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HomeMy WebLinkAbout03566. So long as no event of default has occurred under the terms of the Mortgage or the Owner's Note, the Owner shall have a license to collect, receive and apply for its own account all HAP payments paid or accruing under the HAP Contract. 7. Immediately upon the occurrence of an event oE default under the terms of the Mortga~e or thp Q~n~r's *:ot~, the license referred to in Paragraph 6 hereof shall cease, and in such event the Issuer is hereby expressly and ir- revocably authorized to collect and receive all HAP Payments then due and thereafter accruing under the HAP Contract and to exe~cise all of the other rights and powers of the Owner thereunder. Until such de~ault shall have been cured to the satisfaction of the Issuer, the Issuer may apply the HAP Payments collected by it hereunder, after payment of all proper costs and charges, to the r~duction and payment of the in3ebtedness evidenced by the Owner's Note. The Issuer shall be accountable to the Owner only for the HAP Payments ~ actually collected by it hereunder. 8. The Owner hereby irrevocably directs HUD and the Authority upon receipt of notice from the Issuer of the occurrence of an event of default under the terms of the Mortgage or the Uwner's Note to pay the Issuer all HAP Payments then due and thereafter accruing under the HAP Contract. The Owner agrees that in making such payments to the Issuer, HUD and the Authority shall not be under any obligation to determine the actual existence of any such default claimed by the Issuer. 9. Nothing contained herein shall operate or be construed to obligate the Issuer to perform or observe any ~f the covenants or obligations of the Owner under the Section 8 Contracts or otherwise to impose any obligation upon the Lender with res~e~t *hprA*o, a^a t!;~ ~x._;.:;:~ :~„ ~~ this Assignment and Pledge by the Owner shall constitute", conclusive evidence that all responsibility for the per- formance and observance of such covenants and obligations is and shall be that of the Owner. 10. The Owner hereby agrees to indemnify and holc~ the Issuer harmless from and against any and all liability, loss, damage and expense, including reasonable attorney's fees, which the Issuer may or shall incur under the Section 8 Contracts or by reason of this Assignment and Pledge, or, by reason of any action taken by the Issuer hereunder, and from and against any and all claims and demands whatsoever which may be asserted against the Issuer by reason of any alleged undertaking on its part to perform or observe any of *_tie covenants or obligations af the Owner under the Section 8 Contracts. Should the Issuer incur any such liability, loss, damage or expense, the amount thereof, together with interest thereon at the rate set forth in the Note plus 1/2 of 1~, but in no event in excess of the maximum rate permitted by law, shall be paid by the Owner to the Issuer on demand or, at its option, the Issuer may reimburse itself therefor out of any HAP Payments collected by it hereunder. 11. No reasonable delay by the Issuer in exercising any of its rights or remedies hereunder for any period of time, or at any time or times, shall be deemed to constitute a waiver or to preclude the exercise of any of such rights or remedies. The rights and remedies of the Issuer hereunder are cumulative and are not in lieu of but are in addition to any other rights and remedies which the Iss~~er may have under or by virtue of the Mortgage, the Owner's Note or otherwise provided by law. The rights and remedies of the Issuer hereunder may be exercised from time to time and as often as such exercise is deemed expedient. i ~ ~ ~ :a -4- B^:~K ~ `'K 351 ~~~ 355 .