Page:United States Statutes at Large Volume 101 Part 3.djvu/610

 101 STAT. 1908

PUBLIC LAW 100-242—FEB. 5, 1988 (B) by striking "three" and inserting "5". (b) USE OF FUNDS DERIVED FROM PROPERTY SUBJECT TO LOAN IN

DEFAULT.—Title II of the National Housing Act is amended by adding at the end the following new section: EQUITY SKIMMING P E N A L T Y

12 USC 1715Z-19.

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"SEC. 254. Whoever, as an owner, agent, or manager, or who is otherwise in custody, control, or possession of property that is security for a mortgage note that is insured, acquired, or held by the Secretary pursuant to section 203, 207, 213, 220, 221(d)(3), 221(d)(4), 223(f), 231, 232, 234, 236, 238(c), 241, 242, 244, 608, or 810, or title XI, or is made pursuant to section 202 of the Housing Act of 1959, willfully uses or authorizes the use of any part of the rents, Eissets, proceeds, income or other funds derived from property covered by such mortgage note during a period when the mortgage note is in default or the project is in a n o n s u r p l u s cash position as defined by the regulatory a g r e e m e n t covering such property, for any purpose

12 USC 1715Z-4.

other than to meet actual or necessary expenses that include expenses approved by the Secretary if such approval is required under the terms of the regulatory agreement, shall be fined not more than $250,000 or imprisoned not more than 5 years, or both.", (c) CONFORMING AMENDMENTS.—Section 239 of the National Housing Act is amended— (1) by striking "INSURED" in the section heading; J(2) by striking "(a)" after "SEC. 239."; and (3) by striking subsection (b). SEC. 417. HOME EQUITY CONVERSION DEMONSTRATION.

MORTGAGE

INSURANCE

(a) IN GENERAL.—Title II of the National Housing Act (as amended by section 416 of this Act) is further amended by adding at the end the following new section: >p,' •ixiliiKi

12 USC 1715Z-20. --;•.

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"DEMONSTRATION PROGRAM OF INSURANCE OF HOME EQUITY CONVERSION MORTGAGES FOR ELDERLY HOMEOWNERS

"SEC. 255. (a) PURPOSE.—The purpose of this section is to authorize the Secretary to carry out a demonstration program of mortgage insurance designed— "(1) to meet the special needs of elderly homeowners by reducing the effect of the economic hardship caused by the increasing costs of meeting health, housing, and subsistence needs at a time of reduced income, through the insurance of home equity conversion mortgages to permit the conversion of a portion of accumulated home equity into liquid assets; "(2) to encourage and increase the involvement of mortgagees and participants in the mortgage markets in the making and > servicing of home equity conversion mortgages for elderly homeowners; and "(3) to require the evaluation of data to determine— "(A) the extent of the need and demand among elderly homeowners for insured and uninsured home equity conversion mortgages; "(B) the types of home equity conversion mortgages that best serve the needs and interests of elderly homeowners, S^' the Federal Government, and lenders; and

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