Page:United States Statutes at Large Volume 52.djvu/1012

 52 STAT.] 75TH CONG. , 3D SESS.-CH. 600-JUNE 23, 1938 charges shall be payable by the mortgagee as prescribed by the Com- mission. In the event that the principal obligation of any mortgage accepted for insurance under this section is paid in full prior to the maturity date, the Commission is further authorized in its discretion to require the payment by the mortgagee of an adjusted premium charge in such amount as the Commission 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. "(d) The Commission is authorized to charge and collect such amounts as it may deem reasonable for the investigation of applica- tions for insurance, for the appraisal of properties offered for insur- ance, for the issuance of commitments, and for the inspection of such properties during construction, reconstruction, or reconditioning: Pro- vided, That such charges shall not aggregate more than one-half of 1 per centum of the original principal amount of the mortgage to be insured. All moneys received under the provisions of this title shall be deposited in the fund. "SEO. 1105. (a) In any case in which the mortgagee under an insured mortgage shall have foreclosed and acquired title and posses- sion of the mortgaged property in accordance with regulations of, and within a period to be determined by, the Commission, or shall, with the consent of the Commission, have otherwise acquired such property from the mortgagor after default, the mortgagee shall be entitled to receive the benefits of the insurance as hereinafter pro- vided, upon (1) the prompt conveyance to the Commission of title to the property which meets the requirements of rules and regulations of the Commission in force at the time the mortgage was insured, and which is evidenced in the manner prescribed by such rules and regula- tions, and (2) the assignment to the Commission of all claims of the mortgagee against the mortgagor or others, arising out of the mort- gage transaction or foreclosure proceedings, except such claims as may have been released with the consent of the Commission. Upon such conveyance and assignment the obligation of the mortgagee to pay the premium charges for insurance shall cease and the Commis- sion shall, subject to the cash adjustment hereinafter provided, issue to the mortgagee debentures having a total face value equal to the balance of the principal obligation of the mortgage which was unpaid on the date of the institution of foreclosure proceedings, or on the date of the acquisition of the property after default other than by foreclosure. In the event that the mortgagee acquires the property other than by purchase at foreclosure sale after foreclosure proceed- ings have been instituted, debentures having a total face value equal to the balance of the principal obligation of the mortgage which was unpaid on the date of the institution of foreclosure proceedings shall be issued to the mortgagee. "(b) Debentures issued under this section shall be in such form and denominations in multiples of $50, shall be subject to such terms and conditions, and shall include such provisions for redemption, if any, as may be prescribed by the Commission with the approval of the Secretary of the Treasury, and may be in coupon or registered form. Any difference between the value of the mortgage determined as herein provided and the aggregate face value of the debentures issued, not to exceed $50, shall be adjusted by the payment of cash by the Commission to the mortgagee from the fund. "(c) The debentures issued under this section shall be executed in the name of the fund as obligor, shall be signed by the Chairman of the Commission by either his written or engraved signature, and shall be negotiable. All such debentures shall be dated as of the date 971 Investigation of ap- plications, etc.; charges. Proviso. Limitation. Benefits of insur- ance to mortgagee upon foreclosure. Conditions. Premium charges to cease. Issue of debentures to mortgagee. 1 property acquired other than by pur- chase at foreclosure sale. Issuance of deben- tures. Execution, negoti- ability, date, interest, maturity, etc.

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