HR 1106 RFS 
in accordance with section 506(a)(1) of 
title 11, United States Code, and the 
amount of such allowed secured claim is 
less than the amount due under the mort-
gage as of the date of the filing of the peti-
tion under title 11, United States Code, or 
(b) reduces the interest to be paid under a 
mortgage in accordance with section 1325 
of such title, the Secretary may pay insur-
ance benefits for the mortgage as follows: 
‘‘(I) FULL
PAYMENT
AND
AS-
SIGNMENT.—The Secretary may pay 
the insurance benefits for the mort-
gage, but only upon the assignment, 
transfer, and delivery to the Secretary 
of all rights, interest, claims, evidence, 
and records with respect to the mort-
gage specified in clauses (i) through 
(iv) of paragraph (1)(A). The insur-
ance benefits shall be paid in the 
amount equal to the original principal 
obligation of the mortgage (with such 
additions and deductions as the Sec-
retary determines are appropriate) 
which was unpaid upon the date of 
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HR 1106 RFS 
the filing of by the mortgagor of the 
petition under title 11 of the United 
States Code. Nothing in this Act may 
be construed to prevent the Secretary 
from providing insurance under this 
title for a mortgage that has pre-
viously been assigned to the Secretary 
under this subclause. The decision of 
whether to utilize the authority under 
this subclause for payment and as-
signment shall be at the election of 
the mortgagee, subject to such terms 
and conditions as the Secretary may 
establish. 
‘‘(II) ASSIGNMENT
OF
UNSE-
CURED
CLAIM.—The Secretary may 
make a partial payment of the insur-
ance benefits for any unsecured claim 
under the mortgage, but only upon 
the assignment to the Secretary of 
any unsecured claim of the mortgagee 
against the mortgagor or others aris-
ing out of such order. Such assign-
ment shall be deemed valid irrespec-
tive of whether such claim has been or 
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HR 1106 RFS 
will be discharged under title 11 of 
the United States Code. The insur-
ance benefits shall be paid in the 
amount specified in subclause (I) of 
this clause, as such amount is reduced 
by the amount of the allowed secured 
claim. Such allowed secured claim 
shall continue to be insured under sec-
tion 203. 
‘‘(III) INTEREST
PAYMENTS.— 
The Secretary may make periodic pay-
ments, or a one-time payment, of in-
surance benefits for interest payments 
that are reduced pursuant to such 
order, as determined by the Secretary, 
but only upon assignment to the Sec-
retary of all rights and interest re-
lated to such payments. 
‘‘(ii) DELIVERY
OF
EVIDENCE
OF 
ENTRY OF ORDER.—Notwithstanding any 
other provision of this paragraph, no insur-
ance benefits may be paid pursuant to this 
subparagraph for a mortgage before deliv-
ery to the Secretary of evidence of the 
entry of the order issued pursuant to title 
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