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79- l.~(~335~
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<br />(7) Mortgagor shall not without the written approval of the Secretary:
<br />(a) Transfer, dispose of or encumber any of the mortgaged property. Any such transfer
<br />shall be only to a person or persons or corporation satisfactory to and approved by HUD,
<br />who shall, b legal and valid instrument in writing, to be recorded or filed in the same
<br />recording office in which conveyances of the property covered by the mortgage aze re-
<br />quired to be filed or recorded, duly assume all obligations under this agreement and under
<br />the Note and Mortgage;
<br />(b) Assign, transfer, dispose c`, or encumber any personal property, including rents or
<br />chazges, and shall not disburse or pay out any funds escept s provided herein and in
<br />the Building Loan Agreement ;
<br />(c) Remodel, reconstruct, add to, or demolish any part of the mortgaged property or sub-
<br />tract from any real or personal property of the pro,Jject-,
<br />(d) Pay any compensation or make any distribution of income or other assets to any of its
<br />officers, directors or stockho]ders;
<br />(e) Enter into any contract or contracts for supervisory or managerial services;
<br />(fl Require, as a condition of occupancy or leasing of anv unit in the project, anv consider-
<br />ation or deposit other than the prepayment of the first month's rent (the gross family con•
<br />tribution in Section 8 units) plus a security deposit in an amount not in excess of one
<br />month's rent to g-uazantee the performance of the covenants of the lease. Any fund collec-
<br />ted as security deposits shall be kept separate and apazt from all other funds of the project
<br />in a trust account the amount of which shall at all times equal or exceed the aggregate of
<br />all outstanding obligations under said account:
<br />(g) Permit the use of the dwelling accommodations of the project for any purpose except
<br />the use ,yhich ,,,~ eriginail; .,.., n~ed.., pe....it comme.c.al u,° than t; a~ ~r,g-
<br />.. s,eatcr
<br />finally approved by HUD;
<br />(h) Amend its azticles of incorporation or by-laws other than as permitted under the terms
<br />of the articles of incorporation spproved by HUD.
<br />(8) Mortgagor shall maintain the mortgaged premises. accommodations and the grounds and
<br />equipment appurtenant thereto, in goad and substantial repair and condition: PROVIDED
<br />THAT, in the event all or any of the buildings covered ba the mortgage shall be destroyed or
<br />damaged by Fire or other casualty. the money derived from any insurance on the property
<br />shall be applied in accordance with the terms of the mortgage.
<br />(9) Mortgagor shall not file any petition in bankruptcy, or for a receiver, or in insolvency, or for
<br />reorganization or composition, or make any assigment for the benefit of creditors or to a
<br />trustee for creditors; or permit an adjudication in bankruptcy, the taking possession of the
<br />mortgaged property or an}- pazt thereof by a receiver, or the seizure and sale of the mortgaged
<br />property or any part thereof under judicial process or pursuant to any power of sale and fail
<br />to have such adverse actions set side v4•ithin 45 days.
<br />(10) Mortgagor shall from funds other than project income immediately satisfy or release any
<br />mechanic's lien, attachment, judgment lien , or any other lien which attaches to the mortgage
<br />property or any personal property used in the operation of the project, and shall dismiss or
<br />have dismissed or vacated any receivership, or petitian in bankruptcy or assignment for benefi
<br />of creditors, creditors bill or insolvency proceeding involving the project or the mortgaged
<br />property.
<br />(11) !a) if the Mortgagor has any business or activity other than the project and operation of the
<br />mortgaged prcpenc, it shall maintain all income and other funds of the project segregate
<br />from any other funds of the mortgagor and segregated from an}• funds of any other cor-
<br />poration or person. Income and other funds of the project shall be expended only for
<br />the purposes of the project.
<br />(b) Mortgagor shall contract for independent professional management of the project in a
<br />manner satisfacton to HUD. Any management contract entered into by the mortgagor
<br />invoh~ittg the project shall Contain a provision that it shall be subject to termination,
<br />without penalty and with or without cause, upon «Titten request by HUD addressed
<br />to the Mortgagor and the management agent. Upon receipt of such request the Mortgage
<br />shall immediately move to terminate the contract within a period of not more than 60
<br />days and shall make arrangements satisfactory to HUD fae continuing proper manngemen
<br />of the project.
<br />(c) Neither Mortgagor nor its agents shall make any payment for services, supplres, or mater-
<br />ials unless such services ate actually rendered for the project or such supplies or materials
<br />are delivered to the project and arc reasonably necessary for its operation. Payments fnr
<br />such services, or materials shall not exceed the amount ordurazily paid for such services,
<br />supplies, or materials in the azea where the sezices are rendered or the supplies or mater-
<br />ials furnished.
<br />(d) The mortgaged property, equipment, buildings, plans, offices, devices, books, apparatus,
<br />contracts, records, documents, and all other papers relating thereto shall at all times be
<br />maintained in reasanable condition for proper audit and subject to examination and in-
<br />spection at any reasonable time by HUD and its duly authorized agents. Mortgagor and
<br />its successors, assigns or its agents shai_1 retain copies of all written contracts or other in-
<br />struments which affect the mortgaged propert}', all or any of which may be subject to
<br />inspectian and examinatior, by HUD or its duly authorized agents. ~
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