Page:United States Statutes at Large Volume 50 Part 1.djvu/920

 75T H CONGRESS, 1ST SESSION-CH. 8 96-SEP TEMBE R 1, 1 937 895 (b) The acquisition by the Authority of any real property pur- in St tecivilan tr im suant to this Act shall not deprive any State or political subdivision thereof of its civil and criminal jurisdiction in and over such prop- erty, or impair the civil rights tinder the State or local law of the inhabitants on such property ; and, insofar as any such jurisdiction may have been taken away or any such rights impaired by reason of the ac quisi tion o f any prop erty t ransf erred to th e Aut hority pur- suant to section 4 (d), such jurisdiction and such rights are hereby -irate, p. 890. fully restored. (c) The Authority may enter into agreements to pay annual sums taxes, in lieu of in lieu of taxes to any State or political subdivision thereof with respect to any real property owned by the Authority. The amount so paid for any year upon any such property shall not exceed the taxes that would be paid to the State or subdivision, as the case may be, upon such property if it were not exempt from taxation thereby. (d) The Authority may proc ure insura nce agains t any los s in Insurance . con nectio n wit h its prope rty a nd oth er as sets (inclu ding mortga ges), in such amounts, and from such insurers, as it deems desirable. (e) The Authority may sell or exchange at public or private sale, Sai l, or exc hange of or lease, any real property (except low-rent-housing projects, the disposition of which is governed elsewhere in this Act) or personal property, and sell or exchange any securities or obligations, upon such terms as it may fix. The Authority may borrow on the security if Borrowing author- of any real or personal property owned by it, or on the security of the revenues to be derived therefrom, and may use the proceeds of such loans for the purposes of this Act. SEC. 14. Subject to the specifi c limitatio ns or standa rds in this Act Contracts a na governing the terms of sales, rentals, leases, loans, contracts for annual agreements . contributions, contracts for capital grants, or other agreements, the Authority may, whenever it deems it necessary or desirable in the ful- fillment of the purposes of this Act consent to the modification, with respect to rate of interest, time of payment of any installment of principal or interest, security, amount of annual contribution, or any other term, of any contract or agreement of any kind to which the Authority is a party or which has been transferred to it pursuant to this Act. Any rule of law contrary to this provision shall be deemed inapplicable. SEC. 15 . In order to insure that the low-rent character of housing Previsions for pre- serving low rentals, projects will be preserved, and that the other purposes of this Act et c. will be achieved, it is hereby provided that- (1) When a loan is made pursuant to section 9 for a low-rent- Low-rent-housin g housing project the Authority may retain the right, in the event of a prAnte, p. 891. substantial breach of the condition (which shall be embodied in the loan agreement) providing for the maintenance of the low-rent cliar- acter of t he housing project inv olved or in the event o f the acqui sition of such project by a third party in any manner including a bona-fide foreclosure under a mortgage or other lien held by a third party, to increase the interest payable thereafter on the balance of said loan then held by the Authority to a rate not in excess of the going Federal rate (at the time of such breach or acquisition) plus 2 per centum per annum or to declare the unpaid principal on said loan due fort hwi th. (2) When a loan is made pursuant to section 9 for a slum-clear- Slum-clearance ance project the Authority shall retain the right, in the event of the proccs . leasing or acquisition of such project by a third party in any manner including a bona-fide foreclosure under a mortgage or other lien held by a third party, to increase the interest payable thereafter on the balance of said loan then held by the Authority to a rate not in