Document:

Security Agreement between ARV Las Posas, L.P. and Red Mortgage Capital, Inc.

  Exhibit 10.27
  SECURITY AGREEMENT
            THIS SECURITY AGREEMENT (the “Agreement”) entered into as of this 1st day of April, 2003, by and between ARV LAS POSAS, L.P., a
California limited partnership, with offices at 245 Fischer Avenue, Suite D-1, Costa Mesa, California 92626 (referred to in this Agreement as the “Debtor”), and RED MORTGAGE CAPITAL, INC., an Ohio corporation, having an office and
place of business at 150 East Gay Street, 22nd Floor, Columbus, Ohio  43215 (referred to in this Agreement as the “Secured Party”).
            The Debtor is indebted to the Secured Party in the amount of $12,240,000.00 in connection with the financing of an assisted living facility known as “Villa
Las Posas,” FHA Project No. 122-22056-PM-ALF-REF, located in Camarillo, Ventura County, California (referred to in this Agreement as the “Project”).  The indebtedness (which is referred to in this Agreement as the
“Indebtedness”) is evidenced by a Deed of Trust Note dated of even date herewith, payable to the order of the Secured Party (referred to in this Agreement as the “Note”), and is secured by a Deed of Trust (the
“Mortgage”) dated of even date herewith, and recorded or to be recorded among the land records for Ventura County, California.  The Mortgage securing the Indebtedness is insured by the Secretary of Housing and Urban Development
(referred to in this agreement as the “Secretary”) under Section 232 pursuant to Section 223(f) of the National Housing Act, as amended.
            To further secure the repayment of the Indebtedness and at the request of the Secured Party and the Secretary, the Debtor wishes to grant to the Secured Party,
pursuant to the Uniform Commercial Code as in effect in the State of California (referred to in this agreement as the “State”) a security interest in certain property related to the Project.  The parties also intend to set forth in
this instrument their agreement with respect to that security interest.
           NOW, THEREFORE, in consideration of the foregoing and of
the mutual promises set forth below, and in further consideration of the sum of One Dollar ($1.00) and other good and valuable consideration in hand paid by each party to the other, the receipt and sufficiency of which are hereby acknowledged, the
parties hereby agree as follows:
            1.          Creation of Security
Interest.
                         (a)     Granting Clause.  The Debtor hereby
grants a security interest (referred to in this Agreement as the “Security Interest”) to the Secured Party in all property (referred to in this Agreement as the “Collateral”) which (i) is owned by the Debtor or becomes the
property of the Debtor hereafter and is used in the operation of the Project, and/or (ii) is described in Exhibit “B” attached to this Agreement; and/or (iii) is part of, attached to, or located on the land and premises legally described
in Exhibit “A” attached to this Agreement.  Exhibits “A” and “B” are hereby incorporated into this Agreement by reference.  The Security Interest is granted for the purpose of securing the
Indebtedness.

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                         (b)     Warranty.  The Debtor warrants and
represents to the Secured Party that it owns the Collateral free and clear of any lien, security interest, encumbrance, and other claim of any kind, other than the Security Interest created by this Agreement, and has the full power to grant the
Security Interest; provided, however that this warranty is subject to: (i) the rights of the lessor with respect to any personal property or equipment leased by the Debtor; (ii) any security deposits, accounts or monies in the custody of the Debtor
or under its control which are subject to the rights of third parties; and (iii) any account or deposit which is subject to terms and conditions contained in special purpose escrow agreements and other documents relating to the
indebtedness.
                        (c)     Perfection.  The Debtor agrees to
comply with all applicable laws and requirements in order to grant to the Secured Party a valid, perfected first lien in the Collateral, authorizes the Secured Party to file financing statements pursuant to the Uniform Commercial Code which name the
Debtor and identify the Collateral in such places as are necessary and appropriate under the Uniform Commercial Code, and upon request of the Secured Party, from time to time execute and deliver to the Secured Party one or more financing statements
pursuant to the Uniform Commercial Code then in effect in the State, and any other instruments reasonably required by the Secured Party in connection herewith the filing of which is advisable, in the sole judgment of the Secured Party, to perfect
the Secured Party’s Security Interest in the Collateral under the laws of the United States, the State, or any other jurisdiction in which the Secured Party shall determine such filings to be advisable.  The Debtor hereby authorizes the
Secured Party to execute and file, at any time and from time to time, on behalf of the Debtor one or more financing statements with respect to the Collateral, the filing of which is advisable, in the sole judgment of the Secured Party including,
especially, but without limitation, continuation statements and statements reperfecting a security interest in any of the Collateral where the financing statements with respect thereto had lapsed.  The Debtor hereby irrevocably appoints the
Secured Party as the Debtor’s attorney-in-fact to execute and file, from time to time, on its behalf, one or more financing statements with respect to the Collateral and to execute such other documents and instruments on behalf of the Debtor as
the Secured Party, in its sole judgment, shall deem necessary or desirable for the purposes of effectuating this Agreement, such power being coupled with an interest and irrevocable.  The Debtor agrees to notify the Secured Party prior to any
change in its mailing address or principal place of business, in order that a prompt filing or refiling of any outstanding financing statements or other public notices may be made, if necessary.  The Debtor further agrees to advise the Secured
Party promptly of any new facts which, to the best of its knowledge, would adversely affect the priority of the Security Interest granted to the Secured Party by this Agreement.
                         (d)     Proceeds, etc.  The Security
Interest shall extend to and include the proceeds of any Collateral and any property which the Debtor may receive on account of any Collateral.
                          (e)     Costs and Expenses of Secured
Party.  The Debtor agrees to pay any and all fees, costs and expenses, of whatever kind and nature, which the Secured Party may incur in filing any financing statements or other public notices, and the charges of any attorneys whom the
Secured Party may engage in preparing and filing such documents, making title examinations and 

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  rendering opinion letters, as well as all costs and expenses incurred by the Secured Party,
including reasonable attorney’s fees and court costs in protecting, maintaining, preserving, enforcing or foreclosing the Security Interest granted to the Secured Party hereunder, whether through judicial proceedings or otherwise, or in
defending or prosecuting any actions or proceedings arising out of or relating to this transaction, promptly after the Debtor shall have been notified by the Secured Party of the amount of such fees, costs or expenses, together with interest thereon
at the rate of ten percent (10%) per annum until paid.
            2.          Care of
Collateral.  Unless specifically otherwise agreed by the Secured Party in writing, the Debtor shall at its sole cost and expense:
                          (a)     Maintain possession of the Collateral on the
Project premises (which are described in Exhibit “A”) and not remove the Collateral from that location.
                         (b)     Keep the Collateral separate and
identifiable.
                          (c)     Maintain the Collateral in good repair and
condition as the same is as of the date hereof, as the same is when acquired, reasonable wear and tear excepted, making replacements when and where necessary, and otherwise deal with the Collateral in all such ways as are considered good practice by
owners of such property.
                          (d)     Use the Collateral lawfully and only as permitted
by insurance policies.
                          (e)     Permit the Secured Party to inspect the
Collateral and any records relating to the Collateral upon reasonable request and notice during normal business hours.
                           (f)     Insure the Collateral for its full replacement
value, subject to a deductible of not more than the lesser of (i) $10,000 or (ii) one percent (1%) of the Mortgage Loan (unless the Secured Party has given written approval of a larger deductible) in the name of and with loss or damage payable to
the Secured Party, the Federal Housing Administration and the Debtor as their interests may appear.  All such policies shall provide for not less than thirty (30) days minimum written notice to the Secured Party of cancellation or material
change.
                          (g)     Keep the
Collateral free and clear of all liens and security interests of others.
                         (h)     Pay, when due, all taxes, assessments and other
charges lawfully and validly levied or assessed upon the Collateral.
            3.          Defense of Collateral.  The Debtor will promptly defend any proceeding which may
affect the Security Interest or the title to the Collateral, and will reimburse the Secured Party for all costs and expenses incurred by the Secured Party in connection with such defense.

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            4.          Charges, Liens and Encumbrances Affecting Collateral.  The Debtor will pay
when due all existing or future charges, liens, or encumbrances on and all taxes and assessments now or hereafter imposed on or affecting the Collateral.
            5.          Remedies on Default.  In the event of a default, as defined in Section 6:

                          (a)     The Secured Party may, at its
option, declare the full principal amount of the Indebtedness, and any interest accrued on that amount, to be immediately due and payable; and
                          (b)     The Secured Party shall have all of the rights
and remedies of a Secured Party against the Collateral under the Uniform Commercial Code as in effect in the State.
           Without limitation of
those rights and remedies, the Secured Party may, upon written notice to the Debtor, take, and publicly or privately sell or convey full right, title and interest in and to, the Collateral, or any part of it, in the name of the Secured Party and/or
its designees.  The Debtor hereby constitutes and appoints the Secured Party as its true and lawful attorney-in-fact, such power being coupled with an interest and irrevocable, to assign and transfer its interest in any or all of the Collateral
in the event of a default.
            6.          Defaults.  For purposes of
this Agreement, the Debtor shall be deemed to be in default if:
                          (a)     The Debtor violates any provision of (i) the Note
(which evidences the Indebtedness); (ii) the Mortgage (which also secures the Indebtedness); (iii) this Security Agreement; or (iv) any other instrument related to the Indebtedness (which Note, Mortgage, Security Agreement and other instruments
related to the Indebtedness are hereinafter sometimes collectively referred to as the “Security Documents”); provided, however, that an event of default shall not occur unless such violations are not cured within applicable cure periods,
if any, as may be provided in said Security Documents;
                          (b)     There occurs any actual or threatened demolition
of or injury or waste to the Project premises, not covered by insurance, or not replaced or restored by the Debtor, which may impair the value of the Collateral; or
                           (c)     A receiver is appointed for or a petition in
bankruptcy is filed by or against the Debtor, its successors or its assigns, which receiver or involuntary bankruptcy petition is not removed, vacated or stayed within sixty (60) days from the first date of appointment or filing thereof;
or
                         (d)     The Debtor is
dissolved and liquidation of the Debtor is commenced in accordance with the Debtor’s organizational documents and/or the law of the State.
                          (e)     The Debtor changes its name or the jurisdiction
in which it is organized without the prior written consent of the Secured Party.

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            7.          No Waiver.  No failure on the part of the Secured Party to exercise, and no delay on
the part of the Secured Party in exercising, any right or remedy under this Agreement shall operate as a waiver of that right or remedy.  A single or partial exercise by the Secured Party of any right or remedy under this Agreement shall not
constitute an election of remedies by the Secured Party or preclude any other or further exercise of that right or remedy or the exercise of any other right or remedy.  The remedies provided in this Agreement are not exclusive of any remedies
provided by law.
            8.          Priority of Remedies; Renewals and
Extensions.  Neither the Debtor nor any other persons interested in the Collateral or the proceeds of the Collateral shall have any right to require the Secured Party first to resort to or proceed personally against any other person or
to proceed against any other collateral security, or to give priority or preference to any item of Collateral, or to proceed upon any guaranty prior to exercising its rights hereunder.  No renewal or extension of the Indebtedness, no release or
surrender of any Collateral given as security for the Indebtedness, no release of any obligor with respect to the Indebtedness, and no delay by the Secured Party in enforcing the Indebtedness or exercising any right or power with respect to the
Indebtedness shall affect the Secured Party’s rights with respect to the Collateral.
           9.          Termination.  This Agreement, and each of the rights and remedies afforded to the
Secured Party hereunder shall automatically terminate upon payment of the Indebtedness in full in compliance with the provisions of the Note.  Upon termination hereunder, the Secured Party hereby agrees to execute a Termination Statement and
any other documents reasonably necessary to terminate this Agreement and release the Collateral from the Security Interest.
            10.          Non-Recourse Obligation.  Notwithstanding any other provision contained herein or in
the Note, it is agreed that the execution of the Note shall impose no personal liability upon the Debtor for payment of the indebtedness evidenced thereby, and in the event of a default the Secured Party shall look solely to the property subject to
the Mortgage and this Security Agreement and to the rents, issues and profits thereof in satisfaction of the indebtedness evidenced by the Note and will not seek or obtain any deficiency or personal judgment against the Debtor except such judgment
as may be necessary to foreclose or bar its interest in the property subject to the Mortgage and this Security Agreement and all other property mortgaged, pledged, conveyed or assigned to secure payment of the Note; provided, that nothing in this
condition and no action so taken shall operate to impair any obligation of the Debtor under that certain Regulatory Agreement of even date herewith between the Debtor and the Secretary.
            11.          Terms.  Unless otherwise defined, all words used in this Agreement shall have the
meanings given them in the Uniform Commercial Code as in effect in the State.
            12.          Notices.  All notices, demands and communications between the parties concerning
this Agreement shall be in writing and shall be delivered, or mailed by registered or certified mail with postage prepaid, or telegraphed, addressed in each case as follows, and shall be deemed to have been given or made when so delivered, deposited
in the mail, or telegraphed:

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 	  If to the Debtor, to:
 
	   
 	   
 
	   
 	  ARV Las Posas, L.P.
 245 Fischer Avenue, Suite D-1,
 Costa Mesa, California 92626
 Attention:  Douglas Armstrong, Senior Vice President
 
	   
 	   
 
	   
 	  If to the Secured Party, to:
 
	   
 	   
 
	   
 	  Red Mortgage Capital, Inc.
 150 East Gay Street, 22nd Floor
 Columbus, Ohio 43215
 Attention:  Loan Servicing Department
 

            Either party, at any time, by written notice given to the other in accordance with this Section, may designate a different address to which such
communications shall thereafter be directed.
           13.          Rights of
Secretary. 
                          (a)     Contemporaneously herewith the Secretary and the
Debtor have executed the Regulatory Agreement, which Regulatory Agreement is hereby incorporated by reference herein.
                          (b)     The Regulatory Agreement is incorporated in the
Mortgage by reference.  Under the terms of the Regulatory Agreement, the Secretary may exercise certain rights in and to the Collateral prior to the assignment of the Note, Mortgage, this Security Agreement and any other collateral documents
which have been executed and delivered to the Secretary as a condition precedent to the Secretary’s endorsement of the Note for mortgage insurance.
                          (c)     The Debtor and the Secured Party hereby agree
that the Secretary shall be an additional secured party under this Security Agreement together with the Secured Party, as their interests may appear, and that the Secretary may be listed on the Uniform Commercial Code Financing Statements to be
filed contemporaneously herewith; provided, however, that nothing herein or in the Uniform Commercial Code Financing Statements shall require the execution, now or at any future time, of any amendment, extension, or other document by the
Secretary.
                          (d)     To the
extent any party herein is required or desires to give notice to the Secretary hereunder, such notice shall be delivered in accordance with the provisions of Paragraph 12 hereof, as follows:

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 	  U.S. Department of Housing and Urban Development
  Los Angeles Multifamily Hub
 611 West Sixth Street, Suite 800
 Los
Angeles, California 90017
 Attention:  Director, Multifamily Housing Division
 

            14.          Marshalling Not Applicable.  In any exercise of rights of the Secured Party under
this or any other instrument, any combination or all of the property, rights or security given to secure the Indebtedness of the Debtor to the Secured Party may be offered for sale for one total price, and the proceeds of any such sale accounted for
in one account without distinction between the items of security or without assignment to them of any proportion of such proceeds, the Debtor hereby waiving the application of any doctrine of marshalling.
            15.          Miscellaneous.
                          (a)     This Agreement is intended to be supplemental to
and not in substitution or in derogation of any security agreement contained in the Mortgage.  In the event of any conflict between this Agreement and the Mortgage, the Mortgage shall be controlling.
                          (b)     In any instance where the consent or approval of
the Secured Party may be given or is required or any determination is to be rendered by the Secured Party hereunder, the granting, withholding or denial of such consent or approval and the rendering of such determination shall be made or exercised
by the Secured Party at its sole and exclusive option and in its reasonable discretion.
                         (c)     It is understood and agreed that no judgment or
decree which may be entered on any debt secured or intended to be secured by the Mortgage shall operate to abrogate or lessen the effect of this Agreement, but that this Agreement shall continue in full force and effect until the payment and
discharge of the Indebtedness due under the Security Documents.
                          (d)     It is understood and agreed that the remedies
granted to the Secured Party herein shall not be deemed exclusive of any other remedies possessed by the Secured Party under the Note, the Mortgage, any other of the Security Documents or at law or in equity, but shall be deemed additional and
cumulative thereto.
                          (e)     This Agreement shall be governed by and construed
in accordance with the laws of the State.
                          (f)     All captions in this Agreement are for
convenience only, and shall not be considered in construing this Agreement.
                          (g)     Any reference in this Agreement to a
“Section” shall be construed as referring to a Section of this Agreement.

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                          (h)     This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and assigns.
                         (i)     The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of the remaining provisions, which shall remain in full force and effect.
                          (j)     This Agreement may be executed in several
counterparts, each of which shall be an original and all of which shall constitute one and the same instrument.
                          (k)     This instrument contains the entire agreement
between the parties as to the rights granted and the obligations assumed in this instrument.  This Agreement may be amended only by a subsequent written instrument signed by both parties.
            IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year hereinabove first written.

	   
 	  DEBTOR:
 	   
 
	  
 	  ARV LAS POSAS, L.P.
 	   
 
	   
 	  a California limited partnership
 	   
 
	   
 	   
 	   
 	   
 	   
 	   
 
	   
 	  By:
 	  AMERICAN RETIREMENT VILLAS
 PROPERTIES III, L.P.
 a California limited partnership
 General
Partner
 	   
 
	   
 	   
 	   
 	   
 
	  
 	   
 	  By:
 	  ARV ASSISTED LIVING INC.
 a Delaware corporation
 General Partner
 	   
 
	   
 	   
 	   
 	   
 	   
 
	   
 	   
 	   
 	  By:
 	   
 	   
 
	   
 	   
 	   
 	   
 	 
 	   
 
	  
 	   
 	   
 	   
 	  Douglas Armstrong
 Senior Vice President
 	   
 
										

   

	   
 	  SECURED PARTY:
 	   
 
	   
 	  RED MORTGAGE CAPITAL, INC.
 an Ohio corporation
 	   
 
	  
 	  
 	  
 	  
 
	  
 	  
 	  
 	  
 
	  
 	 By:
 	  
 	  
 
	  
 	  
 	 
 	  
 
	  
 	  
 	 Richard Andrews
 Director
 	  
 

 Attachments
 Exhibit “A” 
[Legal Description]
 Exhibit “B”  [Description of Collateral]Exhibit "B" to Security Agreement and Financing Statements

  Exhibit 10.28
  EXHIBIT “B” TO SECURITY AGREEMENT
 AND FINANCING
STATEMENTS
            This Exhibit “B” is attached to, incorporated by reference in, and forms a part of that certain Security
Agreement and Financing Statements (collectively, the “Security Documents”), executed and delivered by the Debtor in connection with the financing of the Project (as hereinafter defined) in favor of RED MORTGAGE CAPITAL, INC., an
Ohio corporation (the “Secured Party”).
            This Exhibit “B” refers to the following collateral (the
“Collateral”), which may be now or hereafter located on the premises of, relate to, or be used in connection with, the financing, construction, equipping, repair, ownership, management, and operation of a certain nursing home facility
known or to be known as “VILLA LAS POSAS”, FHA Project No. 122-22056-PM-ALF-REF, located on real property (the “Land”) situated in Camarillo, Ventura County, California (the “Project”), and owned by ARV
LAS POSAS, L.P., a California limited partnership (the “Debtor”):
                      As used herein, the term “Debtor” shall mean and include the terms “Mortgagor,”
“Grantor,” “Trustor” and “Borrower”; the term “Secured Party” shall mean and include the terms “Lender,” “Mortgagee” and “Creditor; the term “Mortgage Property” shall mean
and include the Land and the improvements situated thereon; and the term “Improvements” shall mean and include all buildings, structures, improvements, and alterations now constructed or at any time in the future constructed or placed upon
the Land, including any future replacements and additions.
           1.          Fixtures.  All property (collectively, the “Fixtures”) which is so attached
to the Land or the improvements located thereon so as to constitute a fixture under applicable law, including:  machinery, equipment, engines, motors, boilers, compressors, incinerators, installed building materials; systems and equipment for
the purpose of supplying or distributing heating, cooling, electricity, gas, water, air, or light; antennas, cable wiring and conduits used in connection with radio, television, security, fire prevention, or fire detection or otherwise used to carry
electronic signals; telephone and communication systems and equipment; elevators and related machinery and equipment; fire detection, prevention and extinguishing systems and apparatus; security and access control systems and apparatus; piping,
tubing and plumbing equipment and fixtures; water heaters, ranges, stoves, ovens, microwave ovens, refrigerators, dishwashers, garbage disposers, washers, dryers and other appliances; light fixtures, awnings, storm windows and storm doors; pictures,
screens, blinds, shades, draperies, curtains and curtain rods; mirrors, cabinets, mantles, paneling, rugs, floor and wall coverings; fences, trees and plants; swimming pools; and exercise equipment.
            2.          Leases.  All present and future leases, subleases, licenses, concessions or grants or
other possessory interest now or hereafter in force, whether oral or written, covering or affecting the Mortgaged Property, or any portion of the Mortgaged Property (including proprietary leases or occupancy agreements if the Debtor is a cooperative
housing corporation), and all modifications, extensions or renewals thereof.
            3.          Personalty.  All equipment, inventory, work-in-progress, finished, general
intangibles which are now used or in the future may be used in connection with the ownership, management and operation of the Land and the Improvements or are located on the Land or in the Improvements (collectively, the “Personalty”),
including furniture, furnishings, machinery, building materials, appliances, goods, supplies, tools, books, records (whether in written or electronic form), computer equipment (hardware and software) and other tangible personal 

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  property (other than Fixtures) which are now or in the future used in connection with the ownership,
management or operation of the Land or the Improvements or are located on the Land or in the Improvements, and any operating agreements relating to the Land or the Improvements, and any surveys, plans and specifications, warranties and contracts for
architectural, engineering and construction services relating to the Land or the Improvements, and all other intangible property and rights relating to the operation of, or used in connection with, the Land or the Improvements, including all
governmental licenses and permits relating to any activities on the Land or the Mortgaged Property.
            4.          Rights.  All current and future rights, including air rights, development rights,
zoning rights and other similar rights or interests, easements, tenements, rights-of-way, strips and gores of land, streets, alleys, roads, waters, watercourses, and appurtenances related to or benefitting the Land or the Improvements, or both, and
all rights-of-way, streets, alleys and roads which may been or in the future may be vacated.
            5.          Insurance Proceeds.  All proceeds paid or to be paid by any insurer of the Land, the
Improvements and the Fixtures or any other part of the Mortgaged Property, whether or not the Borrower obtained the insurance pursuant to a requirement of the Lender.
            6.          Awards.  All judgments, awards of damages (including but not limited to severance and
consequential damages), payments, proceeds, settlements or other compensation (collectively, the “Awards”), and the right to receive the same,  heretofore or hereinafter made by any municipal, state or federal authority, including
interest thereon, and the right to receive the same with respect to the Land, the Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property, including any awards or settlements resulting from: (i) any taking of the
Mortgage Property or any part thereof by the exercise of the power of condemnation or eminent domain, or the police power, (ii) any change or alteration of the grade of any street, or (iii) any other injury or decrease in the value of the Mortgaged
Property or any part thereof (including but not limited to destruction or decrease in value by fire or other casualty), all of which Awards, rights thereto and shares therein are hereby assigned to the Secured Party, who is hereby authorized to
collect and receive the proceeds thereof and to give proper receipts and acquittances therefor and to apply, at its option, the net proceeds thereof, after deducting expenses of collection, as a credit upon any portion, as selected by the Secured
Party, of the indebtedness secured by the Security Documents, and including any conveyance in lieu thereof.
           7.          Contracts.  All contracts, options and other agreements for the sale of the Land, the
Improvements, the Fixtures, the Personalty or any other part of the Mortgaged Property entered into by the Debtor now or in the future, including cash or securities or other security deposited to secure performance by the parties of their
obligations, and all construction contacts, architectural and engineering agreements and management contracts now or in the future existing pertaining to the construction, development, repair, operation, ownership, equipping or management of the
Mortgaged Property.
            8,          Property Documents.  All
architectural, engineering and similar plans, specifications, drawings, reports, surveys, plats, permits, sewer taps and allocations, agreements for utility services, bonds, warranties, guarantees, architectural, engineering, construction and
management agreements and the like pertaining to the construction, development, repair, operation, management and maintenance of the Mortgaged Property.
            9.          Proceeds.  All payments, proceeds, settlements or other compensation from the
conversion, voluntary or involuntary, of any of the above into cash or liquidated claims, and the right to collect such proceeds.

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            10.         Receipts.  All rents, earnings, revenues, royalties, charges accounts receivable, issues
and profits from the ownership, operation or management of the Land, the Improvements or any other part of the Mortgaged Property, and all undisbursed proceeds of the loan secured by this Instrument, and, if the Borrower is a cooperative housing
corporation, maintenance charges or assessments payable by shareholders, members or residents.
           11.
        Imposition Deposits.  All deposits made by the Borrower to the Lender on the day monthly installments of principal or interest, or both, are due under the Note secured by the
Mortgaged Property (or on another day designated in writing by the Lender), until the Indebtedness is paid in full, that is an additional amount sufficient to accumulate with the Lender the entire sum required to pay, when due (i) any water and
sewer charges which, if not paid, could result in a lien on all or any part of the Mortgaged Property, (ii) the premiums for fire and other hazard insurance, rent loss insurance and such other insurance as the Lender may require under the terms of
the Security Agreement, (iii) taxes, and (iv) amounts for other charges and expenses which the Lender at any time reasonably deems necessary to protect the Mortgaged Property, to prevent the imposition of liens on the Mortgaged Property, or
otherwise to protect the Lender’s interests, all as reasonably determined from time to time by the Lender.
            12.         Refunds.  All refunds or rebates of impositions by any municipal, state or federal
authority or insurance company (other than refunds applicable to periods before the real property tax year in which the mortgage securing the Note is dated).
            13.         Tenant Security Deposits.  All tenant security deposits which have not been forfeited by
any tenant under any lease.
            14.         Names, Trademarks and Goodwill. 
All names under or by which any of the Mortgaged Property may be operated or known, and all trademarks, trade names, and goodwill relating to any of the Mortgaged Property.
            15.         Books and Records.  All of the records and books of account now or hereinafter maintained
by or on behalf of the Debtor and/or its agents and employees in connection with the Mortgaged Property.
           16.         Funds and Accounts.  All estate, right, title and interest, if any, of the Debtor in and
to all of the following funds and accounts and investments of funds and accounts:
                           (a)     All accounts receivable to which the Debtor
is now entitled or to which it may be entitled at any future time.
                           (b)     All cash funds and escrows maintained with,
required by or under the control of the Lender in connection with the Mortgaged Property including, without limitation:  mortgage loan escrows; Replacement Reserve Funds; Sinking Funds (if applicable); Surplus Cash and/or Residual Receipts; and
all escrows (as applicable) for operating deficits, debt service reserves, interest rate differential, minor movable equipment, change orders, demolition, off-site construction, latent defects, and repairs; and any other funds and accounts now or in
the future held by the Lender and its successors and assigns.
                           (c)     Any cash escrow funds and any and all
funds, securities, instruments, documents and other property which are at any time paid to, deposited with, under the control of, or in the possession of the Secured Party, or any of its agents, branches, affiliates, correspondents or others acting
on its behalf.

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                           (d)     The interest of the Debtor in and to any
and all funds created or established and held by the Trustee pursuant to any indenture of trust or similar instrument authorizing the issuance of bonds or notes for the purpose of financing the Project located upon the Property.
                          (e)     All bank accounts, certificates of
deposit, letters of credit, securities, the Mortgaged Property; and every renewal or replacement thereof or articles in substitution therefor, whether or not the same are now or hereafter attached to the Mortgaged Property in any manner; all except
for any right, title or interest therein owned by any tenant (it being agreed that all personal property owned by the Debtor and placed by it on the Mortgaged Property shall, so far as permitted by law, be deemed to be affixed to the Property,
appropriated to its use, and covered by each of the Security Documents to which this Exhibit is attached).
            17.         Facility Assets:  All estate, right, title and interest, if any, of the Debtor in and to
all of the assets associated with or arising out of or in connection with the operation of a nursing home, residential care facility, assisted living facility or similar facility on the Mortgaged Property:
                           (a)     All major movable equipment located on the
Mortgaged Property and used in connection with the Project.
                           (b)     All hospital beds, medical equipment and
apparatus, and all other equipment goods and personal property s are commonly used in the full furnishing and equipping of such facility, whether personal property, inventory or fixtures, whether now owned or hereafter from time to time acquired by
the Debtor, together with all substitutions, replacements, additions, attachments, accessories, accretions, their component parts thereto or thereof, all other items of like property and all accounts and contract rights covering or relating to any
of all thereof, whether now in existence or hereafter arising, and relating to, situated on, or used or usable in connection with the ownership, operation, management, use and occupancy of the Project.
                          (c)     All licenses, permits and approvals issued
by any federal, state and local governmental entity in connection with or relating to the ownership, operation, management, use and occupancy of the Project.
                          (d)     All Medicare/Medicaid Provider Agreements
pertaining to the Project, whether nor existing or hereinafter issued to or for the benefit of the Debtor or as to which the Debtor may now or at any future time have any right, title or interest.
           18.         Proceeds.  Proceeds, products, returns, additions, accessions, accretions, component
parts, replacements and substitutions of and to any and all of the above.

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