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Loans to educational institutions. 64 Stat. 78. 12 USC 1749.

63 Stat. 426. 42 USC 1402. Low-rent housing. "Going Federal rate'*.

Hawaii. 12 USC 1715d. 63 Stat. 58. 48 USC 484e.

12 USC 1716.

A l a s k a, Guam and Hawaii. 12 USC 1715d.

PUBLIC LAW 9 4 - J U N E 30, 1953

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by adjusting such estimated average annual yield to the nearest one-eighth of one per centum." (b) The third sentence of section 401(a) of the Housing Act of 1950, as amended, is hereby amended to read as follows: "A loan to an educational institution may be in an amount not exceeding the total development cost of the housing, as determined by the Administrator; shall be secured in such manner and be repaid within such period, not exceeding forty years, as may be determined by him; and, with respect to loan contracts entered into after the first minimum annual rate has been specified as provided herein, shall bear interest at a rate determined by the Administrator which shall be not less than the minimum annlial rate which the Secretary of the Treasury shall specify as applicable to the six-month period (beginning with the sixmonth period ending December 31, 1953) during which the contract for the loan is made: Provided, That such minimum annual rate for each six-month period shall be determined by the Secretary of the Treasury by estimating the average yield to maturity, on the basis of daily closing market bid quotations or prices during the month of May or the month of November, as the case may be, next preceding such six-month period, on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May or November, and by adjusting such estimated average annual yield to the nearest one-eighth of one per centum." (c) Section 2, paragraph 10, of the United States Housing Act of 1937, as amended, is hereby amended by inserting after the words '•''Provided, That" the following: ", with respect to any loans or annual contributions made pursuant to a contract approved by the President after the first annual rate has been specified as provided in this proviso, the term 'going Federal rate' means the annual rate of interest which the Secretary of the Treasury shall specify as applicable to the sixmonth period (beginning with the six-month period ending December 31, 1953) during which the contract is approved by the President, which applicable rate for each six-month period shall be determined by the Secretary of the Treasury by estimating the average yield to maturity, on the basis of daily closing market bid quotations or prices during the month of May or the month of November, as the case may be, next preceding such six-month period, on all outstanding marketable obligations of the United States having a maturity date of fifteen or more years from the first day of such month of May or November, and by adjusting such estimated average annual yield to the nearest one-eighth of one per centum: And. provided further. That". SEC. 25. (a) Section 214 of the National Housing Act, as amended, is hereby amended by inserting the words "or Hawaii" after the word "Guam" in each place where it appears therein. (b) Section 2(b) of Public Law 52, Eighty-first Congress, is hereby amended by adding at the end thereof the following new paragraph: "Notwithstanding the provisions of subparagraph (C) of section 301 (a)(1) of the National Housing Act, as amended, any mortgage loans may be offered to the Federal National Mortgage Association for purchase if such loans are secured by property located in Guam or Hawaii, and insured under any of the provisions of the National Housing Act, as amended." (c) Section 214 of the National Housing Act, as amended, is hereby amended— (1) by striking from the last sentence of said section the words "Upon application by the mortgagee," and inserting in lieu thereof the words: "Upon application by the mortgagee (1) where the

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