This page uses extracted PDF text. Text can misread numbers, dates or table columns. Check the PDF before quoting or interpreting it. Redacted areas remain redacted.
HUD Required Provisions
The Borrower and the Issuer have acknowledged that the Loan Agreement and all the Borrower’s
obligations thereunder are subject and subordinate to the FHA Loan Documents and the Program
Obligations. Notwithstanding any provisions of the Loan Agreement to the contrary, no obligations of the
Borrower thereunder shall be payable except from (a) Surplus Cash; (b) funds that are not derived from (1)
revenues of the Project (as defined in the FHA Mortgage), (2) the proceeds of the FHA Note, or (3) any
reserve or deposit made with the FHA Lender or any other party as required by HUD in connection with
the FHA Loan Documents; or (c) FHA Lender Funds which have been deposited into the Collateral Fund
by or at the direction of the FHA Lender (collectively, “Non-Project Sources”). No claims or actions shall
be made (or payable) under the Loan Agreement against the Project, the FHA Lender, the proceeds of the
FHA Note, or the assets of the Borrower, except from Non-Project Sources. In addition, the rights and
obligations of the parties under the Loan Agreement and all other documents evidencing, implementing, or
securing the Loan Agreement (collectively, the “Subordinate Bond Documents”) are and shall be
subordinated in all respects to the rights and obligations of the parties to and under the FHA Loan
Documents. In the event of any conflict between the provisions of (i) the Loan Agreement or the
Subordinate Bond Documents and (ii) the provisions of the FHA Loan Documents or the Program
Obligations, the provisions of the FHA Loan Documents or the Program Obligations shall control. The
provisions described under this caption shall control over any inconsistent provisions in the Loan
Agreement or the Subordinate Bond Documents. The Loan Agreement shall not be amended or modified
without the prior written consent of HUD.
(Remainder of Page Intentionally Left Blank)
D-15Jump to an indexed page (744 of 744)