Page:United States Statutes at Large Volume 49 Part 1.djvu/345

 300 74TH CONGRESS. SESS. I. CH. 15 0. MAY 28, 1935 . Mo rtgages and re- insurance. (b) The first sentence of subsection (f) of section 205 of the Payment of annual National Housing Act is amended by striking out the words " pre- premi ~s . 1251 mium charge " and inserting in lieu thereof the words " annual premium charge ". (c) The last sentence of subsection (a) of section 204 of the National Housing Act is amended to read as follows
 * "Forthepur-

poses of this subsection, the value of the mortgage shall be deter- min ed, in accordance with rules and regulations prescribed by the Administrator, by adding to the amount of the principal of the mortgage which is unpaid on the date of such delivery, (1) interest on such unpaid principal from the date foreclosure proceedings were instituted or the property was otherwise acquired as provided in this subsection to the date of such delivery at the rate provided for in the debentures issued to the mortgagee, less any amount received on account of interest accruing on such unpaid principal between such dates, and (2) the amount of all payments which have been made by the mortgagee for taxes and insurance on the property mortgaged ." SF--o. 30 . Subsection (d) of sec tion 301 of the Nation al Housing Act is amended to read as follows : "(d) No association shall transact any business except such as is incidental to its organization until it has been authorized to do so by the Administrator. Each such association shall have a capital stock of a par value of not less than $2,000,000, and no authorization to commence business shall be granted by the Administrator to any such association until he is satisfied that such capital stock has been subscribed for at not less than par and paid in full in cash or Gov- ernment securities at their par value ." SEo. 31 . Sectio n 302 of th e National Housing Act is amended to read as follows " SEC. 302. Each national mortgage association is authorized to issue and have outstanding at any time notes, bonds, debentures, or other such obligations in an aggregate amount not to exceed (1) twelve times the aggregate par value of its outstanding capital stock, and in no event to exceed (2) the current face value of mortgages held by it and insured under the provisions of title II of this Act, plus the amount of its cash on hand and on deposit and the amount of its investments in bonds o r obligations of, or guaranteed a s to principal and interest by, the United States. No national mortgage association shal l bor row money exce pt th rough the issu ance of su ch no tes, bond s, debentures, or other obligations, except with the approval of the Administrator and under such rules and regulations as he shall prescribe ." SEC. 32. Section 32 of the Emergency Farm Mortgage Act of 1933, as amended (U. S . C., title 12, see . 1016), is further amended by insert- ing after the second sentence thereof the following new sentence " For the purposes of this section, farm property may be valued at an amount representing a prudent investment, consistent with com- munity standards and rentals, if (1) the person occupying the prop- erty is not entirely dependent upon farm income for his livelihood but receives a part of his income from other dependable sources, and (2) the farm income from the property, together with earnings from other dependable sources ordinarily available in the community to a person operating such property, would be sufficient to support his family, to pay operating expenses and fixed charges, and to discharge the interest and amortization payments on the loan ." Approved, May 28, 1935 . Dete rmination of va lue of mortgage. Vol . 48, p.1249. computation. National Mortgage A ssoc iati ons . Vol . 48, p. 1253. Limitation on busi- ness transaction . Capital stock require- ment . Vol. 48, p. 1254 . Obligations,issue, etc. Aggrega te amo unt . Borrowing by as so ci- ation restricted. Emergency Farm Mortgage A ct, 1933. Vol. 48, pp. 48, 347; U.S.C., .441. Lo ans to farmers. Valuing farm prop- e rty for purposes of loans, etc . Post, p . 313 . 3, v 'd YD S.