republic-os/legal/us/code/title-12/chapter-13/section-1735f-19.md

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LegalText	12 U.S.C. § 1735f–19	Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring	us	united_states_code	code_section	12	BANKS AND BANKING	13	NATIONAL HOUSING	1735f–19	12 U.S.C. § 1735f–19	current	119-100	2026-06-26	official	https://uscode.house.gov/download/releasepoints/us/pl/119/100/xml_usc12@119-100.zip	/us/usc/t12/s1735f–19	data/legal/raw/us/code/title-12/usc12.xml	02c40c2a11242d62bb71c5945d05a2f63ce6728c5671653568985976abfc7b40	e6b98700ef4156ac33fde5d105824845d727afa91a53f3762be2cf4d1a3b01fa	955c26b5bb08434b44e2b3fadd9216e5c5d68e1e40d6e29320975047928a7303	2026-07-04	official	legal us-code

12 U.S.C. § 1735f–19 - Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring

Text

(a) Defaulted mortgages Notwithstanding any other provision of law, if the Secretary is requested to accept assignment of a mortgage insured by the Secretary that covers a multifamily housing project (as such term is defined in section 1701z–11(b) of this title) or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 1715w of this title), a hospital (as that term is defined in section 1715z–7 of this title), or a group practice facility (as that term is defined in section 1749aaa–5 of this title)) and the Secretary determines that partial payment would be less costly to the Federal Government than other reasonable alternatives for maintaining the low-income character of the project, or for keeping the health care facility operational to serve community needs, the Secretary may request the mortgagee, in lieu of assignment, to—

(1) accept partial payment of the claim under the mortgage insurance contract; and

(2) recast the mortgage, under such terms and conditions as the Secretary may determine.

(b) Existing mortgages Notwithstanding any other provision of law, the Secretary, in connection with a mortgage restructuring under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997, may make a one time, nondefault partial or full payment of claim under one or more mortgage insurance contracts, which shall include a determination by the Secretary or the participating administrative entity, in accordance with the Multifamily Assisted Housing Reform and Affordability Act of 1997, of the market value of the project and a restructuring of the mortgage, under such terms and conditions as are permitted by section 517(a) of such Act.

(c) Repayment As a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.

(June 27, 1934, ch. 847, title V, § 541, as added Pub. L. 103–233, title I, § 101(e), Apr. 11, 1994, 108 Stat. 357; amended Pub. L. 105–65, title II, § 210, title V, § 523(b), Oct. 27, 1997, 111 Stat. 1366, 1406; Pub. L. 106–74, title II, § 213(a), Oct. 20, 1999, 113 Stat. 1073.)

Notes

Editorial Notes

References in TextThe Multifamily Assisted Housing Reform and Affordability Act of 1997, referred to in subsec. (b), is title V of Pub. L. 105–65, Oct. 27, 1997, 111 Stat. 1384. Sections 514 and 517(a) of the Act are set out as a note under section 1437f of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title of 1997 Amendment note set out under section 1701 of this title and Tables.

Amendments1999—Pub. L. 106–74, § 213(a)(1), substituted “defaulted mortgages and in connection with mortgage restructuring” for “multifamily housing projects and health care facilities” in section catchline. Subsec. (b). Pub. L. 106–74, § 213(a)(2), substituted “partial or full payment of claim under one or more mortgage insurance contracts” for “partial payment of the claim under the mortgage insurance contract”. 1997—Pub. L. 105–65, § 210(1), inserted “and health care facilities” after “housing projects” in section catchline. Subsec. (a). Pub. L. 105–65, § 523(b)(1), substituted “Defaulted mortgages” for “Authority” in heading. Pub. L. 105–65, § 210(2)(B), inserted “or for keeping the health care facility operational to serve community needs,” after “character of the project,” in introductory provisions. Pub. L. 105–65, § 210(2)(A), which directed the insertion, in introductory provisions, of “or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in section 1715w of this title), a hospital (as that term is defined in section 1715z–7 of this title), or a group practice facility (as that term is defined in section 1749aaa–5 of this title))” after “section 1701z–11(b) of this title”, was executed by inserting the language after “section 1701z–11(b) of this title)” to reflect the probable intent of Congress. Subsecs. (b), (c). Pub. L. 105–65, § 523(b)(2), (3), added subsec. (b) and redesignated former subsec. (b) as (c).