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<br />200509638
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<br />13: Mortgagor will comply with the provisions of any Federal,
<br />State or local law prohibiting discrimination in housing on
<br />the grounds of race, color, creed, age, sex, handicap, famil-
<br />ial status or national origin, including Title VI of the Civil
<br />Rights Act of1964 (42U.S.C.2000d-I), the Fair Housing Act
<br />(42U.S.C.3601), Section 504 of the Rehabilitation Act of
<br />1973(29U.S.C.794), Age Discrimination Act of
<br />1975(42U.S.C.6101) Executive Orders 11063 and 11246, Sec-
<br />tion 3 of the Housing and Urban Development Act of 1968,
<br />and the affirmative fair housing marketing requirements at
<br />24CFR part 200, subpart M.
<br />
<br />14. No litigation seeking the recovery of a sum in excess of
<br />$5,000 nor any action for specific performance or other
<br />equitable relief shall be institutcd nor shall any claim for a
<br />sum in excess of $5,000 be settled or compromised by the
<br />Mortgagor unless prior written consent thereto has been
<br />obtained from HUD. Such consent may be subject to such
<br />terms and conditions as HUD may prescribe.
<br />
<br />15. Upon a violation of any of the above provisions of this
<br />Agreement by Mortgagor, HUD may give written notice,
<br />thereof, to Mortgagor, by registered or certified mail, ad-
<br />dressed to the address statcd in this Agreement, or such other
<br />address as may subsequently, upon appropriate written no-
<br />tice thereof to HUD, be designated by the Mortgagor as its
<br />legal business address. If such violation is not corrected to
<br />the satisfaction of HUD within 30 days after the date such
<br />notice is mailed or within such further time as HUD deter-
<br />mines is necessary to correct thc violation, without further
<br />notice HUD may declare a Default under this Agreement
<br />effective on the date of such declaration of default and such
<br />default HUD may:
<br />
<br />(a) Take possession of the project, bring any action neccs-
<br />sary to enforce any rights of the Mortgagor growing out
<br />of the project operation, and operate the project in
<br />accordance with the terms of this Agreement until such
<br />time as HUD in its discretion determines that the Mort-
<br />gagor is again in a position to operate the project in
<br />accordance with the terms of this Agreement and in-
<br />compliance with the requirements of the Note and
<br />Mortgage, or require Power of Attorney from Mort-
<br />gagor to effectuate transfer of the project to a HUD
<br />approved nonprofit corporation.
<br />
<br />(b) Collect all rents and charges in connection with the
<br />operation of the project and use such collections to pay
<br />the Mortgagor's obligations under this Agreement and
<br />under the Note and Mortgage, and the necessary ex-
<br />penses of preserving the property and operating the
<br />project.
<br />
<br />(c) Declare the whole of said indebtedness immediately
<br />due and payable and then proceed with the foreclosure
<br />of the mortgage.
<br />
<br />(d) Apply to any court, State or Federal, for specific per-
<br />formance of this Agreement, for an injunction against
<br />any violation of this Agreement, for the appointment of
<br />a receiver to take over and operate the property in
<br />accordance with the terms of this Agreement, or for such
<br />
<br />other relief as may be appropriate, since the injury to
<br />HUD arising from a default under any of the terms of
<br />this Agreement would be irreparable and the amount of
<br />damage would be difficult to ascertain.
<br />
<br />(e) Require the Mortgagor to transfer all of its right title and
<br />interest in the project and to all project assets to a
<br />private nonprofit corporation designated by HUD and,
<br />for this prupose the Mortgagor hereby constitutes and
<br />appoints HUD its true and lawful attorney-in-fact, with
<br />full power of substitution in the premises, to transfer the
<br />project and all project assets to the private nonprofit
<br />corporation designated by HUD, if the Mortgagor fails
<br />or refuses to make such a transfer as required by HUD.
<br />
<br />16. (a) Mortgagor has executed the Project Rental Assistance
<br />Contract. The terms of the Project Rental Assistance
<br />Contract, when executed, shall be incorporated by ref-
<br />erence into this Regulatory Agreement.
<br />
<br />(b) A violation of the Projcct Rental Assistance Contract
<br />may be construed to constitute a default hereunder in the
<br />sole discretion of HUD.
<br />
<br />(c) In the event said Project Rental Assistance Contract
<br />expires or terminates before the expiration or termina-
<br />tion of this Agreement, the provisions of this paragraph
<br />and any other reference to said Contract, and to assisted
<br />units contained herein shall be self-cancelling and shall
<br />no longer be effective as of the date of the expiration or
<br />termination of the Project Rental Assistance Contract.
<br />
<br />17. As used in this Agreement the term:
<br />
<br />(a) "Default" means a default declared by HUD when a
<br />violation of this Agreement is not corrected to its
<br />satisfaction within the time allowed by this Agreement
<br />or such further time as may be allowed by HUD after
<br />written notice;
<br />
<br />(b) "Distribution" means any withdrawal or taking of cash
<br />or other assets of the project other than for payment of
<br />reasonable expenses incident to its construction, opera-
<br />tion and maintenance;
<br />
<br />(c) "Mortgage" includes "Deed of Trust", "Chattel Mort-
<br />gage" Declaration of Covenants" and any other security
<br />for the Note identified herein;
<br />
<br />(d) "Mortgaged Property" includes property, real, per-
<br />sonal, or mixed, covered by the mortgage or mortgages
<br />securing the note held by HUD;
<br />
<br />(e) "Mortgagee" refers to the holder of the mortgage iden-
<br />tified herein, its successors and assigns;
<br />
<br />(f) "Project" includes the mortgaged property and all its
<br />other assets or whatsoever situate, used in or owned by
<br />the business conducted on said mortgaged property;
<br />
<br />(g) "Residual Receipts" means any cash remaining after;
<br />
<br />(1) The Payment of;
<br />
<br />(i) All amounts required to be deposited in the
<br />reserve fund for replacements;
<br />
<br />Page 4 of 5
<br />
<br />form HUD.92466.CA (4/92)
<br />ref. Handbook4571.4 & 4571.5
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