90178-CA General Depository Agreement

General Depository
Agreement

U.S. Department of Housing
and Urban Development

OMB Approval No xxxx-xxxx
(Exp. mm/dd/yyyy)

Office of Housing
Federal Housing Commissioner
_________________________________________________________________________________________________________________________
Public reporting burden for this collection of information is estimated to average 30 minutes per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. HUD may not
collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number.
This information collection is necessary to ensure that viable projects are developed. The information will be used to certifies that the owner selects a
financial institution whose deposits or accounts are insured by either the Federal Deposit Insurance Corporation, the Savings Association Insurance
Fund, or the National Credit Union Share Insurance Fund. This information is required in order to obtain benefits. This information is considered nonsensitive and no assurance of confidentiality is provided.

Genera l Depository Agreement [§202/811]
This Agreement, entered into this _____________ day of 200__ by and between _____________ (herein called the
“Mortgagor”), a duly organized and existing corporation of the state of __________________and _____________ (herein
called the “Depository”), located at_________________.
Witnesseth:
Whereas, the Department of Housing and Urban Development (herein called “HUD”) has entered into one or
more contracts (herein called the “Contract” with the Mortgagor for the purpose of providing financial assistance to
develop and operate lower income housing for the elderly and persons with disabilities, as authorized by Section 202 of
the Housing Act of 1959 as amended by Section 811 of the Cranston Gonzalez National Affordable Housing Act, (12
U.S.C. § 1701 q et seq.); and
Whereas, under the terms of the Contract the Mortgagor is required to select as depositories of its funds financial
institutions whose deposits or accounts are insured by either - the Federal Deposit Insurance Corporation, the Savings
Association Insurance Fund, or the National Credit Union Share Insurance Fund as long as this Agreement is in force and
effect.
Now Therefore, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1.
The deposits and accounts of the Depository shall continue to be insured by either - the Federal Deposit Insurance
Corporation, Savings Association Insurance Fund, or the National Credit Union Share Insurance Fund.
2.
All monies deposited by the Mortgagor with the Depository shall be credited to the Mortgagor in a separate
interest bearing deposit or interest bearing account, designated ___________________________ Account (herein the
“Account”). Any portion of Mortgagor Funds not insured by a Federal insurance organization shall be fully (100%) and
continuously collateralized with specific and identifiable U.S. Government or Agency securities prescribed by HUD.
Such securities shall be pledged and set aside in accordance with applicable law or Federal regulations. The Mortgagor
shall have possession of the securities (or the Mortgagor will take Possession of the securities) or an independent
custodian (or an independent third party) holds the securities on behalf of the Mortgagor as a bailee (evidenced by a safe
keeping receipt and a written bailment for hire contract) and will be maintained for the full term of deposit. The
Depository will not substitute other securities as collateral except to increase the value.
3.
Except as stated in Paragraph 5, the Depository shall honor any (a) check or other order to pay from the Account
or (b) directive to purchase investment securities with monies from the Account or to sell securities, if such order or
directive is in writing and signed on behalf of the Mortgagor by an officer or member designated by resolution of the
Board of Directors of the Mortgagor to have such authority. To assist the Depository in its obligation, the Mortgagor shall
furnish the Depository with a certified copy of the resolution.

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form HUD-90178-CA
(12/1/2006)

4.
Any securities received from the Mortgagor or purchased by the Depository with monies from the Account shall
be considered to be a part of the Account and shall be held by the Depository in safekeeping for the Mortgagor until sold.
Interest on such securities and the proceeds from the sale thereof shall be deposited in the Account upon receipt.
5.
If the Depository received written notice from HUD that no withdrawals by the Mortgagor from the Account are
to be permitted, the Depository shall not honor any check or other order to pay from the Account or directive to purchase
or sell securities, or permit any withdrawals by the Mortgagor from said Account until the Depository is authorized to do
so by written notice from HUD.
6.
The Depository is not obligated to be familiar, and shall not be charged, with knowledge of the provisions of the
Contract, and shall be under no duty to investigate or determine whether any action taken by either the Mortgagor or HUD
in respect of the Account is consistent with or is authorized by the Contract or whether either Mortgagor or HUD is in
default under the provisions of the Contract. The Depository shall be fully justified in accepting and acting on, without
investigation, any certificate or notice furnished to it pursuant to the provisions of this Agreement and which the
Depository shall in good faith believe to have been duly authorized and executed on behalf of the party in whose name the
same purports to have been made or executed.
7.
The rights and duties of the Depository under this Agreement shall not be transferred or assigned by the
Depository without the prior written approval of the Mortgagor and HUD. This Agreement may be terminated by either
party hereto upon thirty days’ written notice to the other party, and HUD. The rights and duties of the Depository
hereunder shall not be transferred or assigned nor shall this Agreement be terminated during any period in which the
Depository is required to refuse to permit withdrawals from the Account as provided in Paragraph 5.
8.
HUD is intended to be a third party beneficiary of this Agreement and may sue to enforce its provisions and to
recover damages for failure to carry out its terms.
9.

The Depository shall promptly notify the Mortgagor of crediting or depositing of any monies in the Account.

10.

The provisions of this Agreement may not be modified by either Party without the prior written approval of HUD.

In Witness Whereof, the Mortgagor and the Depository have caused this Agreement to be executed in their respective
names and their respective seals to be impressed hereon and attested as of the date and year first above written.

[Mortgagor]: ___________________________

By:____________________________________
President
(SEAL)
ATTEST:___________________________
Secretary

[Depository]:____________________________

By:____________________________________
[title]:
(SEAL)
ATTEST:___________________________
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form HUD-90178-CA
(12/1/2006)