Opinion ID: 522954
Heading Depth: 3
Heading Rank: 1

Heading: Statutory Waiver Authority

Text: 15 The Secretary's statutory authority to act is derived from section 726 of the New Communities Act and the regulations promulgated by HUD under the Act. Section 726 states that [n]otwithstanding any other provision of law, the Secretary shall also have power to pursue to final collection by way of compromise or otherwise all claims acquired by him in connection with any security, subrogation, or other rights obtained by him in administering this part. 42 U.S.C. Sec. 4527(3) (1982). The regulations provide that the Secretary may waive or amend all 16 terms and conditions in the Project Agreement, Indenture, and other Project Documents that do not specifically require the consent of all or a portion of the holders of the guaranteed debt obligations    as he shall deem necessary or desirable to    protect the security interests of the United States or to otherwise preserve his ability to carry out the purposes of the Act. 17 24 C.F.R. Sec. 3720.65 (1984) (removed May 7, 1984). 18 We agree with the Commissioner that the phrase by way of compromise or otherwise in the statute manifests Congress's intent that the Secretary have broad latitude to pursue collection of a claim. Here, interest was waived in an effort to expedite foreclosure by depriving the taxpayers of their motivation to delay the proceedings. In addition, the regulations provide the Secretary with specific authority to waive any provision of the Indenture in order to protect the security interests of the federal government. Together, these provisions supply ample statutory authority for the Secretary's waiver. 19 The taxpayers contend that the language of the Indenture Agreement divested the Secretary of the statutory authority to waive or modify interest obligations owed to her. We disagree. Nowhere in the Agreement does the Secretary specifically relinquish her statutory authority. Rather, the language of the Agreement reiterates, with specificity, that authority by providing for certain waiver powers.