Page:United States Statutes at Large Volume 83.djvu/427

 83 STAT. ]

PUBLIC LAW 91-152-DEC. 24, 1969

399

with the purchaser, holds the debt instruments evidencing the loans and holds or reinvests payments thereon as trustee and custodian for the purchaser." 79 Stat. 498. (d) Section 517 of such Act is further amended by adding at the 42 USC 1487. end thereof (after subsection (k), as added by subsection (c) of this section) the following new subsection: "(1) The Secretary may also, upon the application of lenders, builders, or sellers and upon compliance with requirements specified by him, make commitments upon such terms and conditions as he shall prescribe to make or insure loans under this section to eligible applicants." (e)(1) Section 517 of such Act is further amended by adding at the end thereof (after subsection (1), as added by subsection (d) of this section) the following new subsection: "(m) The assets and liabilities of, and authorizations applicable to, the Rural Housing Direct Jjoan Account are hereby transferred to the Fund, and such Account is hereby abolished. Such assets and their proceeds, including loans made out of the Fund pursuant to this section, shall be subject to all of the provisions of this section." (2) The first sentence of section 517(d) of such Act is amended— (A) by striking out "(a) and (b) " and inserting in lieu thereof " (a), (b), and (m) "; and (B) by inserting "or otherwise acquired by" after "loans made from". (3) Section 518 of such Act is repealed. 42^^sc'i488. (4) Section 519 of such Act is amended by striking out "or the 42 USC 1489! Rural Housing Direct Loan Account" and "or Account". (f)(1) Title V of such Act is amended by adding at the end thereof 82^stat^553^^' a new section as follows: 42 USC 14711490c. " r i N A N C T A L ASSISTANCE TO N O N r R OF I T ORGANIZATIONS TO PROVIDE SITES FOR RURAL H O U S I N G FOR LOW- AND MODERATE-INCOME F A M I L I E S

"SEC. 524. (a) The Secretary may make loans, on such terms and conditions and in such amounts as he deems necessary, to public or private nonprofit organizations for the acquisition and development of land as building sites to be subdivided and sold to families, nonprofit organizations, and cooperatives eligible for assistance under section 285 or 286 of the National Housing Act or section 521 of this Act. Such a loan shall bear interest at a rate prescribed by the Secretary taking into consideration a rate determined annually by the Secretary of the Treasury as the current average market yield on outstanding marketable obligations of the United States with remaining periods to maituility comparable to the average maturities of such leans, adjusted to the nearest one-eighth of 1 per centum, and shall be repaid within a period not to exceed two years from the making of the loan or within such additional period as may be authorized by the Secretary in any case as being necessary to carry out the purposes of this section. " (b) In determining whether to extend financial assistance under this section, the Secretary shall take into consideration, among other factors, (1) the suitability of the area to the types of dwellings which can feasibly be provided, and (2) the extent to which the assistance will (i) facilitate providing needed decent, safe, and sanitary housing-, (ii) be utilized efficiently and expeditiously, and (iii) fulfill a need in the area which is not otherwise being met through other programs, including those being carried out by other Federal, State, or local agencies."

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