§3752 — Title 12 Banks and Banking | U.S. Code

Summary

Defines key words used in the chapter. It tells what each term means for the rest of the rules. bona fide purchaser is a buyer who paid value, acted in good faith, did not know about any other claim, and gets the property free of such claims. county has the same meaning as in section 2 of title 1. mortgage is any instrument (like a deed of trust, mortgage, or security agreement) that makes real, personal, or mixed property—or an interest in property such as leaseholds, life estates, or reversionary interests—security for a debt or obligation. mortgage agreement is the loan note or debt paper together with the mortgage or trust deed and any documents they refer to or later change. mortgagor is the person named as obligor, grantor, or trustee in the mortgage agreement and generally includes the current recorded owner even if that owner is not personally liable on the debt. owner is anyone with an ownership interest, including heirs, executors, administrators, personal representatives, and trustees of testamentary trusts when the recorded owner is dead. person includes an individual, group of individuals, association, partnership, corporation, or organization. record and recorded include register and registered for registered land. security property means the property or interest in property (including leaseholds, life estates, reversionary interests, and similar estates) plus fixtures and other interests that are subject to the mortgage lien under state law. single family mortgage covers property with a 1- to 4-family residence and either (A) is held by the Secretary under title I or title II of the National Housing Act (12 U.S.C. 1702 et seq., 1707 et seq.), or (B) secures a loan obligated by the Secretary under section 1452b of title 42 as it existed before the repeal of that section by section 12839 of title 42 (except that such a mortgage for property containing nonresidential space plus a 1- to 4-family dwelling is not covered by this chapter). State includes the several States; the District of Columbia; the Commonwealth of Puerto Rico; the United States Virgin Islands; Guam; American Samoa; the Northern Mariana Islands; the Trust Territory of the Pacific Islands; and Indian tribes as defined by the Secretary.

Title 12, §3752

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For purposes of this chapter, the following definitions shall apply:

(1)The term “bona fide purchaser” means a purchaser for value in good faith and without notice of any adverse claim, and who acquires the security property free of any adverse claim.

(2)The term “county” has the same meaning as in section 2 of title 1.

(3)The term “mortgage” means a deed of trust, mortgage, deed to secure debt, security agreement, or any other form of instrument under which any property (real, personal or mixed), or any interest in property (including leaseholds, life estates, reversionary interests, and any other estates under applicable State law), is conveyed in trust, mortgaged, encumbered, pledged, or otherwise rendered subject to a lien for the purpose of securing the payment of money or the performance of an obligation.

(4)The term “mortgage agreement” means the note or debt instrument and the mortgage instrument, deed of trust instrument, trust deed, or instrument or instruments creating the mortgage, including any instrument incorporated by reference therein and any instrument or agreement amending or modifying any of the foregoing.

(5)The term “mortgagor” means the obligor, grantor, or trustee named in the mortgage agreement and, unless the context otherwise indicates, includes the current owner of record of the security property whether or not such owner is personally liable on the mortgage debt.

(6)The term “owner” means any person who has an ownership interest in property and includes heirs, devises, executors, administrators, and other personal representatives, and trustees of testamentary trusts if the owner of record is deceased.

(7)The term “person” includes any individual, group of individuals, association, partnership, corporation, or organization.

(8)The terms “record” and “recorded” include “register” and “registered” in the instance of registered land.

(9)The term “security property” means the property (real, personal or mixed) or an interest in property (including leaseholds, life estates, reversionary interests, and any other estates under applicable State law), together with fixtures and other interests subject to the lien of the mortgage under applicable State law.

(10)The term “single family mortgage” means a mortgage that covers property on which there is located a 1- to 4-family residence, and that—

(A)is held by the Secretary pursuant to title I or title II of the National Housing Act [12 U.S.C. 1702 et seq., 1707 et seq.]; or

(B)secures a loan obligated by the Secretary under section 1452b of title 42, as it existed before the repeal of that section by section 12839 of title 42 (except that a mortgage securing such a loan that covers property containing nonresidential space and a 1- to 4-family dwelling shall not be subject to this chapter).

(11)The term “State” means—

(A)the several States;

(B)the District of Columbia;

(C)the Commonwealth of Puerto Rico;

(D)the United States Virgin Islands;

(E)Guam;

(F)American Samoa;

(G)the Northern Mariana Islands;

(H)the Trust Territory of the Pacific Islands; and

(I)Indian tribes, as defined by the Secretary.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Housing Act, referred to in par. (10)(A), is act

June 27, 1934, ch. 847, 48 Stat. 1246. Titles I and II of the Act are classified generally to subchapters I (§ 1702 et seq.) and II (§ 1707 et seq.), respectively, of chapter 13 of this title. For complete classification of this Act to the Code, see section 1701 of this title and Tables. Codification Section is based on section 803 of title VIII of S. 2281, One Hundred Third Congress, as reported

July 13, 1994, which was enacted into law by Pub. L. 103–327.

Executive Documents

Termination of Trust Territory of the Pacific Islands For termination of Trust Territory of the Pacific Islands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions.

§3752 Definitions