§ 1005.759. Property on Trust Land---Tribal First Right of Refusal; foreclosure or assignment.
274 words·~1 min read·
/us/cfr/t24/s§ 1005.759·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Tribal First Right of Refusal is written notice to the Tribe of the options to assume the Section 184 Guaranteed Loan or purchase the Note based on the current unpaid principal balance or appraised value for any property on Trust Land or other reasonable options as prescribed by Section 184 Program Guidance.
(b)The Servicer shall provide Tribal First Right of Refusal no later than 14 days, or any extended timeframe prescribed by Section 184 Program Guidance, after the earlier of:
(1)Any lease provision addressing Tribal First Right of Refusal;
(2)120 days after default, unless the Borrower is in active loss mitigation;
(3)Failure of loss mitigation after 180 days from default;
(4)The failure of loss mitigation after an extension of the loss mitigation period under § 1005.739(f).
(5)The date the property was determined vacant or abandoned in accordance § 1005.737 or the earliest date the Servicer should have known the property was vacant or abandoned.
(c)The Tribe shall have either the time frame provided in the lease or, if not defined in the lease, 60 days, or any extended timeframe prescribed by Section 184 Program Guidance, to accept or decline the offer of Tribal First Right of Refusal.
(d)If the Tribe declines or does not respond to the Tribal First Right of Refusal within 60 days, or any extended timeframe prescribed by Section 184 Guidance, the Servicer must either complete First Legal Action or assignment to HUD, within the timeframes prescribed in §§ 1005.763 and 1005.765.
(e)Any costs associated with failure to initiate Tribal First Right of Refusal may be deemed ineligible for claim payment.