§ 3706. — Notice of default and foreclosure sale; condition and term of sale.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC3706]
TITLE 12--BANKS AND BANKING
CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
Sec. 3706. Notice of default and foreclosure sale; condition and
term of sale
(a) The notice of default and foreclosure sale to be served in
accordance with this chapter shall be subscribed with the name and
address of the foreclosure commissioner and the date on which
subscribed, and shall set forth the following information:
(1) the names of the Secretary, the original mortgagee and the
original mortgagor;
(2) the street address or a description of the location of the
security property, and a description of the security property, or so
much thereof as is to be offered for sale, sufficient to identify
the property to be sold;
(3) the date of the mortgage, the office in which the mortgage
is recorded, and the liber and folio or other description of the
location of recordation of the mortgage;
(4) the failure to make payment, including the due date of the
earliest installment payment remaining wholly unpaid as of the date
the notice is subscribed, or the description of other default or
defaults upon which foreclosure is based, and the acceleration of
the secured indebtedness;
(5) the date, time, and place of the foreclosure sale;
(6) a statement that the foreclosure is being conducted pursuant
to this chapter;
(7) the types of costs, if any, to be paid by the purchaser upon
transfer of title; and
(8) the amount and method of deposit to be required at the
foreclosure sale (except that no deposit shall be required of the
Secretary), the time and method of payment of the balance of the
foreclosure purchase price and other appropriate terms of sale.
(b)(1) Except as provided in paragraph (2)(A), the Secretary may
require, as a condition and term of sale, that the purchaser at a
foreclosure sale under this chapter agree to continue to operate the
security property in accordance with the terms of the program under
which the mortgage insurance or assistance was provided, or any
applicable regulatory or other agreement in effect with respect to such
property immediately prior to the time of foreclosure sale.
(2)(A) In any case where the majority of the residential units in a
property subject to such a sale are occupied by residential tenants at
the time of the sale, the Secretary shall require, as a condition and
term of sale, any purchaser (other than the Secretary) to operate the
property in accordance with such terms, as appropriate, of the programs
referred to in paragraph (1).
(B) In any case where the Secretary is the purchaser of a
multifamily project, the Secretary shall manage and dispose of such
project in accordance with the provisions of section 203 of the Housing
and Community Development Amendments of 1978 [12 U.S.C. 1701z-11].
(Pub. L. 97-35, title III, Sec. 367, Aug. 13, 1981, 95 Stat. 424; Pub.
L. 102-550, title V, Sec. 517(d), Oct. 28, 1992, 106 Stat. 3792.)
Amendments
1992--Subsec. (b)(1). Pub. L. 102-550 amended par. (1) generally.
Prior to amendment, par. (1) read as follows: ``Except as provided in
paragraph (2)(A), the Secretary may require, as a condition and term of
sale, that the purchaser at a foreclosure sale under this chapter agree
to continue to operate the security property in accordance with the
terms, as appropriate, of the loan program under section 312 of the
Housing Act of 1964, the program under which insurance under title II of
the National Housing Act was originally provided with respect to such
property, or any applicable regulatory or other agreement in effect with
respect to such property immediately prior to the time of foreclosure
sale.''
Section Referred to in Other Sections
This section is referred to in sections 3703, 3708 of this title.
