§ 1735d. — Payment of insurance benefits in cash or debentures; borrowing money from Treasury to make payments.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1735d]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER V--MISCELLANEOUS
Sec. 1735d. Payment of insurance benefits in cash or debentures;
borrowing money from Treasury to make payments
(a) Notwithstanding any other provisions of this chapter with
respect to the payment of insurance benefits, the Secretary is
authorized, in his discretion, to pay in cash or in debentures any
insurance claim or part thereof which is paid on or after August 10,
1965, on a mortgage or a loan which was insured under any section of
this chapter either before or after such date. If payment is made in
cash, it shall be in an amount equivalent to the face amount of the
debentures that would otherwise be issued plus an amount equivalent to
the interest which the debentures would have earned, computed to a date
to be established pursuant to regulations issued by the Secretary.
(b) The Secretary is authorized to borrow from the Treasury from
time to time such amounts as the Secretary shall determine are necessary
(1) to make payments in cash (in lieu of issuing debentures guaranteed
by the United States, as provided in this chapter) pursuant to the
provisions of this section, and (2) to make payments for reinsured and
directly insured losses under subchapter IX-C \1\ of this chapter:
Provided, however, That borrowings to make payments for reinsured and
directly insured losses under subchapter IX-C \1\ of this chapter shall
be limited to $250,000,000 or such further sum as the Congress, by joint
resolution, may from time to time determine. Notes or other obligations
issued by the Secretary in borrowing under this subsection shall be
subject to such terms and conditions as the secretary of the Treasury
may prescribe. Each sum borrowed pursuant to this subsection shall bear
interest at a rate determined by the Secretary of the Treasury, taking
into consideration the average market yield on outstanding marketable
obligations of the United States of comparable maturities during the
month preceding the issuance of such notes or other obligations.
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\1\ See References in Text note below.
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(June 27, 1934, ch. 847, title V, Sec. 520, as added Pub. L. 89-117,
title II, Sec. 215, Aug. 10, 1965, 79 Stat. 472; amended Pub. L. 90-19,
Sec. 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 90-448, title XI,
Sec. 1104, Aug. 1, 1968, 82 Stat. 566; Pub. L. 91-609, title VI,
Sec. 604, Dec. 31, 1970, 84 Stat. 1791.)
References in Text
Subchapter IX-C of this chapter, referred to in subsec. (b), was
classified to section 1749bbb et seq. of this title and was omitted from
the Code.
Amendments
1970--Subsec. (b)(2). Pub. L. 91-609 provided for making payments
for directly insured losses and made limitation provision applicable to
such payments.
1968--Subsec. (b). Pub. L. 90-448 empowered the Secretary to borrow
to make payments for reinsured losses under subchapter IX-C of this
chapter, and limited such borrowing to $250,000,000 or such further sum
as Congress may determine.
1967--Subsecs. (a), (b). Pub. L. 90-19 substituted ``Secretary'' for
``Commissioner'' wherever appearing.
Section Referred to in Other Sections
This section is referred to in section 1710 of this title.
