Page:United States Statutes at Large Volume 94 Part 2.djvu/378

 94 STAT. 1656

12 USC 1709.

12 USC 1702.

PUBLIC LAW 96-399—OCT. 8, 1980

section, but in no event shall such rate exceed the lesser of (i) IVz per centum, or (ii) the rate set by the Secretary applicable to mortgages insured under section 203(b) of the National Housing Act" and inserting in lieu thereof the following: "such mortgage involves an interest rate which the Secretary may prescribe which shall be as high as feasible consistent with meeting the objectives of this section at the lowest feasible cost, but if such mortgage is executed to finance the acquisition of a one-to-four family residence, it may not bear interest at a rate lower than 3 percentage points below the average contract commitment rate for single family, thirty-year conventional mortgages with loanto-value ratios of 90 per centum in the monthly survey of all major lenders conducted by the Federal Home Loan Bank Board which is most recently available at the time that funds are released, and if such mortgage is executed to finance the acquisition of a more than four-family residence, it may not bear interest at a rate lower than AV2 percentage points below such average contract commitment rate '; (8) by striking out all that follows "such mortgage involves a principal residence the sales price of which does not exceed" in clause (D) of the second sentence of subsection Qj) and inserting in lieu thereof the following: "92 per centum of the applicable maximum principal obligation which may be insured in the area under section 20303)."; (9) by adding the following new sentence at the end of subsection 0?): "A security may be purchased under this section only if all of the loans or advances of credit backing such security (i) finance the purchase of manufactured homes and lots, or manufactured homes, which will be the principal residences of the borrowers, and (ii) involve an interest rate which the Secretary may prescribe which shall be as high as feasible consistent with meeting the objectives of this section at the lowest feasible cost, but in no event shall such rate be lower than 3 percentage points below the rate set by the Secretary and applicable to loans and advances of credit insured under title I of the National Housing Act."; (10) by inserting "or securities" after "mortgages" the first time it appears in subsection (d)(2); (11) by striking out "enactment of this section" in subsection (e) and inserting in lieu thereof "the issuance of the commitment to purchase the mortgage"; (12) by inserting 'Nor securities" after "mortgages" in subsection (f)(D; (13) in subsection (h)— (A) by inserting "and" at the end of clause (3); (B) by striking out paragraph (4); and (C) by redesignating paragraph (5) as paragraph (4); and (14) by adding at the end thereof the following new subsections: "(i) The Association may not purchase under this section any mortgage or loan which was executed or made (1) to finance the conversion of an existing rental housing project into a condominium or cooperative project, or (2) to finance the purchase of an individual unit in a condominium project or the purchase of a share in a cooperative project, in connection with such a conversion. Q) In carrying out the provisions of this section, the Association shall, to the extent practicable, purchase mortgages secured by dwelling units which contribute to the conservation of land and energy resources.".

�