2012 US Code
Title 12 - Banks and Banking
Chapter 13 - NATIONAL HOUSING (§§ 1701 - 1750jj)
Subchapter V - MISCELLANEOUS (§§ 1731 - 1735h)
Section 1735f-19 - Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring
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 13 - NATIONAL HOUSING SUBCHAPTER V - MISCELLANEOUS Sec. 1735f-19 - Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring |
Contains | section 1735f-19 |
Date | 2012 |
Laws in Effect as of Date | January 15, 2013 |
Positive Law | No |
Disposition | standard |
Source Credit | June 27, 1934, ch. 847, title V, §541, as added Pub. L. 103-233, title I, §101(e), Apr. 11, 1994, 108 Stat. 357; amended Pub. L. 105-65, title II, §210, title V, §523(b), Oct. 27, 1997, 111 Stat. 1366, 1406; Pub. L. 106-74, title II, §213(a), Oct. 20, 1999, 113 Stat. 1073. |
Statutes at Large References | 108 Stat. 357 111 Stat. 1366, 1384 113 Stat. 1073 |
Public Law References | Public Law 103-233, Public Law 105-65, Public Law 106-74 |
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Notwithstanding any other provision of law, if the Secretary is requested to accept assignment of a mortgage insured by the Secretary that covers a multifamily housing project (as such term is defined in section 1701z–11(b) of this title) or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 1715w of this title), a hospital (as that term is defined in section 1715z–7 of this title), or a group practice facility (as that term is defined in section 1749aaa–5 of this title)) and the Secretary determines that partial payment would be less costly to the Federal Government than other reasonable alternatives for maintaining the low-income character of the project, or for keeping the health care facility operational to serve community needs, the Secretary may request the mortgagee, in lieu of assignment, to—
(1) accept partial payment of the claim under the mortgage insurance contract; and
(2) recast the mortgage, under such terms and conditions as the Secretary may determine.
(b) Existing mortgagesNotwithstanding any other provision of law, the Secretary, in connection with a mortgage restructuring under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, may make a one time, nondefault partial or full payment of claim under one or more mortgage insurance contracts, which shall include a determination by the Secretary or the participating administrative entity, in accordance with the Multifamily Assisted Housing Reform and Affordability Act of 1997, of the market value of the project and a restructuring of the mortgage, under such terms and conditions as are permitted by section 517(a) of such Act.
(c) RepaymentAs a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.
(June 27, 1934, ch. 847, title V, §541, as added Pub. L. 103–233, title I, §101(e), Apr. 11, 1994, 108 Stat. 357; amended Pub. L. 105–65, title II, §210, title V, §523(b), Oct. 27, 1997, 111 Stat. 1366, 1406; Pub. L. 106–74, title II, §213(a), Oct. 20, 1999, 113 Stat. 1073.)
References in TextThe Multifamily Assisted Housing Reform and Affordability Act of 1997, referred to in subsec. (b), is title V of Pub. L. 105–65, Oct. 27, 1997, 111 Stat. 1384. Sections 514 and 517(a) of the Act are set out as a note under section 1437f of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title of 1997 Amendment note set out under section 1701 of this title and Tables.
Amendments1999—Pub. L. 106–74, §213(a)(1), substituted “defaulted mortgages and in connection with mortgage restructuring” for “multifamily housing projects and health care facilities” in section catchline.
Subsec. (b). Pub. L. 106–74, §213(a)(2), substituted “partial or full payment of claim under one or more mortgage insurance contracts” for “partial payment of the claim under the mortgage insurance contract”.
1997—Pub. L. 105–65, §210(1), inserted “and health care facilities” after “housing projects” in section catchline.
Subsec. (a). Pub. L. 105–65, §523(b)(1), substituted “Defaulted mortgages” for “Authority” in heading.
Pub. L. 105–65, §210(2)(B), inserted “or for keeping the health care facility operational to serve community needs,” after “character of the project,” in introductory provisions.
Pub. L. 105–65, §210(2)(A), which directed the insertion, in introductory provisions, of “or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 1715w of this title), a hospital (as that term is defined in section 1715z–7 of this title), or a group practice facility (as that term is defined in section 1749aaa–5 of this title))” after “section 1701z–11(b) of this title”, was executed by inserting the language after “section 1701z–11(b) of this title)” to reflect the probable intent of Congress.
Subsecs. (b), (c). Pub. L. 105–65, §523(b)(2), (3), added subsec. (b) and redesignated former subsec. (b) as (c).
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