Page:United States Statutes at Large Volume 101 Part 3.djvu/284

 101 STAT. 1582

PUBLIC LAW 100-233—JAN. 6, 1988 "(3) APPLICATION.—This subsection shall only apply if a loan being placed in nonaccrual status results in an adverse action being taken against the borrower.".

SEC. 108. RIGHT OF FIRST REFUSAL.

Section 4.36 (12 U.S.C. 2219a) is amended to read as follows: "SEC. 4.36. RIGHT OF FIRST REFUSAL.

"(a) GENERAL RULE.—Agricultural real estate that is acquired by an institution of the System as a result of a loan foreclosure or a voluntary conveyance by a borrower (hereinafter in this section referred to as the 'previous owner') who, as determined by the institution, does not have the financial resources to avoid foreclosure (hereinafter in this section referred to as 'acquired real estate') shall be subject to the right of first refusal of the previous owner to repurchase or lease the property, as provided in this section. "(b) APPLICATION OF RIGHT OF FIRST REFUSAL TO SALE OF PROPERTY.— "(1) ELECTION TO SELL AND NOTIFICATION.—Within 15 days

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after an institution of the System first elects to sell acquired real estate, or any portion of such real estate, the institution shall notify the previous owner by certified mail of the owner's right— "(A) to purchase the property at the appraised fair market value of the property, as established by an accredited appraiser; or "(B) to offer to purchase the property at a price less than the appraised value. $ri; "(2) EuGiBiliTY TO PURCHASE.—To be eligible to purchase the property under paragraph (1), the previous owner must, within 15 days after receiving the notice required by such paragraph, submit an offer to purchase the property. "(3) MANDATORY SALE.—An institution of the System receiving an offer from the previous owner to purchase the property at the appraised value shall, within 30 days after the receipt of such offer, accept such offer and sell the property to the previous owner. "(4) PERMISSIVE SALE.—An institution of the System receiving

an offer from the previous owner to purchase the property at a price less than the appraised value may accept such offer and sell the property to the previous owner. Notice shall be provided to the previous owner of the acceptance or rejection of such offer within 15 days after the receipt of such offer. "(5) REJECTION OF OFFER OF PREVIOUS OWNER.— "(A) DUTIES OF INSTITUTION.—An institution

of the »v i\ System that rejects an offer from the previous owner to purchase the property at a price less than the appraised value may not sell the property to any other person— "(i) at a price equal to, or less than, that offered by K^-4H>-iv. the previous owner; or »'• '; -' "(ii) on different terms and conditions than those ' that were extended to the previous owner, without first affording the previous owner an opportunity to purchase the property at such price or under such terms and conditions.

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