Page:United States Statutes at Large Volume 62 Part 1.djvu/1300

 PUBLIC LAWS-CH. 832-AUG. 10, 1948 61 Stat. 193. 12 U. S. C., Supp. I, § 1744. Insurance of lender against loss. Promissory notes, terms. Default. 61 Stat. 194. 12 U. S. C., Supp. I, § 1744 (d). Debentures. 55 Stat. 59. 12U.S8 .C. 1739(d). Premium charge. 61 Stat. 777 . 12 U. 8. C., Supp. I, § 1745. Sale of Greenbelt towns, etc. 49 sta. ll (4) By adding at the end thereof the following new subsection: "(i) (1) In addition to the insurance of the principal loan to finance the manufacture of housing, as provided in this section, and in order to provide short-term financing in the sale of houses to be delivered pursuant to the purchase contract or contracts assigned as security for such principal loan, the Administrator is authorized, under such terms and conditions and subject to such limitations as he may prescribe, to insure the lender against any losses it may sustain resulting from the acceptance and dis- count of a promissory note or notes executed by a purchaser of any such houses representing an unpaid portion of the purchase price of any such houses. No such promissory note or notes accepted and discounted by the lender pursuant to this subsec- tion shall involve a principal obligation in excess of 80 per centum of the purchase price of the manufactured house or houses; have a maturity in excess of one hundred and eighty days from the date of the note or bear interest in excess of 4 per centum per annum; nor may the principal amount of such prom- issory notes, with respect to any individual principal loan, out- standing and unpaid at any one time, exceed in the aggregate an amount prescribed by the Administrator. "(2) The Administrator is authorized to include in any con- tract of insurance executed by him with respect to the insurance of a loan to finance the manufacture of houses, provisions to effec- tuate the insurance against any such losses under this subsection. "(3) The failure of the purchaser to make any payment due under or provided to be paid by the terms of any note or notes executed by the purchaser and accepted and discounted by the lender under the provisions of this subsection, shall be consid- ered as a default under this subsection, and if such default con- tinues for a period of thirty days, the lender shall be entitled to receive the benefits of the insurance, as provided in subsection (d) of this section except that debentures issued pursuant to this subsection shall have a face value equal to the unpaid prin- cipal balance of the loan plus interest at the rate of 4 per centum per annum from the date of default to the date the application is filed for the insurance benefits. "(4) Debentures issued with respect to the insurance granted under this subsection shall be issued in accordance with the pro- visions of section 604 (d) except that such debentures shall be dated as of the date application is filed for the insurance benefits and shall bear interest from such date. "(5) The Administrator is authorized to fix a premium charge for the insurance granted under this subsection, in addition to the premium charge authorized under subsection (h) of this section. Such premium charge shall not exceed an amount equiv- alent to 1 per centum of the original principal of such promissory note or notes and shall be paid at such time and in such manner as may be prescribed by the Administrator." (e) Section 610 is amended by adding at the end thereof the follow- ing new paragraph: "The Administrator is further authorized to insure or to make com- mitments to insure in accordance with the provisions of this section any mortgage executed in connection with the sale by the Government, or any agency or official thereof, of any of the so-called Greenbelt towns, or parts thereof, including projects, or parts thereof, known as Greenhills, Ohio; Greenbelt, Maryland; and Greendale, Wisconsin, developed under the Emergency Relief Appropriation Act of 1935, or of any of the village properties under the jurisdiction of the Tennessee Valley Authority, and any mortgage executed in connection with the 1270 [62 STAT.

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