Page:United States Statutes at Large Volume 82.djvu/557

 82 STAT. ]

PUBLIC LAW 90-448-AUG. 1, 1968

515

(3) be issued to finance a program of land development (including acquisition or use of land) approved by the Secretary: Provided, That the Secretary shall, through cost certification procedures, escrow or trusteeship requirements, or other means, insure that all proceeds from the sale of obligations guaranteed under this title are expended pursuant to such program; (4) involve a principal obligation in an amount not to exceed the lesser of (A) 80 per centum of the Secretary's estimate of the value of the property upon completion of the land development or (B) the sum of 75 per centum of the Secretary's estimate of the value of the land before development and 90 per centum of his estimate of the actual cost of the land development; (5) bear interest at a rate satisfactory to the Secretary, such interest to be exclusive of any service charges and fees that may be approved by the Secretary; (6) contain repayment and maturity provisions satisfactory to the Secretary; and (7) contain provisions which the Secretary shall prescribe with respect to the protection of the security interests of the United States (includnig subrogation provisions), liens and releases of liens, payment of taxes, and such other matters as the Secretary may, in his discretion, prescribe. (b) The outstanding principal obligations guaranteed under this title with respect to a single new community development project shall at no time exceed $50,000,000. F E E S A N D CHARGES

SEC. 406. The Secretary is authorized to establish and collect fees for guarantees made under this title and may make such charges as he considers reasonable for the analysis of development and financing plans and for appraisals and inspections related to new community development projects. On or before January 1, 1970, the Secretary ^^^1°^^'° *^°"' shall make a report to the Congress concerning the fees and other gress. charges under this title that he estimates will be adequate to provide income sufficient for a self-supporting program. GUARANTEE

FUND

SEC. 407. (a) To provide for the payment of any liabilities incurred as a result of guarantees made under this title, the Secretary is authorized to establish a revolving fund which shall be comprised of (1) receipts from fees and charges; (2) recoveries under security or subrogation rights or other rights, and any other receipts obtained in connection with such guarantees; and (3) such sums, which are hereby authorized to be appropriated, as may be required for program operations and nonadministrative expenses and to make any and all payments guaranteed under this title. (b) The full faith and credit of the United States is pledged to the payment of all guarantees made under this title with respect to both principal and interest, including (1) interest, as may be provided for in the guarantee, accruing between the date of default under a guaranteed obligation and the payment in full of the guarantee, and (2) principal and interest due under any debentures issued by the Secretary toward payment of guarantees made under this title. (c) Notwithstanding any other provision of law relating to the acquisition, handling, improvement, or disposal of real and other I)roperty by the United States, the Secretary shall have power, for the protection of the interests of the guarantee fund authorized under this section, to pay out of such fund all expenses or charges in con-

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