12-U.S.C.-2202D
§2202D – Protection of Borrowers Who Meet All Loan Obligations
Pathway
Title 12 > Chapter 23 > Subchapter IV > Part C > Section 2202d
Details
- Reference: Section 2202d
- Legend: §2202D – Protection of Borrowers Who Meet All Loan Obligations
- USCode Year: 2013
Provision Content
(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 borrowers 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 borrowers 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 2202 of this title.
(3) Application
This subsection shall only apply if a loan being placed in nonaccrual status results in an adverse action being taken against the borrower.
(Pub. L. 92–181, title IV, §4.14D, as added Pub. L. 100–233, title I, §107, Jan. 6, 1988, 101 Stat. 1581.)
U.S. Encyclopedia of Law Coverage
Part C – Rights of Borrowers; Loan Restructuring in the Legal Encyclopedia: Banking Law
In this entry about Part C – Rights of Borrowers; Loan Restructuring, 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.-2202 in the Legal Encyclopedia: Loans
In this entry about 12-U.S.C.-2202, find legal reference material, bibliographies and premiere content related to loans in the American Encyclopedia of Law, presenting a comprehensive view of the United States loans-specific issues, written by authorities in the field.
12-U.S.C.-2202C in the Legal Encyclopedia: Farm Credit System
In this entry about 12-U.S.C.-2202C, find legal reference material, bibliographies and premiere content related to farm credit system in the American Encyclopedia of Law, presenting a comprehensive view of the United States farm credit system-specific issues, written by authorities in the field.
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