Page:United States Statutes at Large Volume 48 Part 1.djvu/1277

 73d CONGRESS. SESS. II. CH. 847. JUNE 27, 1934 . 1251 ti on 20 4, and expenses incurred in the handling of the property covered by the mortgage and in the collection of claims assigned to the Administrator in connection therewith, shall be charged to the account of the group to which such mortgage is assigned. b The Administra tor shall also provide in a ddition to the General reinsurance several group ac counts, a genera l reinsu rance acc ount, th e credit in account. which shall be available to cover charges against such group accounts where the amounts credited to such accounts are insufficient to cover suc h charges. General expenses of operation of the Feder al Ho us- Alloc ation of gener al ing Administration under this title may be allocated in the discretion expenses of operation. of the Admi nistr ator a mong the se veral grou p acc ounts or ch arged to the general reinsurance account, and the amount allocated to the fund under section 202 shall be credited to the general reinsurance accoun t. (c) Whenever the credit balance in any group account exceeds the Termi nati on o f in- surance of group. remaining unpaid principal of the then outstanding mortgages When credit balance assigned to such group by an amount equal to 10 per centum of the eex a ""s unpaid prin c i - t o princi- pr emiu m pntswh w hich ave the ret oore b b een credt o susuch account, the Administrator shall terminate the insurance as to th at group of mortgages (1) by paying to ea ch of the mortgagees Methods . holding an outstanding mortgage assigned to such group a sum sufficient, if such mortgage is in good standing, to pay off such mortgage in full, the payment in each case being for the benefit and account of the mortgagor, and (2) by transferring the remainder of such credit balance to the general reinsurance account provided for in subsection (b). (d) If the credit balance in any group account fails to exceed, f ails to c redit bala nce until the f inal year p rior to the matu rity date of the mort gages principal f outstand- assigned to such group, the remaining unpaid principal of the then outstanding mortgages assigned to such group by an amount equal to 10 per centum of the total premium payments which have thereto- fore been credited to such account, the Administrator shall terminate the insurance as to that group of mortgages (1) by transferring to the general reinsurance account provided for in subsection (b) an am ount equ al to 10 per cen tum of the total pr emiu m ch arge s theretofore credited to such group account, and (2) by distributing the remainder of such credit balance, if any, pro rata to the mort- gagees for the benefit and account of the mortgagors of the mort- gages assigned to such group. (e) No mortgagor or mortgag ee of any mortgage insured under vested rights in this title shall have any vested right in the credit balance in any cre dit balance denied . such account, and the determination of the Administrator as to the Finality of Adminis- amount to be pai d by him to any mortgagee or mortgagor under trator's action. this title shall be final and conclusive. (f) In the ev ent t hat any mortgagee un der an insured mortgage payment of pre mium charges. forec lose s on the mor tgag ed p rope rty but doe s not co nvey suc h To cease when fore- property to the Administrator in accordance with section 204 or c los ure on insured mortgage and property in the event that the mortgagor pays the obligation under the mort- not conveyed toadmin- istrator. gage in full prior to the maturity thereof, the obligation to pay the When mortgagor premium charge for insurance shall, upon due notice to the Adn-lini- pays obligation. strator, cease, and all rights of the mortgagee and the mortgagor under section 204 shall likewise terminate. Thereupon the mort- Entitlement of mort- gagor shall be entitled to receive a share of the credit balance of the ba lanc e share in credit group account of the group to which the mortgage has been assigned, in such amount as the Administrator shall determine to be equitable and not inconsistent with the preservation of the solvency of the group account and of the Fund.