Page:United States Statutes at Large Volume 68 Part 1.djvu/635

 68

STAT.]

PUBLIC LAW 560-AUG. 2, 1954

603

" (h) There is hereby created a Section 221 Housing Insurance Fund Housing* in°siS-anci which shall be used by the Commissioner as a revolving fund for carry- Fmid ing out the provisions of this section, and the Commissioner is hereby Creation. authorized to transfer to such Fund the sum of $1,000,000 from the W a r Housing Insurance F u n d established pursuant to the provisions of section 602 of this Act. General expenses of operation of the 12 USC 1737. Federal Housing Administration under this section may be charged to the Section 221 Housing Insurance Fund. "Moneys in the Section 221 Housing Insurance Fund not needed for the current operations of the Federal Housing Administration under this section shall be deposited with the Treasurer of the United States to the credit of such Fund, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States. The Commissioner may, with the approval of the Secretary of the Treasury, purchase in the open market debentures issued under the provisions of this section. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures so purchased shall be canceled and not reissued. "Premium charges, adjusted premium charges, and appraisal and other fees received on account of the insurance of any mortgage accepted for insurance under this section, the receipts derived from the property covered by such mortgage and claims assigned to the Commissioner in connection therewith shall be credited to the Section 221 Housing Insurance Fund. The principal of, and interest paid and to be paid on, debentures issued under this section, cash adjustments, and expenses incurred in the handling, management, renovation, and disposal of properties acquired under this section shall be charged to such Fund." SEC. 124. Title II of said Act, as amended, is further amended by adding at the end thereof the following new section: MORTGAGE INSURANCE FOR SERVICEMEN

"SEC. 222. (a) The purpose of this section is to aid in the provision Purpose, of housing accommodations for servicemen in the Armed Forces of the United States and their families, and servicemen in the United States Coast Guard and their families, by supplementing the insurance of mortgages under section 203 of this title with a system of mortgage 12 USC 1709. insurance specially designed to assist the financing required for the construction or purchase of dwellings by those persons. As used in this section, a 'serviceman' means a person to whom the Secretary of Definition. Defense (or any officer or employee designated by him), or the Secretary of the Treasury (or any officer or employee designated by h i m), as the case may be, has issued a certificate hereunder indicating that such person requires housing, is serving on active duty in the Armed Forces of the United States or in the United States Coast Guard and has served on active duty for more than two years, but a certificate shall not be issued hereunder to any person ordered to active duty for training purposes only. The Secretary of Defense and the Secretary of the Treasury, respectively, are authorized to prescribe rules and regulations governing the issuance of such certificates and may withhold issuance of more than one such certificate to a serviceman whenever in his discretion issuance is not justified due to circumstances resulting from military assignment, or, in the case of the United States Coast Guard, other assignment. 12 USC 1709. "(b) In addition to mortgages insured under section 203, the Com- Additional mortmissioner may, for the purpose of this section, insure any mortgage gayest under this section which would be eligible for insurance under section

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