Page:United States Statutes at Large Volume 52.djvu/53

 [52 STAT. PUBLIC LAWS-CH. 13-FEB. 3, 1938 Payable by mort- obligation. Such premium charges shall be payable by the mort- gagee. gagee, either in cash, or in debentures issued by the Administrator under this title at par plus accrued interest, in such manner as may Payment of one or be prescribed byte the Admt the Ainis- more premiums when trator may require the payment of one or more such premium charges . at the time the mortgage is insured, at such discount rate as he may prescribe not in excess of the interest rate specified in the mortgage. surance; prohibition If the Administrator finds upon the presentation of a mortgage for unless economically insurance and the tender of the initial premium charge or charges so sound. required that the mortgage complies with the provisions of this sec- tion, such mortgage may be accepted for insurance by endorsement or otherwise as the Administrator may prescribe; but no mortgage shall be accepted for insurance under this section unless the Adminis- trator finds that the project with respect to which the mortgage is cAdrusted opremium executed is economically sound. In the event that the principal charge if obligation paid prior to matu- obligation of any mortgage accepted for insurance under this section r ity . or section 210 is paid in full prior to the maturity date, the Admin- istrator is further authorized in his discretion to require the pay- ment by the mortgagee of an adjusted premium charge in such amount as the Administrator 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 unarned o current date; and in the event that the principal obligation is paid in full charges paid. as herein set forth and a mortgage on the same property is accepted for insurance at the time of such payment, the Administrator is authorized to refund to the mortgagee for the account of the mort- gagor all, or such portion as he shall determine to be equitable, of the current unearned premium charges theretofore paid. bfari and farm "(d) The Administrator is authorized to insure, pursuant to the provisions of this section, any mortgage which (A) covers a farm upon which a farm house or other farm buildings are to be constructed or repaired, and (B) otherwise would be eligible for insurance under the provisions of paragraph (b) of this section: Exnditureorma. Provided, That the construction and repairs to be undertaken on such terialand labor. farm shall involve the expenditure for materials and labor of an amount not less than 15 per centum of the total principal obligation of said mortgage. Payment of insur- " iPA YM ENTOF INSUBANCE ance. To mortgagee, upon "SEC.204. (a) In any case in which the mortgagee under a mort- foreclosure, etc. gage insured under section 203 or section 210 shall have foreclosed and taken possession of the mortgaged property in accordance with regulations of and within a period to be determined by, the Admin- istrator, or shall, with the consent of the Administrator, have otherwise acquired such property from the mortgagor after default, the mortgagee shall be entitled to receive the benefit of the insurance Conditions. as hereinafter provided, upon (1) the prompt conveyance to the toAdministrator. Administrator of title to the property which meets the requirements of rules and regulations of the Administrator in force at the time the mortgage was insured, and which is evidenced in the manner ssignment ofe prescribed by such rules and regulations, and (2) the assignment claims of mortgagee against mortgagor. to him of all claims of the mortgagee against the mortgagor or others, arising out of the mortgage transaction or foreclosure pro- ceedings, except such claims as may have been released with the Termination of ob consent of the Administrator. Upon such conveyance and assign- ligation of mortgagee to pay premium ment the obligation of the mortgagee to pay the premium charges har es for insurance shall cease and the Administrator shall, subject to 12

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