§ 1747. — Purpose of subchapter; authorization; terms and conditions; expiration of insurance contract.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1747]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER VII--INSURANCE FOR INVESTMENTS IN RENTAL HOUSING FOR FAMILIES
OF MODERATE INCOME
Sec. 1747. Purpose of subchapter; authorization; terms and
conditions; expiration of insurance contract
The purpose of this subchapter is to supplement the existing systems
of mortgage insurance for rental housing under this chapter by a special
system of insurance designed to encourage equity investment in rental
housing at rents within the capacity of families of moderate income. To
effectuate this purpose, the Secretary is authorized, upon application
by the investor, to insure as hereinafter provided, and, prior to the
execution of insurance contracts and upon such terms as the Secretary
shall prescribe, to make commitments to insure, the minimum annual
amortization charge and an annual return on the outstanding investment
of such investor in any project which is eligible for insurance as
hereinafter provided in an amount (herein called the ``insured annual
return'') equal to such rate of return, not exceeding 2\3/4\ per centum
per annum, on such outstanding investment as shall, after consultation
with the Secretary of the Treasury, be fixed in the insurance contract
or in the commitment to insure: Provided, That any insurance contract
made pursuant to this subchapter shall expire as of the first day of the
operating year for which the outstanding investment amounts to not more
than 10 per centum of the established investment.
(June 27, 1934, ch. 847, title VII, Sec. 701, as added Aug. 10, 1948,
ch. 832, title IV, Sec. 401, 62 Stat. 1276; amended Apr. 20, 1950, ch.
94, title I, Sec. 122, 64 Stat. 59; Pub. L. 86-372, title I, Sec. 118,
Sept. 23, 1959, 73 Stat. 664; 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.
1959--Pub. L. 86-372 struck out provisions which limited the
aggregate amount of contingent liabilities outstanding at any one time
under insurance contracts and commitments to insure made pursuant to
this subchapter to not more than $1,000,000,000.
1950--Act Apr. 20, 1950, substituted ``Commissioner'' for
``Administrator'' wherever appearing.
Separability
Section 505 of act Aug. 10, 1948, provided that: ``Except as may be
otherwise expressly provided in this Act [sections 1701c, 1701e to
1701g-3, 1702, 1703, 1709, 1710, 1713, 1716, 1738, 1743 to 1746 and 1747
to 1747l of this title, section 846 of former Title 31, Money and
Finance, section 694 of former Title 38, Pensions, Bonuses, and
Veterans' Relief, and section 1404a of Title 42, The Public Health and
Welfare], all powers and authorities conferred by this Act shall be
cumulative and additional to and not in derogation of any powers and
authorities otherwise existing. Notwithstanding any other evidences of
the intention of Congress, it is hereby declared to be the controlling
intent of Congress that if any provisions of this Act, or the
application thereof to any person or circumstances, shall be adjudged by
any court of competent jurisdiction to be invalid, such judgment shall
not affect, impair, or invalidate the remainder of this Act or its
application to other persons and circumstances, but shall be confined in
its operation to the provisions of this Act, or the application thereof
to the persons and circumstances, directly involved in the controversy
in which such judgment shall have been rendered.''
Inconsistent Provisions
Section 504 of act Aug. 10, 1948, provided that: ``Insofar as the
provisions of any other law are inconsistent with the provisions of this
Act [sections 1701c, 1701e to 1701g-3, 1702, 1703, 1709, 1710, 1713,
1716, 1738, 1743 to 1746 and 1747 to 1747l of this title, section 846 of
former Title 31, Money and Finance, section 694 of former Title 38,
Pensions, Bonuses, and Veterans' Relief, and section 1404a of Title 42,
The Public Health and Welfare], the provisions of this Act shall be
controlling.''
Section Referred to in Other Sections
This section is referred to in section 1747l of this title.
