Inst 2009067181 - Laserfiche WebLink

Home

4. Agency Loan Disbursement. Requisitions not requiring HUD approval shall be submitted only to the City and Agency for approval and disbursement pursuant to the OPA. 5. Residual Receipts. Any whole or partial repayment of the principal and any other payments as set forth in the City and Agency Loan Documents shall be made only from Residual Receipts (as defined in the HUD Documents), and then only after obtaining the prior written approval of HUD, or from the Borrower's own funds. 6. Indemnification. Enforcement by the City and/or Agency of any indemnification provisions in the City and Agency Loan Documents will not and shall not result in any monetary claim against the Development, the HUD Capital Advance proceeds, any reserve or deposit required by HUD in connection with the HUD Capital Advance, or the rents or other income from the Development other than residual receipts authorized for release by HUD, without the prior written consent of HUD, but City and/or Agency shall have the right to add any amounts due the City and/or Agency pursuant to indemnification provisions in the City and Agency Loan Documents to the principal amount of the Loan and the Note and interest shall accrue thereon commencing on the date indemnification payments are due. 7. Transfer. Approval by HUD of a Transfer of Physical Assets (as defined in Handbook 4350.1 Rev-1) ("TPA") shall constitute approval of the transfer by the Agency and the Borrower shall deliver to the Agency, at the same time as its delivery to HUD, any application for HUD's approval of a proposed transfer. Also, the Borrower shall require the transferee to expressly assume the Borrower's obligations under the City and Agency Loan Documents; provided, however, HUD shall not be required to enforce the requirements of this sentence and if Borrower and any transferee fail to include such assumption in transfer documents, such failure shall not affect the validity of the transfer. The City and/or Agency shall have the right to specifically enforce the requirement that any transferee assume the Borrower's obligations under the City and Agency Loan Documents. In the absence of such written assumption, no transfer shall be deemed to relieve the transferor from any obligations under the City and Agency Loan Documents. 8. Default under City and Agency Loan Documents. The City and/or Agency shall not declare a default under the City and Agency Loan Documents unless it has received the prior written approval of HUD, and the City's and/or Agency's right to accelerate the City Note and/or Agency Note during the term of the HUD Documents shall be enforceable only with the prior written approval of HUD. 9. Receiver. The City and/or the Agency, for themselves, their respective successors and assigns further covenant and agree that in the event of the appointment of a receiver in any action by the City and/or the Agency, their respective successors or assigns, to foreclose the City Deed of Trust and/or Agency Deed of Trust, no 1194386-5 ,8