12 U.S.C. § 1735c | General Insurance Fund

(a)

Establishment; purpose; mortgages or loans insurable; transfers to

August 10, 1965August 10, 1965section 1703 of this titleAugust 10, 1965There is hereby created a General Insurance Fund which shall be used by the Secretary, on and after , as a revolving fund for carrying out all the insurance provisions of this chapter with the exception of those specified in subsection (e). All mortgages or loans insured under this chapter pursuant to commitments issued on or after , except those specified in subsection (e), and all loans reported for insurance under on or after , shall be insured under the General Insurance Fund. The Secretary shall transfer to the General Insurance Fund—

(1)

August 10, 1965 the assets and liabilities of all insurance accounts and funds, except the Mutual Mortgage Insurance Fund, existing under this chapter immediately prior to ;

(2)

August 10, 1965 all outstanding commitments for insurance issued prior to , except those specified in subsection (e);

(3)

August 10, 1965 the insurance on all mortgages and loans insured prior to , except insurance specified in subsection (e); and

(4)

section 1703 of this titleAugust 10, 1965 the insurance of all loans made by approved financial institutions pursuant to prior to .

(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

ProvidedAugust 10, 1965Moneys 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: , 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 , 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

section 1709 of this title section 1715e of this title section 1715e(k) of this title 1

1 See References in Text note below.

The General Insurance Fund shall not be used for carrying out the provisions of , except as determined by the Secretary, or the provisions of to the extent that they involve mortgages the insurance for which is the obligation of the Cooperative Management Housing Insurance Fund created by , 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 Pub. L. 89–117, title II, § 214Aug. 10, 196579 Stat. 471 Pub. L. 90–19, § 1(a)(1)May 25, 196781 Stat. 17 Pub. L. 90–448, title I, § 104(c)Aug. 1, 196882 Stat. 488 Pub. L. 91–609, title I, § 117(e)Dec. 31, 197084 Stat. 1775 Pub. L. 94–375, § 10Aug. 3, 197690 Stat. 1073 Pub. L. 95–24, title I, § 102Apr. 30, 197791 Stat. 55 Pub. L. 95–557, title III, § 310Oct. 31, 197892 Stat. 2098 Pub. L. 96–153, title III, § 305Dec. 21, 197993 Stat. 1112 Pub. L. 96–399, title III, § 305Oct. 8, 198094 Stat. 1639 Pub. L. 97–35, title III, § 334Aug. 13, 198195 Stat. 414 Pub. L. 98–181, title INov. 30, 198397 Stat. 1208 Pub. L. 102–550, title I, § 185(c)(2)Oct. 28, 1992106 Stat. 3748 Pub. L. 103–233, title IApr. 11, 1994108 Stat. 362 Pub. L. 110–289, div. B, title I, § 2118(c)(2)July 30, 2008122 Stat. 2835(, title V, § 519, as added , , ; amended , (3), , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; [title IV, § 403], , ; , , ; , §§ 103(g)(2), 105(b), , , 363; , , .)

Editorial Notes

References in Text

Section 1715z–2 of this title Pub. L. 110–289, div. B, title I, § 2120(a)(6)July 30, 2008122 Stat. 2835, referred to in subsec. (e), was repealed by , , .

Amendments

Pub. L. 110–2892008—Subsec. (e). substituted “1709 of this title, except as determined by the Secretary” for “1709(b) (except as provided in section 1709(v)), (h), and (i) of this title”.

Pub. L. 103–233, § 105(b)1994—Subsec. (f). , 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.”

Pub. L. 103–233, § 105(b)(2)Subsec. (g). , redesignated subsec. (g) as (f).

Pub. L. 103–233, § 103(g)(2), added subsec. (g).

Pub. L. 102–5501992—Subsec. (e). inserted “(except as provided in section 1709(v))” after “1709(b)”.

Pub. L. 98–181October 1, 19811983—Subsec. (f). 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 ” after “Insurance Fund”.

Pub. L. 97–35Oct. 1, 19811981—Subsec. (f). inserted provision increasing authorization on .

Pub. L. 96–399October 1, 1978October 1, 19791980—Subsec. (f). substituted “$1,738,000,000” for “$1,341,000,000, which amount shall be increased by $165,000,000 on , which shall be increased by not to exceed $93,000,000 on ”.

Pub. L. 96–153October 1, 19791979—Subsec. (f). provided for an increase of $93,000,000 on .

Pub. L. 95–557October 1, 19781978—Subsec. (f). inserted “which amount shall be increased by $165,000,000 on ”.

Pub. L. 95–241977—Subsec. (f). substituted “$1,341,000,000” for “$500,000,000”.

Pub. L. 94–3751976—Subsec. (f). added subsec. (f).

Pub. L. 91–6091970—Subsec. (c). 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.

Pub. L. 90–4481968—Subsec. (e). prohibited use of Fund for carrying out provisions of sections 1715n(e), 1715x(a)(2), 1715z, 1715z–1 and 1715z–2 of this title.

Pub. L. 90–191967— 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.

Statutory Notes and Related Subsidiaries

Effective Date of 1981 Amendment

Pub. L. 97–35Oct. 1, 1981section 371 of Pub. L. 97–35 section 3701 of this titleAmendment by effective , see , set out as an Effective Date note under .