instrument which imposes a restriction upon
<br />the sale or occupancy of the mortgaged property on the basis of
<br />race, color, national origin, sex, familial status, handicap, age, or
<br />creed, unless permitted by the Housing Act of 1959 or the National
<br />Affordable Housing Act and the HUD regulations promulgated
<br />thereunder.
<br />11P
<br />That the funds to be advanced herein are to be used in the
<br />construction of certain improvements on the lands herein de-
<br />scribed, in accordance with a Capital Advance Agreement between
<br />the Mortgagor and
<br />Mortgagee dated September 15 20 05
<br />which Capital Advance Agreement (except such part or parts
<br />thereof as may be inconsistent therewith) is incorporated herein by
<br />reference to the same extent and effect as if fully set forth and made
<br />a part of this Mortgage; and if the construction of the improve-
<br />ments to be made pursuant to said Capital Advance Agreement
<br />shall not be carried on with reasonable diligence, or shall be
<br />discontinued at any time for any reason other than strikes or lock-
<br />outs, the Mortgagee, after due notice to the Mortgagor or any
<br />subsequent owner, is hereby invested with full and complete
<br />authority to enter upon said premises, employ watchmen to protect
<br />thereof, and any moneys so paid or expended shall become so much
<br />form H U D- 90165 -CA (01 /2003)
<br />Previous versions obsolete Page 2 of 4 ref Handbooks 4571.4 & 4571.5
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