
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: 12USC3704]

 
                       TITLE 12--BANKS AND BANKING
 
              CHAPTER 38--MULTIFAMILY MORTGAGE FORECLOSURE
 
Sec. 3704. Foreclosure commissioner; designation, duties, etc.

    A foreclosure commissioner or commissioners designated pursuant to 
this chapter shall have a nonjudicial power of sale as provided in this 
chapter. Where the Secretary is the holder of a multifamily mortgage, 
the Secretary may designate a foreclosure commissioner and, with or 
without cause, may designate a substitute foreclosure commissioner to 
replace a previously designated foreclosure commissioner, by executing a 
duly acknowledged, written designation stating the name and business or 
residential address of the commissioner or substitute commissioner. The 
designation shall be effective upon execution. Except as provided in 
section 3707(b) of this title, a copy of the designation shall be mailed 
with each copy of the notice of default and foreclosure sale served by 
mail in accordance with section 3708(1) of this title. The foreclosure 
commissioner, if a natural person, shall be a resident of the State in 
which the security property is located and, if not a natural person, the 
foreclosure commissioner must be duly authorized to transact business 
under the laws of the State in which the security property is located. 
The foreclosure commissioner shall be a person who is responsible, 
financially sound and competent to conduct the foreclosure. More than 
one foreclosure commissioner may be designated. If a natural person is 
designated as foreclosure commissioner or substitute foreclosure 
commissioner, such person shall be designated by name, except that where 
such person is designated in his or her capacity as an official or 
employee of the government of the State or subdivision thereof in which 
the security property is located, such person may be designated by his 
or her unique title or position instead of by name. The Secretary shall 
be a guarantor of payment of any judgment against the foreclosure 
commissioner for damages based upon the commissioner's failure properly 
to perform the commissioner's duties. As between the Secretary and the 
mortgagor, the Secretary shall bear the risk of any financial default by 
the foreclosure commissioner. In the event that the Secretary makes any 
payment pursuant to the preceding two sentences, the Secretary shall be 
fully subrogated to the rights satisfied by such payment.

(Pub. L. 97-35, title III, Sec. 365, Aug. 13, 1981, 95 Stat. 423.)

                  Section Referred to in Other Sections

    This section is referred to in sections 3707, 3708 of this title.
