Page:United States Statutes at Large Volume 110 Part 6.djvu/227

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PUBLIC LAW 104-330—OCT. 26, 1996 110 STAT. 4049 (d) LENDER OPTION TO OBTAIN PAYMENT UPON DEFAULT WITHOUT FORECLOSURE. —Section 184(h) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a(h)) is amended— (1) in pgiragraph (1)(A)— (A) in the first sentence of clause (i), by striking "in a court of competent jurisdiction"; and (B) by striking clause (ii) and inserting the following: "(ii) No FORECLOSURE. — Without seeking foreclosure (or in any case in which a foreclosure proceeding initiated under clause (i) continues for a period in excess of 1 year), the holder of the guarantee may submit to the Secretary a request to assign the obligation and security interest to the Secretary in return for payment of the claim under the guarantee. The Secretary may accept assignment of the loan if the Secretary determines that the assignment is in the best interests of the United States. Upon assignment, the Secretary shall pay to the holder of the guarantee the pro rata portion of the amount guaranteed (as determined under subsection (e)). The Secretary shall be subrogated to the rights of the holder of the guarantee and the holder shall assign the obligation and security to the Secretary."; (2) by striking paragraph (2); and (3) by redesignating paragraph (3) as paragraph (2). (e) LIMITATION OF MORTGAGEE AUTHORITY.— Section 184(h)(2) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a(h)(2)), as so redesignated by subsection (e)(3) of this section, is amended— (1) in the first sentence, by striking "tribal allotted or trust land," and inserting "restricted Indian land, the mortgagee or"; and (2) in the second sentence, by striking "Secretary" each place it appears, and inserting "mortgagee or the Secretary". (f) LIMITATION ON OUTSTANDING AGGREGATE PRINCIPAL AMOUNT. —Section 184(i)(5)(C) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a(i)(5)(C)) is amended by striking "1993" and all that follows through "such year" and inserting "1997, 1998, 1999, 2000, and 2001 with an aggregate outstanding principal amount note exceeding $400,000,000 for each such fiscal year". (g) AUTHORIZATION OF APPROPRIATIONS FOR GUARANTEE FUND. — Section 184(i)(7) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a(i)(7)) is amended by striking "such sums" and all that follows through "1994" and inserting "such sums as may be necessary for each of fiscal years 1997, 1998, 1999, 2000, and 2001". (h) DEFINITIONS.— Section 184(k) of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13a(k)) is amended— (1) in paragraph (4), by inserting after "authority" the following: "or Indian tribe"; (2) in paragraph (5)— (A) by striking subparagraph (A) and inserting the following new subparagraph: