§ 3701. — Findings and purpose.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3701]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3701. Findings and purpose
(a) The Congress finds that--
(1) disparate State laws under which the Secretary of Housing
and Urban Development forecloses multifamily mortgages burden the
programs administered by the Secretary pursuant to these
authorities, and cause detriment to the residents of the affected
projects and the community generally;
(2) long periods to complete the foreclosure of these mortgages
under certain State laws lead to deterioration in the condition of
the properties involved; necessitate substantial Federal management
and holding expenditures; increase the risk of vandalism, fire loss,
depreciation, damage, and waste with respect to the properties; and
adversely affect the residents of the projects and the neighborhoods
in which the properties are located;
(3) these conditions seriously impair the Secretary's ability to
protect the Federal financial interest in the affected properties
and frustrate attainment of the objectives of the underlying Federal
program authorities, as well as the national housing goal of ``a
decent home and a suitable living environment for every American
family'';
(4) application of State redemption periods to these mortgages
following their foreclosure would impair the salability of the
properties involved and discourage their rehabilitation and
improvement, thereby compounding the problems referred to in clause
(3);
(5) the availability of a uniform and more expeditious procedure
for the foreclosure of these mortgages by the Secretary and
continuation of the practice of not applying postsale redemption
periods to such mortgages will tend to ameliorate these conditions;
and
(6) providing the Secretary with a nonjudicial foreclosure
procedure will reduce unnecessary litigation by removing many
foreclosures from the courts where they contribute to overcrowded
calendars.
(b) The purpose of this chapter is to create a uniform Federal
foreclosure remedy for multifamily mortgages.
(Pub. L. 97-35, title III, Sec. 362, Aug. 13, 1981, 95 Stat. 422; Pub.
L. 102-550, title V, Sec. 517(a), Oct. 28, 1992, 106 Stat. 3791.)
Amendments
1992--Subsec. (a)(1). Pub. L. 102-550, Sec. 517(a)(1), substituted
``multifamily mortgages'' for ``real estate mortgages which the
Secretary holds pursuant to title II of the National Housing Act or
section 312 of the Housing Act of 1964 covering multiunit residential
and nonresidential properties''.
Subsec. (b). Pub. L. 102-550, Sec. 517(a)(2), substituted
``multifamily mortgages'' for ``multiunit residential and nonresidential
mortgages held by the Secretary of Housing and Urban Development
pursuant to title II of the National Housing Act or section 312 of the
Housing Act of 1964''.
Effective Date
Section 371 of subtitle A of title III of Pub. L. 97-35 provided
that:
``(a) Except as otherwise provided in this subtitle, the provisions
of this subtitle [for classification of subtitle A (Sec. 300-371) of
title III of Pub. L. 97-35, see Tables] shall take effect on October 1,
1981.
``(b) The amendments made by sections 324, 325, and 326(a) [amending
section 1437f of Title 42, The Public Health and Welfare] shall apply
only with respect to contracts entered into on and after October 1,
1981.''
Short Title
Section 361 of part 6 of subtitle A of title III of Pub. L. 97-35
provided that: ``This part [enacting this chapter] may be cited as the
`Multifamily Mortgage Foreclosure Act of 1981'.''
