Page:United States Statutes at Large Volume 56 Part 1.djvu/331

 77TH CONG. , 2u SESS.-CH. 319-MAY 26, 1942 SEC. 9. Section 605 (a) of such Act, as amended, is hereby amended by striking out "section 604" in the second sentence and inserting in lieu thereof the words "this title". SEC. 10. Section 212 of such Act, as amended, is hereby amended by inserting after the word "title" the following: "or under section 608 of title VI". SEC. 11. Title VI of the National Housing Act, as amended, is hereby further amended by adding the following new section at the end thereof: "SEC. 608. (a) In addition to mortgages insured under section 603 of this title, the Administrator is authorized to insure mortgages as defined in section 601 of this title (including advances on such mort- gages during construction) which are eligible for insurance as here- inafter provided. "(b) To be eligible for insurance under this section a mortgage shall meet the following conditions: "(1) The mortgaged property shall be held by a mortgagor approved by the Administrator. The Administrator may, in his dis- cretion, require such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation. The Administrator may make such contracts with, and acquire for not to exceed $100 stock or interest in any such mortgagor, as the Administrator may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the War Housing Insurance Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Administrator under the insurance. "(2) The mortgaged property shall be designed for rent for resi- dential use by war workers. "(3) The mortgage shall involve a principal obligation in an amount- "(A) not to exceed $5,000,000; and "(B) not to exceed 90 per centum of the amount which the Administrator estimates will be the reasonable replacement cost of the completed property or project, including the land: the proposed physical improvements; utilities within the boundaries of the property or project; architects' fees; taxes and interest accruing during construction; and other miscellaneous charges incidental to construction and approved by the Administrator: Provided, That such mortgage shall not in any event exceed the amount which the Administrator estinates will be the cost of the completed physical improvements on the property or project, exclusive of off-site public utilities and streets, and organization and legal expenses; and "(C) not to exceed $1,350 per room for such part of such property or project as may be attributable to dwelling use. The mortgage shall provide for complete amortization by periodic payment within such term as the Administrator shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 41/2 per centum per annum on the amount of the prin- cipal obligation outstanding at any time. The Administrator may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may prescribe and the mortgage may provide for such release. '(c) The failure of the mortgagor to make any payment due under or provided to be paid by the terms of a mortgage insured under this section shall be considered a default under such mortgage, and if such default continues for a period of thirty days, the mortgagee shall be entitled to receive the benefits of the insurance as hereinafter 55 Stat. 61 . 12 U.S. C., Supp. I, 1740 (a). 53 Stat. 807. 12U.S.C.§1715c. 55 Stat. 55-61. 12 U.S. C., Supp. I, § 1736-1742. Insurance of addi- tional eligible mort- gages. Eligibility require- ments. Approval of mort- gagor by Adminis- trator. Regulations, etc. Use of property. Limitations on amount of principal obligation. Proviso. Amortization and interest. Partial release from lien. Default. Assignment, trans- fer, and delivery of all rights, etc. 56 STAT.] 303

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