12 U.S.C. § 1750g | Insurance of additional mortgages

(a)

Authorization

section 1750b of this title section 1750 of this titleIn addition to mortgages insured under , the Secretary is authorized to insure mortgages as defined in (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)

Provided 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: , 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)

Provided 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: , 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)

section 1715r of this title The mortgagor shall enter into the agreement required by .

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 4½ 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

section 1713 of this title section 1750c of this titleThe 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 , 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 and to the certificate of claim provided for in subsection (d) of this section.

(d)

Certificate of claim; contents and payment

section 1713(h) of this titleThe 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 .

(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

lThe provisions of section 1713(k) and () 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

section 1743 of this titleMarch 1, 1950ProvidedIn any case where an application for insurance under was received by the Secretary of Housing and Urban Development on or before , 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: , 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 Sept. 1, 1951, ch. 378 65 Stat. 301 June 30, 1953, ch. 170, § 10(c)67 Stat. 124 Aug. 2, 1954, ch. 649 68 Stat. 609 Pub. L. 89–117, title XI, § 1108(z)Aug. 10, 196579 Stat. 507 Pub. L. 90–19, § 1(a)(2)May 25, 196781 Stat. 17(, title IX, § 908, as added , title II, § 201, ; amended , ; , title I, § 130, ; , , ; , (3), , .)

Editorial Notes

References in Text

section 1735c of this titleThe General Insurance Fund, referred to in text, was established by .

Amendments

Pub. L. 90–19, § 1(a)(3)1967—, substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a), (b)(1), (2)(B), (C), last par. following (C), (d), (f), and (h).

Pub. L. 90–19, § 1(a)(2)Subsec. (g). , substituted “Secretary of Housing and Urban Development” for “Federal Housing Commissioner”.

Pub. L. 89–117, § 1108(z)(1)1965—Subsec. (b)(1). , substituted “General Insurance Fund” for “National Defense Housing Insurance Fund”.

Pub. L. 89–117, § 1108(z)(2)section 1713(h) of this titleSubsec. (d). , struck out provision that reference in 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.

Pub. L. 89–117, § 1108(z)(3)lsection 1713 of this titleSubsec. (f). , struck out provision that references in subsections (k) and () of “Housing Fund” shall be construed to refer to the “National Defense Housing Insurance Fund”.

Aug. 2, 1954section 1715r of this title1954—Subsec. (b)(3). Act , substituted requirement that mortgagor shall enter into the agreement required by for former provisions relating to certification of builders’ costs, such certifications now being prescribed in said section 1715r.

June 30, 19531953—Subsec. (b). Act , in paragraph commencing “The mortgage shall provide”, substituted “4½ per centum” for “4 per centum”.