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<br />{3} Any distribution or any funds of the project, which the patty receiving such funds is not entitled tv retain
<br />I,creunder, shall be held in trust separate and apart Pram any ether funds; and
<br />{q} There shall have been eontpiiarice with ati outstanding notices of requirements for proper maintenance of the
<br />project.
<br />((} Engage, except for natural persons, in any other business or activity, including rite operation of any other rental
<br />project, or incur any liability ar obligation ns?t in cnnrteetion wish the project.
<br />"°~ {g) Require, as a condition of the occupancy or leasing of any unit in the project any consideratdon ar deposit other than
<br />,~ the prepayment of the first month's rent, plus a security deposit in an amount nut in excess of one month's rent
<br />(the gross family contrfGtation to Section 8 uxitsJ to guarantee the performance of the covenants of the lease. Any
<br />funds collected as security deposits shalt be kept sQparats and apart from all- ether Funds of the project in a trust
<br />„~ account the amount of which shall at ati times equal or exceed the aggregate of all outstanding obligations under said
<br />account.
<br />~ {lt} Permit the use of the dwelling accommodations of the pmject far any purpose except the use which Xas originally f
<br />intended, or permit commereiat use greater than that originally approved by rite Secretary.
<br />q. {a} Owners have executed an Agreement to enter into a Housing Assistance Payments Contract or have executed a Hous-'
<br />ing Assistance Payments Contract if an insurance upon completion case. The terms of said Contract are or shall be
<br />incorporated by reference into this Regulatory Agreement.
<br />{b) A violation of the terms of the Hauling Assistance Payments Contract may be construed to cinstitute a default
<br />ltersunder in rite sole discretion of the Seecetary.
<br />{c) In the event said Housing Assistance Payments Contract expires yr terminates before the expiration or termination
<br />of this Agreement, the provisions of *.his paragraph 9 and am' other reference to said contract, to Section 8 and tv
<br />Section 8 units contained herein shall be self-cancelling and shat! no longer be effective as of the date of the expiration
<br />or termination of the Housing Assistance Payrents i!'aniract.
<br />tQ. Owners shall maintain the mortgaged permises, accommodations and the grounds and Equipment appurtenant thereto,
<br />in good repair and condition. In the event aL or any of the buildings covered by the mortgage snail be destroyed ar dam•
<br />aged by fire or ether casualty, the money derived tram any insurance on the property shall be appli~dsn aaordance with
<br />the terms of the insured mortgage.
<br />l 1. Oweters shall not site any petition in bankruptcy yr for a receiver a.* in insolvency or far reorganization or cvmpo~tion, yr
<br />make any assignment for the benefit of creditors or to a trustee for creditors, ar permit an adjudication in bankruptcy or the
<br />taking possession of the mortgaged property or any part thereof under iiidicial proo°ss yr ptr.•st~ant to any power _- ale,
<br />and £aii to have such aav?rse actions set aside within fortyftve {45}days.
<br />l2. ~a) Any management contract entered into by Owners ar any of them htvolving the project shalt contain a provision that,
<br />in the event of default hereunder, it shall be subject to termination without pertaky upon written regtssst by the
<br />Secretary. Upon such request, Owners shag immediately arrange'to terminate Lhe contract within a period of riot more
<br />urtatt thirty {3t?} days and shall make arrangements satisfactory to the Secretary fnr conthtuing proper ranagement of
<br />the project.
<br />(b} Payment for services, supplies, or materials shalt not exceed the amount ordinarily paid for such services, supplies or
<br />materials famished.
<br />{c} The mortgaged praprrty, equipnrert, buildings, Plans, offices, appsratu;, devices, books, contracts, records, docur~nts,
<br />and other papers relating thereto. shall at all times be maintained in reasonable condition forpzoper audit and subject
<br />to examination and inspection ai any reasonable time by the Secretary or duly authorized agents of the Secretary.
<br />Owners shaII keep copies of all written contracts yr other instruments which a€fect Ehe mortgaged property, all or any
<br />of which may bs subject to inspection and examination by the Secretary or duly authorized agents of the Secretary.
<br />{d} Tlie books and axouats of the operations of the mortgaged property and of the projece shall be kept in accordance
<br />with the rquiremenis of the Secretary.
<br />{s) Nrithin sixty (6t3} days following the end of each fiscal yeaz, the Secretary shall be famished with a complete annual
<br />fmanciai report based upon an examination of the banks and records of mortgagor prepared in accordance with the
<br />regttirsments of the Secretary, certifxd to by an afftcer or responsible Owner and, when required by the Secretary,
<br />prepared and c~rtifled by a Certifted Public Accountans, or other person acceptable tv the Secretary>
<br />{t} At request of rite Secretary, or duly authorized agents of Ute Secretary, the Owners shall fuinishmnnthly occupancy _
<br />reports and shat! give specific answers to questions upon which information is desired from dine to tirris relative to the
<br />in,-ame, assets, liabilities, coniraU, operation, and condition of the property and the status of the insured marigage.
<br />(g} All rents and oGh€r receipts of the project shall be deposited in the name of the project is a bank, whose dego&its are
<br />inst;red by the P.fl.I.C. Such funds shall be withdrawn-only in accordance with the provisions of this Agreement for
<br />expenses of lire pmject or for distributions of surphrs cash as permitted by Paragraph 8{e}above. Any Owrter receiving
<br />funds of the piojset other than by such disttibutitrn of surplice cash shall immediately depot such funds in the project
<br />bank account and failitrg so So do in violation of this Agreement shall .hold such funds in trust. Any Owner receiving.
<br />property of ins project in violation of this ~greemsnt shell_imtttediately deliver such property to the project and
<br />failing ro to do shall hold such property in trust:- At such rims as the Owners shall have lost comrol and/or posses.
<br />dm of the project, all funds held in trust shall. be delfvstx;d to the mtiiigages to the extent that the mortgage indebted-
<br />ness has not 1:.°etr sated.
<br />3 ~- HUD-92466 (6~J71
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