Page:United States Statutes at Large Volume 72 Part 1.djvu/115

 72

STAT.]

PUBLIC LAW 85-364-APR. 1, 1958

75

" (d)(1) Loans made under this section shall bear interest at a rate interest rate, determined by the Administrator, not to exceed the rate authorized for guaranteed home loans, and shall be subject to such requirements or limitations prescribed for loans guaranteed under this title as may be applicable. "(2) The original principal amount of any loan made under this Loan amount. section shall not exceed an amount which bears the same ratio to $13,500 as the amount of guaranty to which the veteran is entitled under section 501 at the time the loan is made bears to $7,500; and the 38 USC 694a. guaranty entitlement of any veteran who heretofore or hereafter has been granted a loan under this section shall be charged with an amount which bears the same ratio to $7,500 as the amount of the loan bears to $13,500. "(3) I n connection with any loan under this section, the Admin- Inrproveme:nts. Cash advances. istrator is authorized to make advances in cash to pay the taxes and assessments on the real estate, to provide for the purpose of making repairs, alterations, and improvements, and to meet the incidental expenses of the transaction. The Administrator shall determine the expenses incident to origination of loans made under this section, which expenses, or a reasonable flat allowance in lieu thereof, shall be paid by the veteran in addition to the loan closing costs. "(4) Loans made under this section shall be repaid in monthly Installments. installments; except that in the case of loans made for any of the purposes described in paragraph (2), (3), or (4) of subsection (b), the Administrator may provide that such loans shall be repaid in quarterly, semiannual, or annual installments. "(5) The Administrator may sell, and shall offer for sale, to any Guaranty. person or entity approved for such purpose by him, any loan made under this section at a price not less than p a r; that is, the unpaid balance plus accrued interest, and shall guarantee any loan thus sold subject to the same conditions, terms, and limitations which would be applicable were the loan guaranteed under section 501 of this title. 38 USC 694a. "(6) No veteran may obtain loans under this section aggregating Limitation. more than $13,500. "(e)(1) If any builder or sponsor proposes to construct one or more Conrmitments. dwellings in a housing credit shortage area, the Administrator may enter Into conmiitment with such builder or sponsor, under which funds available for loans under this section will be reserved for a period not in excess of three months, or such longer period as the Administrator may authorize to meet the needs in any particular case, for the purpose of making loans to veterans to purchase such dwellings. Such commitment may not be assigned or transferred except with the written approval of the Administrator. The Administrator F e e. shall not enter into any such commitment unless such builder or. sponsor pays a nonrefundable commitment fee to the Administrator in an amount determined by the Administrator, not to exceed 2 per centum of the funds reserved for such builder or sponsor. Post, p. 1274. " (2) Whenever the Administrator finds that a dwelling with respect Maximum a d to which funds are being reserved under this subsection has been sold, vancel^ or contracted to be sold, to a veteran eligible for a direct loan under this section, the Administrator shall enter into a commitment to make the veteran a loan for the purchase of such dwelling. With respect to any loan made to an eligible veteran under this subsection, the Administrator may make advances during the construction of the dwelling, up to a maximum in advances of (A) the cost of the land plus (B) 80 per centum of the value of the construction in place.

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