§ 1715z-4. — Modifications in terms of mortgages covering multifamily projects; requests for extensions to cure defaults or for modification of mortgage terms; regulations.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715z-4]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715z-4. Modifications in terms of mortgages covering
multifamily projects; requests for extensions to cure defaults
or for modification of mortgage terms; regulations
The Secretary shall not consent to any request for an extension of
the time for curing a default under any mortgage covering multifamily
housing, as defined in the regulations of the Secretary, or for a
modification of the terms of such mortgage, except in conformity with
regulations prescribed by the Secretary in accordance with the
provisions of this section. Such regulations shall require, as a
condition to the granting of any such request, that, during the period
of such extension or modification, any part of the rents or other funds
derived by the mortgagor from the property covered by the mortgage which
is not required to meet actual and necessary expenses arising in
connection with the operation of such property, including amortization
charges under the mortgage, be held in trust by the mortgagor and
distributed only with the consent of the Secretary; except that the
Secretary may provide for the granting of consent to any request for an
extension of the time for curing a default under any mortgage covering
multifamily housing, or for a modification of the term of such mortgage,
without regard to the foregoing requirement, in any case or class of
cases in which an exemption from such requirement does not (as
determined by the Secretary) jeopardize the interests of the United
States.
(June 27, 1934, ch. 847, title II, Sec. 239, as added Pub. L. 90-448,
title III, Sec. 302, Aug. 1, 1968, 82 Stat. 506; amended Pub. L. 100-
242, title IV, Sec. 416(c), Feb. 5, 1988, 101 Stat. 1908.)
Amendments
1988--Pub. L. 100-242 struck out ``insured'' before ``mortgages'' in
section catchline, and struck out subsec. (a) designation and subsec.
(b) which related to violations and penalties imposed for violations of
the provisions of former subsec. (a).
