§ 1750g. — Insurance of additional mortgages.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1750g]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER X--NATIONAL DEFENSE HOUSING INSURANCE
Sec. 1750g. Insurance of additional mortgages
(a) Authorization
In addition to mortgages insured under section 1750b of this title,
the Secretary is authorized to insure mortgages as defined in section
1750 of this title (including advances on such mortgages during
construction) which are eligible for insurance as hereinafter provided.
(b) Eligibility requirements; release of part of property
To be eligible for insurance under this section a mortgage shall
meet the following conditions:
(1) The mortgaged property shall be held by a mortgagor approved
by the Secretary. The Secretary may, in his discretion, require such
mortgagor to be regulated or restricted as to rents or sales,
charges, capital structure, rate of return, and methods of
operation. The Secretary may make such contracts with, and acquire
for not to exceed $100 stock or interest in any such mortgagor, as
the Secretary may deem necessary to render effective such
restriction or regulation. Such stock or interest shall be paid for
out of the General Insurance Fund, and shall be redeemed by the
mortgagor at par upon the termination of all obligations of the
Secretary under the insurance.
(2) The mortgage shall involve a principal obligation in an
amount--
(A) not to exceed $5,000,000; and
(B) not to exceed 90 per centum of the amount which the
Secretary estimates will be the value of the property or project
when the proposed improvements are completed: Provided, That
such mortgage shall not in any event exceed the amount which the
Secretary estimates will be the cost of the completed physical
improvements on the property or project exclusive of off-site
public utilities and streets and organization and legal
expenses; and
(C) not to exceed $8,100 per family unit (or $7,200 per
family unit if the number of rooms in such property or project
does not equal or exceed four per family unit) for such part of
such property or project as may be attributable to dwelling use:
Provided, That the Secretary may by regulation increase such
dollar amount limitations by not exceeding $900 in any
geographical area where he finds that cost levels so require.
(3) The mortgagor shall enter into the agreement required by
section 1715r of this title.
The mortgage shall provide for complete amortization by periodic
payments within such term as the Secretary shall prescribe, and shall
bear interest (exclusive of premium charges for insurance) at not to
exceed 4\1/2\ per centum per annum on the amount of the principal
obligation outstanding at any time. The Secretary may consent to the
release of a part or parts of the mortgaged property from the lien of
the mortgage upon such terms and conditions as he may prescribe and the
mortgage may provide for such release.
(c) Default; debentures; cash adjustment; certificate of claim
The mortgagee shall be entitled to receive debentures in connection
with mortgages insured under this section in the amount and under the
conditions specified in subsection (g) of section 1713 of this title,
and the references in said subsection (g) to the cash adjustment
provided for in subsection (j) of section 1713 and to the certificate of
claim provided for in subsection (h) of section 1713 shall be deemed to
refer respectively to the cash adjustment provided for in subsection (c)
of section 1750c of this title and to the certificate of claim provided
for in subsection (d) of this section.
(d) Certificate of claim; contents and payment
The certificate of claim issued by the Secretary to any mortgagee
under this section shall be for an amount determined in accordance with,
and shall contain provisions and shall be paid in accordance with, the
provisions of section 1713(h) of this title.
(e) Debentures; issuance and payment in accordance with section
1750c(c), (d) of this title
Debentures issued under this section shall be issued in accordance
with the provisions of section 1750c(c) and (d) of this title except
that such debentures shall be dated as of the date of default as
determined in subsection (c) of this section, and shall bear interest
from such date.
(f) Applicability of section 1713(k), (l) of this title
The provisions of section 1713(k) and (l) of this title shall be
applicable to mortgages insured under this section and to property
acquired by the Secretary hereunder, except that, as applied to such
mortgages and property, the reference therein to subsection (g) shall be
construed to refer to subsection (c) of this section.
(g) Applications under section 1743; credit for fees upon reapplication
under this section
In any case where an application for insurance under section 1743 of
this title was received by the Secretary of Housing and Urban
Development on or before March 1, 1950, and has not been rejected or
committed upon, the mortgagee upon reapplication for insurance of a
mortgage under this section with respect to the same property shall
receive credit for any application fees paid in connection with the
prior application: Provided, That this subsection shall not constitute a
waiver of any requirements otherwise applicable to the insurance of
mortgages under this section.
(h) Preferences
The Secretary shall grant preference to applications for insurance
under this subchapter to mortgages covering housing of lower rents.
(June 27, 1934, ch. 847, title IX, Sec. 908, as added Sept. 1, 1951, ch.
378, title II, Sec. 201, 65 Stat. 301; amended June 30, 1953, ch. 170,
Sec. 10(c), 67 Stat. 124; Aug. 2, 1954, ch. 649, title I, Sec. 130, 68
Stat. 609; Pub. L. 89-117, title XI, Sec. 1108(z), Aug. 10, 1965, 79
Stat. 507; Pub. L. 90-19, Sec. 1(a)(2), (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, Sec. 1(a)(3), substituted ``Secretary'' for
``Commissioner'' wherever appearing in subsecs. (a), (b)(1), (2)(B),
(C), last par. following (C), (d), (f), and (h).
Subsec. (g). Pub. L. 90-19, Sec. 1(a)(2), substituted ``Secretary of
Housing and Urban Development'' for ``Federal Housing Commissioner''.
1965--Subsec. (b)(1). Pub. L. 89-117, Sec. 1108(z)(1), substituted
``General Insurance Fund'' for ``National Defense Housing Insurance
Fund''.
Subsec. (d). Pub. L. 89-117, Sec. 1108(z)(2), struck out provision
that reference in section 1713(h) of this title to ``the Housing
Insurance Fund'' shall be deemed for the purposes of this section to be
a reference to the National Defense Housing Insurance Fund.
Subsec. (f). Pub. L. 89-117, Sec. 1108(z)(3), struck out provision
that references in subsections (k) and (l) of section 1713 of this title
``Housing Fund'' shall be construed to refer to the ``National Defense
Housing Insurance Fund''.
1954--Subsec. (b)(3). Act Aug. 2, 1954, substituted requirement that
mortgagor shall enter into the agreement required by section 1715r of
this title for former provisions relating to certification of builders'
costs, such certifications now being prescribed in said section 1715r.
1953--Subsec. (b). Act June 30, 1953, in paragraph commencing ``The
mortgage shall provide'', substituted ``4\1/2\ per centum'' for ``4 per
centum''.
Section Referred to in Other Sections
This section is referred to in sections 1715c, 1731b, 1750b, 1750c
of this title.
