Page:United States Statutes at Large Volume 49 Part 1.djvu/344

 74'rn CONGRESS. SESS. I . CH. 150. 'MAY 28, 1935 . 299 (b) Section 404 of the National Housing Act is further amended Vol. 48,p .1259 . by adding at the end thereof the following new subsection " (c) Each insured institution which has paid a premium charge in Credit all ow ed . excess of one-eighth of 1 per centum of the total amount of the accounts of its insured members and its creditor obligations shall be credi ted on its f uture premiu ms wit h an a mount equal to the total amount of such excess ." SEC. 26. The last sentence of section 406 ~b) of the National red i rat ion of f in sue d institutions in Housing Act is amended to read as follows : `The surr ender and de `ault. 48, p 1260. transfer to the Corporation of an insured account in any such asso- ciation which is in default shall subrogate the Corporation with respect to such insured account, but shall not affect any right which the insured member may have in the uninsured po rti on of his account or any right which he may have to participate in the distribu- ho der s~ butiontoshare- tion of the net proceeds remaining from the disposition of the assets of such association ." Vol.48,p. Mo . SEC . 2 7 . Section 406 of the Na tional Housing Act is further amended by adding at the end thereof a new subsection to read as follows "(f) In order to prevent a default in an insured institution or in Loans to insured institutions in default . order to restore an insured institution in default to normal opera- tion as an insured institution, the Corporation is authorized, in its discretion, to make loans to, purchase the assets of, or make a contribu- tion to, an insured institution or an insured institution in default ; but no contribution shall be made to any such institution in an Limi tation o n amount in excess of that which the Corporation finds to be reasonably amount . necessary to save the expense of liquidating such institution ." SEC . 28 . (a) Th e first sentence of sect ion 2 of the Nat ional H ousing ill . neeoffinancial Act is amended (1)~ by striking out "January" and inserting in institutions . 722, 11~. lieu thereof April ', and (2) by inserting before the period at the end thereof a comma and the following : " including the installation of equipment and machinery " . Provisions governing (b) The last sentence of section 2 of the National Housing Act is granting of insurance. amended to read as follows : "No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it (1) unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions, as the Administrator shall prescribe ; and (2) unless the amount of such lo an, adva nce of c redit, o r purcha se is no t in exc ess of $2,000, except that in the case of any such loan, advance of credit, or purchase made for the purpose of such financing with respect to real property improved by or to be converted into apartment or multiple family houses, hotels, office, business or other commercial buildings, hospitals, orphanages, colleges, schools, or manufacturing or industrial plants, such insurance may be granted if the amount of the loan, advance of credit, or purchase is not in excess of $50,000 ." SEc . 29 . (a) Subsection (c) of section 203 of the National Housingg P remi um cha rges . Vol. 48, p. 1248 . Act is a mended by adding at the end th ereof the following new sentence : " In the event that the principal obligation of any mort- gage accepted for insurance under this section is paid in full prior to the maturity (late specified in the mortgage, the Administrator is further authorized in his discretion to require the payment by the mortga gor of a pre mium c harge in suc h amou nt as the Ad minist rator determines to be equitable, but not in excess of the aggregate amount of the premium charges that the mortgagee would otherwise have been required to pay if the mortgage had continued to be insured under this section until such maturity date ."