Page:United States Statutes at Large Volume 114 Part 5.djvu/727

 PUBLIC LAW 106-554—APPENDIX I 114 STAT. 2763A-687 "(I) the outcome of the litigation may adversely affect the Administration's management of the loan program established under section 502; or "(II) the Administration is entitled to legal remedies not available to a qualified State or local development company and such remedies will benefit either the Administration or the qualified State or local development company; or "(ii) oversee the conduct of any such litigation; and "(C) take other appropriate actions to mitigate loan losses in lieu of total liquidation or foreclosures, including the restructuring of a loan in accordance with prudent loan servicing practices and pursuant to a workout plan approved in advance by the Administration under paragraph (2)(C). "(2) ADMINISTRATION APPROVAL.— "(A) LIQUIDATION PLAN.— "(i) IN GENERAL.— Before carrying out functions described in paragraph (1)(A), a qualified State or local development company shall submit to the Administration a proposed liquidation plan. "(ii) ADMINISTRATION ACTION ON PLAN.— "(I) TIMING. —Not later than 15 business days after a liquidation plan is received by the Administration under clause (i), the Administration shall approve or reject the plan. "(II) NOTICE OF NO DECISION.— With respect to any plan that cannot be approved or denied within the 15-day period required by subclause (I), the Administration shall within such period provide in accordance with subparagraph (E) notice to the company that submitted the plan. "(iii) ROUTINE ACTIONS. —In carrying out functions described in paragraph (1)(A), a qualified State or local development company may undertake routine actions not addressed in a liquidation plan without obtaining additional approval from the Administration. "(B) PURCHASE OF INDEBTEDNESS.— "(i) IN GENERAL.—In carrying out functions described in paragraph (1)(A), a qualified State or local development company shall submit to the Administration a request for written approval before committing the Administration to the purchase of any other indebtedness secured by the property securing a defaulted loan. " (ii) ADMINISTRATION ACTION ON REQUEST.— "(I) TIMING.— Not later than 15 business days after receiving a request under clause (i), the Administration shall approve or deny the request. . "(II) NOTICE OF NO DECISION. —With respect to any request that cannot be approved or denied within the 15-day period required by subclause (I), the Administration shall within such period provide in accordance with subparagraph (E) notice to the company that submitted the request. " (C) WORKOUT PLAN.—

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