Page:United States Statutes at Large Volume 114 Part 5.djvu/887

 PUBLIC LAW 106-568 —DEC. 27, 2000 114 STAT. 2901 "(2) LIMITATIONS ON LIQUIDATION. — "(A) IN GENERAL.—I f a borrower defaults on a loan guaranteed under this section that involves a security interest in restricted Hawaiian Home Land property, the mortgagee or the Secretary shall only pursue liquidation after offering to transfer the account to another eligible Hawaiian family or the Department of Hawaiian Home Lands. "(B) LIMITATION.—If, after action is taken under subparagraph (A), the mortgagee or the Secretary subsequently proceeds to liquidate the account, the mortgagee or the Secretary shall not sell, transfer, or otherwise dispose of or alienate the property described in subparagraph (A) except to another eligible Hawaiian family or to the Department of Hawaiian Home Lands. " ( j) NATIVE HAWAIIAN HOUSING LOAN GUARANTEE FUND. — "(1) ESTABLISHMENT.— T here is established in the Treasury of the United States the Native Hawaiian Housing Loan Guarantee Fund for the purpose of providing loan guarantees under this section. "(2) CREDITS. —The Guarantee Fund shall be credited with— "(A) any amount, claims, notes, mortgages, contracts, and property acquired by the Secretary under this section, and any collections and proceeds therefrom; "(B) any amounts appropriated pursuant to paragraph (7); "(C) any guarantee fees collected under subsection (e); and "(D) any interest or earnings on amounts invested under paragraph (4). "(3) USE.— Amounts in the Guarantee Fund shall be available, to the extent provided in appropriations Acts, for— "(A) fulfilling any obligations of the Secretary with respect to loans guaranteed under this section, including the costs (as that term is defined in section 502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) of such loans; "(B) paying taxes, insurance, prior liens, expenses necessary to make fiscal adjustment in connection with the application and transmittal of collections, and other expenses and advances to protect the Secretary for loans which are guaranteed under this section or held by the Secretary; "(C) acquiring such security property at foreclosure sales or otherwise; "(D) paying administrative expenses in connection with this section; and "(E) reasonable and necessary costs of rehabilitation and repair to properties that the Secretary holds or owns pursuant to this section. "(4) INVESTMENT. — Any amounts in the Guarantee Fund determined by the Secretary to be in excess of amounts currently required at the time of the determination to carry out this section may be invested in obligations of the United States. "(5) LIMITATION ON COMMITMENTS TO GUARANTEE LOANS AND MORTGAGES. —

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