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<br />200509638
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<br />the contract within a period of not more than 60 days and
<br />shall make arrangements satisfactory to HUD for con-
<br />tinuing proper management of the project.
<br />
<br />(c) Neither Mortgagor hor its agents shall make any pay-
<br />ments for services, supplies or materials unless such
<br />services are actually rendered for the project or such
<br />supplies or materials are delivered to the project and are
<br />reasonably necessary for its operation. Payments for
<br />such services or materials shall not exceed the amount
<br />ordinarily paid for such services, supplies or materials
<br />in the area where the services are rendered or the
<br />supplies or materials furnished.
<br />
<br />(d) The mortgaged property, equipment, buildings, plans,
<br />offices, devices, books, apparatus, contracts, records,
<br />documents, and all other papers relating thereto shall at
<br />all times be maintained in reasonable condition for
<br />proper audit and subject to examination and inspection
<br />at any reasonable time by HUD and its duly authorized
<br />agents. Mortgagor and its successors, assigns or its
<br />agents shall retain copies of all written contracts or
<br />other instruments which affect the mortgaged property,
<br />all or any of which may be subject to inspection and
<br />examination by HUD or its duly authorized agents.
<br />
<br />(e) The books and accounts of the operations of the mort-
<br />gaged property and of the project shall be kept in
<br />accordance with the requirements of HUD.
<br />
<br />(f) Within 60 days following the end of each fiscal year
<br />HUD shall be furnished with a complete annual finan-
<br />cial report based upon an examination of the books and
<br />records of Mortgagor prepared in accordance with the
<br />requirements of HUD, certified to be an officer of the
<br />Mortgagor and, when required by HUD, prepared and
<br />certified by a Certified Public Accountant, or other
<br />person accepted to HUD.
<br />
<br />(g) At the request of HUD, its agents, employees, or attor-
<br />neys, the Mortgagor shall give specific answers to
<br />questions upon which information is desired from time
<br />to time relative to the income, assets, liabilities, con-
<br />tracts, operation, and condition of the property and the
<br />status of the Mortgage and any other information with
<br />respect to the Mortgagor or the mortgaged property and
<br />of the project which may be requested.
<br />
<br />(h) All receipts of the project shall be deposited in the name
<br />of the project in a bank, whose deposits are insured by
<br />the FDIC, Savings Association Insurance Fund, or the
<br />National Credit Union Share Insurance Fund. Such
<br />funds shall be withdrawn only in accordance with the
<br />provisions of this Agreement for expenses of the
<br />project. Any person receiving funds ofthe project shall
<br />immediately deposit such funds in the project bank
<br />account and failing so to do in violation of this Agree-
<br />ment shall hold such funds in trust. Any person receiv-
<br />ing property of the project in violation of this Agree-
<br />ment shall immediately deliver such property to the
<br />project and failing so to do shall hold such property in
<br />trust.
<br />
<br />(i) Mortgagor shall at all times, if required by the laws of
<br />the jurisdiction, maintain in full force and effect a
<br />license to operate the project from the State and/or other
<br />licening authority. Mortgagor shal1 lease any portion of
<br />the project only on terms approved by HUD.
<br />
<br />(j) Mortgagor shall not collect from tenants or occupants or
<br />prospective tenants or occupants of the project any
<br />admission fee, founder's fee, life-care fee, or similar
<br />payment pursuant to any agreement, oral or written,
<br />whereby the Mortgagor agrees to furnish accommoda-
<br />tions or services in the project to persons making such
<br />payments.
<br />
<br />(k) No officer, director, trustee, member, stockholder nor
<br />authorized representative of the Mortgagor except for
<br />management by sponsor or non-profit affiliate, shall
<br />have any financial interest in any contractural arrange-
<br />ment entered into by the Mortgagor in connection with
<br />rendition of services, the provision of goods or supplies,
<br />management of the project, procurement of the site or
<br />other matters whatsoever.
<br />
<br />12. (a) If project is funded under Section 202 of the Housing
<br />Act of 1959, as amended, Mortgagor will limit public
<br />occupancy of the project to elderly families and indi-
<br />viduals as defined in Section 202 of the Housing Act of
<br />1959, and applicable HUD Regulations. If project is
<br />funded under Section 8ll of the National Affordable
<br />Housing Act of 1990, Mortgagor will limit public
<br />occupancy of the project to persons with disabilities as
<br />defined in Section 811 of the National Affordable Hous-
<br />ing Act of 1990, and applicable HUD Regulations. The
<br />criteria governing eligibility of tenants for admission to
<br />Section 202 or Section 811 units and the conditions of
<br />continued occupancy shall be in accordance with the
<br />Project Rental Assistance Contract.
<br />
<br />(b) Except as provided in (d) below Mortgagor will make its
<br />dwelling accommodations and services available to
<br />eligible occupants at charges established in accordance
<br />with a schedule to be approved in writing by HUD. Such
<br />accommodations shall not be rented for a period less
<br />than 30 days. Commercial facilities, if any, shall be
<br />rented only in accordance with a schedule of charges
<br />fixed by the Mortgagor and approved in writing by
<br />HUD. Subleasing of dwelling accommodations or com-
<br />mercial facilities shall be permitted only upon the terms
<br />and conditions approved by HUD in writing.
<br />
<br />(c) Upon prior written approval by the Secretary, Mort-
<br />gagor may charge to and receive from any tenant such
<br />amounts as from time to time may be mutually agreed
<br />upon between the tenant and the Mortgagor for any
<br />facilities and/or services which may be furnished by the
<br />Mortgagor or others to such tenant upon request, in
<br />addition to the facilities and services included in the
<br />approved Project Rental Assistance Contract.
<br />
<br />(d) Nothing contained in this Agreement shall be construed
<br />to relieve the Mortgagor of any obligations under the
<br />Project Rental Assistance Contract.
<br />
<br />Page 3 of 5
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<br />form HUD-92466-CA (4/92)
<br />ref. Handbook 4571.4 & 4571.5
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