§1715z–4 — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary cannot agree to give more time to fix a default or to change the terms of a multifamily housing mortgage unless the Secretary follows rules the Secretary makes under this law. The rules must generally require the borrower to keep any rents or other income from the property that are more than needed for necessary operating costs (including loan amortization) in trust during the extension or modification. That money can only be spent with the Secretary’s permission. The Secretary may waive this trust rule for certain cases or groups of cases if doing so will not risk the United States’ interests.

Title 12, §1715z–4

Banks and Banking — Source: USLM XML via OLRC

The Secretary shall not consent to any request for an extension of the time for curing a default under any mortgage covering multifamily housing, as defined in the regulations of the Secretary, or for a modification of the terms of such mortgage, except in conformity with regulations prescribed by the Secretary in accordance with the provisions of this section. Such regulations shall require, as a condition to the granting of any such request, that, during the period of such extension or modification, any part of the rents or other funds derived by the mortgagor from the property covered by the mortgage which is not required to meet actual and necessary expenses arising in connection with the operation of such property, including amortization charges under the mortgage, be held in trust by the mortgagor and distributed only with the consent of the Secretary; except that the Secretary may provide for the granting of consent to any request for an extension of the time for curing a default under any mortgage covering multifamily housing, or for a modification of the term of such mortgage, without regard to the foregoing requirement, in any case or class of cases in which an exemption from such requirement does not (as determined by the Secretary) jeopardize the interests of the United States.

Editorial Notes

Amendments

1988—Pub. L. 100–242 struck out “insured” before “mortgages” in section catchline, and struck out subsec. (a) designation and subsec. (b) which related to violations and penalties imposed for violations of the provisions of former subsec. (a).

§1715z–4 Modifications in terms of mortgages covering multifamily projects; requests for extensions to cure defaults or for modification of mortgage terms; regulations

Summary

Title 12, §1715z–4

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata