Processing defaulted mortgages on property in Allegany Reservation of Seneca Nation of Indians.

(a) Applicability. This section applies to mortgages authorized by section 203(q) of the National Housing Act (§ 203.43j) only if the default occurred before the mortgagor and the lessee execute a lease renewal or a new lease either with a term of not less than five years beyond the maturity date of the mortgage, or with a term established by an arbitration award. (b) Claims through assignment. Before a mortgagee requests the Secretary to accept assignment under § 203.350(d) the mortgagee must submit documents showing that the requirements of § 203.604 have been met. [53 FR 13405, Apr. 25, 1988, as amended at 61 FR 35020, July 3, 1996]