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<br />{3) Arty distribution or auy funds u( [he project, which the laarty receiving such (umis is not entitled to retain
<br />hereunder, shall be held in trust separate and apart from any other hinds; and
<br />(4} Thrrr shat} have been compliance with all outstanding notices of requirements for proper maintenance of the
<br />project.
<br />(f) engage, except for natural persons, in any other business or activity, including the operation of any other rental
<br />project, or incur any liability ur obligation not in connection with the project.
<br />{g) Require. as a condition of ttie occupancy or Ieasin¢ of any unit in the project any consideration or deposit other than
<br />the prepayment of the first month's rent, plus a security deposit in an amount not in excess of one month's rent
<br />/the guars janri/f~ contribution in Section 8 trnitsJ to guarantee the performance of the covenants of the lease. Any
<br />funds coiiected as security deposits snail be kept separate and apart from all other funds of the project m a trust
<br />account the amount of which shat! at all times equal or exceed the aggregate of all outstanding obligations under said
<br />sccount.
<br />(ht Permit the use of the dwelling accommudatiuns of the prulect for an} purpose except the.usc which was originally
<br />-intended, nr permit commercial use greater than that uriginailp approved by the Secretary.
<br />9. (a} Owners have executed an Agreement w enter into a Houstng Assistance Payments f VMfaCt or have executed a Hous-
<br />ing Assistance Payments Contract if an insurance upon completion case. The terms of said Contract are or shall he
<br />incorporated by reference into this Regulator Agreement.
<br />(b) A violation of the terms of the Houstng Assistance Payments Contract may he construed to constitute a default
<br />hereunder in the sole discretion of die Secretary.
<br />(c) In the event said Housing Assistance Payments Contract expires or trr,ttmates before the cxpuation ur rsmmation
<br />of this Agreement. the pronsiuns of the paraeraph 9 and am~ other reference to said contract, ro Secuun ri and to
<br />Section 8 onus contained herein shall be self-cancelling and shalt no lancer 6e effecuve as of the date of the expuauon
<br />ur termination of the Housing Assistance Payments Contract.
<br />l0. Owners shalt maintain the tnurtgaged permises, accommodations and the ,rounds and equipment appurtenant thereto.
<br />in gaud repair and eondinon. in the event afl or any uY rhr buiidmes covered by the aturlgage shat! be drstroced .,r dam-
<br />aged by Lire ur other casualty, the money derived from am uuruuncr ,;u ;hr f~roperty shall be applied in arcunlanee srnh
<br />the terms otthe insured mortgage.
<br />I (. Owners sltail nut t31e any petttx>n in bankruptcy or for a receiver :rr m Insolvency of for ~rorganiza[ion ur composition, or
<br />make any assrgtiment for the benefit ui creditors or to a trustee tut ;rdtt~.rts, ,.r permit an adjudicauun m bankruptcy or the
<br />taking possession of the mortgaged property ur any ;cart thereof ur:,~-°_r -_...~:ui ; r,~crss o ;;ursuant to any power crf sale.
<br />and feu to have such adverse aeuuns set aside within tarty-flue (J,} JaY s.
<br />i_'. (a) Any management euntraet entered into by Owners oI any ,,; them utvolvme the }rro~ect shall curtain a provision that.
<br />in the event of default hereunder, it shall br subject to terrneuahun wuitOUt penalty ui>un wntten reyuest by the
<br />Secretary. Lpon such reyuest, Owners shall immedratety arrange to terminate rhr c,m:ract within a period of not more
<br />than thirty (30) days and shall make arrangrnrents satisfacutey to the Secretary fur cunttnuing proper management oC
<br />the project.
<br />{b) Payment for serviws, supplies, :n ma[euals shall nut exceed dm• amount ~xdurarii} paid for such services, supplies or
<br />materials furnished.
<br />(c) The mortgaged property, equipment, buildings, plans, ofticas, apparatus. devices, books. contracts, records, documents,
<br />and other papers telaung threw shall at all times 1)e maintained in rcasoi!ahte cundinnn fur proper audit and subject
<br />to examination crud mspacuon at any reasonable torte by the Secretor} or duty authunzed agents of the Secretary.
<br />Owners shall keep copies of all wnRen contracts or ,xhe~ msuuments which affect die nturtgaged properly, all ur any
<br />of which may be wbject u> inspection and examutation ity the Secretary or July authorized agents of the Secretary.
<br />(d) Fha buvks and accounts of the uprrattcros of ttzc mortgaged pnrpeny and of tt!e project shall be kept in aceardanea
<br />with the reyuiremerus of the Secretary.
<br />{e) Within vxty° {60) days following the and ui each dscai year, die Setnaety shall be furnished with a complete ennual
<br />tluancia! report based upon an rxammavon r,f the hooks a.~d records . mortgagor prepared m accordance ~..~ti4 the
<br />reyuirrntonts of the Secretary, certitled w oy an officer ur respu!table Owner and, when requurd by the Seuctart,
<br />prrpa:cd and certified b} a Certit2ed Public Accountant, or other nrrsurt acceotablr to the Secrc tars.
<br />{f) At reyuest of the Secretan, ur duly authorized agcr,t, ,; 'h. Secretap. tits Owners shat furnish iu~auidy c~cupancy
<br />tepurts and shall glue sixcllic answ-ors to yu2sttnns upuri wiui h rnlurmauon is desired from uma t;= umr relatrve to the
<br />.!eco!ttr~, es_vas, iiehiiitirs, ;.,urea.:. utx'raoun, an.! eanJttr.-u ut rite pna.en} anu me status „t rite msureu mortgage.
<br />{g} All rents and Otttfr aaceipis u( [he pru}ect shall br dr}wsttcJ m tLe mama of the p;o~ect m a hank, whoa Jeh~~es etc•
<br />insured by rhr E.D.i.C. Such funds s}tatt tx withdrawn •. my m ;c"~rdar,c. with the piuvni~nu,.f this:\grecnieut i.,r
<br />cxl>ensg8 u! rhr pmjeet or fat distnbuuuns u! surplus cash .u pcrniuteJ by Paragraph rt(e) above. An} Owner rdc v,,,g
<br />funds of-rhr pn~ect oilier than by such disuibuiiun oC sw plus ~a>ft shalt nnmediatriy Jepusit such fwidi ut lire i~: ute~t
<br />bank aecowrt and faiiing sc to Ju in violation .;t this Agreetteent shah h.H.i sa~lr (urocis .n trust. :flit Ownei i. i'crs::t r
<br />prup~erty oI the project m nulauutr of flits Ateement slstl} untttt~drattly deliver siec6 pA;prr;y ro the i~r,,;cci and
<br />f:,tl~g so to da aha}1 hold such property in trust- At soh tune as tt:e Owners ;Iran have lost atrtud :mJ .,r ;:osscs-
<br />~ort of dre project, a!1 funds held hr trust sFtatl be delivered w the nteuga~ :~~ ;ire eztrm tiiar rim nacre tyage tnJehtel-
<br />ness has not beer. satisfied.
<br />+..~ 9:d6&.6 ~..
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