
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 12USC2202d]

 
                       TITLE 12--BANKS AND BANKING
 
                     CHAPTER 23--FARM CREDIT SYSTEM
 
     SUBCHAPTER IV--PROVISIONS APPLICABLE TO TWO OR MORE CLASSES OF 
                       INSTITUTIONS OF THE SYSTEM
 
             Part C--Rights of Borrowers; Loan Restructuring
 
Sec. 2202d. Protection of borrowers who meet all loan 
        obligations
        

(a) Foreclosure prohibited

    A qualified lender may not foreclose on any loan because of the 
failure of the borrower thereof to post additional collateral, if the 
borrower has made all accrued payments of principal, interest, and 
penalties with respect to the loan.

(b) Prohibition against required principal reduction

    A qualified lender may not require any borrower to reduce the 
outstanding principal balance of any loan made to the borrower by any 
amount that exceeds the regularly scheduled principal installment 
payment (when due and payable), unless--
        (1) the borrower sells or otherwise disposes of part or all of 
    the collateral; or
        (2) the parties agree otherwise in a written agreement entered 
    into by the parties.

(c) Nonenforcement

    After a borrower has made all accrued payments of principal, 
interest, and penalties with respect to a loan made by a qualified 
lender, the lender shall not enforce acceleration of the borrower's 
repayment schedule due to the borrower having not timely made one or 
more principal or interest payments.

(d) Placing loans in nonaccrual status

                          (1) Notification

        If a qualified lender places any loan in nonaccrual status, the 
    lender shall document such change of status and promptly notify the 
    borrower thereof in writing of such action and the reasons therefor.

                        (2) Review of denial

        If the borrower was not delinquent in any principal or interest 
    payment under the loan at the time of such action and the borrower's 
    request to have the loan placed back into accrual status is denied, 
    the borrower may obtain a review of such denial before the 
    appropriate credit review committee under section 2202 of this 
    title.

                           (3) Application

        This subsection shall only apply if a loan being placed in 
    nonaccrual status results in an adverse action being taken against 
    the borrower.

(Pub. L. 92-181, title IV, Sec. 4.14D, as added Pub. L. 100-233, title 
I, Sec. 107, Jan. 6, 1988, 101 Stat. 1581.)

                  Section Referred to in Other Sections

    This section is referred to in sections 2202a, 2279aa-9 of this 
title.
