Page:United States Statutes at Large Volume 62 Part 1.djvu/565

 62 STAT.] 80TH CONG. , 2D SESS.-CH. 551-JUNE 19, 1948 shall be collected simultaneously with the insurance of the mortgage and shall cover the period from the date of loan closing to the date of the first installment payable on the loan; the next and each suc- ceeding charge shall be computed on the outstanding principal obli- gation remaining unpaid after the due date of each installment payable on the loan, and shall be payable on or before the next suc- ceeding due date of an installment of principal and interest. If the principal obligation of the mortgage is paid in full in less than five years after the time when the mortgage was entered into, the Secre- tary may require payment by the mortgagor of the entire annual charge computed for the year then current, and an additional charge equal to the annual charge for such year. The Secretary may modify existing contracts so as to require future payments thereunder in accordance with the provisions of this section." SEC. 4 . Amend subsection (f) of section 12 by striking out sub- sections (2) and (3), and inserting in lieu thereof the following new subsections (2), (3), and (4). "(2) If the mortgagor has failed to pay to the Secretary the full amount of any installment on or before the due date thereof, the Sec- retary shall pay promptly the unpaid amount of such installment of principal and interest to the mortgagee, less the amount of any previous prepayments except payments from proceeds from the voluntary or involuntary sale of any part of the mortgaged property or from royal- ties from leases under which the value of the security is depreciated. "(3) If the mortgagor fails to pay any amounts due for taxes, special assessments, water rates, and other amounts which may become liens prior to the mortgage, and any amounts due for property insurance premiums, such amounts may be paid by the Secretary, either before or after assignment of the insured mortgage to the Secretary, for the account of the mortgagor as provided in paragraph (4) below. "(4) Payments by the Secretary under paragraphs (2) and (3) shall be advanced out of the fund for the account of the mortgagor. Such advances shall be repaid to the fund out of the first available collections received from the mortgagor. Such advances shall bear interest at the rate fixed in the insured mortgage payable out of any subsequent collections, and, until repaid, the advance and interest thereon shall be added to subsequent installments." SEC. 5 . Amend section 12 by adding at the end thereof the follow- ing new subsection (j). "(j) The Secretary is authorized to enter into agreements from time to time with the holder of a mortgage heretofore or hereafter insured under this title that any holder thereof, at the holder's option, shall be entitled, upon assignment of such mortgage to the Secretary within one year after the expiration of a period fixed by such agree- ment, to have the mortgage purchased by the Secretary even though the mortgage is not then in default, provided the initial fixed period shall be not less than five years from the date of the insured mort- gage. Such assignment shall be accomplished in the same manner and the value of such mortgage shall be determined on the same basis as provided by section 13 for mortgages in default. The Secretary may purchase any such mortgage with moneys in the fund and may sell it at its value likewise determined in accordance with section 13 at the time he sells it, and reinsure it, if necessary, or he may retain it for the account of the fund until the indebtedness is discharged through refinancing by the mortgagor, by foreclosure, or otherwise. The value of all such mortgages retained for the fund as herein pro- vided shall not be included in computing the aggregate amount of mortgage obligations that may be insured in any one fiscal year, as provided in section 12 (b). If there should not be sufficient cash in the fund to enable the Secretary to make payments to purchase 535 60 Stat. 1077. 7U.S.C.§1005b(f). Failure of mort- gagor to pay amount due. Failure of mort- gagor to pay special taxes, etc. Advances. 60 Stat. 1076 . 7U.S.C.I100h. Assignment of mort- gage, etc. 60 Stat. 1077. 7 U.. C. 1005c. 60 Stat. 107. 7U.S .C. lOOBb(b).

�