657a

(a) Notwithstanding any provision to the contrary in the mortgage, after the effective date of this provision, every partial prepayment of a mortgage loan subsidized pursuant to the subsidy program established herein shall serve to reduce the amount of each installment instead of reducing the number of installments due. This provision shall also apply to the partial prepayments made within the year following the effective date of this provision with regard to subsidized mortgage loans when this provision becomes effective.(b) Notwithstanding the provisions of § 3163 of Title 31, in the event that the Housing Finance Authority fully prepays any subsidized mortgage without the knowledge and consent of the mortgagor, the Housing Finance Authority of Puerto Rico shall be subrogated to the rights of the mortgagee. History —July 5, 1973, No. 10, p. 771, added as § 7A on July 11, 1986, No. 115, p. 366, § 2; Aug. 4, 2012, No. 152, § 1.