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• (f) Owners agree that they ~+ill extend a preference or ptiority ~f occupancy to those families of
low and moderate incomes who shall have certi~cates of eligibility as c~splecad families, and
such preferncd applicants shall be given priarity in original admission to the project and ia their
placement on a waiting list to be maintained by the Owners.
6. Owners shall not without the prior written approval of the Commissioner :
(a) Convey, transfer, or encumber any of the mortgagcd property, or permit the conveyance, trans-
fer or encumbrance of such property;
(b) Assign, transfer, dispc~se of, or encumber any personal pmperty of the project, including rents,
or pay out any funds except from "surplus cash", except for reasoaable operating expenses and
necessary repairs ;
(c) Convey, assign, or transfer any beneficial interest in any trust holding title tn the property,
or any right to manage~ or receive the rents and profits thereof, unless the transfer~es or assign-
ees assume the obligations of this Agreemeni by an instrument in writing satisfactory to the Com-
missioner,
(d) Remodel, add to, recanstruct, or demalish any part of` the mortgaged property or subtract from
any real or personal propetty of the project;
(e) Make, or receive and retaia, any distribvtion of assets or any income of any kind of the proj-
ect except from "sutplus cash" and excepi on the following conditions :
(1) All disttibudons shall be made only as of and after the end of an annual fiscal perxod,
and only as pennitted by the law of the applicable jurisdiction; all such distributions in any
one ~scal year shall be limited to six per ~entum on the equiry investment, and the righi to
such distributions shall be cumulative;
(2) No distribution shall be made from bcxrowed funds, prior to the completion of the praject
- or when tk~ere is any default under this Agreement or undec the note or mortgage;
(3) Any distribution or any funds of the proje~t, which the party receiving such funds is not
entitled to retain hereunder, shall be held in trust separate and apait from any othes. funds;
- (4) There shall have been compliance with all outstanding notices of requirements for proper
maintenance of the project.
(f} Engage, except for natural persons, in any other business or activity, including theoperation '
of any other rental project, or incur any Iiability or obligation not in connection with the project;
(g) Require, as a consiition of the occupancy or leasing of any unit in the praject any considera-
tion or deposit other than the prepayment of the first month's rent plus a security deposit in •an
amount not in excess of one month's rent to guarantee the perforr~ance of the cov~enants of the
lease. Any fund collected as sec~ity deposits shall be kept separate and apa~rt from all other
funds of the project in a trust account the amount of which shalt at all times ec{ual or exceed the
aggregate of all outstanding obligations under said account;
(h) Permit the use of the dwelling accommadatians of the project for any puepose except the use
which was originaily intended, or permit commercial use greater than that originally approved by
the Commission~r
(i) Incur any liability, direct or contingent, other than for curr~nt operating expenses, exclusive
of ihe indebtedness secured by the mortgage and necessarily incident to the execution ~nd deliv-
~ ery thereof;
(j) Pay any evmpensation or make any distribution of income or other assets to any of its officers,
directors, or stockholders;
(k) Enter into any contract nr contracts for supervisory or managerial services. ~
7. Owners shall maintain the moctgaged premises, accommodations and the grounds and equipment
appurtenant thereto, in gaod repair and conditioa. In the event all or any of the buildir.g covered
by the mortgage shall be destroyed or demaged by fire or other casualty, the money derived frum
any insurance on the property shall be applied in accardance with the terms of the insured mort-
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BOOK 127. ~~4
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