Page:United States Statutes at Large Volume 113 Part 1.djvu/215

 PUBLIC LAW 106-37^JULY 20, 1999 113 STAT. 191 (8) PRESERVATION OF AUTHORITY. —Nothing in this subsection shall affect the authority of a government entity to seek injunctive relief or require a defendeint to correct a violation of a federally enforceable measurement, monitoring, or reporting requirement. (h) CONSUMER PROTECTION FROM Y2K FAILURES.— (1) IN GENERAL.— No person who transacts business on matters directly or indirectly affecting residential mortgages shall cause or permit a foreclosure on any such mortgage ag£dnst a consumer as a result of an actual Y2K failure that results in an inability to accurately or timely process any mortgage payment transaction. (2) NOTICE.— ^A consumer who is Eififected by an inability described in paragraph (1) shall notify the servicer for the mortgage, in writing and within 7 business days from the time that the consumer becomes aware of the Y2K fedlure and the consimaer's inability to accurately or timely fulfill his or her obligation to pay, of such failure and inability and shall provide to the servicer any available documentation with respect to the failure. (3) ACTIONS MAY RESUME AFTER GRACE PERIOD. —Notwithstanding paragraph (1), an action prohibited under paragraph (1) may be resumed, if the consumer's mortgage obligation has not been paid and the servicer of the mortgage has not expressly and in writing granted the consumer an extension of time during which to pay the consumer's mortgage obligation, but only after the later of— (A) four weeks sifter JanuEuy 1, 2000; or (B) four weeks sifter notification is made as required under paragraph (2), except that Einy notification made on or after March 15, 2000, shall not be effective for purposes of this subsection. (4) APPLICABILITY. —Th is subsection does not apply to transactions upon which a default has occurred before December 15, 1999, or with respect to which an imminent default was foreseeable before December 15, 1999. (5) ENFORCEMENT OF OBLIGATIONS MERELY TOLLED.— T h is subsection delays but does not prevent the enforcement of financial obligations, and does not otherwise affect or extinguish the obligation to pay. (6) DEFINITION.— In this subsection— (A) The term "consumer" means a natural person. (B) The term "residential mortgage" has the meaning given the term "federally related mortgage login" under section 3 of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2602). (C) The term "servicer" means the person, including any successor, responsible for receiving any scheduled periodic payments from a consumer pursuant to the terms of a residential mortgage, including amounts for any escrow account, and for making the pa5mDients of principal and interest and such other pa5ntnents with respect to the amounts received from the borrower as may be required pursuant to the terms of the mortgage. Such term includes the person, including any successor, who makes or holds a loan if such person also services the loan.

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