Source: https://www.ecfr.gov/cgi-bin/text-idx?mc=true&node=sp24.2.232.d&rgn=div6
Timestamp: 2020-04-09 11:53:26
Document Index: 303766575

Matched Legal Cases: ['art 232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232', '§232']

Title 24 → Subtitle B → Chapter II → Subchapter B → Part 232 → Subpart D
Subpart D—Contract Rights and Obligations
§232.800 Definitions.
§232.805 Insurance premiums.
§232.805a Mortgagee's late charge.
§232.815 Termination of insurance.
§232.825 Pro rata refund of insurance premium.
§232.830 Definition of default.
§232.840 Date of default.
§232.850 Notice of default.
§232.860 Commissioner's right to require acceleration.
§232.865 Election by lender.
§232.875 Maximum claim period.
§232.880 Items to be delivered on submitting claim.
§232.885 Insurance benefits.
§232.890 Characteristics of debentures.
§232.893 Cash adjustment.
§232.895 Assignment of insured loans.
§232.897 Actions to be taken by lender.
Source: 39 FR 28970, Aug. 12, 1974, unless otherwise noted.
All of the definitions contained in §232.500 shall apply to this subpart. In addition, as used in this subpart, the following term shall have the meaning indicated:
(d) Method of premium payment. Premiums shall be payable in cash or in debentures of the General Insurance Fund at par plus accrued interest. All premiums are payable in advance and no refund can be made of any portion thereof except as provided in §232.800 et seq.
[43 FR 60154, Dec. 26, 1978]
(b) The failure to perform any other covenant under the note or security instrument shall be considered a default, provided the lender, because of such default, has exercised its rights under the note or security instrument and accelerated the debt.
(c) If such defaults as defined in paragraphs (a) and (b) of this section continue for a period of 30 days, the lender shall be entitled to receive the benefits of insurance hereinafter provided.
(a) If the default is not cured within the 30 day grace period, as defined in §232.830(c), the lender shall, within 30 days thereafter, notify the Commissioner in writing of such default.
Upon receipt of notice of the failure of the borrower to comply with any covenant or obligation under the security instrument or note, or otherwise being apprised thereof, the Commissioner may require the lender to accelerate payment of the outstanding principal balance due.
Within 30 days after the filing of the notice of intention to file claim, or within such further period as may be agreed upon by the Commission in writing, the lender shall deliver to the Commissioner:
(c) The original note and any security instrument or instruments which shall be assigned to the Commissioner without recourse or warranty, except that the lender must warrant that no act or omission of the lender has impaired the validity and priority of such security instrument or instruments, that the security instrument or instruments are prior to all mechanics' and material-men's liens filed of record subsequent to the recording of such security instrument or instruments regardless of whether such liens attached prior to such recording date, and prior to all liens and encumbrances which may have attached or defects which which may have arisen subsequent to the recording of such security instrument or instruments, except such liens or other matters as may be approved by the Commissioner, that the amount stated in the instrument of assignment is actually due and owing under the security instrument or instruments, that there are no offsets or counterclaims thereto, and that the lender has a good right to assign such note and security instrument or instruments;
(h) The following cash items, held in connection with the loan insured under this subpart, shall either be retained by the lender or delivered to the Commissioner in accordance with instructions to be issued by the Commissioner at the time the insurance claim is filed.
(1) Any cash held by the lender or its agents or to which it is entitled including deposits made for the account of the borrower and which have not been applied in reduction of the principal of the loan indebtedness.
(a) Method of payment. Payment of an insurance claim shall be made in cash, in debentures, or in a combination of both, as determined by the Commissioner either at, or prior to, the time of payment.
(b) Amount of payment. Upon an acceptable assignment of the note and security instrument, the Commissioner shall pay the claim of the lender in an amount equal to the unpaid principal balance of the loan as of the date of default determined as follows:
(1) By adding the following items:
(iii) Reimbursement for such reasonable collection costs, court costs, and attorney's fees as may be approved by the Commissioner.
(v) If payment is made in cash, an amount equivalent to the debenture interest which would have been earned thereon, as of the date such cash payment is made, except when the lender fails to meet any one of the applicable requirements of §§232.850, 232.875, and 232.880, within the specified time and in a manner satisfactory to the Commissioner (or within such further time as the Commissioner may approve in writing), the interest allowance in such cash payment shall be computed only to the date on which the particular required action should have been taken or to which it was extended.
(ii) Any net income received by the lender from the property covered by the note or security instrument and not applied to prior debts held by that lender.
(iii) The sum of the cash items retained by the lender pursuant to §232.880(h)(i)(ii).
[39 FR 28970, Aug. 12, 1974, as amended at 80 FR 51468, Aug. 25, 2015]
Debentures issued in settlement of insurance claims under this subpart shall have the same characteristics and the same requirements for registration and redemption as those issued pursuant to subpart B of this part except that debentures shall bear interest at the rate in effect as of the date the commitment was issued, or as of the date the loan was first endorsed for insurance, whichever rate is higher and shall mature 10 years from the date of issue which date shall be the date of execution of the assignment of the loan to the Commissioner.
[59 FR 49816, Sept. 30, 1994]
(1) The transfer or pledge of the insured loan to any person, firm, or corporation, public or private, other than an approved lender.