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(g) or incur any liability or obligation not in connection with the project. Require. as a condition of the occupancy or leasing of any unit in the project. any consideration 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 performance of the covenants of the lease. Any funds collected as security deposits shall be kept separate and apart from all other funds of the project in a trust account the amount of which shall at all times equal or exceed the aggregate of all outstanding obligations under said account. (h) Permit the use of the dwelling accommodations or nursing facilities of the project for any purpose except the use which was originally intended. or permit commercial use greater than that originally approved by the Secretary. 7. Owners shall maintain the mortgaged premises. accommodations and the grounds and equipment appurtenant thereto. in good repair and condition. In the event all or any of the buildings covered by the mortgage shall be destroyed or damaged by fire or other casualty. the money derived from any insurance on the property shall be applied in accordance with the terms of the mortgage. 8. Owners shall not file any petition in bankruptcy or for a receiver or in insolvency or for reorganization or composition, or make any assignment for the benefit of creditors or to a trustee for creditors. or permit an adjudication in bankruptcy or the taking possession of the mortgaged property or any part thereof by a receiver or the seizure and sale of the mortgaged property or any part thereof under judicial process or pursuant to any power of sale. and fail to have such adverse actions set aside within forty - five (45) days. 9. (a) Any management contract entered into by Owners or any of them involving the project shall contain a provision that. in the event of default hereunder, it shall be subject to termination without penalty upon written request by the Secretary. Upon such request Owners shall immediately arrange to terminate the contract within a period of not more than thirty (30) days and shall make arrangements satisfactory to the Secretary for continuing proper management of the project. (b) Payment for services. supplies. or materials shall not exceed the amount ordinarily paid for such services. supplies. or materials in the area where the services are rendered or the supplies or materials furnished. (c) The mortgaged property. equipment. buildings, plans. offices. apparatus. devices. books. contracts. records. documents. and other papers relating thereto shall at all times be maintained in reasonable condition for proper audit and subject to examination and inspection at any reasonable time by the Secretary or his duly authorized agents. Owners shall keep copies of all written contracts or other instruments which affect the mortgaged property. all or any of which may be subject to inspection and examination by the Secretary or his duly authorized agents. (d) The books and accounts of the operations of the mortgaged property and of the project shall be kept in accordance with the requirements of the Secretary. (e) Within sixty (60) days following the end of each fiscal year the Secretary shall be fumished with a complete annual financial report based upon an examination of the books and records of mortgagor prepared in accordance with the requirements of the Secretary. prepared and certified to by an officer or responsible Owner and. when required by the Secretary. prepared and certified by a Certified Public Accountant. or other person acceptable to the Secretary. (f) (g) At request of the Secretary. his agents. employees. or attorneys. the Owners shall furnish monthly occupancy reports and shall give specific answers to questions upon which information is desired from time to time relative to income. assets. liabilities. contracts. operation. and condition of the property and the status of the insured mortgage. All rents and other receipts of the project shall be deposited in the name of the project in a financial institution. whose deposits are insured by an agency of the Federal Government. Such funds shall be withdrawn only in accordance with the provisions of this Agreement for expenses of the project or for distributions of surplus cash as permitted by paragraph 6(e) above. Any Owner receiving funds of the project other than by such distribution of surplus cash shall immediately deposit such funds in the project bank account and failing so to do in violation of this Agreement shall hold such funds in trust. Any Owner receiving property of the project in violation of this Agreement shall hold such funds in trust. At such time as the Owners shall have lost control and /or possession of the project. all funds held in trust shall be delivered to the mortgagee to the extent that the mortgage indebtedness has not been satisfied. (h) if the mortgage is insured under Section 232: (1) This facility is developed as an assisted living facility for the frail elderly (62 years or older and require assistance with three or more activities of daily living). The Owners or les.,ees hall at all times maintain in full project as an _ unit assisted living facility and shall not lease all or part of the project except on terrna (2) The Owners shall suitably equip the project for assisted C Financing Statement (or other form of chattel lien) upon all items of equipment. except as the Secretary may exempt. which are not incorporated as security for the insured mortgage. The Security Agreement and Replaces FHA -2466 which may be used until supply exhausted 370937v1 SJB LN140 -25 Page 3 of 10 Form HUD -92466 (11/2002) ref Handbook 4571.1 • • •