§ 1715p. — Insurance of advances under openend mortgages; payment of charges; eligibility and conditions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715p]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715p. Insurance of advances under open-end mortgages;
payment of charges; eligibility and conditions
Notwithstanding any other provisions of this chapter, in connection
with any mortgage insured pursuant to any section of this chapter which
covers a property upon which there is located a dwelling designed
principally for residential use for not more than four families in the
aggregate, the Secretary is authorized, upon such terms and conditions
as he may prescribe, to insure under said section the amount of any
advance for the improvement or repair of such property made to the
mortgagor pursuant to an ``open-end'' provision in the mortgage, and to
add the amount of such advance to the original principal obligation in
determining the value of the mortgage for the purpose of computing the
amounts of debentures and certificate of claim to which the mortgagee
may be entitled: Provided, That the Secretary may require the payment of
such charges, including in lieu of insurance premiums, as he may
consider appropriate for the insurance of such ``open-end'' advances:
Provided, further, That only advances for such improvements or repairs
as substantially protect or improve the basic livability or utility of
the property involved shall be eligible for insurance under this
section; Provided further, That no such advance shall be insured under
this section if the amount thereof plus the amount of the unpaid balance
of the original principal obligation of the mortgage would exceed the
amount of such original principal obligation unless the mortgagor
certifies that the proceeds of such advance will be used to finance the
construction of additional rooms or other enclosed space as a part of
the dwelling: And provided further, That the insurance of ``open-end''
advances shall not be taken into account in determining the aggregate
amount of principal obligations of mortgages which may be insured under
this chapter.
(June 27, 1934, ch. 847, title II, Sec. 225, as added Aug. 2, 1954, ch.
649, title I, Sec. 126, 68 Stat. 607; amended Pub. L. 90-19, Sec. 1(a)
(3), May 25, 1967, 81 Stat. 17.)
Amendments
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing.
Section Referred to in Other Sections
This section is referred to in section 1715y of this title.
