§ 1712. — Investment of funds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1712]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1712. Investment of funds
Moneys in the Fund not needed for the current operations of the
Department of Housing and Urban Development related to insurance under
section 1709 of this title shall be deposited with the Treasurer of the
United States to the credit of the Fund, or invested in bonds or other
obligations of, or in bonds or other obligations guaranteed as to
principal and interest by, the United States or any agency of the United
States: Provided, That such moneys shall to the maximum extent feasible
be invested in such bonds or other obligations the proceeds of which
will be used to directly support the residential mortgage market. The
Secretary may, with the approval of the Secretary of the Treasury,
purchase in the open market debentures issued under the provisions of
section 1710 of this title. Such purchases shall be made at a price
which will provide an investment yield of not less than the yield
obtainable from other investments authorized by this section. Debentures
so purchased shall be canceled and not reissued, and the several group
accounts to which such debentures have been charged shall be charged
with the amounts used in making such purchases.
(June 27, 1934, ch. 847, title II, Sec. 206, 48 Stat. 1252; Feb. 3,
1938, ch. 13, Sec. 3, 52 Stat. 16; Apr. 20, 1950, ch. 94, title I,
Sec. 122, 64 Stat. 59; Pub. L. 90-19, Sec. 1(a)(1), (3), (e), May 25,
1967, 81 Stat. 17, 18; Pub. L. 91-609, title I, Sec. 117(a), Dec. 31,
1970, 84 Stat. 1774.)
Amendments
1970--Pub. L. 91-609 provided for guarantee as to principal and
interest by any agency of the United States and for investment of monies
in bonds or other obligations the proceeds of which will be used to
directly support the residential mortgage market.
1967--Pub. L. 90-19 substituted ``Department of Housing and Urban
Development'' and ``Secretary'' for ``Federal Housing Administration''
and ``Commissioner'', respectively, and inserted ``related to insurance
under section 1709 of this title'' before ``shall be deposited''.
1950--Act Apr. 20, 1950, substituted ``Commissioner'' for
``Administrator''.
1938--Act Feb. 3, 1938, among other changes, inserted ``or in bonds
or other obligations guaranteed as to principal and interest by'' in
first sentence, and inserted third sentence.
Section Referred to in Other Sections
This section is referred to in title 26 section 895.
