12-U.S.C.-1715Z-11
§1715Z-11 – §1715Z-11. Sale to Cooperatives of Multifamily Housing Projects Acquired By Secretary; Acceptance of Purchase Money Mortgage For Sale Or Insurance of Mortgage; Principal Amount of Mortgage; Expenditures For Repairs, Etc., Prior to Sale
Pathway
Title 12 > Chapter 13 > Subchapter II > Section 1715z-11
Details
- Reference: Section 1715z-11
- Legend: §1715Z-11 – §1715Z-11. Sale to Cooperatives of Multifamily Housing Projects Acquired By Secretary; Acceptance of Purchase Money Mortgage For Sale Or Insurance of Mortgage; Principal Amount of Mortgage; Expenditures For Repairs, Etc., Prior to Sale
- USCode Year: 2013
Provision Content
In any case which the Secretary sells a multifamily housing project acquired as the result of a default on a mortgage which was insured under this chapter to a cooperative which will operate it on a nonprofit basis and restrict permanent occupancy of its dwellings to members, or to a nonprofit corporation which operates as a consumer cooperative as defined by the Secretary, the Secretary may accept a purchase money mortgage, or upon application of the mortgagee, insure a mortgage under this section upon such terms and conditions as the Secretary determines are reasonable and appropriate, in a principal amount equal to the value of the property at the time of purchase, which value shall be based upon a mortgage amount on which the debt service can be met from the income of property when operated on a nonprofit basis after payment of all operating expenses, taxes, and required reserves; except that the Secretary may add to the mortgage amount an amount not greater than the amount of prepaid expenses and costs involved in achieving cooperative ownership, or make such other provisions for payment of such expenses and costs as the Secretary deems reasonable and appropriate. Prior to such disposition of a project, funds may be expended by the Secretary for necessary repairs and improvements.
(June 27, 1934, ch. 847, title II, §246, as added Pub. L. 93–383, title III, §315, Aug. 22, 1974, 88 Stat. 684; amended Pub. L. 95–557, title III, §322, Oct. 31, 1978, 92 Stat. 2102.)
Amendments
1978—Pub. L. 95–557 inserted or to a nonprofit corporation which operates as a consumer cooperative as defined by the Secretary after dwellings to members and or upon application of the mortgagee, insure a mortgage under this section upon such terms and conditions as the Secretary determines are reasonable and appropriate after purchase money mortgage and substituted the value of the property at the time of purchase, which value shall be based upon a mortgage amount on which the debt service can be met from the income of property when operated on a nonprofit basis after payment of all operating expenses, taxes, and required reserves; except that the Secretary may add to the mortgage amount an amount not greater than the amount of prepaid expenses and costs involved in achieving cooperative ownership, or make such other provision for payment of such expenses and costs as the Secretary deems reasonable and appropriate for the sum of (1) the appraised value of the property at the time of purchase, which value shall be based upon a mortgage amount on which the debt service can be met from the income of the property when operated on a nonprofit basis and after payment of all operating expenses, taxes and required reserves, and (2) the amount of prepaid expenses and costs involved in achieving cooperative ownership.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-1715G in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-1715G, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.
12-U.S.C.-1715X in the Legal Encyclopedia: Mortgage
In this entry about 12-U.S.C.-1715X, find legal reference material, bibliographies and premiere content related to mortgage in the American Encyclopedia of Law, presenting a comprehensive view of the United States mortgage-specific issues, written by authorities in the field.
12-U.S.C.-1715V in the Legal Encyclopedia: Housing
In this entry about 12-U.S.C.-1715V, find legal reference material, bibliographies and premiere content related to housing in the American Encyclopedia of Law, presenting a comprehensive view of the United States housing-specific issues, written by authorities in the field.
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