§390pp Involuntary Foreclosure

Summary

Usual ownership limits for federal reclamation land do not apply when land is taken by involuntary foreclosure, a similar court process, a good-faith transfer to pay a debt (for example, a mortgage, real estate contract, or deed of trust), inheritance, or by will. This only applies if the land could get irrigation water before the title changed, or if it lost eligibility after the mortgage was recorded but before the takeover. If the land is not otherwise eligible under reclamation rules after the acquisition, it must get temporary irrigation for up to five years from the effective date of the acquisition. After five years, water delivery stops until the land is transferred to an owner who qualifies. A related rule in the same law applies separately to each such acquisition.