Page:United States Statutes at Large Volume 52.djvu/64

 75TH CONG., 3D SESS.-CH. 13-FEB. 3, 1938 "(2) Have a maturity satisfactory to the Administrator, but not to exceed twenty-one years and contain complete amortiza- tion provisions satisfactory to the Administrator. "(3) Bear interest (exclusive of premium charges for insur- ance) at not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time. "(4) Contain such terms, conditions, and provisions with respect to advances during construction, assurance of completion, recognition of equitable rights of contract purchasers in good standing, release of part of the mortgaged premises from the lien of the mortgage, insurance, repairs, alterations, payment of taxes, default and management reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Administrator may in his discretion prescribe. " R UL ES AND REGULATIONS "SEC. 211 . The Administrator is authorized and directed to make such rules and regulations as may be necessary to carry out the provisions of this title." SEC. 4. Section 301 (a) of such Act is amended to read as follows: "SEC. 301. (a) The Administrator is further authorized and empowered to provide for the establishment of national mortgage associations as hereinafter provided which shall be authorized, sub- ject to rules and regulations to be prescribed by the Administrator- "(1) To make real-estate loans which are accepted for insurance or insured under Title II of this Act: Provided, That no such asso- ciation controlled or operated by the United States or any agency of the United States shall make any real-estate loan which is accepted for insurance or insured under section 203 of this Act; "(2) To purchase, service, or sell any mortgages, or partial inter- ests therein, which are insured under Title II of this Act; "(3) To purchase, service, or sell uninsured first mortgages and such other liens as are commonly given under the laws of the State, district, or Territory in which the real estate is located to secure advances upon real estate held in fee simple, or under a lease for not less than ninety-nine years which is renewable, or under a lease having a period of not less than fifty years to run from the date the mortgage was executed, together with the credit instruments, if any, secured thereby; but the amount of the principal obligation of any such uninsured mortgage shall not exceed 60 per centum of the appraised value of the property as of the date the mortgage is purchased by the association; and "(4) To borrow money for any of the foregoing purposes through the issuance of notes, bonds, debentures, or other such obligations as hereinafter provided." SEC. 5. Section 301 (d) of such Act is amended to read as follows: "(d) No association shall transact any business except such as is incidental to its organization until it has been authorized to do so by the Administrator. Each such association shall have a capital stock of a par value of not less than $2,000,000, and no authorization to commence business shall be granted by the Administrator to any such association until he is satisfied that such capital stock has been subscribed for at not less than par and that at least 25 per centum thereof has been paid in cash, or in Government securities at their par value, or in first mortgages or such other first liens as are de- scribed in section 301 (a) hereof, which mortgages or liens shall be Maturity and amor- tization provisions. Interest. Terms, conditions, and other provisions. Rules and regula- tions. 48 Stat. 1252. 12U. S. C. §1716(d); Supp. III, § 1716(d). National mortgage associations. Establishment au- thorized. Authorized func- tions. Real-estate loans accepted for insur- ance, etc. Proviso. Restriction. Ante, p. 10. Purchase, service, or sale of mortgages insured under Title II. Uninsured first mortgages. Limitation on amount of principal obligation. Issuance of notes, etc. Limitation on trans- action of business. Capital stock re- quirements. 23 52 STAT. ]

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