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(b) Collect all rents and charges in connection with the operation of the project and use such
collections to pay the mortgagor's obligations undec this Agreement and under the note and rr~rt- e
gage and the necessary expenses af preserving the property and operating the project;
(c) Take possession of the proje~t, bring aay action necessary to enface any rights of the Own- ~
ers ~wing out of the projeci aperation, and opergte the pmject ia accordance with the tern~s of
this Agreem~nt until auch time as the Cammissioner in his discretit~n determines that the Owners
are again in a position to operate the project in accordance with the terms of this Agreement and ~
in compliance with the cequirements of tt~e note and mcxtgage;
(d) Apply to any cautt, State or Federal, for specific perforrnance of this Agreement, for an in-
junction against any violation of the Agr~ement, for the appointment of a receiver to take over
and operate the project in accotdance with the tenns of the Agreement, or for such other relief as
may be apptopriate, since the iajury to the Commissioner arisin~ from a default under any of the
tenns af ihis Agreement would be irreparable and the amount of damage would be difficult to as-
CB['t81A.
11. As security for the payment due under this Agreement to the reserve fund for replacements, and
tu secure the Commissioner because of his liability under the endorsement of the note for in-
surance, and as s~curity for the other obligations under this Agreement, the Owners resper.tively
assign, piedge and mortgage to the Commissioner their rights to the reats, pcnfits, income and
charges of whatever sort which they may receive or be entitled to receive from th~ operation of
the mortgaged property, subject, however, to any assignment of ients in the insured mortgage re-
fecred to herein. Until a default is declared under this Agreement, however, permission is ~ranted
to Owners to collect and retain under the provisi~ns of this Agreement such rents, profits, in-
come, and charg~es, but upan default this permission is terminated as to all rents due or collected
thec~eafter.
12. Owners agree that there shall be full compliance with the provisions of (1) any state or local
laws prohibiting discrimination in housing on the basis af race, color, creed, or national origin;
and (2) with the Regulations of the Federal Housing Admiaistratian providing for nondiscrimina-
tion and equal opportunity in housing. It is understood and a~ed that failure or refusal to com- j
ply with any such provisions shall be a proper basis for the Commissioner to take any cocrective
action he may deem necessary including, but not limited to, the rejectioa of future applications ~
for FHA mortgage insurance and the refusal to enter into future contract~ of any kind with which ~
the Owners are identi~ed; and fvrther, if the Owners are a corporation or any other type of busi-
ness association or organization which roay fail or refuse to comply with the aforementianed pm- j~
visions, the Cammissioner shall have a similar right of corcective action (1) with respect to any j~
individuals who are officers, directors, trustees, managers, partners, associates or principal
stockholders of the Owners; and (2) with rospect to any corporation or any other type of business ~
association, or organization with which khe officers, directors, tivstees, managers, part~rs, ~
assuciaies or principal stockholders of the Owners may be identi~ed. ~
13. As used in this Agreement the term : I~
i
(a) "Mortg~ge" includes "Deed of Trust", "Chattel Mortgage", and any other security for the
i
. note identified herein, and endorsed far insurance or held by the Commissioner; ~
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"Morc~agee" refers to the holder of the mortgage identified herein, its successors and assigns; I
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(c) "Mortgagor" means the original bo~rower under the mongap~e and its successors and assigns;
(d) "Owners" refers to the persons narr~ed in the first paragraph hereof aad designated as "Own-
~ ers", their successors and assigns;
(e) "Moctgaged Prope~tq" includes all property, real, personal, or mized covered by the mortgage
or mortgaE*es securing the note endorsed for insutance or held by t~e Commission~r;
(f) "Proje~t" includes the mortgaged pmperty and all its other ~ssets of whatsoever nature or
wheresoever situate, used in or owned by the business conducted on said mortgaged property,
such business being the furnishing of housing and other such activities as are incidental thereto;
(g) '`Surplus Cash" m~ans any cash remaining after :
(1) the payment of: '
(i) All sums due or currentl}~ required to be paid under the teRns of an}~ mortgage or note
insurzd or held by the F'ederal tiousing Commissioner,
eoaK127 366
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