Page:United States Statutes at Large Volume 62 Part 1.djvu/1299

 62 STAT.] 80TH CONG. , 2 D SESS.-CH. 832 -AUG. 10, 1948 (b) Section 608 (b) (3) (B) is amended by striking out the semi- colon and the word "and" at the end of the first proviso and inserting in lieu thereof a colon and the following: "And provided further, That the principal obligation of the mortgage shall not, in any event, exceed 90 per centum of the Administrator s estimate of the replace- ment cost of the property or project on the basis of the costs prevailing on December 31, 1947, for properties or projects of comparable quality in the locality where such property or project is to be located; and". (c) Section 608 (b) (3) (C) is amended- (1) By striking out "$1,500 per room" and inserting in lieu thereof "$8,100 per family unit"; and (2) By striking out the colon and the proviso and inserting in lieu thereof a period. (d) Section 609 is amended- (1) By striking out all of paragraph (1) of subsection (b) and inserting in lieu thereof the following: "(1) The manufacturer shall establish that binding purchase contracts have been executed satisfactory to the Administrator providing for the purchase and delivery of the houses to be manufactured, which contracts shall provide for the payment of the purchase price at such time as may be agreed to by the parties thereto, but, in no event, shall the purchase price be payable on a date in excess of thirty days after the date of delivery of such houses, unless not less than 20 per centum of such purchase price is paid on or before the date of delivery and the lender has accepted and discounted or has agreed to accept and discount, pursuant to subsection (i) of this section a promissory note or notes, executed by the purchaser, representing the unpaid portion of such purchase price, in which event such unpaid portion of the purchase price may be payable on a date not in excess of one hundred and eighty days from the date of delivery of such houses;". (2) By striking out the first and second sentences of paragraph (4) of subsection (b) and inserting in lieu thereof the following: "The loan shall involve a principal obligation in an amount not to exceed 90 per centum of the amoiuit which the Adinilis- trator estimates will be the necessary current cost, exclusive of profit, of manufacturing the houses, which are the subject of such purchase contracts assigned to secure the loan, less any sums paid by the purchaser under said purchase contracts prior to the assign- ment thereof. The loan shall be secured by an assignment of the aforesaid purchase contracts and of all sums payable thereunder on or after the date of such assignment, with the right in the assignee to proceed against such security in case of default as provided in the assignment, which assignment shall be in such form and contain such terms and conditions, as may be prescribed by the Administrator; and the Administrator may require such other agreements and undertakings to further secure the loan as he may determine, including the right, in case of default or at any time necessary to protect the lender, to compel delivery to the lender of any houses then owned and in the possession of the borrower." (3) By adding at the end of subsection (f) the following new sen- tence: "The provisions of section 603 (d) shall also be applicable to loans insured under this section and the reference in said section 603 (d) to a mortgage shall be construed to include a loan or loans with respect to which a contract of insurance is issued pursuant to this section." 1269 56 Stat. 303. 12U.S.C.§1743 (b) (3) (B). Principal obliga- tion. 56 Stat. 303; 60 Stat. 214. 12U. S. c. §1743 (b) (3) (C). 61 Stat. 193. 12U. .C., Supp.I, §1744 (b) (1). Purchase contracts. Post, p. 1270. 61 Stat. 194. 12U.S.C.Supp 1, I 1744 (h) (4). Ioans for mantu facture of hous.la. 61 Stat. 194 . 12 U. S. C., Snpp. I, § 1744 (f). 65 Stat. 58. 12 U. S. C. 1738 (d).

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