§ 4121. — Definitions of qualified and priority purchaser and related party rule.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC4121]
TITLE 12--BANKS AND BANKING
CHAPTER 42--LOW-INCOME HOUSING PRESERVATION AND RESIDENT HOMEOWNERSHIP
SUBCHAPTER I--PREPAYMENT OF MORTGAGES INSURED UNDER NATIONAL HOUSING ACT
Sec. 4121. Definitions of qualified and priority purchaser and
related party rule
(a) Priority purchaser
The term ``priority purchaser'' means (A) a resident council
organized to acquire the housing in accordance with a resident
homeownership program that meets the requirements of section 4121 \1\ of
this title; and (B) any nonprofit organization or State or local agency
that agrees to maintain low-income affordability restrictions for the
remaining useful life of the housing (as determined under section
4112(d) \2\ of this title).
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\1\ So in original. Probably should be section ``4116''.
\2\ So in original. Probably should be section ``4112(c)''.
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(b) Qualified purchaser
The term ``qualified purchaser'' means any entity that agrees to
maintain low-income affordability restrictions for the remaining useful
life of the housing (as determined under section 4112(c) of this title),
and includes for-profit entities and priority purchasers.
(c) Related parties
Except as provided in subsection (d) of this section, the terms
``qualified purchaser'' and ``priority purchaser'' do not include any
entity that, either directly or indirectly, is wholly or partially owned
or controlled by the owner of the housing being transferred under this
subchapter, is under whole or partial common control with such owner, or
has any financial interest in such owner or in which such owner has any
financial interest. The Secretary shall issue any regulations
appropriate to implement the preceding sentence.
(d) Management exception
A qualified purchaser shall not be precluded from retaining as a
property management entity a company that is owned or controlled by the
selling owner or a principal thereof if retention of the management
company is neither a condition of sale nor part of consideration paid
for sale and the property management contract is negotiated by the
qualified purchaser on an arm's length basis.
(Pub. L. 100-242, title II, Sec. 231, as added Pub. L. 101-625, title
VI, Sec. 601(a), Nov. 28, 1990, 104 Stat. 4273; amended Pub. L. 102-550,
title III, Sec. 317(a)(6), Oct. 28, 1992, 106 Stat. 3772.)
Amendments
1992--Subsec. (b). Pub. L. 102-550 substituted ``4112(c)'' for
``4112(d)''.
