07/06/2010 Council Packet - Laserfiche WebLink

Home Search

Regulatory Agreement ") executed by and between the Developer and the Secretary for Housing and Urban Development ( "HUD "), and (iv) all other documents executed by the Developer, Lender and /or HUD in connection with the HUD Note (collectively the "HUD Loan Documents "), and is subordinate to all applicable HUD mortgage insurance (and Section 8 of the U.S. Housing Act of 1937, if applicable) regulations and related administrative requirements. In the event of any conflict between the provisions of this Agreement and the provisions of applicable HUD regulations, related HUD administrative requirements, or HUD Loan Documents, the HUD regulations, related administrative requirements or HUD Loan Documents shall control. Section 9.2. In the event of foreclosure or transfer of title by deed in lieu of foreclosure, any and all land use covenants contained herein shall automatically terminate except those requirements set out in 26 U.S.C. 42(h)(6)(E)(ii). Section 9.3. Failure to comply with the covenants contained herein will not serve as a basis for default on any of the HUD Loan Documents. Section 9.4. The covenants contained in this Agreement are not included in any of the HUD Loan Documents. Section 9.5. Enforcement of the covenants contained herein will not result in any claim against the Property, the proceeds from the HUD Mortgage, any reserve or deposit required by HUD in connection with the HUD Mortgage transaction, or the rents or other income from the Property other than from available Surplus Cash, as defined in the HUD Regulatory Agreement. Section 9.6. So long as the Property is subject to a mortgage insured or held by HUD, no amendment shall be made to this Agreement without the prior written consent of HUD. Section 9.7. This Agreement may not be foreclosed upon or sold, transferred, assigned or pledged, without the prior written of consent of HUD of such foreclosure, conveyance, assignment or pledge. Section 9.8. No action shall be taken in accordance with the rights granted herein or prohibiting the Developer from taking any action except in strict accordance with the U.S. Housing Act of 1937 (the "Housing Act "), applicable mortgage insurance regulations, the HUD Loan Documents, or applicable public housing regulations under Sections 5 and 9 of the Housing Act, or if applicable, Section 8 of the Housing Act and the regulations thereunder. Section 9.9. The covenants contained in this Agreement shall not be construed to conflict with any applicable HUD mortgage insurance regulation, applicable public housing regulations, or Section 8 of the Housing Act and the regulations thereunder. 368750v2 SJB LN 140 -25 • • •