Page:United States Statutes at Large Volume 62 Part 1.djvu/1237

 62 STAT.] 80rH CONG., 2D SESS.-CH. 784--JULY 1, 1948 National Housing Act, as amended, is hereby amended to read as follows: "TITLE III-FEDERAL NATIONAL MORTGAGE ASSOCIATION "CREATION AND POWERS OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION "SEC. 301. (a) The Administrator is further authorized and empow- ered to provide for the establishment of a Federal National Mortgage Association (hereinafter referred to as the "Association") which shall be authorized, subject to such rules and regulations as may be pre- scribed by the Association- "(1) to purchase, service, or sell any mortgages, which are insured after April 30, 1948, under section 203 or section 603 of this Act, or guaranteed under section 501, 502, or 505 (a) of the Servicemen's Readjustment Act of 1944, as amended: Provided, however, That- "(A) no mortgage shall be offered to the Association for purchase by, or if it covers property held by, Federal, State, or municipal instrumentalities; "(B) no mortgage may be purchased for an amount exceed- ing the unpaid principal balance thereof, plus accrued interest, at the time of purchase; "(C) no mortgage shall be offered to the Association for purchase if the original principal obligation of the loan exceeds or exceeded $10,000 for each family residence or dwell- ing unit covered by the mortgage or other lien securing the loan; "(D) no mortgage shall be offered to the Association for purchase unless offered by the original mortgagee prior to any other sale thereof; "(E) no mortgage shall be offered to the Association for purchase by any one mortgagee (1) unless such mortgage is secured by property used, or designed to be used, for resi- dential purposes and (2) if the unpaid principal balance thereof, when added to the aggregate amount paid for all mortgages purchased by the Association from such mortgagee pursuant to authority contained herein, exceeds 25 per centum of the original principal amount of all mortgages made by such mortgagee which, except for this subparagraph (E), meet the requirements of this section. "(F) no mortgage shall be purchased by the Association unless the mortgagee certifies that the housing with respect to which the mortgage was made meets the construction stand- ards prescribed for insurance of mortgages on the same class of housing under the National Housing Act, as amended. "(2) to borrow money for any of the foregoing purposes through the issuance of notes or other such obligations as hereinafter provided. "(b) The Federal National Mortgage Association, a subsidiary of the Reconstruction Finance Corporation and established pursuant to the provisions of this title as in effect prior to June 1, 1948, shall be the Association referred to in subsection (a) of this section. The Board of Directors of the Association shall consist of not less than five persons to be appointed by the Chairman of the Board of Directors of the Reconstruction Finance Corporation, or the Acting Chairman in the case of a vacancy in the office of Chairman, from the Directors, officers, or employees of such Corporation and the officers shall be appointed by the Board of Directors from the Directors, officers, or employees of the Reconstruction Finance Corporation. 1207 48 Stat. 1252 . 12 U.S.. C. §§ 1716- 1723. Post, p. 1275. Purchase, etc., of mortgages; conditions. Post, p. 1275. 48 Stat. 1248; 55 Stat. 56. 12U.s. . § 1709, 1738; Supp. I, § 1738. Ante, p. 101; post, pp. 1272, 1273 , 1268. 68 Stat. 292, 293. 38U.8.C.§694a, 694b, 6946 (a). Pot, p. 1276 Borrowing of maw ey. Board of directos.

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