Page:United States Statutes at Large Volume 86.djvu/597

 86 STAT.]

PUBLIC LAW 92-385-AUG. 16, 1972

555

loss sustained, and (2) in the case of a home, the amount of each monthly payment of principal and interest on the loan after refinancing under this clause shall be not less than the amount of each such payment made prior to such refinancing; " (C) may, in the case of a loan made under clause (A) or a mortgage or other lien refinanced under clause (B) in connection with the destruction of, or substantial damage to, property owned and used as a residence by an individual who by reason of retirement, disability, or other similar circumstances relies for support on survivor, disability, or retirement benefits under a pension, insurance, or other program, consent to the suspension of the payments of the principal of that loan, mortgage, or lien during the lifetime of that individual and his spouse for so long as the Administration determines that making such payments wouJd constitute a substantial hardship; " (D) shall, notwithstanding the provisions of any other law and upon presentation by the applicant of proof of loss or damage or injury and a bona fide estimate of cost of repair, rehabilitation, or replacement, cancel the principal of any loan made to cover a loss or damage or injury resulting from such disaster, except that— " (i) with respect to a loan made in connection with a disaster occurring on or after January 1, 1971 but prior to January 1, 1972, the total amount so canceled shall not exceed $2,500, and the interest on the balance of the loan shall be at a rate of 3 per centum per annum; and "(ii) with respect to a loan made in connection with a disaster occurring on or after January 1, 1972 but prior to July 1, 1973, the total amount so canceled shall not exceed $5,000, and the interest on the balance of the loan shall be at a rate of 1 per centum per annum. With respect to any loan referred to in clause (D) which is outstanding on the date of enactment of this paragraph, the Administrator shall— " (i) make such change in the interest rate on the balance of such loan as is required under that clause effective as of such date of enactment; and "(ii) in applying the limitation set forth in that clause with respect to the total amount of such loan which may be canceled, consider as part of the amount so canceled any part of such loan which was previously canceled pursuant to section 231 of the Post, p. 559. Disaster Belief Act of 1970. "Whoever wrongfully misapplies the proceeds of a loan obtained Penalty. under this subsection shall be civilly liable to the Administrator in an amount equal to one-and-one-half times the original principal amount of the loan." (b) The last paragraph of the amendment made by subsection (a) Effective date. shall apply only with respect to loans made on or after the date of enactment of this Act. (c) Any person who (1) suffers any loss or damage as a result of a Eligibility. major disaster as determined by the President which occurred prior to the date of enactment of this Act, (2) is eligible for assistance under the amendment made by subsection (a), and (3) is otherwise eligible for benefits greater than those provided by the amendment made by subsection (a), may elect to receive such greater benefits. 72 Stat. 389; SEC. 2. (a) Section 7(b) of the Small Business Act is amended— 84 Stat. 1618. (1) by striking out the period at the end of paragraph (6) and 15 USC 636. inserting in lieu thereof "; and"; and (2) by inserting after paragraph (6) a new paragraph as follows:

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