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Other Challenges to ELIHPA

Several owners have substantively challenged the RD prepayment restrictions on the ground that they were unconstitutional impairments of contracts, that they could be circumvented through a state quiet title law suit, or that payments made in advance were not prepayments within the ELIHPA restrictions. While owners prevailed in two early cases, recent cases have all failed and have overridden the rationale of the earlier cases.

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