Page:United States Statutes at Large Volume 52.djvu/1011

 PUBLIC LAWS-CH. 600 -JUNE 23, 1938 tMaximum out- cipal obligations of all mortgages insured under this title and out- standing principal ob- ligations. standing at any one time shall not exceed $200,000,000. Eligibility require- "SEC. 1104. (a) To be eligible for insurance under this title a Post, p. 972. mortgage shall, excepting as otherwise provided in section 1106- "(1) have a mortgagee approved by the Commission as respon- sible and able to service the mortgage properly; and a mortgagor approved by the Commission as possessing the ability, experi- ence, financial resources, and other qualifications necessary to the adequate operation and maintenance of the mortgaged property; "(2) involve an obligation in a principal amount which does not exceed 75 per centum of the cost (as estimated by the Com- mission) of the construction, reconstruction, or reconditioning financed by the loan or advance, but in no event to exceed 75 per centum of the amount which the Commission estimates will bthe value of the property when the construction, reconstruc- tion or reconditioning is completed; "(3) secure an obligation having a maturity date satisfactory to the Commission but not to exceed twenty years from the date of its execution; "(4) contain amortization provisions satisfactory to the Com- mission requiring periodic payments by the mortgagor; "(5) secure an obligation bearing interest (exclusive of pre- mium charges for insurance) at a rate not to exceed 5 per centum per annum on the amount of the principal obligation outstand- ing at any time or not to exceed 6 per centum per annum if the Commission finds that in certain areas or under special circum- stances the mortgage market demands it; "(6) provide, in a manner satisfactory to the Commission, for the application of the mortgagor's periodic payments to amor- tization of the principal of the mortgage, exclusive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as hereinafter provided; "(7) contain such terms and provisions with respect to the construction, reconstruction, reconditioning, maintenance, or operation of the property, repairs, alterations, payment of taxes, insurance, delinquency charges, revisions, foreclosure proceed- ings, anticipation of maturity, additional and secondary liens, and other matters pertinent to the security as the Commission may prescribe; and (8) secure a new loan or advance made to aid in financing the construction, reconstruction, or reconditioning, subsequent to the enactment of this title, of vessels owned by citizens of the United States which are designed principally for commercial use (a) in the coastwise or intercoastal trade; (b) on the Great Lakes, or on bays, sounds, rivers, harbors, or inland lakes of the United States; or (c) in foreign trade between the United States and foreign countries in continental North America, and between the United States and all islands lying between the continent of South America and the United States in the Gulf of Mexico, the Caribbean Sea, or the Atlantic Ocean. ness of property, etc. (b) No mortgage shall be accepted for insurance unless the Com- mission finds that the property or project with respect to which the Premium charge formortgage is executed is economically sound. un chargeeor "(c) The Commission is authorized to fix a premium charge for the insurance of mortgages under this title, but in the case of any mortgage such charge shall not be less than an amount equivalent to one-half of 1 per centum per annum nor more than an amount equiva- lent to 1 per centum per annum of the amount of the principal obli- gation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. All such premium 970 [ 52 STAT.

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