2012 US Code
Title 12 - Banks and Banking
Chapter 23 - FARM CREDIT SYSTEM (§§ 2001 - 2279cc)
Subchapter IV - PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM (§§ 2151 - 2219e)
Part C - Rights of Borrowers; Loan Restructuring (§§ 2199 - 2202e)
Section 2202d - Protection of borrowers who meet all loan obligations
| Publication Title | United States Code, 2012 Edition, Title 12 - BANKS AND BANKING |
| Category | Bills and Statutes |
| Collection | United States Code |
| SuDoc Class Number | Y 1.2/5: |
| Contained Within | Title 12 - BANKS AND BANKING CHAPTER 23 - FARM CREDIT SYSTEM SUBCHAPTER IV - PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF INSTITUTIONS OF THE SYSTEM Part C - Rights of Borrowers; Loan Restructuring Sec. 2202d - Protection of borrowers who meet all loan obligations |
| Contains | section 2202d |
| Date | 2012 |
| Laws in Effect as of Date | January 15, 2013 |
| Positive Law | No |
| Disposition | standard |
| Source Credit | Pub. L. 92-181, title IV, §4.14D, as added Pub. L. 100-233, title I, §107, Jan. 6, 1988, 101 Stat. 1581. |
| Statutes at Large Reference | 101 Stat. 1581 |
| Public Law References | Public Law 92-181, Public Law 100-233 |
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A qualified lender may not foreclose on any loan because of the failure of the borrower thereof to post additional collateral, if the borrower has made all accrued payments of principal, interest, and penalties with respect to the loan.
(b) Prohibition against required principal reductionA qualified lender may not require any borrower to reduce the outstanding principal balance of any loan made to the borrower by any amount that exceeds the regularly scheduled principal installment payment (when due and payable), unless—
(1) the borrower sells or otherwise disposes of part or all of the collateral; or
(2) the parties agree otherwise in a written agreement entered into by the parties.
(c) NonenforcementAfter a borrower has made all accrued payments of principal, interest, and penalties with respect to a loan made by a qualified lender, the lender shall not enforce acceleration of the borrower's repayment schedule due to the borrower having not timely made one or more principal or interest payments.
(d) Placing loans in nonaccrual status (1) NotificationIf a qualified lender places any loan in nonaccrual status, the lender shall document such change of status and promptly notify the borrower thereof in writing of such action and the reasons therefor.
(2) Review of denialIf the borrower was not delinquent in any principal or interest payment under the loan at the time of such action and the borrower's request to have the loan placed back into accrual status is denied, the borrower may obtain a review of such denial before the appropriate credit review committee under section 2202 of this title.
(3) ApplicationThis subsection shall only apply if a loan being placed in nonaccrual status results in an adverse action being taken against the borrower.
(Pub. L. 92–181, title IV, §4.14D, as added Pub. L. 100–233, title I, §107, Jan. 6, 1988, 101 Stat. 1581.)
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