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(h) If mcrtgege is insured under Section 231, Owners or Lessee shall at all times maintain in full Face and effect from the
<br />Stitt or other IicenOng authority such Ncettse as may be required to operate the project as housing for the elderly.
<br />l3. Owners will w,nply with the provisions of any Federal, State, or local law prohibiting discrimination in housing on the
<br />grounds of race, color, religia-r or creed, sex, or national orgin, including Title YT of the Civil nights AM of 1964 /public
<br />dew 8S-3,f2, 78 Star. 2d1), TiNe YIt! of the CivU Rights Act of 1968 (Poblic law 90-28,82 Star. 73J Executive Order
<br />] 1063, and all requirements imposed by or pursuant to the regulations of the Department of Housing and Urban Develop-
<br />ment implementing these authorities (irrclra,ifr{g 2S CFR Parrs 1, I00, and I10, and Subparts 1 and M of Pbrt 200/.
<br />]4. Upon a violation of any of the above provisions of this Agrcement by Owners, the Secretary may give written notice, thereof.
<br />to Owrtera, by regiattred or txrtified mail, addressed to the addresses stated in this Agreement, or such other addresses as
<br />may subaequtntly, upon appropriate written notice thereof to the Secretary, be desi¢nated by the Owners as their legal
<br />burirtess address. Tf such violation is not corneted to the satisfaction of the Secretary within thirty (30} days after the date
<br />such notice is mailed or within such further time as the Secretary determines ;; ntr~ssary to correct the violation, withcut
<br />further notice the Secretary may declare a default under this Agreement effective nn the date of such declaration of default
<br />and upon such default the Secretary may:
<br />I•
<br />r-i
<br />(a} .(i} If the Secretary holds-ihe note • declare the whole of said indebtedness immediately due and payable and then
<br />proceed with the forcclasure of the mortgage;
<br />(ii) If said note is not held by the Secretary - n:;tify the holder tit the note of such default and reyuest holder to
<br />declare a default under the note and mortgage, and holder after receiving such notice and reyuest, but not
<br />otherwise, at its option, may declare the whole indebtedness due, and thereupon proceed with foreclosure of
<br />the mortgage, or assign the note and mortgage to the Secretary as provided in the Regulations:
<br />(b) Collect all rents and charges m connection with the operation of the project and use such collections ro pay the
<br />obligatiores under thts Agreement and under the note and mortgage and the necessary expenses of preserving the prop
<br />erty and operating the ::rojecr,
<br />(c) Take possession of the protect, bang any action necessary to enforce any rights of the Owners crowing out u( the
<br />protect operation, and operate the project m accordann wuh the tomes of thts Agreement until such time as the
<br />Secretary rn tits discretion determines that the Owners are again in a position to operate the project in accordance
<br />with terms of this Agreement and m comp8ance with the reyuirements of the note and mortgage;
<br />(d) Apply to any court, State or Federal for spenfic pertnrmancc .>f this Agreement, for as iniunuhirnr against any viola
<br />tiou of this Agreement, for the appointment u(a rece,ver to take ,wet and operas the project in accordance with ihe
<br />terms of the Agreement, ur for such other relief as may br appropnate, since the uttury to the Secretary arising rrom
<br />a default under any of the terms of this Agreement would he irreparable and the amount of damage would he di} iituh
<br />to ascertain.
<br />I5. As security tin the payment due under ihrs Agreement w the reserve fund .or repla~cment, and to .ecum the Secrcrar}'
<br />because of his liability under the endorsement of the note for msuaance, and as security fur die other obhea;i-ms under this
<br />Agreement, the Owners respectively assign, pledge and mortgage :a the Secretor: their rrgtus to the Hots, p;ofas. mcunte and
<br />charges of whatsoever wet which they may receive ar be entitled in receive fro:r. tf:e operation nl the murtgag,~d propert}.
<br />subject, however to ar;y assigrtment of ants m the ensured mortgage referted to herein. Until ~ default is declared under dos
<br />Agreement, howevci, permrsswn is granted to Owner; to cotlr~ct and «r:un under the pro.rsruns of U,is Agreement such rents,
<br />profit, income. and :barges. trot unun default rhea pernuasn:a r, ten~trrarcd .u to ail tents due or a,ilzrted dtrreaf ter.
<br />16. As used in this Agreement der teen.
<br />(a) "Mortgage" includes "Deed of Trust", "Chattel ~tougage," "Secuuty Insvument." and any other scanty fur ti,e
<br />note identified herein and endorsed for insurance or held by the Srcretarv:
<br />(b} "Mortgagee" refers to the hotter of the mortgage rdentni,:d hr«m. its successors and assigns:
<br />(c} "Owner' refers to the persons named m the first paragraph her~oi sad de,rgn.,tcd as "Owners, rhea .uceeswrs. boos
<br />and assigns":
<br />(d} "Mortgaged Property" includes all prupetty, real, nenunal. „r anxrd,;voered'oy the mortgage ,n nu,ngagessecuring
<br />the note endorsed for insurance or held by the Secrtsry
<br />(e} "Project" includes the mortgaged property and all us other assets :;i •~hatsurver na[urc or wheresoever siwa:e, used m
<br />or owned bq the business cornducted on said mortgaged property, which business ~onductt:d on said Mortgaged
<br />property. whuh business is providutg housing and other aettvurcs asset tiles<!rr,tai thereto;
<br />(f} "Surplus Cash" /profit-motivated (hanerJ or "Residual Receipts" !nurrpr„jit Ureter! means any cash remaining at the
<br />end of a setn;annuai and annual fiscal period alter.
<br />(1) the payment u1:
<br />(i) All sums due or arrenlly required to be paid under the terms of any mort~ge or note toasted ur 1=cid
<br />by the Secretary,
<br />(ri) Ail antounts required to he deposited in the rescrYC fund fur repian•mrnta,
<br />(iii) Ail obligations c>f the prtect other il,an the insured mart gam unies+ fun+is !.x pay meat arc art asedr .n
<br />defernten! <if payment has been approrcd by the 5c~retar},;md
<br />. , enu~ „
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