Page:United States Statutes at Large Volume 52.djvu/1234

 1193 52 STAT.] 75TH CONG. , 3D SESS.-CHS. 692, 693-JUNE 25, 1938 Act, and the application of such provision to other persons or circum- stances, shall not be affected thereby. Approved, June 25, 1938. [CHAPTER 693] AN ACT June 25, 1938 To amend the Act entitled "An Act to authorize the President to provide housing [S. 1294] for war needs", approved May 16, 1918, as amended. [Public, No. 735] Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Act War Housing Act, entitled "An Act to authorize the President to provide housing for 40 stat. 550 . war needs", approved May 16, 1918, as amended, is hereby amended by adding at the end thereof the following new sections: "SEC. 9 . The United States Housing Corporation (hereinafter L'ncoln Gardens project, New Bruns- referred to as the 'Corporation') is authorized and directed to accept wick, N.J . Acceptance by Cor- from any person holding an existing contract for the property in the poration of release of Lincoln Gardens project, New Brunswick, New Jersey, a full releaserights n,a cc quired by of any right or interest any such person may have acquired by reason of any such contract. Upon tender of release by any such person and acceptance by said Corporation, such contract shall become null and void and of no further force or effect, and shall be considered as a forfeiture of any right or interest any person may have acquired under or by reason of such contract. "SEc. 10. Upon any such tender, acceptance, and forfeiture, the Scod yPpforty coSered by forfeited Corporation shall sell to such person the property covered by such contract. forfeited contract for an amount equal to the sum of (a) 15 per- Price. centum of the original contract price of such property, (b) any sum which was due the Corporation under such contract and unpaid on the date of such forfeiture, and (c) the value of any other valid liens (but not tax liens) against such property existing on the date of such sale. Such sale shall be made upon the terms and conditions set forth Terms and condi- in section 11 hereof, and the purchaser shall have the option to elect ts. whether to pay the purchase price in cash or partly in cash, or to have the payment of the same in whole or in part secured by the mortgage referred to in section 11. "SEC. 11. Upon the sale of such property as provided in section 10, Delivery of war- the Corporation shall, notwithstanding any alleged tax liens against such property, execute and deliver to the purchaser a warranty deed for such property, free and clear of all encumbrances to the date of such sale. The United States, upon conveyance, shall retain a first Iiens, "ortgages, lien for any unpaid portion of the purchase price. To secure slch lien the purchaser shall execute and deliver a first mortgage to the Corporation for any unpaid portion (or all) of the purcllase price. The amount of such mortgage may be increased, as may be deter- mined by the Secretary of the Treasury and the Reconstruction Finance Corporation pursuant to the rules and regulations adopted under the provision of section 13 (b) hereof, but the face amount of any such mortgage shall not exceed 50 per centum of the original contract price at which the property was first sold by the United States. Such first mortgages shall be executed upon a form approved Approval of form. by the Federal Housing Administrator for use in the State of New Jersey, shall bear interest at a rate not to exceed 5 per centum per Interest rate annum, and shall contain such further terms and conditions as may Insurance. 48 stat. 1247. be necessary to make them legally eligible for insurance under title 12 U. . c. §§ 1707- 2 of the National Housing Act as amended: Provided, That at the 17S09-17Sp11 17 ' option of the purchaser such mortgages may be made to mature in Priso. not to exceed fifteen years. The Corporation is hereby authorized Maturty. and directed to apply for such insurance.

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