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• • • Financinz Statement shall constitute a first lien upon mortgagee as additional security for the insured mortga ^e. (i) If the mortgage is insured under Section 231. Owners or lessees shall at all times maintain in full force and effect from thc state or other licensing authority such license as may be required to operate the project as housing for the elderly. (4) The Owner and /or Lessee and /or Operator and /or requisite level of professional liability insurance as determined by thc Commissioner. Annually. the Management Agency. as applicable. provides to 10. Owners will comply with the provisions of any Federal. State. or local law prohibiting discrimination in housing on the grounds of race. color. religion or creed. sex. or national origin, including Title VIiI of the Civil Rights Act of 1968 (Public Law 90 -284; 82 Stat. 73). as amended. Executive Order 11063. and all requirements imposed by or pursuant to the regulations of the Department of Housing and Urban Development implementing these authorities (including 24 CFR Parts 100, 107 and 110. and Subparts I and M of Part 200). 11. Upon a violation of any of the above provisions of this Agreement by Owners, the Secretary may give written notice thereof. to Owners. by registered or certified mail. addressed to the addresses stated in this Agreement, or such other addresses as may subsequently. upon appropriate written notice thereof to the Secretary. be designated by the Owners as their legal business address. If such violation is not corrected to the satisfaction of the Secretary within thirty (30) days after the date such notice is mailed or within such further time as the Secretary determines is necessary to correct the violation. without further notice the Secretary may declare a default under this Agreement effective on the date of such declaration of default and upon such default the Secretary may: (a) (i) If the Secretary holds the note - declare the whole of said indebtedness immediately due and payable and then proceed with the foreclosure of the mortgage; (ii) If said note is not held by the Secretary - notify the holder of the note of such default and request holder to declare a default under the note and mortgage. and holder after receiving such notice and request. but not otherwise. at its option. may declare the whole indebtedness due. and thereupon proceed with foreclosure of the mortgage. or assign the note and mortgage to the Secretary as provided in the Regula- tions: (b) Collect all rents and charges in connection with the operation of the project and use such collections to pay the Owners' obligations under this Agreement and under the note and mortgage and the necessary expenses of preserving the property and operating the project. (c) Take possession of the project. bring any action necessary to enforce any rights of the Owners growing out of the project operation. and operate the project in accordance with the teens of this Agreement until such time as the Secretary in his discretion 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 requirements of the note and mortgage. (d) Apply to any court. State or Federal. for specific performance of this Agreement. for an injunction against any violation of the Agreement. for the appointment of a receiver to take over and operate the project in accordance with the terms of the Agreement. or for such other relief as may be appropriate, since the injury to the Secretary arising from a default under any of the terms of this Agreement would be irreparable and the amount of damage would be difficult to ascertain. 12. As security for the payment due under this Agreement to the reserve fund for replacements. and to secure the Secretary because of his liability under the endorsement of the note for insurance. and as security for the other obligations under this Agreement. the Owners respectively assign. pledge and mortgage to the Secretary their rights to the rents. profits, income and charges of whatsoever sort which they may receive or be entitled to receive from the operation of the mortgaged property. subject, however, to any assignment of rents in the insured mortgage referred to herein. Until a default is declared under this Agreement. however. permission is granted to Owners to collect and retain under the provisions of this Agreement such rents, profits. income. and charges, but upon default this permission is terminated as to all rents due or collected thereafter. 13. As used in this Agreement the term: (a) "Mortgage" includes "Deed of Trust". "Chattel Mortgage ". "Security Instrument ". and any other security for the note identified herein, and endorsed for insurance or held by the Secretary; (b) "Mortgagee" refers to the holder of the mortgage identified herein, its successors and assigns; (c) "Owners" refers to the persons named in the first paragraph hereof and designated as Owners. their successors. heirs and assigns; (d) "Mortgaged Property" includes all property. real. personal or mixed. covered by the mortgage or mortgages securing the note endorsed for insurance or held by the Secretary; (e) "Project" includes the mortgaged property and all its other assets of whatsoever nature or wheresoever situate. used in or owned by the business conducted on said mortgaged property. which business is providing assisted living housing and services and other activities as are incidental thereto: Replaces FHA -2466 which may be used until supply exhausted 370937v1 SJB LN I40 -25 Page 4 of 10 Form HUD -92466 (11/2002) ref Handbook 4571.1