§1735f–19. Partial payment of claims on multifamily housing projects
(a) Authority
Notwithstanding any other provision of law, if the Secretary is requested to accept assignment of a mortgage insured by the Secretary that covers a multifamily housing project (as such term is defined in section 1701z–11(b) of this title) and the Secretary determines that partial payment would be less costly to the Federal Government than other reasonable alternatives for maintaining the low-income character of the project, the Secretary may request the mortgagee, in lieu of assignment, to-
(1) accept partial payment of the claim under the mortgage insurance contract; and
(2) recast the mortgage, under such terms and conditions as the Secretary may determine.
(b) Repayment
As a condition to a partial claim payment under this section, the mortgagor shall agree to repay to the Secretary the amount of such payment and such obligation shall be secured by a second mortgage on the property on such terms and conditions as the Secretary may determine.
(June 27, 1934, ch. 847, title V, §541, as added Apr. 11, 1994,