(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]