Page:United States Statutes at Large Volume 101 Part 2.djvu/336

 101 STAT. 1322

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PUBLIC LAW 100-198—DEC. 21, 1987

"(2) For the purposes of paragraph (1), paragraph (3), and paragraph (4)(C)(ii) of this subsection, the Administrator shall be considered to be the holder of the loan if the actual holder is not an approved lender described in section 1802. "(3) If the holder of the loan determines that the loan is not current or that the purchaser of the property does not meet the requirements of paragraph (I)(B) of this subsection, the holder shall— "(A) notify the transferor and the Administrator of such determination; and "(B) notify the transferor that the transferor may appeal the determination to the Administrator. "(4)(A) Upon the appeal of the trsmsferor after a determination described in paragraph (3) is made, the Administrator shall, in a timely manner, review and make a determination (or a redetermination in any case in which the Administrator made the determination described in such paragraph) with respect to whether the loan is current and whether the purchaser of the property meets the requirements of paragraph (I)(B) of this subsection. The Administrator shall transmit, in writing, a notice of the nature of such determination to the transferor and the holder and shall inform them of the action that shall or may be taken under subparagraph (B) of this paragraph as a result of the determination of the Administrator. "(B)(i) If the Administrator determines under subparagraph (A) of this paragraph that the loan is current and that the purchaser meets the requirements of paragraph (I)(B) of this subsection, the holder shall approve the assumption of the loan, and the transferor shall be relieved of all liability to the Administrator with respect to such loan. "(ii) If the Administrator determines under subparagraph (A) of this paragraph that the purchaser does not meet the requirements of paragraph (I)(B) of this subsection, the Administrator may direct the holder to approve the assumption of the loan if— "(I) the Administrator determines that the transferor of the property is unable to make payments on the loan and has made reasonable efforts to find a buyer who meets the requirements of paragraph (I)(B) of this subsection and that, as a result, the proposed transfer is in the best interests of the Veterans' Administration and the transferor; "(II) the transferor has requested, within 15 days after receiving the notice referred to in subparagraph (A) of this paragraph, that the Administrator approve the assumption; and "(III) the transferor will, upon assumption of the loan by the purchaser, be secondarily liable on the loan. "(C) If— "(i) the loan is not approved for assumption under subparagraph (B) of this paragraph or paragraph (1) of this subsection; or "(ii) no appeal is made by the transferor under subparagraph (A) of this paragraph within 30 days after the holder informs the transferor of its determination under paragraph (3) of this subsection, the holder may demand immediate, full payment of the principal, and all interest earned thereon, of such loan if the transferor disposes of the property. s

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