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<br />84:::'- 005482
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<br />(1) All distnbutions shall be made only as of or after the end of d st.:miannual or annual fiscal period,
<br />and only as permitted by the law of the applica.ble jurt~diction; all such dIstributions in (:toy one
<br />H5t:"B! Yi?~!' she.!! he ti~!!ed tc ~i~ pc:- '::CuttOiIi Gii the ~iiitidi equity investmen[, whicn shall be deter..
<br />mined by the Commissioner: the right to such distrIbution shall be cumulative;
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<br />(2) No distribution shall be made from borrowed funds Of" prior to th~ !:om~!eti:-:-~ ~f t~~ r~.r.;;>..-t.
<br />or when there IS any default under this agreement Of. under the note or mortgage;
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<br />(3) Any distnbutiQn of any funds of the project. which the party r€,('f"~! \ling such funds is not entitled
<br />to retain hereunder, shall be held in trust separate and apart from any other funds;
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<br />(4) There shaH have been compliance with all outstanding notices of requirements for proper main-
<br />tenance of the project.
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<br />(f) Engage, except for natural persons, in any other business or activity, including the operation of any other
<br />rental pr:eject, 0:- incur any liCibility or obiigation not in connect}.on with the project;
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<br />(g) Require, as a condition of the occupancy or leasing of any unit in the project, any consideration at' de-
<br />posit other than the prepayment of the first month's rent plus a security deposit in an amount not in excess
<br />of one month's rent to guarantee the performance of the covenants of the lease, Any fund collected as se-
<br />curity deposits shall be kept separate and apart from all other funds of the project in a trust account the
<br />amount of which shall at all times equal or exceed the aggregate of all outstanding obligations under said
<br />account;
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<br />(h) Permit the use of the dwelling accommod.:tio"s :;f '",' , 'oject for a~., purpose except the use which was
<br />originally intended, 0. permit commercial use greati" . 8n tnat originally approved by the Commissioner;
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<br />(i) Incur any liability, direct or contingent,otherthan for current operating expenses, exclusive ofthe in-
<br />debtedness secured by the mortgage and necessarily inrident to the execution and delivery thereof;
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<br />(j) Pay any compensation. including wages or salaries, or incur any obligahOl'5, to themselves, or any officers,
<br />directors, stockholders, trustees, partners. beneficiaries under a trust, or 10 Hny of their nominees;
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<br />(k) Enter into any contract or contracts for supervisory or managerial services
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<br />7. Owners shall maintain the mortgaged premises, accommodations and the grounds and equipment appurtenant
<br />thereto. in good t'epair and condition. In the evenf ~1l or any of the bulldillg~ l,;OVC[eQ by the mortgage sbaU 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 />8. Owners shall not file any pehtion in bankruptcy, or for a receiver, or in insolvency, or for reorganization or com--
<br />position, or make any assignment for the benerit or creditors or to a trustee for creditors or permit an adjudication.
<br />in bankruptcy, the taking possessIOn of the mortgaged property or any part thereoi by a receiver,ol tllesei"Ule
<br />and sale of tho. mortga~ proper ty Ot any par t thereot under judicial process or pursuant to any power ot sale.
<br />and fail to have such advefSe actions set aside within forty-five days.
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<br />9. (a) Owners shall provide forthe managemellt of the ptoject in a manner satisfactory to the Co. ",';;5i",:_. Any
<br />me=ge;::;cm.t wilti-.:t clltaed inio by VwoelS, or any of them. involving the project Slltul contain a provision
<br />U..t it ~i1n he ~Ugjet:~ to termination, 'MlthOUt penalty and with Of without cause, upon written request by the Coaa-
<br />missionet addressed to tbe Owners, Upon receipt of such request Owners shall immediately terminate the.onuact
<br />w!thln a period of not. iiiVi"€' than thirty (30) days and shall make arran&ements satisfactory to the Commissioner
<br />for conlinwng proper management of the project.
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<br />(b) Payment for service s; supplies, or materials shall nut e..ceed the amount ordimuiiy paid for such Sl'rVlces;t
<br />suppHes" or fQdteriQis in the area where the services are rendered or the supplies or matiHh.als furnished"
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<br />(c) The mQrtgaged property, equlpment, buildings. plans, offices, apparatus, devices, books, contracts. records,
<br />documents, and otber papers relating thereto shall at all times be rnaintnlfied 10 reasonable conditIOn for proper
<br />alKht and shall be subject to examinal10n and lnspection at any reasonable time by the CommiSSioner Or his
<br />duly authorized agents, Own"", shall keep copies of all written contracts or other instrumenls which affect
<br />the mortga&ed ptoperty, all or any of which may be subject to inspeclion and exami....tion by the Commissioner
<br />or his duly authorized agents.
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<br />(d) The books and accounts of the operations of the mortgaged property ,,"d of Iht' ploJt'd shdll b,' kepI III
<br />accordance with. tbe requirements of the Commlsslon~r.
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<br />(eo) Within sixiy days following the end of each fiscal year the ComnusslOnt'r ~hal! be fUHllShcd With d ,"om..
<br />plete annual financial reporl based upon an exemlllallon of the books and reco:ds ut Ihe 1l10rtg"ll,or prepared 10
<br />accordance with the requlrenlents of the COmmISSJOner, certified to by an officet O[ responsible Owner .Ind, whe-n
<br />requ.ated by the CQmmiss.ionelJ prepared. and cerufied by ~ Ct"rhhed Puulic AC\'l,)unt..wt. l.H llth~r P"'CSlIll HLl..'qJt-
<br />able tu the COtM:lissionec,
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