§ 1717. — Federal National Mortgage Association and Government National Mortgage Association.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1717]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER III--NATIONAL MORTGAGE ASSOCIATIONS
Sec. 1717. Federal National Mortgage Association and Government
National Mortgage Association
(a) Creation; succession; principal and other offices
(1) There is created a body corporate to be known as the ``Federal
National Mortgage Association'', which shall be in the Department of
Housing and Urban Development. The Association shall have succession
until dissolved by Act of Congress. It shall maintain its principal
office in the District of Columbia and shall be deemed, for purposes of
venue in civil actions, to be a resident thereof. Agencies or offices
may be established by the Association in such other place or places as
it may deem necessary or appropriate in the conduct of its business.
(2) On September 1, 1968, the body corporate described in the
foregoing paragraph shall cease to exist in that form and is hereby
partitioned into two separate and distinct bodies corporate, each of
which shall have continuity and corporate succession as a separated
portion of the previously existing body corporate, as follows:
(A) One of such separated portions shall be a body corporate
without capital stock to be known as Government National Mortgage
Association (hereinafter referred to as the ``Association''), which
shall be in the Department of Housing and Urban Development and
which shall retain the assets and liabilities acquired and incurred
under sections 1720 \1\ and 1721 of this title prior to such date,
including any and all liabilities incurred pursuant to subsection
(c) of this section. The Association shall have succession until
dissolved by Act of Congress. It shall maintain its principal office
in the District of Columbia and shall be deemed, for purposes of
venue in civil actions, to be a resident thereof. Agencies or
offices may be established by the Association in such other place or
places as it may deem necessary or appropriate in the conduct of its
business.
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(B) The other such separated portion shall be a body corporate
to be known as Federal National Mortgage Association (hereinafter
referred to as the ``corporation''), which shall retain the assets
and liabilities acquired and incurred under sections 1718 and 1719
of this title prior to such date. The corporation shall have
succession until dissolved by Act of Congress. It shall maintain its
principal office in the District of Columbia or the metropolitan
area thereof and shall be deemed, for purposes of jurisdiction and
venue in civil actions, to be a District of Columbia corporation.
(3) The partition transaction effected pursuant to the foregoing
paragraph constitutes a reorganization within the meaning of section
368(a)(1)(E) of title 26; and for the purposes of such title 26, no gain
or loss is recognized by the previously existing body corporate by
reason of the partition, and the basis and holding period of the assets
of the corporation immediately following such partition are the same as
the basis and holding period of such assets immediately prior to such
partition.
(b) Purchase and sale of insured and conventional mortgages;
transactions in loans and advances of credit
(1) For the purposes set forth in section 1716 of this title and
subject to the limitations and restrictions of this subchapter, each of
the bodies corporate named in subsection (a)(2) of this section is
authorized pursuant to commitments or otherwise, to purchase, service,
sell, or otherwise deal in any mortgages which are insured under this
chapter or title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.],
or which are insured or guaranteed under the Servicemen's Readjustment
Act of 1944 or chapter 37 of title 38; and to purchase, service, sell,
or otherwise deal in any loans made or guaranteed under part B of title
VI of the Public Health Service Act [42 U.S.C. 291j-1 et seq.]; and the
corporation is authorized to lend on the security of any such mortgages
and to purchase, sell, or otherwise deal in any securities guaranteed by
the Association under section 1721(g) of this title: Provided, That (1)
the Association may not purchase any mortgage at a price exceeding 100
per centum of the unpaid principal amount thereof at the time of
purchase, with adjustments for interest and any comparable items; (2)
the Association may not purchase any mortgage, except a mortgage insured
under title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.], if it
is offered by, or covers property held by, a State, territorial, or
municipal instrumentality; and (3) the Association may not purchase any
mortgage under section 1720 \2\ of this title, except a mortgage insured
under section 1715k of this title or subchapter VIII of this chapter or
section 1709(k) of this title, or under subchapter IX-A \2\ of this
chapter with respect to a new community approved under section 1749cc-1
\2\ of this title, or insured under section 1715e of this title and
covering property located in an urban renewal area, or a mortgage
covering property located in Alaska, Guam, or Hawaii, if the original
principal obligation thereof exceeds or exceeded $55,000 in the case of
property upon which is located a dwelling designed principally for a
one-family residence; or $60,000 in the case of a two- or three-family
residence; or $68,750 in the case of a four-family residence; or, in the
case of a property containing more than four dwelling units, $38,000 per
dwelling unit (or such higher amount not in excess of $45,000 per
dwelling unit as the Secretary may by regulation specify in any
geographical area where the Secretary finds that cost levels so require)
for that part of the property attributable to dwelling use.
Notwithstanding the provisions of clause (3) of the preceding sentence,
the Association may purchase a mortgage under section 1720 \2\ of this
title with an original principal obligation which exceeds the otherwise
applicable maximum amount per dwelling unit if the mortgage is insured
under section 1713(c)(3), 1715e(b)(2), 1715k(d)(3)(B)(iii),
1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2), 1715y(e)(3), or 1715z-1
of this title. For the purposes of this subchapter, the terms
``mortgages'' and ``home mortgages'' shall be inclusive of any mortgages
or other loans insured under any of the provisions of this chapter or
title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.].
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(2) For the purposes set forth in section 1716(a) of this title, the
corporation is authorized, pursuant to commitments or otherwise, to
purchase, service, sell, lend on the security of, or otherwise deal in
mortgages which are not insured or guaranteed as provided in paragraph
(1) (such mortgages referred to hereinafter as ``conventional
mortgages''). No such purchase of a conventional mortgage secured by a
property comprising one- to four-family dwelling units shall be made if
the outstanding principal balance of the mortgage at the time of
purchase exceeds 80 per centum of the value of the property securing the
mortgage, unless (A) the seller retains a participation of not less than
10 per centum in the mortgage; (B) for such period and under such
circumstances as the corporation may require, the seller agrees to
repurchase or replace the mortgage upon demand of the corporation in the
event that the mortgage is in default; or (C) that portion of the unpaid
principal balance of the mortgage which is in excess of such 80 per
centum is guaranteed or insured by a qualified insurer as determined by
the corporation. The corporation shall not issue a commitment to
purchase a conventional mortgage prior to the date the mortgage is
originated, if such mortgage is eligible for purchase under the
preceding sentence only by reason of compliance with the requirements of
clause (A) of such sentence. The corporation may purchase a conventional
mortgage which was originated more than one year prior to the purchase
date only if the seller is the Federal Deposit Insurance Corporation,
the Resolution Trust Corporation, the National Credit Union
Administration, or any other seller currently engaged in mortgage
lending or investing activities. For the purpose of this section, the
term ``conventional mortgages'' shall include a mortgage, lien, or other
security interest on the stock or membership certificate issued to a
tenant-stockholder or resident-member of a cooperative housing
corporation, as defined in section 216 of title 26, and on the
proprietary lease, occupancy agreement, or right of tenancy in the
dwelling unit of the tenant-stockholder or resident-member in such
cooperative housing corporation. The corporation shall establish
limitations governing the maximum original principal obligation of
conventional mortgages that are purchased by it; in any case in which
the corporation purchases a participation interest in such a mortgage,
the limitation shall be calculated with respect to the total original
principal obligation of the mortgage and not merely with respect to the
interest purchased by the corporation. Such limitations shall not exceed
$93,750 for a mortgage secured by a single-family residence, $120,000
for a mortgage secured by a two-family residence, $145,000 for a
mortgage secured by a three-family residence, and $180,000 for a
mortgage secured by a four-family residence, except that such maximum
limitations shall be adjusted effective January 1 of each year beginning
with 1981. Each such adjustment shall be made by adding to each such
amount (as it may have been previously adjusted) a percentage thereof
equal to the percentage increase during the twelve-month period ending
with the previous October in the national average one-family house price
in the monthly survey of all major lenders conducted by the Federal
Housing Finance Board. The foregoing limitations may be increased by not
to exceed 50 per centum with respect to properties located in Alaska,
Guam, Hawaii, and the Virgin Islands.
(3) The corporation is authorized to purchase, service, sell, lend
on the security of, and otherwise deal in loans or advances of credit
for the purchase and installation of home improvements, including energy
conserving improvements or solar energy systems described in the last
paragraph of section 1703(a) of this title and residential energy
conservation measures as described in section 210(11) of the National
Energy Conservation Policy Act [42 U.S.C. 8211(11)] \3\ and financed by
a public utility in accordance with the requirements of title II of such
Act [42 U.S.C. 8211 et seq.]. To be eligible for purchase, any such loan
or advance of credit (other than a loan or advance made with respect to
energy conserving improvements or solar energy systems or residential
energy conservation measures) not insured under subchapter I of this
chapter shall be secured by a lien against the property to be improved.
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(4) The corporation is authorized to purchase, service, sell, lend
on the security of, and otherwise deal in loans or advances of credit
secured by mortgages or other liens against manufactured homes.
(5)(A) The corporation is authorized to purchase, service, sell,
lend on the security of, and otherwise deal in (i) conventional
mortgages that are secured by a subordinate lien against a one- to four-
family residence that is the principal residence of the mortgagor; and
(ii) conventional mortgages that are secured by a subordinate lien
against a property comprising five or more family dwelling units. If the
corporation, pursuant to paragraphs (1) through (4), shall have
purchased, serviced, sold, or otherwise dealt with any other outstanding
mortgage secured by the same residence, the aggregate original amount of
such other mortgage and the mortgage authorized to be purchased,
serviced, sold, or otherwise dealt with under this paragraph shall not
exceed the applicable limitation determined under paragraph (2).
(B) The corporation shall establish limitations governing the
maximum original principal obligation of conventional mortgages
described in subparagraph (A). In any case in which the corporation
purchases a participation interest in such a mortgage, the limitation
shall be calculated with respect to the total original principal
obligation of such mortgage described in subparagraph (A) and not merely
with respect to the interest purchased by the corporation. Such
limitations shall not exceed (i) with respect to mortgages described in
subparagraph (A)(i), 50 per centum of the single-family residence
mortgage limitation determined under paragraph (2); and (ii) with
respect to mortgages described in subparagraph (A)(ii), the applicable
limitation determined under paragraph (2).
(C) No subordinate mortgage against a one- to four-family residence
shall be purchased by the corporation if the total outstanding
indebtedness secured by the property as a result of such mortgage
exceeds 80 per centum of the value of such property unless (i) that
portion of such total outstanding indebtedness that exceeds such 80 per
centum is guaranteed or insured by a qualified insurer as determined by
the corporation; (ii) the seller retains a participation of not less
than 10 per centum in the mortgage; or (iii) for such period and under
such circumstances as the corporation may require, the seller agrees to
repurchase or replace the mortgage upon demand of the corporation in the
event that the mortgage is in default. The corporation shall not issue a
commitment to purchase a subordinate mortgage prior to the date the
mortgage is originated, if such mortgage is eligible for purchase under
the preceding sentence only by reason of compliance with the
requirements of clause (ii) of such sentence.
(6) The corporation may not implement any new program (as such term
is defined in section 4502 of this title) before obtaining the approval
of the Secretary under section 4542 of this title.
(c) Administration of trusts; obligations of departments and agencies of
the United States; exemption of interest income from taxation;
authorization of appropriations for differential reimbursements
(1) Notwithstanding any other provision of this chapter or of any
other law, the Association is authorized under section 1721 of this
title to create, accept, execute, and otherwise administer in all
respects such trusts, receiverships, conservatorships, liquidating or
other agencies, or other fiduciary and representative undertakings and
activities, hereinafter in this subsection called ``trusts'', as might
be appropriate for financing purposes; and in relation thereto the
Association may acquire, hold and manage, dispose of, and otherwise deal
in any mortgages or other types of obligations in which any department
or agency of the United States listed in paragraph (2) of this
subsection may have a financial interest. The Association may join in
any such undertakings and activities, hereinafter in this subsection
called ``trusts''; notwithstanding that it is also serving in a
fiduciary or representative capacity; and is authorized to guarantee any
participations or other instruments, whether evidence of property rights
or debt, issued for such financing purposes. Participations or other
instruments issued by the Association pursuant to this subsection shall
to the same extent as securities which are direct obligations of or
obligations guaranteed as to principal or interest by the United States
be deemed to be exempt securities within the meaning of laws
administered by the Securities and Exchange Commission. The amounts of
any mortgages and their obligations acquired by the Association under
section 1721 of this title, pursuant to this subsection, shall not be
included in the total amounts set forth in section 1721(c) of this
title.
(2) Subject to the limitations provided in paragraph (4) of this
subsection, one or more trusts may be established as provided in this
subsection by each of the following departments or agencies:
(A) The Farmers Home Administration of the Department of
Agriculture, but only with respect to operating loans, direct farm
ownership loans, direct housing loans, and direct soil and water
loans. Such trusts may not be established with respect to loans for
housing for the elderly under sections 502 and 515(a) of the Housing
Act of 1949 [42 U.S.C. 1472 and 1485(a)], nor with respect to loans
for nonfarm recreational development.
(B) The Department of Education, but only with respect to loans
made by the Secretary of Education for construction of academic
facilities, and loans to help finance student loan programs.
(C) The Department of Housing and Urban Development.
(D) The Department of Veterans Affairs.
(E) The Export-Import Bank.
(F) The Small Business Administration.
The head of each such department or agency, hereinafter in this
subsection called the ``trustor,'' is authorized to set aside a part or
all of any obligations held by the trustor and subject them to a trust
or trusts and, incident thereto, shall guarantee to the trustee timely
payment thereof. The trust instrument may provide for the issuance and
sale of beneficial interests or participations, by the trustee, in such
obligations or in the right to receive interest and principal
collections therefrom; and may provide for the substitution or
withdrawal of such obligations, or for the substitution of cash for
obligations. The trust or trusts shall be exempt from all taxation. The
trust instrument may also contain other appropriate provisions in
keeping with the purposes of this subsection. The Association shall be
named and shall act as trustee of any such trusts and, for the purposes
thereof, the title to such obligations shall be deemed to have passed to
the Association in trust. The trust instrument shall provide that
custody, control, and administration of the obligations shall remain in
the trustor subjecting the obligations to the trust, subject to transfer
to the trustee in event of default or probable default, as determined by
the trustee, in the payment of principal and interest of the beneficial
interests or participations. Collections from obligations subject to the
trust shall be dealt with as provided in the instrument creating the
trust. The trust instrument shall provide that the trustee will promptly
pay to the trustor the full net proceeds of any sale of beneficial
interests or participations to the extent they are based upon such
obligations or collections. Such proceeds shall be dealt with as
otherwise provided by law for sales or repayment of such obligations.
The effect of both past and future sales of any issue of beneficial
interests or participations shall be the same, to the extent of the
principal of such issue, as the direct sale with recourse of the
obligations subject to the trust. Any trustor creating a trust or trusts
hereunder is authorized to purchase, through the facilities of the
trustee, outstanding beneficial interests or participations to the
extent of the amount of the trustor's responsibility to the trustee on
beneficial interests or participations outstanding, and to pay the
trustor's proper share of the costs and expenses incurred by the
Association as trustee pursuant to the trust instrument.
(3) When any trustor guarantees to the trustee the timely payment of
obligations the trustor subjects to a trust pursuant to this subsection,
and it becomes necessary for such trustor to meet his responsibilities
under such guaranty, the trustor is authorized to fulfill such guaranty.
(4) Beneficial interests or participations shall not be issued for
the account of any trustor in an aggregate principal amount greater than
is authorized with respect to such trustor in an appropriation Act. Any
such authorization shall remain available only for the fiscal year for
which it is granted and for the succeeding fiscal year.
(5) The Association, as trustee, is authorized to issue and sell
beneficial interests or participations under this subsection,
notwithstanding that there may be an insufficiency in aggregate receipts
from obligations subject to the related trust to provide for the payment
by the trustee (on a timely basis out of current receipts or otherwise)
of all interest or principal on such interests or participations (after
provision for all costs and expenses incurred by the trustee, fairly
prorated among trustors). There are authorized to be appropriated
without fiscal year limitation such sums as may be necessary to enable
any trustor to pay the trustee such insufficiency as the trustee may
require on account of outstanding beneficial interests or participations
authorized to be issued pursuant to paragraph (4) of this subsection.
Such trustor shall make timely payments to the trustee from such
appropriations, subject to and in accord with the trust instrument. In
the event that the insufficiency required by the trustee is on account
of principal maturities of outstanding beneficial interests or
participations authorized to be issued pursuant to paragraph (4) of this
subsection, or pursuant hereto, the trustee is authorized to elect to
issue additional beneficial interests or participations for refinancing
purposes in lieu of requiring any trustor or trustors to make payments
to the trustee from appropriated funds or other sources. Each such issue
of beneficial interests or participations shall be in an amount
determined by the trustee but not in excess of the aggregate amount
which the trustee would otherwise require the trustor or trustors to pay
from appropriated funds or other sources, and may be issued without
regard to the provisions of paragraph (4) of this subsection. All
refinancing issues of beneficial interests or participations shall be
deemed to have been issued pursuant to the authority contained in the
appropriation Act or Acts under which the beneficial interests or
participations were originally issued.
(June 27, 1934, ch. 847, title III, Sec. 302, 48 Stat. 1254; May 28,
1935, ch. 150, Sec. 31, 49 Stat. 300; Feb. 3, 1938, ch. 13, Sec. 6, 52
Stat. 24; Mar. 28, 1941, ch. 31, Sec. 6, 55 Stat. 62; July 1, 1948, ch.
784, Sec. 1, 62 Stat. 1208; July 19, 1949, ch. 351, Sec. 1, 63 Stat.
446; Oct. 25, 1949, ch. 729, Sec. 1(3), 63 Stat. 905; Apr. 20, 1950, ch.
94, title I, Sec. 117, 64 Stat. 57; July 14, 1952, ch. 723, Sec. 3(b),
66 Stat. 602; June 30, 1953, ch. 170, Sec. 13(b), 67 Stat. 125; Aug. 2,
1954, ch. 649, title II, Sec. 201, 68 Stat. 613; Aug. 7, 1956, ch. 1029,
title II, Sec. 201, 70 Stat. 1096; Pub. L. 85-857, Sec. 13(g), Sept. 2,
1958, 72 Stat. 1265; Pub. L. 86-372, title III, Sec. 301, Sept. 23,
1959, 73 Stat. 669; Pub. L. 87-70, title I, Sec. 102(c), title VI,
Secs. 602, 603(a), June 30, 1961, 75 Stat. 158, 176; Pub. L. 88-560,
title VII, Secs. 701(a), 702, Sept. 2, 1964, 78 Stat. 800, 802; Pub. L.
89-117, title I, Sec. 102(d), title II, Sec. 201(b)(1), title VIII,
Secs. 802(a), 803, 804, title X, Sec. 1004(a), Aug. 10, 1965, 79 Stat.
454, 465, 493, 494, 501; Pub. L. 89-429, Sec. 2, May 24, 1966, 80 Stat.
164; Pub. L. 89-751, Sec. 7, Nov. 3, 1966, 80 Stat. 1236; Pub. L. 89-
754, title IV, Sec. 405, Nov. 3, 1966, 80 Stat. 1273; Pub. L. 90-19,
Sec. 1(a)(2), (3), (j)(1), May 25, 1967, 81 Stat. 17, 18; Pub. L. 90-
448, title VIII, Secs. 802(c)-(g), 803, Aug. 1, 1968, 82 Stat. 536, 537,
542; Pub. L. 91-152, title I, Sec. 114, Dec. 24, 1969, 83 Stat. 385;
Pub. L. 91-296, title II, Sec. 202, June 30, 1970, 84 Stat. 350; Pub. L.
91-351, title II, Sec. 201(a), title IV, Sec. 402, July 24, 1970, 84
Stat. 450, 458; Pub. L. 91-609, title IX, Sec. 901(d), Dec. 31, 1970, 84
Stat. 1807; Pub. L. 93-383, title VIII, Secs. 806(a)-(f), 807, Aug. 22,
1974, 88 Stat. 727, 728; Pub. L. 93-541, Sec. 2, Dec. 26, 1974, 88 Stat.
1739; Pub. L. 95-128, title IV, Sec. 408(a), Oct. 12, 1977, 91 Stat.
1138; Pub. L. 95-557, title I, Sec. 101(c)(3), title III, Sec. 318(a),
Oct. 31, 1978, 92 Stat. 2083, 2100; Pub. L. 95-619, title II, Sec. 246,
Nov. 9, 1978, 92 Stat. 3233; Pub. L. 96-153, title III, Sec. 317, Dec.
21, 1979, 93 Stat. 1119; Pub. L. 96-294, title V, Sec. 534(b), June 30,
1980, 94 Stat. 741; Pub. L. 96-399, title III, Secs. 309, 313(a),
339(a)(1), (b)(1), Oct. 8, 1980, 94 Stat. 1641, 1644, 1657; Pub. L. 97-
110, title II, Sec. 202(c), Dec. 26, 1981, 95 Stat. 1514; Pub. L. 98-
440, title II, Secs. 201(a), 203(a), 205(a), 206(a), Oct. 3, 1984, 98
Stat. 1692, 1693, 1695; Pub. L. 98-479, title II, Secs. 201(b),
204(a)(16), Oct. 17, 1984, 98 Stat. 2227, 2232; Pub. L. 99-514, Sec. 2,
Oct. 22, 1986, 100 Stat. 2095; Pub. L. 100-122, Sec. 2(b)(1), Sept. 30,
1987, 101 Stat. 793; Pub. L. 100-154, Nov. 5, 1987, 101 Stat. 890; Pub.
L. 100-170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100-179, Dec. 3, 1987,
101 Stat. 1018; Pub. L. 100-200, Dec. 21, 1987, 101 Stat. 1327; Pub. L.
100-242, title IV, Sec. 443(a), Feb. 5, 1988, 101 Stat. 1922; Pub. L.
100-628, title X, Sec. 1068(a), Nov. 7, 1988, 102 Stat. 3276; Pub. L.
101-73, title VII, Sec. 731(f)(1), Aug. 9, 1989, 103 Stat. 433; Pub. L.
102-54, Sec. 13(d)(2)(A), June 13, 1991, 105 Stat. 274; Pub. L. 102-550,
title XIII, Sec. 1381(b), (c), (s)(1), Oct. 28, 1992, 106 Stat. 3995,
4001; Pub. L. 105-276, title V, Sec. 582(a)(14), Oct. 21, 1998, 112
Stat. 2644.)
References in Text
Section 1720 of this title, referred to in subsecs. (a)(2)(A) and
(b)(1), was repealed by Pub. L. 98-181, title IV, Sec. 483(a), Nov. 30,
1983, 97 Stat. 1240.
The Housing Act of 1949, referred to in subsec. (b)(1), is act July
15, 1949, ch. 338, 63 Stat. 413, as amended. Title V of the Housing Act
of 1949 is classified generally to subchapter III (Sec. 1471 et seq.) of
chapter 8A of Title 42, The Public Health and Welfare. For complete
classification of this Act to the Code, see Short Title note set out
under section 1441 of Title 42 and Tables.
The Servicemen's Readjustment Act of 1944, referred to in subsec.
(b)(1), is act June 22, 1944, ch. 268, 58 Stat. 284, as amended, which
was classified generally to chapter 11C (Secs. 693 to 697g) of former
Title 38, Pensions, Bonuses, and Veterans' Relief, and which was
repealed by section 14(87) of Pub. L. 85-857, Sept. 2, 1958, 72 Stat.
1273, the first section of which enacted Title 38, Veterans' Benefits.
For distribution of sections 693 to 697g of former Title 38 to Title 38,
Veterans' Benefits, see Table preceding section 101 of Title 38,
Veterans' Benefits.
The Public Health Service Act, referred to in subsec. (b)(1), is act
July 1, 1944, ch. 373, 58 Stat. 682, as amended. Part B of title VI of
the Public Health Service Act is classified generally to part B
(Sec. 291j-1 et seq.) of subchapter IV of chapter 6A of Title 42, The
Public Health and Welfare. For complete classification of this Act to
the Code, see Short Title note set out under section 201 of Title 42 and
Tables.
Subchapter IX-A of this chapter and section 1749cc-1 of this title,
referred to in subsec. (b)(1), were repealed by Pub. L. 101-235, title
I, Sec. 133(a), Dec. 15, 1989, 103 Stat. 2027.
The National Energy Conservation Policy Act, referred to in subsec.
(b)(3), is Pub. L. 95-619, Nov. 9, 1978, 92 Stat. 3208, as amended.
Title II of the National Energy Conservation Policy Act is classified
principally to subchapter II (Sec. 8211 et seq.) of chapter 91 of Title
42, The Public Health and Welfare. Section 210 of the Act [42 U.S.C.
8211] was omitted from the Code pursuant to section 8229 of Title 42
which terminated authority under that section on June 30, 1989. For
complete classification of this Act to the Code, see Short Title note
set out under section 8201 of Title 42 and Tables.
Amendments
1998--Subsec. (b)(2). Pub. L. 105-276 struck out penultimate
sentence which read as follows: ``With respect to mortgages secured by
property comprising five or more family dwelling units, such limitations
shall not exceed 125 per centum of the dollar amounts set forth in
section 1713(c)(3) of this title, except that such limitations may be
increased by the corporation (taking into account construction costs) to
not to exceed 240 per centum of such dollar amounts in any geographical
area for which the Secretary of Housing and Urban Development determines
under such section that cost levels require any increase in the dollar
amount limitations under such section.''
1992--Subsec. (b)(2). Pub. L. 102-550, Sec. 1381(b), (c)(1), in
first sentence, struck out ``and with the approval of the Secretary of
Housing and Urban Development,'' before ``the corporation'' and in last
sentence, substituted ``Hawaii, and the Virgin Islands'' for ``and
Hawaii''.
Subsec. (b)(3), (4). Pub. L. 102-550, Sec. 1381(c)(2), (3), struck
out ``, with the approval of the Secretary of Housing and Urban
Development,'' after ``corporation is authorized''.
Subsec. (b)(6). Pub. L. 102-550, Sec. 1381(c)(4), added par. (6).
Subsec. (c)(2). Pub. L. 102-550, Sec. 1381(s)(1)(A), in first
sentence of concluding provisions, substituted ``the trustor'' for
``him'' after ``obligations held by'' and in last sentence, substituted
``the trustor's'' for ``his'' in two places.
Subsec. (c)(3). Pub. L. 102-550, Sec. 1381(s)(1)(B), substituted
``the trustor'' for ``he'' after ``obligations'' and ``guaranty,''.
1991--Subsec. (c)(2)(D). Pub. L. 102-54 substituted ``Department of
Veterans Affairs'' for ``Veterans' Administration''.
1989--Subsec. (b)(2). Pub. L. 101-73 substituted ``Resolution Trust
Corporation'' for ``Federal Savings and Loan Insurance Corporation'' and
``Federal Housing Finance Board'' for ``Federal Home Loan Bank Board''.
1988--Subsec. (b)(5)(A)(i). Pub. L. 100-242 struck out ``through
March 15, 1988,'' before ``conventional mortgages''.
Subsec. (b)(5)(A)(ii). Pub. L. 100-628 struck out ``until October 1,
1985,'' before ``conventional mortgages''.
1987--Subsec. (b)(5)(A)(i). Pub. L. 100-200 substituted ``March 15,
1988'' for ``December 16, 1987''.
Pub. L. 100-179 substituted ``December 16, 1987'' for ``December 2,
1987''.
Pub. L. 100-170 substituted ``December 2, 1987'' for ``November 15,
1987''.
Pub. L. 100-154 substituted ``November 15, 1987'' for ``October 31,
1987''.
Pub. L. 100-122 substituted ``through October 31, 1987'' for ``until
October 1, 1987''.
1986--Subsecs. (a)(3), (b)(2). Pub. L. 99-514 substituted ``Internal
Revenue Code of 1986'' for ``Internal Revenue Code of 1954'', which for
purposes of codification was translated as ``title 26'' thus requiring
no change in text.
1984--Subsec. (b)(2). Pub. L. 98-479, Sec. 204(a)(16), substituted
``corporation'' for ``Corporation'' in fourth sentence after ``The''.
Subsec. (b)(2). Pub. L. 98-440, Secs. 201(a), 205(a), 206(a), in
second sentence substituted ``No such purchase of a conventional
mortgage secured by a property comprising one- to four-family dwelling
units'' for ``No such purchase of a conventional mortgage'', in sixth
sentence substituted ``The corporation shall establish limitations
governing the maximum original principal obligation of conventional
mortgages that are purchased by it; in any case in which the corporation
purchases a participation interest in such a mortgage, the limitation
shall be calculated with respect to the total original principal
obligation of the mortgage and not merely with respect to the interest
purchased by the corporation'' for ``The corporation shall establish
limitations governing the maximum principal obligation of conventional
mortgages purchased by it'', and in penultimate sentence inserted
provision that the limitations set forth in section 1713(c)(3) of this
title may be increased by the corporation (taking into account
construction costs) to not to exceed 240 per centum of such dollar
amounts in any geographical area for which the Secretary of Housing and
Urban Development determines under such section that cost levels require
any increase in the dollar amount limitations under such section.
Subsec. (b)(5). Pub. L. 98-440, Sec. 203(a), added par. (5).
Subsec. (c)(2)(B). Pub. L. 98-479, Sec. 201(b), substituted
``Department of Education'' for ``Department of Health, Education, and
Welfare'' and ``Secretary of Education'' for ``Commissioner of
Education''.
1981--Subsec. (b)(2). Pub. L. 97-110 substituted provisions
empowering the Corporation to purchase a conventional mortgage which was
originated more than one year prior to the purchase date only if the
seller is the Federal Deposit Insurance Corporation, the Federal Savings
and Loan Insurance Corporation, the National Credit Union
Administration, or any other seller currently engaged in mortgage
lending or investing activities for provisions which had empowered the
Corporation to purchase a conventional mortgage which was originated
more than one year prior to the purchase date only if the seller was
currently engaged in mortgage lending or investing activities and if, as
a result thereof, the cumulative aggregate of the principal balances of
all conventional mortgages purchased by the Corporation which were
originated more than one year prior to the date of purchase did not
exceed 20 per centum of the cumulative aggregate of the principal
balances of all conventional mortgages purchased by the Corporation.
1980--Subsec. (b)(1). Pub. L. 96-399, Sec. 309, struck out ``(1)''
before ``the mortgage'' and cl. (2) relating to requirement respecting
assistance under contracts authorized by section 1437f of title 42 for
at least 20 per centum of covered units.
Subsec. (b)(2). Pub. L. 96-399, Sec. 313(a), substituted provisions
defining term ``conventional mortgages'', and limitations respecting
amounts, adjustments, etc., for such mortgages, for provisions
establishing limitations for the maximum principal obligation of
conventional mortgages purchased by the corporation and maximum amount
of such limitations.
Subsec. (b)(3). Pub. L. 96-399, Sec. 339(a)(1), substituted
provisions relating to authority, with the approval of the Secretary of
Housing and Urban Development, to deal in loans or advances of credit
for the purchase and installation of home improvements, and provisions
respecting eligibility for purchases of loans or advances of credit, for
provisions relating to authority to deal in loans or advances of credit
made for energy conserving improvements and solar energy systems, etc.,
and provisions respecting eligibility for purchases of loans.
Pub. L. 96-294 inserted provisions relating to loans or advances of
credit by public utilities for purpose of financing residential energy
conservation measures in a residential building.
Subsec. (b)(4). Pub. L. 96-399, Sec. 339(b)(1), added par. (4).
1979--Subsec. (b)(1). Pub. L. 96-153 substituted ``(1) if the
mortgage is insured under section 1713(c)(3), 1715e(b)(2),
1715k(d)(3)(B)(iii), 1715l(d)(3)(ii), 1715l(d)(4)(ii), 1715v(c)(2),
1715y(e)(3), or 1715z-1 of this title, and (2) at least 20 per centum of
the units covered by such mortgage are assisted under contracts
authorized by section 1437f of title 42'' for ``if the mortgage (1) is
insured under section 1715z-1 of this title or is a below-market
interest rate mortgage insured under section 1715l(d)(3) of this title,
and (2) covers property which has the benefit of local tax abatement in
an amount determined by the Secretary of Housing and Urban Development
to be sufficient to make possible rentals not in excess of those that
could be approved by the Secretary if the mortgage amount did not exceed
the otherwise applicable maximum amount per dwelling unit and if local
tax abatement were not provided''.
1978--Subsec. (b)(3). Pub. L. 95-619 added par. (3).
Subsec. (b)(1). Pub. L. 95-557 substituted ``or subchapter VIII of
this chapter or section 1709(k) of this title'' for ``or subchapter VIII
of this chapter'' and ``if the original principal obligation thereof
exceeds or exceeded $55,000 in the case of property upon which is
located a dwelling designed principally for a one-family residence; or
$60,000 in the case of a two- or three-family residence; or $68,750 in
the case of a four-family residence; or, in the case of a property
containing more than four dwelling units, $38,000 per dwelling unit (or
such higher amount not in excess of $45,000 per dwelling unit as the
Secretary may by regulation specify in any geographical area where the
Secretary finds that cost levels so require) for that part of the
property attributable to dwelling use'' for ``if the original principal
obligation thereof exceeds or exceeded $33,000 (or such higher amount
not in excess of $38,000 as the Secretary may by regulation specify in
any geographical area where he finds that cost levels so require), for
each family residence or dwelling unit covered by the mortgage (plus an
additional $2,500 for each such family residence or dwelling unit which
has four or more bedrooms)''.
1977--Subsec. (b)(2). Pub. L. 95-128 inserted ``by more than 25 per
centum'' after ``exceed'' in last sentence.
1974--Subsec. (a)(2). Pub. L. 93-383, Sec. 806(a)(1), substituted
``September 1, 1968'' for ``the effective date established pursuant to
section 808 of the Housing and Urban Development Act of 1968''.
Subsec. (a)(2)(A). Pub. L. 93-383, Sec. 806(a)(2), struck out
``effective'' before ``date''.
Subsec. (a)(2)(B). Pub. L. 93-383, Sec. 806(a)(2), (b), struck out
``effective'' before ``date'', inserted ``or metropolitan area thereof''
before ``and shall'' and ``jurisdiction'' before ``venue'', and
substituted ``District of Columbia corporation'' for ``resident
thereof''.
Subsec. (b)(1). Pub. L. 93-541 substituted ``or guaranteed under
part B of title VI of the Public Health Service Act'' for ``to a public
agency under part B of title VI of the Public Health Service Act''.
Pub. L. 93-383, Sec. 807, substituted ``$33,000 (or such higher
amount not in excess of $38,000 as the Secretary may by regulation
specify in any geographical area where he finds that cost levels so
require)'' for ``$22,000''.
Subsec. (b)(2). Pub. L. 93-383, Sec. 806(c)-(f), substituted ``80''
for ``75'' and ``exceed 20'' for ``exceed 10'', struck out ``private''
before ``insurer'' in cl. (C), and substituted provisions relating to
limitations contained in first proviso of first sentence of section
1464(c) of this title, for provisions relating to limitations applicable
to mortgages insured under sections 1709(b) or 1713 of this title.
1970--Subsec. (a)(3). Pub. L. 91-609 added par. (3).
Subsec. (b). Pub. L. 91-351, Secs. 201(a), 402, designated existing
provisions as par. (1), inserted ``is insured under section 1715z-1 of
this title or'' before ``is a below-market interest rate mortgage
insured under section 1715l(d)(3) of this title'', and added par. (2).
Pub. L. 91-296 inserted provisions authorizing the purchase,
service, sale, or other dealing in loans made to a public agency under
part B of title VI of the Public Health Service Act.
1969--Subsec. (b). Pub. L. 91-152 substituted ``$22,000'' or ``the
otherwise applicable maximum amount'' for ``$17,500'' wherever
appearing.
1968--Subsec. (a)(1). Pub. L. 90-448, Sec. 802(c)(1), (2),
designated existing provisions as par. (1), and struck out
``(hereinafter referred to as the `Association')''.
Subsec. (a)(2). Pub. L. 90-448, Sec. 802(c)(3), added par. (2).
Subsec. (b). Pub. L. 90-448, Sec. 802(d), substituted ``each of the
bodies corporate named in subsection (a) (2) of this section is
authorized'' for ``the Association is authorized'', and inserted
provisions empowering the corporation to purchase, sell, or otherwise
deal in any securities guaranteed by the Association under section
1721(g) of this title.
Subsec. (c)(1). Pub. L. 90-448, Sec. 802(e), struck out ``,
consistent with section 1722 of this title,'' before ``to guarantee any
participations''.
Subsec. (c)(2). Pub. L. 90-448, Sec. 802(f), (g), struck out
provisions from par. (C) which prohibited the Department of Housing and
Urban Development from exercising the authority with respect to
secondary market operations of the Federal National Mortgage
Association, and in last sentence substituted ``incurred by the
Association'' for ``incurred by the Federal National Mortgage
Association''.
Subsec. (c)(5). Pub. L. 90-448, Sec. 803, inserted provisions
authorizing the trustee, in the event that the insufficiency required by
the trustee is on account of principal maturities of outstanding
beneficial interests or participations to be issued pursuant to
paragraph (4) of this subsection, or pursuant hereto, to elect to issue
additional beneficial interests or participations for refinancing
purposes in lieu of requiring any trustor or trustors to make payments
to the trustee from appropriated funds or other sources, limiting each
such issue of beneficial interests or participations, and directing that
all refinancing issues be deemed to have been issued pursuant to the
authority contained in the appropriation Act or Acts under which the
beneficial interests or participations were originally issued.
1967--Subsec. (a). Pub. L. 90-19, Sec. 1(j)(1), substituted ``in the
Department of Housing and Urban Development'' for ``a constituent agency
of the Housing and Home Finance Agency''.
Subsec. (b). Pub. L. 90-19, Sec. 1(a)(2), (3), substituted
``Secretary of Housing and Urban Development'' and ``Secretary'' for
``Federal Housing Commissioner'' and ``Commissioner'', respectively.
1966--Subsec. (b). Pub. L. 89-754 inserted ``or under subchapter IX-
A of this chapter with respect to a new community approved under section
1749cc-1 of this title''.
Subsec. (c). Pub. L. 89-429 designated existing provisions as par.
(1), gave the name ``trusts'', for the purpose of the entire subsection,
to trusts, receiverships, conservatorships, liquidating or other
agencies, or other fiduciary and representative undertakings which the
Association is authorized to administer, expanded the types of
securities in which the Association is authorized to deal so as to
include an expanded array of obligations in which any department or
agency of the United States listed in par. (2) of the subsection might
have a financial interest, exempted participation certificates or other
instruments issued pursuant to this subsection from all regulation by
the Securities and Exchange Commission, repealed existing authority for
issuance of participations based on below-market interest rate mortgages
insured under section 1715l(d)(3) of this title, and added pars. (2) to
(5).
Subsec. (c)(2)(B). Pub. L. 89-751 substituted ``The Department of
Health, Education, and Welfare, but only with respect to loans made by
the Commissioner of Education for construction of academic facilities,
and loans to help finance student loan programs'' for ``The Office of
Education of the Department of Health, Education, and Welfare, but only
with respect to loans for construction of academic facilities''.
1965--Subsec. (b). Pub. L. 89-117, Secs. 201(b)(1), 802(a)(1), 803,
804, and 1004(a), defined ``home mortgages'', removed mortgages offered
by or covering property held by a federal instrumentality from the list
of prohibited purchases, inserted parenthetical material which, in the
case of family dwelling units having four or more bedrooms, placed an
additional amount of $2,500 to the $17,500 per unit limit on purchasable
mortgages, inserted provision excepting below-market mortgages from the
$17,500 per unit limit on purchasable mortgages if local tax abatement
were granted sufficient to keep rentals at the level where they would be
if the mortgage amount did not exceed $17,500 per dwelling unit, and
authorized the Association to purchase loans insured under subchapter
III of chapter 8A of Title 42 in its secondary market operations.
Subsec. (c). Pub. L. 89-117, Secs. 102(d), 802(a)(2), (3),
authorized appropriations to reimburse the Association for differential
amounts resulting when mortgages bearing a below-market interest rate
and insured under section 1715l(d)(3) of this title after August 10,
1965, are included within one or more of the trusts or other agencies
created under this section authorized the Association to deal, in
addition to first mortgages, in obligations offered to it by the Housing
and Home Finance Agency or its Administrator, or by such Agency's
constituent units or agencies or the heads thereof, and inserted ``and
other obligations'' after ``mortgages'' in last sentence.
1964--Subsec. (b). Pub. L. 88-560, Sec. 702, substituted ``any
mortgage under section 1720 of this title'' for ``any mortgage'' and
deleted proviso reading ``Provided, That with respect to mortgages
purchased under section 1719 of this title the principal obligation
shall not exceed $20,000''.
Subsec. (c). Pub. L. 88-560, Sec. 701(a), added subsec. (c).
1961--Subsec. (b). Pub. L. 87-70 substituted ``authorized, pursuant
to commitments or otherwise, to purchase, lend (under section 1719 of
this title) on the security of, service, sell, or otherwise deal in any
mortgages which are insured'' for ``authorized to make commitments to
purchase and to purchase, service, or sell, any residential or home
mortgages (or participations therein) which are insured'', and ``section
1715k of this title or subchapter VIII of this chapter for ``section
1715k or 1748b of this title'', permitted the purchase of mortgages
insured under section 1715e of this title and covering property located
in an urban renewal area, and defined term ``mortgage''.
1959--Subsec. (b). Pub. L. 86-372 included within cl. (3) mortgages
insured under section 1715k of this title, increased the limitation on
the original principal obligation from $15,000 to $17,500, and
established a limitation of not more than $20,000 with respect to
mortgages purchased under section 1719 of this title.
1958--Subsec. (b). Pub. L. 85-857 inserted ``, chapter 37 of title
38'' after ``Servicemen's Readjustment Act of 1944, as amended''.
1956--Subsec. (b). Act Aug. 7, 1956, substituted ``(2)'' for ``and
(2)'', ``if'' for ``if (i)''; and ``(3) the Association may not purchase
any mortgage, except a mortgage insured under section 1748b of this
title or a mortgage covering property located in Alaska, Guam, or
Hawaii, if'' for ``or (ii)''.
1954--Act Aug. 2, 1954, amended section generally to recharter the
Association, substituting provisions formerly covered in section 1716 of
this title for provisions now covered by sections 1719 to 1721 of this
title.
1953--Act June 30, 1953, struck out proviso at end of first
sentence, which limited purchase of mortgages other than defense or
disaster mortgages to $2,750,000,000.
1952--Act July 14, 1952, increased purchasing power of the
Association from $2,750,000,000 to $3,650,000,000 but limited purchases
of mortgages other than defense or disaster mortgages to $2,750,000,000.
1950--Act Apr. 20, 1950, substituted ``$2,750,000,000'' for
``$2,500,000,000''.
1949--Joint Res. Oct. 25, 1949, substituted ``$2,500,000,000'' for
``$1,500,000,000'' in first sentence.
Act July 19, 1949, increased authorization to $1,500,000,000 which
would be based on the outstanding amount of mortgage purchases and
commitments in place of the former complicated formula.
1948--Act July 1, 1948, amended section generally to make it
applicable to the Association instead of to the former national mortgage
associations, and increased the borrowing capacity from twenty times to
forty times the capital and surplus.
1941--Act Mar. 28, 1941, inserted ``and VI'' in cl. (2).
1938--Act Feb. 3, 1938, among other changes, substituted ``twenty
times the amount of its paid-up capital and surplus'' for ``twelve times
the aggregate par value of its outstanding capital stock'', and inserted
last sentence and proviso.
1935--Act May 28, 1935, substituted ``twelve times'' for ``ten
times'' in cl. (1).
Effective Date of 1998 Amendment
Amendment by title V of Pub. L. 105-276 effective and applicable
beginning upon Oct. 1, 1999, except as otherwise provided, with
provision that Secretary may implement amendment before such date,
except to extent that such amendment provides otherwise, and with
savings provision, see section 503 of Pub. L. 105-276, set out as a note
under section 1437 of Title 42, The Public Health and Welfare.
Effective Date of 1978 Amendment
Amendment by section 101(c)(3) of Pub. L. 95-557 effective Oct. 1,
1978, see section 104 of Pub. L. 95-557, set out as a note under section
1709 of this title.
Effective Date of 1968 Amendment
For effective date of amendment by title VIII of Pub. L. 90-448, see
section 808 of Pub. L. 90-448, set out as an Effective Date note under
section 1716b of this title.
Effective Date of 1958 Amendment
For effective date of amendment by Pub. L. 85-857, see section 2 of
Pub. L. 85-857, set out as an Effective Date note preceding Part I of
Title 38, Veterans' Benefits.
Transfer of Functions
For retransfer of functions described in section 2 of Reorg. Plan
No. 22 of 1950, set out below, from Housing and Home Finance
Administrator to Federal National Mortgage Association, see section
1723d of this title.
Proposal by Federal National Mortgage Association Respecting Authority
To Implement Section 339(a)(1), (b)(1) of Pub. L. 96-399; Approval, Etc.
Section 339(a)(2), (b)(2) of Pub. L. 96-399 provided that when
Federal National Mortgage Association submits its proposal to Secretary
of Housing and Urban Development to implement authority granted by
amendment of this section, Secretary of Housing and Urban Development
shall, within 75 days, approve such proposal or transmit to Congress a
report explaining why such proposal has not been approved.
Waiver of Certain Limitations Applicable to the Purchase of Mortgages by
the Government National Mortgage Association Until October 1, 1974
Pub. L. 92-213, Sec. 3, Dec. 22, 1971, 85 Stat. 775, as amended by
Pub. L. 92-335, Sec. 6, July 1, 1972, 86 Stat. 405; Pub. L. 92-503,
Sec. 2, Oct. 18, 1972, 86 Stat. 906; Pub. L. 93-85, Sec. 3, Aug. 10,
1973, 87 Stat. 221; Pub. L. 93-117, Sec. 4, Oct. 2, 1973, 87 Stat. 422,
provided that when the Secretary of Housing and Urban Development
determined that such action was necessary to avoid excessive discounts
on federally insured or guaranteed mortgages, the Government National
Mortgage Association could, until Oct. 1, 1974, issue commitments to
purchase mortgages with original principal obligations not more than 50
per centum in excess of the limitations imposed by clause (3) of the
proviso to the first sentence of section 302(b)(1) of the National
Housing Act [subsec. (b)(1) of this section], and it could purchase the
mortgages so committed to be purchased.
Exception to Limitation on Principal Amount of Participations in
Government Mortgage Liquidation Trust and Small Business Administration
Trust Sold During Fiscal 1966
Section 9 of Pub. L. 89-429 authorized Federal National Mortgage
Association during fiscal year 1966 to sell (1) additional
participations in Government Mortgage Liquidation Trust, and (2)
participations in a trust to be established by Small Business
Administration, each without regard to the provisions of subsec. (c)(4)
of this section.
Trust Agreements With Administrator of Veterans' Affairs
Section 6(a) of Pub. L. 89-429 provided that: ``Nothing in this Act
[enacting section 1717a of this title and section 745 of Title 20,
Education, amending this section and sections 1720, 1749, and 1757 of
this title, section 1988 of Title 7, Agriculture, and section 743 of
Title 20, and enacting material set out as notes under this section]
shall be construed to repeal or modify the provisions of section 1820(e)
[now 3720(e)] of title 38, United States Code, respecting the authority
of the Administrator of Veterans' Affairs [now Secretary of Veterans
Affairs].''
Admission of Alaska and Hawaii to Statehood
Alaska was admitted into the Union on Jan. 3, 1959, on issuance of
Proc. No. 3269, Jan. 3, 1959, 24 F.R. 81, 73 Stat. c16, and Hawaii was
admitted into the Union on Aug. 21, 1959, on issuance of Proc. No. 3309,
Aug. 21, 1959, 24 F.R. 6868, 73 Stat. c74. For Alaska Statehood Law, see
Pub. L. 85-508, July 7, 1958, 72 Stat. 339, set out as a note preceding
section 21 of Title 48, Territories and Insular Possessions. For Hawaii
Statehood Law, see Pub. L. 86-3, Mar. 18, 1959, 73 Stat. 4, set out as a
note preceding section 491 of Title 48.
REORGANIZATION PLAN NO. 22 OF 1950
Eff. July 9, 1950, 15 F.R. 4365, 64 Stat. 1277
Prepared by the President and transmitted to the Senate and the House of
Representatives in Congress assembled, May 9, 1950, pursuant to the
provisions of the Reorganization Act of 1949, approved June 20, 1949
[see 5 U.S.C. 901 et seq.].
FEDERAL NATIONAL MORTGAGE ASSOCIATION
Section 1. Transfer of Association and Its Functions
The Federal National Mortgage Association, together with its
functions, is hereby transferred from the Reconstruction Finance
Corporation to the Housing and Home Finance Agency and shall be
administered subject to the direction and control of the Housing and
Home Finance Administrator.
Sec. 2. Transfers to the Housing Administrator
There are hereby transferred from the Reconstruction Finance
Corporation to the Housing and Home Finance Administrator--
(1) the notes of the Federal National Mortgage Association payable
to the Reconstruction Finance Corporation;
(2) the capital stock of the Federal National Mortgage Association;
(3) the function of the Reconstruction Finance Corporation of making
payments on its notes issued to the Secretary of the Treasury in an
amount equal to (a) the unpaid principal of, and accrued interest on,
the notes of the Federal National Mortgage Association transferred under
(1) above, (b) any funds of the Reconstruction Finance Corporation
transferred under the provisions of section 5 hereof, (c) the book value
of any office furniture and equipment of the Reconstruction Finance
Corporation transferred under the provisions of section 5 hereof, and
(d) the par value of the capital stock of the Federal National Mortgage
Association plus the amount of its surplus paid in by the Reconstruction
Finance Corporation;
(4) the function of issuing notes or other obligations to the
Secretary of the Treasury, which may be purchased by the Secretary,
under section 7 of the Reconstruction Finance Corporation Act, as
amended [15 U.S.C. 606], in an amount not in excess of that necessary to
finance at any one time the outstanding balances of the investments,
loans, and purchases held by the Federal National Mortgage Association,
taking into consideration other balance-sheet items;
(5) except as otherwise provided in this reorganization plan, all
other functions of the Reconstruction Finance Corporation (including
functions of the Board of Directors of such Corporation and functions of
the Chairman of the Board of Directors of such Corporation) with respect
to the Federal National Mortgage Association; and
(6) all functions of the Federal Housing Commissioner with respect
to the Federal National Mortgage Association.
Sec. 3. Board of Directors and Officers
Functions with respect to serving, including eligibility to serve,
as members of the Board of Directors of the Federal National Mortgage
Association and as officers of such Association are hereby transferred
from the members of the Board of Directors of, and from the officers and
employees of, the Reconstruction Finance Corporation to the officers and
employees of the Housing and Home Finance Agency (including those of the
constituent agencies of the Housing and Home Finance Agency.)
Sec. 4. Performance of Functions of Administrator
The Housing and Home Finance Administrator may from time to time
make such provisions as he shall deem appropriate authorizing the
performance by any other officer, or by any agency or employee, of the
Housing and Home Finance Agency of any function transferred to such
Administrator by the provisions of this reorganization plan.
Sec. 5. Transfer of Records, Property, Personnel, and Funds
There are hereby transferred with the functions transferred by this
reorganization plan, respectively, all of the assets, liabilities,
contracts, property, records, and unexpended balances of authorizations,
allocations and other funds, available or to be made available, of the
Federal National Mortgage Association, and so much of the assets,
liabilities, contracts, property, records, personnel, and unexpended
balances of authorizations, allocations, and other funds, available or
to be made available, of the Reconstruction Finance Corporation and
relating to functions transferred by the provisions of this
reorganization plan, as the Director of the Bureau of the Budget shall
determine to be necessary for the administration of such functions,
excluding, however, (1) the members of the Board of Directors of the
Federal National Mortgage Association in office immediately prior to the
taking effect of the provisions of this reorganization plan, and (2) the
officers of the Association then in office. Such further measures and
dispositions as the Director of the Bureau of the Budget shall determine
to be necessary in order to effectuate the transfers provided for in
this section shall be carried out in such manner as the Director shall
direct and by such agencies as he shall designate.
Sec. 6. Effective Date
The provisions of this reorganization plan shall take effect 60 days
after they would take effect under section 6(a) of the Reorganization
Act of 1949 in the absence of this section [Eff. date July 9, 1950, in
operation Sept. 7, 1950].
[Housing and Home Finance Agency lapsed and functions were
transferred to Secretary of Housing and Urban Development, see section
9(c) of Pub. L. 89-174, Sept. 9, 1965, 79 Stat. 670, set out as a note
under 42 U.S.C. 3531.]
Section Referred to in Other Sections
This section is referred to in sections 1709, 1715z-14, 1717a,
1723a, 1723c, 4542 of this title; title 26 section 895; title 42
sections 291j-7, 300q-2.
