Page:United States Statutes at Large Volume 65.djvu/336

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Physical improvements. Certification and payment.

"Actual cost."

Amortization and interest.

Partial release from lien.

Receipt of debentures by mortgagee. 12 U.S.C. § 1713.

Certificate of claim.

Issuance of debentures. Ante, p. 298.

Applicability of designated provisions.

PUBLIC LAW 139—SEPT. 1, 1951

[65 STAT.

" (C) not to exceed $8,100 per family unit (or $7,200 per family unit if the number of rooms in such property or project does not equal or exceed four per family unit) for such part of such property or project as may be attributable to dwelling use: Provided, That the Commissioner may by regulation increase such dollar amount limitations by not exceeding $900 in any geographical area where he finds that cost levels so require. "(3) The mortgagor shall agree (i) to certify, upon completion of the physical improvements on the mortgaged property or project and prior to final endorsement of the mortgage, either (a) that the amount of the actual cost of said physical improvements (exclusive of off-site public utilities and streets and of organization and legal expenses) equaled or exceeded the proceeds of the mortgage loan or (b) the amount by which the proceeds of the mortgage loan exceeded the actual cost of said physical improvements (exclusive of off-site public utilities and streets and of organization and legal expenses), as the case may be, and (ii) to pay, within sixty days after such certification, to the mortgagee, for application to the reduction of the principal obligation of such mortgage, the amount, if any, so certified to be in excess of such actual cost. The Commissioner shall construe the term 'actual cost' in such a manner as to reduce same by the amount of any kick-backs, rebates, and normal trade discounts received in connection with the construction of the said physical improvements, and to include only the actual amounts paid for labor and materials and necessary services in connection therewith. "The mortgage shall provide for complete amortization by periodic payments within such term as the Commissioner shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 4 per centum per annum on the amount of the principal obligation outstanding at any time. The Commissioner may 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 prescribe and the mortgage may provide for such release. "(c) The mortgagee shall be entitled to receive debentures in connection with mortgages insured under this section in the amount and under the conditions specified in subsection (g) of section 207 of this Act, and the references in said subsection (g) to the cash adjustment provided for in subsection (j) of section 207 and to the certificate of claim provided for in subsection (h) of section 207 shall be deemed to refer respectively to the cash adjustment provided for in subsection (c) of section 904 of this Act and to the certificate of claim provided for in subsection (d) of this section. " (d) The certificate of claim issued by the Commissioner to any mortgagee under this section shall be for an amount determined in accordance with, and shall contain provisions and shall be paid in accordance with, the provisions of section 207(h) of this Act, except that the reference in section 207(h) to 'the Housing Insurance Fund' shall be deemed for the purposes of this section to be a reference to the National Defense Housing Insurance Fund. "(e) Debentures issued under this section shall be issued in accordance with the provisions of section 904(c) and (d) except that such debentures shall be dated as of the date of default as determined in subsection (c) of this section, and shall bear interest from such date. "(f) The provisions of section 207(k) and section 207(1) of this Act shall be applicable to mortgages insured under this section and to property acquired by the Commissioner hereunder, except that as applied to such mortgages and property (1) all references in such sections 207 (k) and 207 (1) to the 'Housing Fund' shall be construed to refer to the National Defense Housing Insurance Fund, and (2) the reference therein to 'subsection (g) ' shall be construed to refer to subsection (c) of this section.

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