Page:United States Statutes at Large Volume 92 Part 2.djvu/264

 92 STAT. 1544

PUBLIC LAW 95-478—OCT. 18, 1978

is authorized to insure any mortgage which covers a new multipurpose senior center, including equipment to be used in its operation, subject to the following conditions: "(1) The mortgage shall be executed by a mortgagor, approved by the Secretary, who demonstrates ability successfully to operate one or more programs for the elderly. The Secretary may in his discretion require any such mortgagor to be regulated or restricted as to minimum charges and methods of financing, and in addition thereto, if the mortgagor is a corporate entity, as to capital struc; ture and rate of return. As an aid to the regulation or restriction of any mortgagor with respect to any of the foregoing matters, the Secretary may make such contracts with and acquire for not to exceed $100 such stock interest in such mortgagor as he may deem necessary. Any stock or interest so purchased shall be paid for out of the Multipurpose Senior Center Insurance Fund, and shall be ^' ' ^ I. redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance. "(2) The mortgage shall involve a principal obligation in an ' amount not to exceed $250,000 and not to exceed 90 percent of the estimated replacement cost of the property or project, including equipment to be used in the operation of the multipurpose senior center, when the proposed improvements are completed and the equipment is installed. "(3) The mortgage shall—• "(A) provide for complete amortization by periodic payments within such term as the Secretary shall prescribe, and "(B) bear interest (exclusive of premium charges for insurance and service charges, if any) at not to exceed such per centum per annum on the principal obligation outstanding at any time as the Secretary finds necessary to meet the mortgage market. "(4) The Secretary shall not insure any mortgage under this ' section unless he has determined that the center to be covered by the mortgage will be in compliance with minimum standards to be prescribed by the Secretary. "(5) In the plans for such multipurpose senior center, due consideration shall be given to excellence of architecture and design, and to the inclusion of works of art (not representing more than 1 percent of the cost of the project). Mortgage "(e) The Secretary shall fix and collect premium charges for the insurance insurance of mortgages under this section which shall be payable premium charges, annually in advance by the mortgagee, either in cash or in debentures of the Multipurpose Senior Center Insurance Fund issued at par plus accrued interest. In the case of any mortgage such charge shall not / be less than an amount equivalent to one-fourth of 1 percent per annum nor more than an amount equivalent to 1 percent per annum of the amount of the principal obligation of the mortgage outstanding at any one time, without taking into account delinquent payments or prepayments. In addition to the premium charge provided for in this subjection, the Secretary is authorized to charge and collect such amounts as he may deem reasonable for the appraisal of a property or project during acquisition, alteration, or renovation; but such charges for appraisal and inspection shall not aggregate more than 1 percent of the original principal face amount of the mortgage. "(f) The Secretary may consent to the release of a part or parts of the mortgaged property or project froin the lien of any mortgage

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