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Code · CFR · Title 24 — Housing and Urban Development · Part 1005 — Loan Guarantees for Indian Housing · § 1005.713

§ 1005.713. Due-on-sale provision.

116 words·~1 min read·/us/cfr/t24/s§ 1005.713·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A Section 184 Guaranteed Loan shall contain a due-on-sale clause permitting acceleration, as prescribed by Section 184 Program Guidance. The Servicer shall promptly advise HUD of any prohibited sale or other transfer of the property or leasehold interest that occurs. The Servicer must request approval from HUD to accelerate the Loan when any prohibited sale or transfer occurs. If acceleration is permitted by applicable Tribal, Federal, or State law, the Servicer shall certify as to the legal authority as part of the request for approval, in a form and manner prescribed by Section 184 Program Guidance.
Within 30 days of receipt of HUD approval to accelerate, the Servicer shall notify the Borrower of default and acceleration.
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