Title 42 — The Public Health and WelfareRelease 119-73
§3538 Rescheduling and refinancing of Federal loans
Title 42 › Chapter CHAPTER 44— - DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT › § 3538
Summary
HUD Secretary can refinance loans HUD holds or loans in the 1955 revolving fund (12 U.S.C. 1701g–5) when the property backing them is lost or damaged by a major disaster. He can stop payments and extend the loan up to five years to avoid severe financial hardship.
Full Legal Text
Title 42, §3538
The Public Health and Welfare — Source: USLM XML via OLRC
The Secretary of Housing and Urban Development is authorized to refinance any note or other obligation which is held by him in connection with any loan made by the Department of Housing and Urban Development or its predecessor in interest, or which is included within the revolving fund for liquidating programs established by the Independent Offices Appropriation Act of 1955 [12 U.S.C. 1701g–5], where he finds such refinancing necessary because of the loss, destruction, or damage (as a result of a major disaster) to property or facilities securing such obligations. The Secretary may authorize a suspension in the payment of principal and interest charges on, and an additional extension in the maturity of, any such loan for a period not to exceed five years if he determines that such action is necessary to avoid severe financial hardship.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The Independent Offices Appropriation Act of 1955, referred to in text, is act June 24, 1954, ch. 359, 68 Stat. 272. Provisions of the act which established the revolving fund for liquidating programs are classified to section 1701g–5 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Tables. Codification Section was not enacted as part of the Department of Housing and Urban Development Act which comprises this chapter. Section was formerly classified to section 4455(b) of this title.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Dec. 31, 1970, see section 304 of Pub. L. 91–606, set out as an
Effective Date
of 1970 Amendment note under section 165 of Title 26, Internal Revenue Code.
Reference
Citations & Metadata
Citation
42 U.S.C. § 3538
Title 42 — The Public Health and Welfare
Last Updated
Apr 6, 2026
Release point: 119-73