The Secretary shall take such steps as may be necessary to obtain repayment on any loan that is in default and that is guaranteed under this subchapter.
Upon default of a loan guaranteed under this subchapter and terminated pursuant to State law, a lender may file a claim under the guarantee for an amount not to exceed the lesser of—
the maximum guarantee; or
the difference between—
the total outstanding obligation on the loan, including principal, interest, and expenses authorized by the loan documents, through the date of the public sale (as authorized under such documents and State law); and
the amount realized at such sale.
Pub. L. 105–368, title VI, § 601(a)112 Stat. 3344 Pub. L. 107–95, § 5(d)(1)115 Stat. 918 (Added , , , § 3774; renumbered § 2053, , , .)
Editorial Notes
Amendments
Pub. L. 107–95section 3774 of this title2001— renumbered as this section.
Statutory Notes and Related Subsidiaries
Effective Date
section 602(f) of Pub. L. 105–368section 2106 of this titleSection effective , see , set out as an Effective Date of 1998 Amendment note under .