Page:United States Statutes at Large Volume 114 Part 5.djvu/979

 PUBLIC LAW 106-569—DEC. 27, 2000 114 STAT. 2993 that any lender or holder of a guarantee certificate under subsection (d)— "(i) has failed— "(I) to maintain adequate accounting records; "(11) to service adequately loans guaranteed under this section; or "(III) to exercise proper credit or underwriting judgment; or "(ii) has engaged in practices otherwise detrimental to the interest of a borrower or the United States. "(B) ACTIONS.— Upon a determination by the Secretary that a holder of a guarantee certificate under subsection (d) has failed to carry out an activity described in subparagraph (A)(i) or has engaged in practices described in subparagraph (A)(ii), the Secretary may— "(i) refuse, either temporarily or permanently, to guarantee any further loans made by such lender or holder; "(ii) bar such lender or holder from acquiring additional loans guaranteed under this section; and "(iii) require that such lender or holder assume not less than 10 percent of any loss on further loans made or held by the lender or holder that are guaranteed under this section. " (2) CIVIL MONEY PENALTIES FOR INTENTIONAL VIOLA- TIONS.— "(A) IN GENERAL.— The Secretary may impose a civil monetary penalty on a lender or holder of a guarantee certificate under subsection (d) if the Secretary determines that the holder or lender has intentionally failed— "(i) to maintain adequate accounting records; "(ii) to adequately service loans guaranteed under this section; or "(iii) to exercise proper credit or underwriting judgment. " (B) PENALTIES.—A civil monetary penalty imposed under this paragraph shall be imposed in the manner and be in an amount provided under section 536 of the National Housing Act (12 U.S.C.A. 1735f-l) with respect to mortgagees and lenders under that Act. " (3) PAYMENT ON LOANS MADE IN GOOD FAITH.— Notwithstanding paragraphs (1) and (2), if a loan was made in good faith, the Secretary may not refuse to pay a lender or holder of a valid guarantee on that loan, without regard to whether the lender or holder is barred under this subsection, "(i) PAYMENT UNDER GUARANTEE. — " (1) LENDER OPTIONS.— "(A) IN GENERAL.— "(i) NOTIFICATION.—I f a borrower on a loan guaranteed under this section defaults on the loan, the holder of the guarantee certificate shall provide written notice of the default to the Secretary. "(ii) PAYMENT.— Upon providing the notice required under clause (i), the holder of the guarantee certificate

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