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<br />{h) If mortgage is insured under Section 231, Owners ar hessee slt<~ll at all tunes maintain in ful! force and effect fream ±hc•
<br />State or ether licensing authority such license as niay be required to orate the project as housing fiir the elderly.
<br />23. Owners will co,nply with the provisions of any Federal, State, or local law prohibiting discrimination in housing on the
<br />grounds of race, color, religion or creed, szx, or national orgin, including Tit!e `JI of the Civll Rights Act of 1964 (Public
<br />Lasv 8$--352, 78 Stat. 241 J, Titre VI11 of the Civil Rights Act of 1~6$ (Public law 40-284,82 Stat. 73J Executive Order
<br />11063, and all requirements imposed by or pursuant to the regulations of the 1:7epariment of Housing and Urban I?evelop•
<br />merit implementing these authorities (irrclutltn~ 24 CFIt Parts 1, 106, and 110, and Subparts /arid M r~fPart 2f10J.
<br />1-"~. Upon ~ sdalatian of aray of th_ a+.,-^..vi previ~~~s of tl•,i.E Aarezrrart by rJwners, the ~creta.^y may give writtzn natirv, thereof,
<br />to Owners, by registered or certiYted mail, addressed ra t#te addresses stated in this Agreement, or such other addresses as-
<br />may subsequen±ly, upon appropriate written notice thereof to the Secrete,, be designated by the Owners as their legal ,
<br />husirress address. if such violation is nos carreeted to the satisfaction of the Secretary within thirty (30) days after the date _
<br />such notice is mated or within such further tirrre as the Secretary determines is necessary to correct the violation, without
<br />~~ further notice the Secretary may declare a default under this Agreement effective on the date of such declaration of default
<br />~.-. and upon such default the Secretary may:
<br />~' a t. If :Ire Secrets holds the note - declare the whole of said indebtedness immediate) due and 3 able and then
<br />{) (~. ry Y P~ Y
<br />proceed with the foreclosure of thz rnorfgsge;
<br />~ (ii) If said note is not held by the Secretary -notify the balder of the note of such de£au!t and request balder to
<br />i~ declare a default under the Hate and mortgage, and holder after receiving such notice and request, but not
<br />otherwise, at its optinn, may declare the whole indebtedness due, and thereupon proceed with forecloswe of
<br />the mortgage, or assign the Hate and mortgage to the Secretary as provltied in the Regulations:
<br />{b) Collect all rents and charges in connection with Ehc operation of the project and use such cotleciians to pay the
<br />abiigations under this Agreement and under the note and mortgage and the ne_mssary expenses of preserving the prop.
<br />eery and operating the project;
<br />{c) Take possession of the project, bring any a.^.t'ian necessary to enforce any rights of the Owners growing aui of ihs'
<br />project operation, and operate the project c. aczordance with the terms ,~f this Agreement unt; such time as the
<br />Secretary in his discretion determines that the Owners are again in a position to operate the project in accordance
<br />with terms of this Rgrzement and in camniiance with the requirerttents of the note sad mortgage;
<br />(d) Apply to any ~exen, Statz or Federal. for speci~tc perfarmancz of this Agreement; for an rrrjunciion agrainst any viola-
<br />tion of this Agreement, for the appouttntent of a receive= to take aver and eperatc the project in xcordsnce with the
<br />terms of the Agzeement, or for such other relief as may be annropriate, sir.~z the injury to the Secretary arising hom
<br />a default under any of the ?erms of this Agreement would ls,r irczparabiz and the arnuunt of damage would ~ difficult
<br />to ascertain.
<br />1S. As security far the payment due under this Agreement to rite reserve fund for replacement, and to secure the Secretary
<br />because of his liability under the endorement of the note for insurance, and as security far the other obligations under this
<br />Agrezment, the Owners respectively assign, pledge and mortgage to the Secretary their rights to the rents, profits, ineom~ and
<br />charges of whatsoever sort which they may receive or be entitled to rz;:eive from the operation of the mortgaged ptapdrty;
<br />subject, however to any assignment at rents in the insured mortgage referred to herein. lntil a default is declared. under this
<br />Agrezment, however. pemrission is granted to Owners to collect and retain under the previsions of this Agreement such rents,
<br />pra~tt, ittc time, and charges, but upon default this peemission is- terminated as to ai! rents due or collected therear'ter.
<br />I £. As usod in this Agreement the term:
<br />{a) "h4ortgage" includes "Iyezd of Trust", "Chattel 4-fortgage;' "Security Instrument," and any other securty far the
<br />note identified hereu, and endorsed far insurance or held by the Secretary:
<br />(g) "Mortgagee" refers to the balder ut` the martaage identified herein, its successors and assigns;
<br />{c) "Lywners" refers to the persons named in the first paragraph hereof and designated as "Owners, their successors, heirs
<br />and asvigns":
<br />{d) "Mortgaged property" includes all property, real, personal, or mixed, covered by the mortgage er mortgages securing
<br />the note endorsed for insurance ar held by the Secretary;
<br />{e) "I?roject" includes the mortgaged prapzrty and sit its atttzr asszts of whatsoever nature ar wheresoever situate, used in
<br />ar owned by the business conducted on s~i~ :-nortgaged property, which business candus-ted an said mortgaged
<br />property, which business is providing housing and other activities as are incidental thereto;
<br />{f) "Su.rplus Cash" fprufrf-motivated ClwnerJ or "Residnai ltzceipis" jnwrprofit QwnerJ rtcans any c:asi3 remaining at the
<br />end of a semiannual and annual fiscal periad'affer:
<br />{l) the payment af:
<br />{) AU sums due tie currently required to 6e-paid under the terms of any mortgage ornate instued or held
<br />tsy ttte Secretary; .
<br />{ii) All amounts required to 6e deposited in the gzserve fund far eeglacements;
<br />(iii) All obligations of the project tither than the insured mortgage. unless funds for payment are set aside or
<br />def'errrtent of payment has been approved by the Secretary; and
<br />-' 4 -- N~o ~zns, to r~i
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