Page:United States Statutes at Large Volume 63 Part 1.djvu/611

 63 STAT.] 81ST CONG. , 1ST SESS.-CH. 403-AUG. 8, 1949 573 "(c) The Commissioner is authorized to fix a premium charge for Premium charge. the insurance of mortgages under this title but in the case of any mortgage such charge shall not be less than an amount equivalent to one half of 1 per centum per annum nor more than an amount equiva- lent to 1y per centum per annum of the amount of the principal obligation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. Such premium charges shall be payable by the mortgagee, either in cash, or in deben- tures issued by the Commissioner under this title at par plus accrued interest, in such manner as may be prescribed by the Commissioner: Provided,That the Commissioner may require the payment of one or Initialpremium more such premium charges at the time the mortgage is insured, at chargeorcharges such discount rate as he may prescribe not in excess of the interest rate specified in the mortgage. If the Commissioner finds, upon the presen- tation of a mortgage for insurance and the tender of the initial pre- mium charge and such other charges as the Commissioner may require that the mortgage complies with the provisions of this title, such mortgage may be accepted for insurance by indorsement or otherwise as the Commissioner may prescribe. In the event that the principal Adjusted premium obligation of any mortgage accepted for insurance under this title charge is paid in full prior to the maturity date, the Commissioner is further authorized in his discretion to require the payment by the mortgagee of an adjusted premium charge in such amount as the Commissioner determines to be equitable but not in excess of the aggregate amount of the premium charges that the mortgagee would otherwise have been required to pay if the mortgage had continued to be insured under this title until such maturity date; and in the event that the principal Refund of current obligation is paid in full as herein set forth, the Commissioner is charges. authorized to refund to the mortgagee for the account of the mortgagor all, or such portion as he shall determine to be equitable, of the current unearned premium charges theretofore paid. "(d) The failure of the mortgagor to make any payment due under Default;insurance or provided to be paid by the terms of a mortgage insured under this ne title shall be considered a default under such mortgage, and, if such default continues for a period of thirty days, the mortgagee shall be entitled to receive the benefits of the insurance as hereinafter provided, upon assignment, transfer, and delivery to the Commissioner, within a period and in accordance with rules and regulations to be prescribed by the Commissioner of (1) all rights and interest arising under the mortgage so in default; (2) all claims of the mortgagee against the mortgagors or others, arising out of the mortgage transactions; (3) all policies of title or other insurance or surety bonds or other guaran- ties and any and all claims thereunder; (4) any balance of the mort- gage loan not advanced to the mortgagor; (5) any cash or property held by the mortgagee, or to which it is entitled, as deposits made for the account of the mortgagor and which have not been applied in reduction of the principal of the mortgage indebtedness; and (6) all records, documents, books, papers, and accounts relating to the mort- gage transaction. Upon such assignment, transfer, and delivery, the Debentures andcl r- obligation of the mortgagee to pay the premium charges for mortgage c s insurance shall cease, and the Commissioner shall, subject to the cash adjustment provided for in subsection (e) of this section, issue to the mortgagee debentures having a total face value equal to the value of the mortgage, and a certificate of claim as hereinafter provided. For Determination of the purposes of this subsection, the value of the mortgage shall be mageaue determined in accordance with rules and regulations prescribed by the Commissioner, by adding to the amount of the original principal obligation of the mortgage which was unpaid on the date of default,

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