12 USC 2202d - Protection of borrowers who meet all loan obligations

U.S Code last checked for updates: May 07, 2024

§ 2202d.

Protection of borrowers who meet all loan obligations

(a)

Foreclosure prohibited

(b)

Prohibition against required principal reduction

A qualified lender may not require any borrower to reduce the outstanding principal balance of any loan made to the borrower by any amount that exceeds the regularly scheduled principal installment payment (when due and payable), unless—

(1)

the borrower sells or otherwise disposes of part or all of the collateral; or

(2)

the parties agree otherwise in a written agreement entered into by the parties.

(c)

Nonenforcement

(d)

Placing loans in nonaccrual status

(1)

Notification

(2)

Review of denial

(3)

Application

(Pub. L. 92–181, title IV, § 4.14D, as added Pub. L. 100–233, title I, § 107, Jan. 6, 1988, 101 Stat. 1581.)

cite as: 12 USC 2202d