§ 3705. — Prerequisites to foreclosure.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3705]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3705. Prerequisites to foreclosure
Foreclosure by the Secretary under this chapter of a multifamily
mortgage may be commenced, as provided in section 3707 of this title,
upon the breach of a covenant or condition in the mortgage agreement for
which foreclosure is authorized under the mortgage, except that no such
foreclosure may be commenced unless any previously pending proceeding,
judicial or nonjudicial, separately instituted by the Secretary to
foreclose the mortgage other than under this chapter has been withdrawn,
dismissed, or otherwise terminated. No such separately instituted
foreclosure proceeding on the mortgage shall be instituted by the
Secretary during the pendency of foreclosure pursuant to this chapter.
Nothing in this chapter shall preclude the Secretary from enforcing any
right, other than foreclosure, under applicable State law, including any
right to obtain a monetary judgment. Nothing in this chapter shall
preclude the Secretary from foreclosing under this chapter where the
Secretary has obtained or is seeking any other remedy available pursuant
to Federal or State law or under the mortgage agreement, including, but
not limited to, the appointment of a receiver, mortgagee-in-possession
status, relief under an assignment of rents, or transfer to a nonprofit
entity pursuant to section 1701q of this title or section 8013 of title
42.
(Pub. L. 97-35, title III, Sec. 366, Aug. 13, 1981, 95 Stat. 424; Pub.
L. 102-550, title V, Sec. 517(c), Oct. 28, 1992, 106 Stat. 3792.)
Amendments
1992--Pub. L. 102-550 substituted ``status, relief under an
assignment of rents, or transfer to a nonprofit entity pursuant to
section 1701q of this title or section 8013 of title 42'' for ``status
or relief under an assignment of rents'' in last sentence.
Section Referred to in Other Sections
This section is referred to in section 3707 of this title.
