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<br />(7j Mortgagor shall not without the written approval of the Secretary:
<br />(a) Transfer, dispose of or encumber any of the mortgaged property. An such transfer €
<br />sha13 be only to a Person ur persons or corporation satisfactory to and approved by HUD,
<br />who shalt, b legal and valid instrvment in writing, to be recorded or filed in the same- ':
<br />recording office in which conveyances of the property covered by the mortgage. are re- '
<br />quired to be filed or recorded, duly assume all obligations under this agreement and under
<br />thz Noce and Moztgage;
<br />(b) Assign, transfer, depose of, or encumber any personal property, including rents or e
<br />chazges. and shall not disburse or pay out any funds except as provided herein and in a
<br />the Building Loan Agreement ;
<br />(c) Remodel, reconstruct, add to, or demolish any part of the mortgaged property ar sub-
<br />tract from any real or personal property of th project;
<br />(d) Pay any compensation or make any distribution of income or other assets to any of its )
<br />officers, directors or stocl.holders; f
<br />{e) Enter into any contract or contracts for supervisory or managerial services; (
<br />(f} Require, as a condition of occupancy or leasine of any unit in the project, any consider- }
<br />anon 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 guazancee the performance of the covenants of the lease. Any fund collec-
<br />ted as security deposits shall be kept sepazate 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; e
<br />(g) Permit the use of the dwelling accommodations of the project Yor any purpose except =
<br />the use which was originally intended, or permit commercial use greater than that orig-
<br />inally approved by HUD; I
<br />(h) Amend its articles of incorporation or by-laws other than as permitted under the terms
<br />of the articles of incorporation approved by HUD.
<br />(8) Mortgagor shall maintain the mortgaged premises, accommodations and the grounds and
<br />equipment appurtenant thereto, in good and substantial repair and condition: PROVIDED s'
<br />THAT, in the event all or any of the buildings covered by the mortgage shall be destroyed or j
<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 assignment for the benefit of creditors or to a
<br />trustee for creditors; ar permit an adjudication in bankruptcy, the caking possession of the !
<br />mortgaged property or any put thereof by a receiver, or the seizure and sale of the mortgaged '',
<br />property or any parr thereof under judicial process ur pursuant to any power of sale and tai!
<br />to have such adverse actions set aside within 45 days. j
<br />(14) Mortgagor shall fram 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 mortgaged,
<br />property or any personal property used in the operation of the project, and shall dismiss or j
<br />have dismissed or vacated any receivership, or petition in bankruptcy or assignment for benefit3
<br />of creditors, creditors bill or insolvency proceeding involving the p: oject or the mortgaged !
<br />property. ~
<br />(I1) (a) if the Mortgagor has any business or activity other than the pro,Iect and operation of the
<br />mortgaged property, it shall maintain all income and other funds of the project segregacedj
<br />fiom any other funds of the mortgagor and segregated from any funds of any other tor- 1~
<br />potation 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 indrpendent professional management of the project in a
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<br />manner satisfactory to HUD. Any management contract entered into by the mortgagor
<br />involving the project shall contvrr a provtsion that it shall be subject tt~ termination,
<br />without penalty and with of without cause, upon written request b}• HUll addressed
<br />to the Mortgagor and the management agent. Upon receipt of such rcyuest the Moregagor~
<br />shall immediately move to terminate the contract within a period of nut more than 60 ~
<br />days and shad make arrangements satisfactory to HUD for continuing proper managemenq
<br />of the project. ~
<br />(c) Neither Mortgagor nox its agents shall make any payment for servues, suppL~a, ...r mat~r-
<br />ials unless such services are actu:dly rendered for the projector such supplies or m.tiznals 111
<br />are delivered to the project and arc reasmtably necessary fur its operation. Payments for
<br />such services, or matenals shall nut exceed the amount ordinazily paid for such servtczs,
<br />supplies, or materials in the area where the cervices are rendered or the supplies or stater- 1
<br />ials furnished.
<br />(d) T'hc mortgaged property, zyuipment, buildings, plans, offices, devices, books, apparaws,
<br />contracts, rewrds, documeuts, arrd all other papers relating thereto shall at all times be
<br />maintained to reasonable condition for proper audit and subject to examinauon and in-
<br />spection »t any reasonable tune by HUi3 arrd its duly authorized agents. AturtKagor and
<br />its sucatssurs, assigns or its agents shat. retain copies of a!1 written contracts ur udtcr m
<br />strumenrs wL-ich affect the mortgaged pn:pzrty, ail or any of whuh vtay be slbjra t..
<br />ll}Spe CE.Jn aril CX:1::1'.n..-`_.(iri b~ It ~~l. :.; its dt':i}' dtlt t?t?r 1Zt'il aFC i?Ci. -
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