Page:United States Statutes at Large Volume 60 Part 1.djvu/1105

 1078 PUBLIC LAWS-CH. 964-AUG. 14, 1946 property; (4) any balance of the mortgage loan not advanced to the mortgagor; and (5) any cash or property held by the mortgagee, or to which he is entitled, as deposit made for the account of the mort- gagor and which has not been applied in reduction of the principal of the mortgage indebtedness; and upon transfer to the Secretary of such originals or copies of records, documents, books, papers and accounts relating to the mortgage transaction, as the Secretary pre- Payment to mort- scribes. Upon such assignment and transfer, the Secretary shall pay gage. to the mortgagee, in cash, an amount equal to the value of the mortgage and the note and mortgage shall thereupon become a part of the fund. Determination of For the purposes of this subsection, the value of the mortgage shall value of mortgage be determined, in accordance with rules and regulations prescribed by the Secretary, by adding to the amount of the original principal obligation of the mortgage which was unpaid on the date of default, the amount of all unpaid interest and the amount of all payments which have been made by the mortgagee for taxes, special assessments, water rates, and other payments in discharge of liens which are prior to the mortgage, and insurance on the property mortgaged, and by deducting from such total amount any amount received on account of the mortgage indebtedness after such default. ssuan of notes for "(b) If there should not be sufficient cash in the fund to enable the payments, et. Secretary to make payments to mortgagees as provided in subsection (a) of this section, the Secretary may make and issue notes to the Secretary of the Treasury to obtain funds to make such payments. Such notes shall be signed by the Secretary or by his duly authorized representatives and shall be negotiable. Such notes shall bear inter- est, payable semiannually, at a rate equal to the average rate of inter- est, computed to the end of the calendar month next preceding the date of issue, borne by all interest bearing obligations of the United States then forming a part of the public debt, and shall have such maturities as the Secretary may determine with the approval of the Secretary of the Treasury. Purchase of notes "(c) The Secretary of the Treasury is athorized to purchase an annotes issued b the Secretary pursuant to this section and any renewals thereof and for such purchases may use as a public debt transaction the proceeds from the sale of any securities issued under the Second 31 Suat. . 774(2 Liberty Bond Act, as amended, and the purposes for which such secu- Supp. V, 754a rities may be issued under such Act, as amended, are hereby extended Ante, p. 316 . to include any such purchases. All redemptions, purchases and sales by the Secretary of the Treasury of such notes shalf be treated as public debt transactions of the United States. atoby mort-In any case in which the mortgagor violates any covenant or condition of his mortgage, the Secretary may require the mortgagee to assign such mortgage, together with the incidents thereto, upon pay- ment of the value of the mortgage determined in accordance with this section. "PROCEDURE WITH RESPECT TO MORTOAGES I DEFAULT Foreclosure. Agreement provid- ing for defaulted pay- ments. "SEc. 14 . (a) Upon accepting the assignment of any insured mort- gage, the Secretary shall ascertain whether or not the mortgagor (which term as used in this section shall include the mortgagor or lis heirs or assigns) desires to remain in possession of the mortgaged property. If the mortgagor does not desire to remain in possession of the mortgaged property or if the Secretary is unable to make the findings prescribed by the next sentence, the Secretary may proceed to foreclose the mortgage. If the mortgagor desires to remain in possession of the mortgaged property and if the Secretary finds that the mortgagor (1) has made reasonable efforts to meet all defaulted payments and to comply with the other covenants and conditions of [60 STAT.

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