§ 203.315. Termination by conveyance to other than Commissioner.
220 words·~1 min read·
/us/cfr/t24/s§ 203.315·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)For those mortgages to which the provisions of § 203.368 apply, the contract of insurance shall be terminated under the following circumstances:
(1)The mortgagee notifies the Commissioner that it will not convey title to the Commissioner and will not file a claim for the insurance benefits when:
(i)The mortgagee either acquires the property by any means, or
(ii)Acquires the property and gives such notice during the redemption period; or
(2)The mortgagee notifies the Commissioner that it will not file a claim for the insurance benefits when:
(i)The property is bid in and acquired at foreclosure by a party other than the mortgagee, or
(ii)After foreclosure of the mortgaged property by the mortgagee the property is redeemed.
(b)For those mortgages to which the provisions as set forth in § 203.368 do not apply, the contract of insurance shall be terminated under the following circumstances:
(1)The mortgagee acquires the mortgaged property but does not convey it to the Commissioner;
(2)The property is bid in and acquired at a foreclosure sale by a party other than the mortgagee;
(3)After foreclosure the property is redeemed;
(4)After foreclosure and during the redemption period the mortgagee gives notice that it will not tender the property to the Commissioner. \[52 FR 1327, Jan. 13, 1987\]