Page:United States Statutes at Large Volume 52.djvu/51

 PUBLIC LAWS--CH. 13 -FEB. 3, 1938 "Maturity date." Mutual Mortgage Insurance Fund. Creation, use, etc. Insurance of mort- gages. Authority to insure mortgage on applica- tion of mortgagee. Provisos. Aggregate amount of principal obliga- tions, limitation. Restriction on insur- ance of mortgages after July 1, 1939. Eligibility require- ments. Approval by Ad- ministrator. Amount of principal obligation involved. Not over $16,000 or 80 per centum of ap- praised value; four- family, etc., dwell- ings. Not over $5,400 or 90 per entum of ap- praised value; single- family dwelling. Provisions govern- ing loan. "(c) The term 'maturity date' means the date on which the mort- gage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. " MUT UAL MORTGAGE INSURANCE FUND "SEc. 202. There is hereby create a Mutual Mortgage Insurance Fund (hereinafter referred to as the 'Fund'), which shall be used by the Administrator as a revolving fund for carrying out the provi- sions of this title with respect to mortgages insured under section 203 as hereinafter provided, and there shall be allocated immediately to such Fund the sum of $10,000,000 out of funds made available to the Administrator for the purposes of this title. " INSURANCE OF MORTGAGES "SEC. 203. (a) The Administrator is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage offered to him which is eligible for insurance as hereinafter provided, and, upon such terms as the Administrator may prescribe, to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon: Provided, That the aggregate amount of principal obligations of all mortgages insured under this title and outstanding at any one time shall not exceed $2,000,000,000, except that with the approval of the President such aggregate amount may be increased to not to exceed $3,000,000,000: Provided further, That on and after July 1, 1939, no mortgages shall be insured under this title except mortgages (1) that cover property which is approved for mortgage insurance prior to the completion of the construction of such property, or (2) that cover property the construction of which was commenced after January 1, 1937, and was completed prior to July 1, 1939, or (3) that cover property which has been previously covered by a mortgage insured by the Administrator. "(b) To be eligible for insurance under this section a mortgage shall- "(1) Have been made to, and be held by, a mortgagee approved by the Administrator as responsible and able to service the mortgage properly. "(2) Involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Administrator shall approve) in an amount- "(A) not to exceed $16,000 and not to exceed 80 per centum of the appraised value (as of the date the mortgage is accepted for insurance) of a property upon which there is located a dwelling or dwellings designed principally for residential use for not more than four families in the aggre- gate, irrespective of whether such dwelling or dwellings have a party wall or are otherwise physically connected with another dwelling or dwellings, or "(B) not to exceed $5,400 and not to exceed 90 per centum of the appraised value (as of the date the mortgage is accepted for insurance) of a property, urban, suburban, or rural, upon which there is located a dwelling designed principally for a single-family residence (i) the construc- tion of which is begun after the date of enactment of the National Housing Act Amendments of 1938 and which is approved for mortgage insurance prior to the beginning of construction, or (ii) the construction of which was begun 'So in original. [52 STAT.

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