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U.S. Code as of:
01/19/04
Section 4101. General prepayment limitation
(a) Prepayment and termination
An owner of eligible low-income housing may prepay, and a
mortgagee may accept prepayment of, a mortgage on such housing only
in accordance with a plan of action approved by the Secretary under
this subchapter or in accordance with section 4114 of this title.
An insurance contract with respect to eligible low-income housing
may be terminated pursuant to section 1715t of this title only in
accordance with a plan of action approved by the Secretary under
this subchapter or in accordance with section 4114 of this title.
(b) Foreclosure
A mortgagee may foreclose the mortgage on, or acquire by deed in
lieu of foreclosure, any eligible low-income housing project only
if the mortgagee also conveys title to the project to the Secretary
in connection with a claim for insurance benefits.
(c) Effect of unauthorized prepayment
Any prepayment of a mortgage on eligible low-income housing or
termination of the mortgage insurance on such housing not in
compliance with the provisions of this subchapter shall be null and
void and any low-income affordability restrictions on the housing
shall continue to apply to the housing.
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