Page:United States Statutes at Large Volume 52.djvu/57

 [52 STAT. PUBLIC LAWS-CH. 13 -FEB. 3, 1938 Termination of in- "(c) The Administrator shall terminate the insurance as to any Whene mounts suf- group of mortgages (1) when he shall determine that the amounts unpaid prinipal, etc. to be distributed as hereinafter set forth to each mortgagee under an outstanding mortgage assigned to such group are sufficient to outstanding mort- pay off the unpaid principal of each such mortgage, or (2) when ethodof settie- all the outstanding mortgages in any group have been paid. Upon ment. such termination the Administrator shall charge to the group ac- count the estimated losses arising from transactions relating to that group, shall transfer to the general reinsurance account an amount equal to 10 per centum of the total premium charges theretofore credited to such group account, and shall distribute to the mortgagees for the benefit and account of the mortgagors of the mortgages assigned to such group the balance remaining in such group account. Any such distribution to mortgagees shall be made equitably and in accordance with sound actuarial and accounting practice. ested riht deniedn (d) N mortgagor or mortgagee mo rtgageortgage insured under section 203 shall have any vested right in a credit balance in any such account, or be subject to any liability arising out of the mutu- Finality of Admin- alitv of the Fund, and the determination of the Administrator as trtor's determin- to the amount to be paid by him to any mortgagee or mortgagor shall be final and conclusive. Premium charges; " (e) In the event that any mortgagee under a mortgage insured cease if property nt under this title forecloses on the mortgaged property but does not tra edtor.dm convey such property to the Administrator in accordance with sec- tion 204, and the Administrator is given written notice thereof, or in the event that the mortgagor pays the obligation under the mort- gage in full prior to the maturity thereof, and the mortgagee pays any adjusted premium charge required under the provisions of sec- tion 203 (c), and the Administrator is given written notice by the mortgagee of the payment of such obligation, the obligation to pay Termination of any subsequent premium charge for insurance shall cease, and all rights ights of the mortgagee and the mortgagor under section 204 shall Share of credit ba- terminate as of the date of such notice. Upon such termination the mogagor. mortgagor under a mortgage insured under section 203 shall be entitled to receive a share of the credit balance of the group account to which the mortgage has been assigned in such amount as the Administrator shall determine to be equitable and not inconsistent with the solvency of the group account and of the Fund. Investmentoffunds. "INVESTMENT OF FUNDS lepsit, etc of sur- "SEC. 206. Moneys in the Fund not needed for the current opera- tions of the Federal Housing Administration shall be deposited with the Treasurer of the United States to the credit of the Fund, or invested in bonds or other obligations of, or in bonds or other obli- gations guaranteed as to principal and interest by, the United States. turecse odineisra- The Administrator may, with the approval of the Secretary of the tor. Treasury, purchase in the open market debentures issued under the provisions of section 204. Such purchases shall be made at a price which will provide an investment yield of not less than the yield Cancelation of de- obtainable from other investments authorized by this section. Deben- tures so purchased shall be canceled and not reissued, and the several group accounts to which such debentures have been charged shall be charged with the amounts used in making such purchases. Rental housing in- "RENTAL IOUSING INSURANCE surance. Terms defined. "SEC. 207. (a) As used in this section- "Mortgage.· " "(1) The term 'mortgage' means a first mortgage on real estate in fee simple, or on the interest of either the lessor or lessee thereof 16

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