{"identifier":"/us/usc/t12/s1735f\u201319","title":12,"num":"\u00a7\u202f1735f\u201319.","heading":"Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring","text":"\u00a7\u202f1735f\u201319.\nPartial payment of claims on defaulted mortgages and in connection with mortgage restructuring\n(a)\nDefaulted mortgages\nNotwithstanding 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\n(1) accept partial payment of the claim under the mortgage insurance contract; and\n(2) recast the mortgage, under such terms and conditions as the Secretary may determine.\n(b)\nExisting mortgages\nNotwithstanding 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.\n(c)\nRepayment\nAs 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.","url":"https://projectusc.org/usc/t12/s1735f\u201319.html","content":[{"t":"sec","id":"/us/usc/t12/s1735f\u201319","children":[{"t":"num","text":"\u00a7\u202f1735f\u201319."},{"t":"heading","text":"Partial payment of claims on defaulted mortgages and in connection with mortgage restructuring"},{"t":"subsec","id":"/us/usc/t12/s1735f\u201319/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Defaulted mortgages"},{"t":"chapeau","text":"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 ","children":[{"t":"ref","text":"section 1701z\u201311(b) of this title","href":"/us/usc/t12/s1701z\u201311/b","tail":") or a health care facility (including a nursing home, intermediate care facility, or board and care home (as those terms are defined in "},{"t":"ref","text":"section 1715w of this title","href":"/us/usc/t12/s1715w","tail":"), a hospital (as that term is defined in "},{"t":"ref","text":"section 1715z\u20137 of this title","href":"/us/usc/t12/s1715z\u20137","tail":"), or a group practice facility (as that term is defined in "},{"t":"ref","text":"section 1749aaa\u20135 of this title","href":"/us/usc/t12/s1749aaa\u20135","tail":")) 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\u2014"}]},{"t":"para","id":"/us/usc/t12/s1735f\u201319/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" accept partial payment of the claim under the mortgage insurance contract; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1735f\u201319/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" recast the mortgage, under such terms and conditions as the Secretary may determine.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1735f\u201319/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Existing mortgages"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1735f\u201319/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Repayment"},{"t":"content","children":[{"t":"p","text":"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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}