(a)Assignment of loan. 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 plus:
(1) Any accrued interest due as of the date of execution of the assignment of the loan to the Commissioner.
(2) Any advances approved by the Commissioner made previously by the lender under the provisions of the note of security instrument or instruments.
(3) Reimbursement for such reasonable collection costs, court costs, and attorney's fees as may be approved by the Commissioner.
(4) Reimbursement for premiums paid on any hazard insurance policies held on the property.
(5) If payment is made in cash, an amount equivalent to the debenture interest which would have been earned as of the date insurance settlement occurs, except that when the lender fails to meet any one of the applicable requirements of §§ 220.812, 220.820, and 220.821 within the specified time (or within such further time as the Commissioner may approve in writing), the debenture interest shall be computed only to the date to which the particular action should have been taken or to which it was extended.
(b)Method of payment. Payment of claim shall be made in the following manner:
(1)Payment in cash. Unless a written request for payment in debentures is filed with the application, payment shall be made in cash.
(2)Optional payment in debentures. Payment shall be made in debentures upon filing a written request with the application.
Title 24 published on 2014-04-01
no entries appear in the Federal Register after this date.
This is a list of United States Code sections, Statutes at Large, Public Laws, and Presidential Documents, which provide rulemaking authority for this CFR Part.