§ 1747f. — Payment of claims; assignment of benefits by investors.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1747f]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER VII--INSURANCE FOR INVESTMENTS IN RENTAL HOUSING FOR FAMILIES
OF MODERATE INCOME
Sec. 1747f. Payment of claims; assignment of benefits by
investors
If in any operating year the net income of a project insured under
this subchapter is less than the aggregate of the minimum annual
amortization charge and the insured annual return, the Secretary, upon
submission by the investor of a claim for the payment of the amount of
the difference between such net income and the aggregate of the minimum
annual amortization charge and the insured annual return and after proof
of the validity of such claim, shall pay to the investor, in cash from
the General Insurance Fund, the amount of such difference, as determined
by the Secretary, but not exceeding, in any event, an amount equal to
the aggregate of the minimum annual amortization charge and the insured
annual return. Nothing contained in this subchapter or any other
provision of law shall be construed as preventing or restricting an
investor from assigning, pledging, or otherwise transferring or
disposing of, subject to rules and regulations of the Secretary, any or
all rights, claims, or other benefits under any insurance contract made
pursuant to this subchapter to an assignee, pledgee, or other
transferee, including the holders (or the trustee for such holders) of
any debentures issued by the investor in connection with the project to
which such insurance contract relates, and the Secretary is authorized
to pay claims or issue debentures in accordance with the provisions of
this section and section 1747g of this title to any such assignee,
pledgee, or other transferee.
(June 27, 1934, ch. 847, title VII, Sec. 707, as added Aug. 10, 1948,
ch. 832, title IV, Sec. 401, 62 Stat. 1278; amended Apr. 20, 1950, ch.
94, title I, Sec. 122, 64 Stat. 59; Sept. 1, 1951, ch. 378, title VI,
Sec. 609(b), 65 Stat. 316; Pub. L. 89-117, title XI, Sec. 1108(s), Aug.
10, 1965, 79 Stat. 506; Pub. L. 90-19, Sec. 1(a)(3), May 25, 1967, 81
Stat. 17.)
References in Text
The General Insurance Fund, referred to in text, was established by
section 1735c of this title.
Amendments
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing.
1965--Pub. L. 89-117 substituted ``General Insurance Fund'' for
``Housing Investment Insurance Fund''.
1951--Act Sept. 1, 1951, inserted second sentence.
1950--Act Apr. 20, 1950, substituted ``Commissioner'' for
``Administrator'' wherever appearing.
