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the Owner is required to execute and deliver this Assicrnment
and Pledge;
NOW, THEREFORE, in consideration of the premises and
other good and valuable consideration, the Owner does hereby
assign, transfer, set over, mortgage, pledge and hypothecate
to the Issuer and does hereby grant the Issuer a security
interest in, all of the Borrower's right, title and interest
in and to the AHAP Agreement and the HAP Contract (col-
lectively the "Section 8 Contracts") and all amendments,
modifications, extensions, renewals and replacements thereof;
TOGETHER WITH all of the HAP Payments which may be or
become due, or to which the Owner may now or hereafter
become entitled, under the HAP Contract;
TO HAVE AND TO HOLD the same unto the Issuer, its
successors and assigns until such time as the indebtedness
evidenced by the Owner's Note has been paid in full.
This Assignment and Pledge of Housing Assistance Pay-_
ments is delivered and accepted upon the foliowing terms and
conditions: ~ • .
1. The Owner represents and warrants to the Issuer
that: (a) it has furnished the Issuer with a true an~
complete copy of the ACC and the HAP Agreement, all amend-
ments and modifications thereof and all exhibits thereto
(including the form of HAP Contract); (b) the ACC and the
HAP Agreement are each in full force and effect on the date
hereof; (c) the Borrower has duly and punctually performed
all of its covenants and obligations under the HAP Agreement,
is not in default under any of the provisions thereof and
has not sold, assigned, conveyed or otherwise transferred
the Section 8 Contracts, the Project or any part thereof or
any of its interest therein, except for this Assignment and
Pledge, nor has it sold, assiqned, transferred, mortgaged,
pledged or otherwise encumbered any HAP Payments, whether
naw due or hereafter to become due, under the HAP Contract,
except for this Assignment and Pledge, except that nothing
herein shall prohibit the Owner from adding additional
limited or general partners; and (d) no HAP Payments under
the HAP Contract which become due subsequent to the date
hereof have been collected, nor has payment of any of the
same been anticipated, waived, released, discounted or
otherwise discharged or compromised. ,
2. Without the prior written consent of the Issuer in
each instance, the Owner will not: (a} modify or amend the
Section 8 Contracts; (b) give a notice of its intention not
to renew the HAP Coritract; (c) consent to the termination or
~an~Pl_]ati~n of th? Section 8 Contrac~S; (d) sPll, assian,,
convey or otherwise transfer the Section 8 Contracts, the
Project or any part thereof or any of its interest therein,
except for leases to Eligible Tenants and this Assignment
and Pledge, except that nothing herein shall prohibit the
Owner from adding additional l~mited or general partners; or
(e) sell, assign, convey, transfe~, mortgage, pledge or
otherwise encumber its right to receive HAP Payments under
the HAP Contract, except for this Assignment and Pledge,
except that nothing herein shall prohibit the Owner from
adding additional limited or general partners.
3. The Owner covenants and agrees: (a) to commence
the construction work described in its approved Final
Proposal no later than the date stated in the HAP Agreement
and to report to HUD and to the Authority the date said work
was commenced; (b) to diligently continue said work and to
furnish HUD and the Authority with periodic progress reports
i:~!2K e3J~ PJIGE ~tJ•~
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