Page:United States Statutes at Large Volume 101 Part 3.djvu/283

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PUBLIC LAW 100-000—MMMM. DD, 1987

PUBLIC LAW 100-233—JAN. 6, 1988

101 STAT. 1581

"(2) ARRANGEMENT AND COST.—Within 30 days after a request for an appraisal under paragraph (1), the credit review committee shall present the borrower with a list of three appraisers approved by the appropriate qualified lender from which the borrower shall select an appraiser to conduct the appraisal the cost of which shall be borne by the borrower, and shall consider the results of such appraisal in any final determination with respect to the loan. "(3) COPY TO BORROWER.—A copy of any appraisal made under this subsection shall be provided to the borrower. "(4) ADDITIONAL COLLATERAL.—An

independent

appraisal

shall be permitted if additional collateral for a loan is demanded by the qualified lender when determining whether to restructure the loan. "(e) NOTIFICATION OF APPLICANT.—Promptly after a review by the credit review committee, the committee shall notify the applicant or borrower, as the case may be, in writing of the decision of the committee and the reasons for the decision.". SEC. 107. PROTECTION OF BORROWERS WHO MEET ALL LOAN OBLIGATIONS.

Part C of title IV is amended by inserting after the sections added by section 102(a) of this Act the following new section: "SEC. 4.14D. PROTECTION OF BORROWERS WHO MEET ALL LOAN OBLIGATIONS.

"(a) FORECLOSURE PROHIBITED.—A qualified lender may not foreclose on any loan because of the failure of the borrower thereof to post additional collateral, if the borrower has made all accrued payments of principal, interest, and penalties with respect to the loan. "(b) PROHIBITION AGAINST REQUIRED PRINCIPAL REDUCTION.—A

qualified lender may not require any borrower to reduce the outstanding principal balance of any loan made to the borrower by any amount that exceeds the regularly scheduled principal installment payment (when due and payable), unless— "(1) the borrower sells or otherwise disposes of part or all of the collateral; or "(2) the parties agree otherwise in a written agreement entered into by the parties. "(c) NONENFORCEMENT.—After a borrower has made all accrued payments of principal, interest, and penalties with respect to a loan made by a qualified lender, the lender shall not enforce acceleration of the borrower's repayment schedule due to the borrower having not timely made one or more principal or interest payments. "(d) PLACING LOANS IN NONACCRUAL STATUS.—

"(1) NOTIFICATION.—If a qualified lender places any loan in nonaccrual status, the lender shall document such change of status and promptly notify the borrower thereof in writing of such action and the reasons therefor. "(2) REVIEW OF DENIAL.—If the borrower was not delinquent in any principal or interest payment under the loan at the time of such action and the borrower's request to have the loan placed back into accrual status is denied, the borrower may obtain a review of such denial before the appropriate credit review committee under section 4.14.

12 USC 2202d.