Common use of Regulatory Covenants Clause in Contracts

Regulatory Covenants. So long as the Loan Obligations remain unsatisfied, the Borrower shall comply with all appropriate regulations of the Government and shall: a. Impose and collect sufficient fees, assessments, rents, and charges for the Housing operation to meet all operation, maintenance, Loan Obligation, and account requirements. b. Establish and maintain complete books and records relating to the Housing's financial affairs; have those books and records audited at the end of each fiscal year, (with a copy promptly sent to the Government), and permit the Government or its representative to inspect such books and records at all reasonable times. c. If required or permitted by the Government, revise the accounts herein provided for, or establish new accounts, to cover handling and disposition of income from and payment of expenses attributable to the housing or to any other property securing the Loan Obligations, and submit regular and special reports concerning the housing or financial affairs. d. Unless the Government gives prior consent: 1) Not use the Housing for any purpose other than as rental housing and related facilities for eligible occupants. 2) Not enter into any contract or agreement for improvements or extensions to the Housing or other property securing the loan obligations. 3) Not cause or permit any transfer or encumbrance of title to the Housing or any part thereof or interest therein, by sale, mortgage, lease, or otherwise. 4) Not borrow any money, nor incur any liability which would have detrimental effect on the Housing. e. Submit Housing reports per 7 CFR part 3560 or any successor regulation for prior review. f. Take other actions as may be required by the Government in connection with the operation of the Housing, or with any of the Borrower's operations or affairs which may affect the Housing, the Loan Obligations, or the security. g. If the return on investment for any year exceeds 8 percent per annum of Xxxxxxxx's initial investment of $ , the Government may require that the Borrower reduce rents the following year, refund the excess return on the investment to the tenants, or use said excess in a manner that will best benefit the tenants.