Page:United States Statutes at Large Volume 63 Part 1.djvu/610

 PUBLIC LAWS-CH. 403-AUG. 8, 1949 title after July 1, 1951, except (A) pursuant to a commitment to insure issued on or before such date, or (B) a mortgage given to refinance an existing mortgage insured under this title and which does not exceed the original principal amount and unexpired term of such existing mortgage. mEigibility require- "(b) To be eligible for insurance under this title a mortgage shall meet the following conditions: Restritions,etc., on "(1) The mortgaged property shall be held by a mortgagor approved by the Commissioner. The Commissioner may, in his dis- cretion, require such mortgagor to be regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation. The Commissioner may make such contracts with, and acquire for not to exceed $100 stock or interest in, any such mortgagor, as the Commissioner may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the Military Housing Insurance Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Commissioner under the insurance. Use of property. "(2) The mortgaged property shall be designed for rent for resi- dential use by civilian or military personnel of the Army, Navy, Marine Corps, or Air Force (including Government contractors' employees) assigned to duty at the military installation at or in the area of which such property is constructed. Notwithstanding the provisions of any other law, preference or priority of opportunity in the occupancy of the mortgaged property for such personnel and their immediate families shall be provided under such regulations and pro- Certifleation bySec- cedures as may be prescribed by the Commissioner. No mortgage shall be insured under this title unless the Secretary of Defense or his designee shall have certified to the Commissioner that the housing with respect to which the mortgage is made is necessary to provide adequate housing for such personnel, that such installation is deemed to be a permanent part of the Military Establishment, and that there is no present intention to substantially curtail activities at such installation. obligantofp'in.p "(3) The mortgage shall involve a principal obligation in an amount- "(A) not to exceed $5,000,000; and "(B) not to exceed 90 per centum of the amount which the Commissioner estimates will be the replacement cost of the property or project when the proposed improvements are com- pleted; and "(C) not to exceed an average of $8,100 per family unit for such part of such property or project as may be attributable to dwelling use, except that where the Secretary of Defense or his designee in exceptional cases certifies and the Commissioner con- curs in such certification that the needs would be better served by single-family detached dwelling units the mortgage may involve a principal obligation not to exceed $9,000 per family unit for such part of such property as may be attributable to such dwelling units. The mortgage shall provide for complete amortization by periodic Interest. payment within such terms as the Commissioner shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4 per centum per annum of the amount of the principal obligation outstanding at any time. The Commissioner mav consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may pre- scribe and the mortgage may provide for such release. 572 [63 STAT.

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