§390pp Involuntary foreclosure

Summary

Ownership limits do not apply when land is taken by involuntary foreclosure or a similar court process, by a real transfer to satisfy a debt (like a mortgage or similar loan document), by inheritance, or by devise — if the land could get irrigation water before the transfer, or if it only lost eligibility after the mortgage was recorded but before the foreclosure or transfer. If the land is not otherwise qualified under Federal reclamation law after the acquisition, it must be given irrigation water temporarily for up to five years from the effective date of the acquisition, and delivery stops after that until the land goes to an owner who does qualify. Other applicable rules apply separately to each such acquisition.