Page:United States Statutes at Large Volume 92 Part 2.djvu/822

 92 STAT. 2102

Effective date. 12 USC 1454 note.

PUBLIC LAW 95-557—OCT. 31, 1978 during periods of borrowing. W i t h respect to any particular type of seller, the Corporation shall not be required to make available programs involving prior approval of mortgages, optional delivery of mortgages, and purchase of other than conventional mortgages to an extent greater than the Corporation elects to make such programs available to other types of eligible sellers. Any requirements specified by the Corporation pursuant to the preceding three sentences must bear a rational relationship to the purposes or provisions of this Act, but will not be considered discriminatory solely on the grounds of differential effects on types of eligible sellers. Insofar as is practicable, the Corporation shall make reasonable efforts to encourage participation in its programs by each type of eligible seller.". (c) The amendments made by this section shall become effective at the end of the two hundred and ten calendar days after enactment of this Act, but not before January 31, 1979, or on such earlier date as the Federal H o m e Loan Mortgage Corporation may prescribe. SALE OF ACQUIRED PROPERTY TO COOPERATIVES

12 USC 1715Z-11.

SEC. 322. Section 246 of the National Housing Act is amended to read as follows: "SALE OF ACQUIRED PROPERTY TO COOPERATIVES

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" SEC. 246. I n any case which the Secretary sells a multifamily housing project acquired as the result of a default on a mortgage which was insured under this Act to a cooperative which will operate it on a nonprofit basis and restrict permanent occupancy of its dwellings to members, or to a nonprofit corporation which operates as a consumer cooperative as defined by the Secretary, the Secretary may accept a purchase money mortgage, or upon application of the mortgagee, insure a mortgage under this section upon such terms and conditions as the Secretary determines are reasonable and appropriate, in a principal amount equal to the value of the property at the time of purchase, which value shall be based upon a mortgage amount on which the debt service can be met from the income of property when operated on a nonprofit basis after payment of all operating expenses, taxes, and required reserves; except that the Secretary may add to the mortgage amount an amount not greater than the amount of prepaid expenses and costs involved in achieving cooperative ownership, or make such other provisions for payment of such expenses and costs as the Secretary deems reasonable and appropriate. P r i o r to such disposition of a project, funds may be expended by the Secretary for necessary repairs and improvements.". SECONDARY MORTGAGES ON INSURED PROPERTIES

12 USC 1731a.

SEC. 323. Title V of the National Housing Act is amended by adding at the end thereof the following new section: u SECONDARY MORTGAGES ON INSURED PROPERTIES

12 USC 1735f-6. 12 USC 1707.

" SEC. 528. I n carrying out the provisions of title II of this Act with respect to insuring mortgages secured by a one- to four-family dwelling unit, the Secretary may not deny such insurance for any such mortgage solely because the dwelling unit which secures such mortgage will be subject to a secondary mortgage or loan made or insured, or other secondary lien held, by any State or local governmental agency or instrumentality under terms and conditions approved by the Secretary.".

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