Page:United States Statutes at Large Volume 111 Part 2.djvu/335

 PUBLIC LAW 105-65—OCT. 27, 1997 111 STAT. 1415 (i) by striking "VIOLATIONS.—The Secretary may" and all that follows through the colon and inserting the following: "(A) LIABLE PARTIES.— The Secretary may also impose a civil money penalty under this section on— "(i) any mortgagor of a property that includes 5 or more living units and that has a mortgage insured, coinsured, or held pursuant to this Act; "(ii) any general partner of a partnership mortgagor of such property; "(iii) any officer or director of a corporate mortgagor; "(iv) any agent employed to manage the property that has an identity of interest with the mortgagor, with the general partner of a partnership mortgagor, or with any officer or director of a corporate mortgagor of such property; or "(v) any member of a limited liability company that is the mortgagor of such property or is the general partner of a limited partnership mortgagor or is a partner of a general partnership mortgagor. "(B) VIOLATIONS.—^A penalty may be imposed under this section upon any liable party under subparagraph (A) that knowingly and materially takes any of the following actions:"; (ii) in subparagraph (B), as designated by clause (i), by redesignating the subparagraph designations (A) through (L) as clauses (i) through (xii), respectively; (iii) by adding after clause (xii), as redesignated by clause (ii), the following: "(xiii) Failure to maintain the premises, accommodations, any living unit in the project, and the grounds and equipment appurteneint thereto in good repair and condition in accordance with regulations and requirements of the Secretary, except that nothing in this clause shall have the effect of altering the provisions of an existing regulatory agreement or federally insured mortgage on the property. "(xiv) Failure, by a mortgagor, a general partner of a partnership mortgagor, or an officer or director of a corporate mortgagor, to provide management for the project that is acceptable to the Secretary pursuant to regulations and requirements of the Secretary. "(xv) Failure to provide access to the books, records, and accounts related to the operations of the mortgaged property and of the project."; and (iv) in the last sentence, by deleting "of such agreement" and inserting "of this subsection"; (3) in subsection (d)— (A) in paragraph (1)(B), by inserting after "mortgagor" the following: ", general partner of a partnership mortgagor, officer or director of a corporate mortgagor, or identity of interest agent employed to manage the property"; and (B) by adding at the end the following: "(5) PAYMENT OF PENALTY. —No payment of a civil money penalty levied under this section shall be payable out of project income.";

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