§ 1735c. — General Insurance Fund.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1735c]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER V--MISCELLANEOUS
Sec. 1735c. General Insurance Fund
(a) Establishment; purpose; mortgages or loans insurable; transfers to
There is hereby created a General Insurance Fund which shall be used
by the Secretary, on and after August 10, 1965, as a revolving fund for
carrying out all the insurance provisions of this chapter with the
exception of those specified in subsection (e) of this section. All
mortgages or loans insured under this chapter pursuant to commitments
issued on or after August 10, 1965, except those specified in subsection
(e) of this section, and all loans reported for insurance under section
1703 of this title on or after August 10, 1965, shall be insured under
the General Insurance Fund. The Secretary shall transfer to the General
Insurance Fund--
(1) the assets and liabilities of all insurance accounts and
funds, except the Mutual Mortgage Insurance Fund, existing under
this chapter immediately prior to August 10, 1965;
(2) all outstanding commitments for insurance issued prior to
August 10, 1965, except those specified in subsection (e) of this
section;
(3) the insurance on all mortgages and loans insured prior to
August 10, 1965, except insurance specified in subsection (e) of
this section; and
(4) the insurance of all loans made by approved financial
institutions pursuant to section 1703 of this title prior to August
10, 1965.
(b) Expenses chargeable to Fund
The general expenses of the operations of the Department of Housing
and Urban Development relating to mortgages and loans which are the
obligation of the General Insurance Fund may be charged to the General
Insurance Fund.
(c) Deposit or investment of moneys; purchase of debentures
Moneys in the General Insurance Fund not needed for the current
operations of the Department of Housing and Urban Development with
respect to mortgages and loans which are the obligation of the General
Insurance Fund shall be deposited with the Treasurer of the United
States to the credit of such 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 as obligations of the
General Insurance Fund or issued prior to August 10, 1965, under other
provisions of this chapter, except debentures issued under the Mutual
Mortgage Insurance Fund. 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.
(d) Credits and charges to Fund
Premium charges, adjusted premium charges, and appraisal and other
fees received on account of the insurance of any mortgage or loan which
is the obligation of the General Insurance Fund, the receipts derived
from the property covered by such mortgages and loans and from the
claims, debts, contracts, property, and security assigned to the
Secretary in connection therewith, and all earnings on the assets of the
Fund shall be credited to the General Insurance Fund. The principal of,
and interest paid and to be paid on, debentures which are the obligation
of such Fund, cash insurance payments and adjustments, and expenses
incurred in the handling, management, renovation, and disposal of
properties acquired, in connection with mortgages and loans which are
the obligation of such Fund, shall be charged to such Fund.
(e) Restrictions on use of Fund
The General Insurance Fund shall not be used for carrying out the
provisions of section 1709(b) (except as provided in section 1709(v)),
(h), and (i) of this title, or the provisions of section 1715e of this
title to the extent that they involve mortgages the insurance for which
is the obligation of the Cooperative Management Housing Insurance Fund
created by section 1715e(k) of this title, or the provisions of sections
1715n(e), 1715x(a)(2), 1715z, 1715z-1 and 1715z-2 of this title; and
nothing in this section shall apply to or affect any mortgages, loans,
commitments, or insurance under such provisions.
(f) Risk assessment
The Secretary shall undertake an annual assessment of the risks
associated with each of the insurance programs comprising the General
Insurance Fund, and shall present findings from such review to the
Congress in the FHA Annual Management Report.
(June 27, 1934, ch. 847, title V, Sec. 519, as added Pub. L. 89-117,
title II, Sec. 214, Aug. 10, 1965, 79 Stat. 471; amended Pub. L. 90-19,
Sec. 1(a)(1), (3), May 25, 1967, 81 Stat. 17; Pub. L. 90-448, title I,
Sec. 104(c), Aug. 1, 1968, 82 Stat. 488; Pub. L. 91-609, title I,
Sec. 117(e), Dec. 31, 1970, 84 Stat. 1775; Pub. L. 94-375, Sec. 10, Aug.
3, 1976, 90 Stat. 1073; Pub. L. 95-24, title I, Sec. 102, Apr. 30, 1977,
91 Stat. 55; Pub. L. 95-557, title III, Sec. 310, Oct. 31, 1978, 92
Stat. 2098; Pub. L. 96-153, title III, Sec. 305, Dec. 21, 1979, 93 Stat.
1112; Pub. L. 96-399, title III, Sec. 305, Oct. 8, 1980, 94 Stat. 1639;
Pub. L. 97-35, title III, Sec. 334, Aug. 13, 1981, 95 Stat. 414; Pub. L.
98-181, title IV, Sec. 403, Nov. 30, 1983, 97 Stat. 1208; Pub. L. 102-
550, title I, Sec. 185(c)(2), Oct. 28, 1992, 106 Stat. 3748; Pub. L.
103-233, title I, Secs. 103(g)(2), 105(b), Apr. 11, 1994, 108 Stat. 362,
363.)
Amendments
1994--Subsec. (f). Pub. L. 103-233, Sec. 105(b), redesignated
subsec. (g) as (f) and struck out former subsec. (f) which read as
follows: ``There are authorized to be appropriated such sums as may be
necessary to cover losses sustained by the General Insurance Fund.''
Subsec. (g). Pub. L. 103-233, Sec. 105(b)(2), redesignated subsec.
(g) as (f).
Pub. L. 103-233, Sec. 103(g)(2), added subsec. (g).
1992--Subsec. (e). Pub. L. 102-550 inserted ``(except as provided in
section 1709(v))'' after ``1709(b)''.
1983--Subsec. (f). Pub. L. 98-181 inserted ``such sums as may be
necessary'' after ``appropriated'', and struck out ``not to exceed
$1,738,000,000, which amount shall be increased by $126,673,000 on
October 1, 1981'' after ``Insurance Fund''.
1981--Subsec. (f). Pub. L. 97-35 inserted provision increasing
authorization on Oct. 1, 1981.
1980--Subsec. (f). Pub. L. 96-399 substituted ``$1,738,000,000'' for
``$1,341,000,000, which amount shall be increased by $165,000,000 on
October 1, 1978, which shall be increased by not to exceed $93,000,000
on October 1, 1979''.
1979--Subsec. (f). Pub. L. 96-153 provided for an increase of
$93,000,000 on October 1, 1979.
1978--Subsec. (f). Pub. L. 95-557 inserted ``which amount shall be
increased by $165,000,000 on October 1, 1978''.
1977--Subsec. (f). Pub. L. 95-24 substituted ``$1,341,000,000'' for
``$500,000,000''.
1976--Subsec. (f). Pub. L. 94-375 added subsec. (f).
1970--Subsec. (c). Pub. L. 91-609 provided for guarantee as to
principal and interest by any agency of the United States and for
investment of moneys in bonds or other obligations the proceeds of which
will be used to directly support the residential mortgage market.
1968--Subsec. (e). Pub. L. 90-448 prohibited use of Fund for
carrying out provisions of sections 1715n(e), 1715x(a)(2), 1715z, 1715z-
1 and 1715z-2 of this title.
1967--Pub. L. 90-19 substituted ``Department of Housing and Urban
Development'' for ``Federal Housing Administration'' wherever appearing
in subsecs. (b) and (c) of this section and ``Secretary'' for
``Commissioner'' in subsecs. (a), (c), and (d) of this section,
respectively.
Effective Date of 1981 Amendment
Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371
of Pub. L. 97-35, set out as an Effective Date note under section 3701
of this title.
Section Referred to in Other Sections
This section is referred to in sections 1709, 1715z-3, 1715z-11a,
1715z-12, 1715z-13, 1735f-20 of this title.
