§ 1709-2. — Equity skimming; penalty; persons liable; one dwelling exemption.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1709-2]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1709-2. Equity skimming; penalty; persons liable; one
dwelling exemption
Whoever, with intent to defraud, willfully engages in a pattern or
practice of--
(1) purchasing one- to four-family dwellings (including
condominiums and cooperatives) which are subject to a loan in
default at time of purchase or in default within one year subsequent
to the purchase and the loan is secured by a mortgage or deed of
trust insured or held by the Secretary of Housing and Urban
Development or guaranteed by the Department of Veterans Affairs, or
the loan is made by the Department of Veterans Affairs,
(2) failing to make payments under the mortgage or deed of trust
as the payments become due, regardless of whether the purchaser is
obligated on the loan, and
(3) applying or authorizing the application of rents from such
dwellings for his own use,
shall be fined not more than $250,000 or imprisoned not more than 5
years, or both. This section shall apply to a purchaser of such a
dwelling, or a beneficial owner under any business organization or trust
purchasing such dwelling, or to an officer, director, or agent of any
such purchaser. Nothing in this section shall apply to the purchaser of
only one such dwelling.
(Pub. L. 91-609, title IX, Sec. 912, Dec. 31, 1970, 84 Stat. 1814; Pub.
L. 100-242, title IV, Sec. 416(a), Feb. 5, 1988, 101 Stat. 1907; Pub. L.
102-54, Sec. 13(d)(1), June 13, 1991, 105 Stat. 274.)
Codification
Section was enacted as part of the Housing and Urban Development Act
of 1970, and not as part of the National Housing Act which comprises
this chapter.
Amendments
1991--Par. (1). Pub. L. 102-54 substituted ``Department of Veterans
Affairs'' for ``Veterans' Administration'' in two places.
1988--Pub. L. 100-242 inserted parenthetical reference to
condominiums and cooperatives in par. (1), substituted ``due, regardless
of whether the purchaser is obligated on the loan'' for ``due'' in par.
(2), and substituted ``$250,000'' for ``$5,000'' and ``5'' for ``three''
in closing provisions.
