Common use of Prohibited Activities Without Approval Clause in Contracts

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, transfer, or encumber any of the Development, or permit the conveyance, transfer or encumbrance of all or any portion of the Development, except as provided in the Mortgage. b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on the Bonds is dependent upon compliance with use restrictions arising out of the Code and Treasury Regulations of the United States Department of Treasury and TCAP Regulations and other TCAP requirements of HUD. h. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the Mortgage Note and Mortgage, TCAP Note or TCAP Mortgage referred to above shall be assigned.

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, transfer, or encumber any of the Development, or permit the conveyance, transfer or encumbrance of all or any portion of the Development, except as provided in the TCAP Mortgage. b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 18 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member general partner in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on the Bonds TCAP Loan is dependent upon compliance with use restrictions arising out of the Code and Treasury Code, Regulations of the United States Department of Treasury and TCAP Regulations and other TCAP requirements of HUD. h. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the TCAP Mortgage Note and Mortgage, TCAP Note or TCAP Mortgage referred to above shall be assigned.

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, Convey or transfer, or encumber any portion of the Development, or permit the conveyance, conveyance transfer or encumbrance of all or any portion of the Development, : i. except as provided in compliance with the Mortgage.LIHTC program and the Section 1602 program ii. unless the party to whom the Development is to be conveyed or transferred agrees to be bound by the terms of this Regulatory Agreement and ***the LIHTC Program Regulatory Agreement; b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. c. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on the Bonds is Section 1602 Loan dependent upon compliance with use restrictions arising out of the Code and Treasury Regulations of the United States Department of Treasury Treasury, LIHTC and TCAP Section 1602 Regulations and other TCAP requirements of HUDSection 1602 requirements. h. d. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. e. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. f. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the Mortgage Note and Mortgage, TCAP Note or TCAP Mortgage referred to above shall be assigned.

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, transfer, or encumber any of the Development, or permit the conveyance, transfer or encumbrance of all or any portion of the Development, except as provided in the Mortgage. b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member general partner in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on the Bonds bonds or notes that may have been issued to finance this Development is dependent upon compliance with use restrictions arising out of the Code and Treasury Regulations of the United States Department of Treasury and TCAP Regulations and other TCAP requirements of HUD. h. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the Mortgage Note and Note, Mortgage, TCAP Note or TCAP Mortgage referred to above shall be assigned.

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, transfer, or encumber any of the Development, or permit the conveyance, transfer or encumbrance of all or any portion of the Development, except as provided in the MortgageMortgage and except in compliance with the Section 1602 program. b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 18 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member general partner in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on bonds or notes that may have been issued to finance this Development and for the Bonds Section 1602 Loan is dependent upon compliance with use restrictions arising out of the Code and Treasury Regulations of the United States Department of Treasury Treasury, LIHTC and TCAP Section 1602 Regulations and other TCAP requirements of HUDSection 1602 requirements. h. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the Mortgage Note and Note, Mortgage, TCAP the Section 1602 Mortgage Note or TCAP the Section 1602 Mortgage referred to above shall be assigned.

Prohibited Activities Without Approval. The Mortgagor agrees that it shall not, without the prior written approval of an Authorized Officer of the Authority: a. Convey, transfer, or encumber any of the Development, or permit the conveyance, transfer or encumbrance of all or any portion of the Development, except as provided in the Mortgage. b. Assign, transfer, dispose of, or encumber any personal property of the Development, including the Receipts, or pay out any funds, except as permitted in Section 19 above and subparagraph d of this Section, except as provided in the Mortgage. c. Convey, assign, or transfer the interest of any manager or managing member in the Mortgagor, or any right to manage or receive Receipts or any other form of income from the Development. d. Remodel, add to, reconstruct, or demolish any part of the Property or subtract from any real or personal property of the Development in excess of $5,000.00, except as provided in the Mortgage. e. Engage in any other business activity, including the operation of any other rental housing development, or incur any liability or obligation not in connection with the Development. f. Require, as a condition of occupancy or leasing of any unit in the Development, any consideration or deposit other than the prepayment of the first month's rent and a security deposit as allowed under the laws of the State of Michigan. Any funds collected as a security deposit shall be kept separate and apart from all other funds of the Development, in an interest bearing trust account with a bank or other regulated financial institution located within the State of Michigan, whose deposits are insured by an agency of the United States Government. The amount of funds in this account shall at all times be equal to or exceed the aggregate of all security deposits held for current and former tenants, unless the Mortgagor elects to provide a bond which complies with Michigan law to guarantee payment of the security deposits. The use of a tenant's security deposit shall be governed by the Management Agreement and Michigan law. g. Permit the use of the units of the Development for any purpose except the use which was originally intended, it being understood and acknowledged by the Mortgagor that the qualification for tax exemption of interest on bonds or notes that may have been issued to finance this Development and for the Bonds Section 1602 Loan is dependent upon compliance with use restrictions arising out of the Code and Treasury Regulations of the United States Department of Treasury LIHTC and TCAP Section 1602 Regulations and other TCAP requirements of HUDSection 1602 requirements. h. Pay any compensation, directly or indirectly, including wages or salaries, or incur any obligations to any of the Mortgagor's officers, directors, stockholders, members, trustees, partners, managers, beneficiaries under a trust, or to any of their nominees. i. Enter into any contract or contracts for supervisory or managerial services to the extent compensation paid under the contract(s) is to be paid from Development Receipts. j. Transfer, assign, or pledge any right or interest in, or title to, any funds deposited by the Mortgagor with the Authority, or reserved by the Authority for the Mortgagor. As used in this instrument, the term "Authority" shall be deemed to include any persons to whom the Mortgage Note and Note, Mortgage, TCAP the Section 1602 Mortgage Note or TCAP the Section 1602 Mortgage referred to above shall be assigned.