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operate the project in accordance with the terms of this Agreement
<br />until such time as the Secretary in his discretion determines that the
<br />Owners are again in a position to operate the project in accordance
<br />with the terms of this Agreement and in compliance with the
<br />requirements of the note and mortgage.
<br />(d) Apply to any court, State or Federal, for specific performance of this
<br />Agreement, for an injunction against any violation of the Agreement,
<br />for the appointment of a receiver to take over and operate the project
<br />in accordance with the terms of the Agreement, or for such other
<br />relief as may be appropriate, since the injury to the Secretary arising
<br />from a default under any of the terms of this Agreement would be
<br />irreparable and the amount of damage would be difficult to ascertain.
<br />12. As security for the payment due under this Agreement to the reserve fund
<br />for replacements, and to secure the Secretary because of his liability under
<br />the endorsement of the note for insurance, and as security for the other
<br />obligations under this Agreement, the Owners respectively assign, pledge
<br />and mortgage to the Secretary their rights to the rents, profits, income and
<br />charges of whatsoever sort which they may receive or be entitled to
<br />receive from the operation of the mortgaged property, subject, however, to
<br />any assignment of rents in the insured mortgage referred to herein. Until a
<br />default is declared under this Agreement, however, permission is granted
<br />to Owners to collect and retain under the provisions of this Agreement
<br />such rents, profits, income, and charges, but upon default this permission
<br />is terminated as to all rents due or collected thereafter.
<br />13. As used in this Agreement the term:
<br />(a) "Mortgage" includes "Deed of Trust', "Chattel Mortgage ", "Security
<br />Instrument', and any other security for the note identified herein, and
<br />endorsed for insurance or held by the Secretary;
<br />(b) "Mortgagee" refers to the holder of the mortgage identified herein, its
<br />successors and assigns;
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<br />(2) the segregation of
<br />(i) An amount equal to the aggregate of all special funds
<br />required to be maintained by the project; and
<br />(ii) All tenant security deposits held.
<br />(g) "Distribution" means any withdrawal or taking of cash or any assets of
<br />the project, including the segregation of cash or assets for subsequent
<br />withdrawal within the limitations of Paragraph 6(e) hereof, and
<br />excluding payment for reasonable expenses incident to the operation
<br />and maintenance of the project.
<br />(h) "Default' means a default declared by the Secretary when a violation
<br />of this Agreement is not corrected to his satisfaction within the time
<br />allowed by this Agreement or such further time as may be allowed by
<br />the Secretary after written notice;
<br />(i) "Section" refers to a Section of the National Housing Act, as
<br />amended.
<br />0) "Displaced persons or families" shall mean a family or families, or a
<br />person, displaced from an urban renewal area, or as the result of
<br />government action, or as a result of a major disaster as determined by
<br />the President pursuant to the Disaster Relief Act of
<br />1970.
<br />(k) "Elderly person" means any person, married or single, who is sixty-
<br />two years of age or over.
<br />(1) "Residual Receipts" means any cash remaining at the end of a
<br />semiannual or annual fiscal period after deducting from surplus
<br />cash the amount of all distributions as that term is defined above
<br />and as limited by Paragraph 6(e) hereof;
<br />14. This instrument shall bind, and the benefits shall inure to, the respective
<br />(c) "Owners" refers to the persons named in the first paragraph hereof Owners, their heirs, legal representatives, executors, administrators,
<br />and designated as Owners, their successors, heirs and assigns; successors in office or interest, and assigns, and to the Secretary and his
<br />successors so long as the contract of mortgage insurance continues in
<br />(d) "Mortgaged Property" includes all property, real, personal or mixed, effect, and during such further time as the Secretary shall be the owner,
<br />covered by the mortgage or mortgages securing the note endorsed for holder, or reinsurer of the mortgage, or obligated to reinsure the mortgage.
<br />insurance or held by the Secretary;
<br />15. Owners warrant that they have not, and will not, execute any other
<br />(e) "Project' includes the mortgaged property and all its other assets of agreement with provisions contradictory of, or in opposition to, the
<br />whatsoever nature or wheresoever situate, used in or owned by the provisions hereof, and that, in any event, the requirements of this
<br />business conducted on said mortgaged property, which business is Agreement are paramount and controlling as to the rights and obligations
<br />providing housing and other activities as are incidental thereto; set forth and supersede any other requirements in conflict therewith.
<br />(f) "Surplus Cash" means any cash remaining after:
<br />(1) the payment of
<br />(i) All sums due or currently required to be paid under the
<br />terms of any mortgage or note insured or held by the
<br />Secretary;
<br />(ii) All amounts required to be deposited in the reserve fund
<br />for replacements;
<br />(iii) All obligations of the project other than the insured
<br />mortgage unless funds for payment are set aside or
<br />deferment of payment has been approved by the Secretary;
<br />and
<br />16. The invalidity of any clause, part or provisions of this Agreement shall not
<br />affect the validity eF of the remaining portions thereof.
<br />17. The following Owners: Nebraska Association for Developmental
<br />Housing, its directors and officers, present and future
<br />Do not assume personal liability for payments due under the note and
<br />mortgage, or for the payments to the reserve for replacements, or for
<br />matters not under their control, provided that said Owners shall remain
<br />liable under this Agreement only with respect to the matters hereinafter
<br />stated; namely:
<br />(a) for funds or property of the project coming into their hands which, by
<br />the provisions hereof, they are not entitled to retain; and
<br />Replaces FHA -2466 which may be used until supply exhausted Page 4 of 8 Form HUD -92466 (11/2002)
<br />ref Handbook 4571.1
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