§ 410-f. Regulation of eligible borrowers. 1. Every eligible\nborrower, as a condition precedent to borrowing funds from the agency,\nshall enter into a regulatory agreement with the commissioner which\nshall provide:\n (a) that the real property or other assets mortgaged or otherwise\npledged to the agency shall not be sold, transferred, encumbered or\nassigned until the eligible borrower shall have repaid in full all\nobligations under the mortgage of the agency and has paid such other\nobligations as may be required by the commissioner provided, however,\nthe provisions of this paragraph (a) shall not apply to any actions\ntaken pursuant to section four hundred ten-l of this article;\n (b) that the eligible borrower will maintain books and records and a\nsystem of accounts satisfactory to the commissioner and the agency\nincluding but not limited to separate books, records and accounts for\n(i) all monies advanced to the eligible borrower by the agency or from\nany other source or sources, public or private, for the construction,\nreconstruction, rehabilitation, improvement or equipment of the project\nand (ii) all monies repaid in satisfaction of any indebtedness to the\nagency or other indebtedness as required by the commissioner; and the\neligible borrower agrees that all of its books, records and accounts\nshall be open to examination by the commissioner and the agency at any\ntime;\n (c) that the eligible borrower shall file with the commissioner and\nthe agency such financial statements including an annual report setting\nforth such information as the commissioner may require;\n (d) that the eligible borrower shall not acquire any real property or\ninterest therein for the purpose of constructing, reconstructing,\nrehabilitating or improving a project without first having obtained from\nthe commissioner a certificate that such acquisition is consistent with\nthe purposes of this article;\n (e) that the eligible borrower shall not issue notes, bonds,\ndebentures or other obligations other than for money or property\nactually received for the use and lawful purposes of the eligible\nborrower and no such note, bond, debenture or other obligation shall\nconstitute a lien or encumbrance against the project, or any real\nproperty or other asset mortgaged or otherwise pledged to the agency;\n (f) that the eligible borrower shall not without first having\nobtained the written consent of the commissioner:\n (i) construct, reconstruct, rehabilitate, improve, alter or repair\nthe project or enter into a contract therefor;\n (ii) enter into contracts relating to the management or operation of\nthe project;\n (iii) make a guaranty of payment out of monies pledged to the agency\nor pledge any or all of its assets, income or revenue pledged to the\nagency to secure payment of its obligations;\n (iv) lease a project or a portion thereof to a third party for the\npurposes of operation;\n (v) voluntarily dissolve;\n (g) that no member, officer or employee of the corporation which is\nan eligible borrower shall acquire any interest, direct or indirect, in\nany property then or thereafter included or planned to be included in a\nproject, nor retain any interest direct or indirect in any property\nacquired subsequent to his appointment or employment which is later\nincluded or planned to be included in a project. If any member, officer\nor employee of a corporation which is an eligible borrower owns or\ncontrols an interest, direct or indirect, in any property included in a\nproject which was acquired prior to his appointment or employment, he\nshall disclose such interest and the date of acquisition to the\ncorporation and such disclosure shall be entered upon the minutes of\nsuch corporation and a copy of such minutes shall be forwarded to the\ncommissioner;\n (h) that all income and earnings of the eligible borrower shall be\nused exclusively for its corporate purposes;\n (i) that no part of the net inco
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