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<br />8Lt"'- 005483
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<br />(1) All distributions shall be made only as of or after the end of a semiannual or annual fiscal period,
<br />and only as permitted by the law of the applicable jurisdiction; ~ll such distributions in anyone
<br />fiscal year shall be limited to six per cent!.u!!- C~ the ini~ial eifuii.y investment, wj,ich shall be J~~ter-
<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 or prior to the completion of the project,
<br />or when there IS any default under this agreement Of. under the note or mortgage;
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<br />(3) Any distribution of any funds of the project, wh;ch the party receiving such funds is not entitled
<br />to retain hereunder, shali be l-,oeld in trust separate and apart from any other- funds;
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<br />(4) There shall heve been compliance with all outstending notices of requirements for proper main-
<br />tenance of the project.
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<br />({) Engage, except for natural persons, in' any other business or activity, induding Ihe operation otanyother
<br />rental project, or incur any liability or obligation not in connection 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 or de-
<br />posit other than the prepayment of the first month's renl plus a security deposit in an amount not in excess
<br />of one month's rent to guarentee the performance of the covenants of the lease, Any fund collected as!ie-,
<br />curity deposits shall be kept separate and apart from all other funds of the project in a tr,ust account the
<br />amount of which shall at ell times equsl or exceed the aggregate of all outstanding obligations,onder'said,
<br />account;
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<br />(1) Incur any 'liability, direct or contingent, other than for current operating expenses,exclusive,">fthe irt;.
<br />debtedness secured by the mortgage end necessarily incident to the execution and delivery thereof;
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<br />(h) Permit the use of the dwelling accommodations of ,- project for any purpose excepHhe use whiCh waS
<br />originally intended, or permit commercial "s" g''''''-'' ":;rl that ori;!ina' ~i epproved by theCommisl!iolle!';
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<br />(j) Pay any compensation. including wages or salaries, or incur any obligations, to themselve$~ 'of -any Off~c~.~~-,
<br />directors, stockholders, trustees, partners, beneficiaries under a trust, or to any of their nominees;
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<br />(k) Enter into any contract or contracts far supervisory or managerial services
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<br />7, Owners shall maintain the mortgaged premises, eccommodations and the grounds and equipment appurtenant
<br />thereto, in good repair and condition. In the event all or any of the buildings covered by the mortgage shall be
<br />destroyed or dameged 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 petition in bankruptcy, or for a receiver, or in insolvency, or for reorganization or com-
<br />position, or make any assignment for the bene. it 01 creditors or to e trustee for creditors or permit en adjudication
<br />in bllnktuptcy, the taking possession of themortgeged property or any partthereof by a receiver,or th<:seiaur!t
<br />and sale of the mortgaged proper ty or any par t theren! under judicial process or pursuant to 8t!y power olsaie,
<br />and feU to have such edverse actions set aside within forty-five del'S.
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<br />9. (a) Owaers shall proviclll for the IIIlUllI&eMJlt of the project in a mann<:r salisfaetoty to the CommissiouOf. Any
<br />mallll~nt contract entered into by OwuelS, or any of them, involving the projllCt SNlll contain a provls~
<br />that it shall be subject totermm&t!o!!, \Y.ithout penalty and with Oiwithoutcause, upon wri.tten req,uest by the Co.
<br />missioner addressed to the Owners, Upon receipt of such request Owners shall immedietely terminate the.,:onuact
<br />within 9 period of not more than thirty (30) days and shall make arrangements satisfactory to the Commissioner
<br />for continuing proper management of the project.
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<br />(b) Payment for services, supplies, or materials shall not exceed the amount ordinarily paid fot such s,'rvices,
<br />suppiies, ot materials in the area where the services are !endered 0: the Supplies Or Indteri~is furnished.
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<br />(c) The mortgaged property, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records,
<br />documents, and other papers relating thereto shall et all times be maintained in reasonable condition for proper
<br />eudit end shall be subject 10 examination and inspection at any reasonabte time by the Commissioner or his
<br />duly eutbonzed agents. Owners shall keep copies of all written contracts or other instruments which affect
<br />the mortgaged property, all or any of which may be subject to inspection and examination by the Commissioner
<br />or his duly authorized agents.
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<br />(d) The books and llCcounts of the operations of the mortgaged property and of the project shall be kept in
<br />accordance with the requirements of the C.,mmissioner.
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<br />tel Within sixty dllys follOWing the end of each fiscal year the Commissioner shall be furnished with a com-
<br />plete annual financial report based upon lID examination of the books and records of the mortgagor prepared in
<br />accordance with the requirements of the Commissioner, certified to by an officer or responsible Owner and, when
<br />required by the Commissioner, prepared and certified by a Certified Pubhc Accountant, or other person accept-
<br />able to the Commissioner.
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