17 1 sured as special risks pursuant to section 102 (c) and (d) 2 of this Act. 3 "(c) The Cooperative Management Housing Insurance 4 Fund, created pursuant to section 213 (k) of the National 5 Housing Act, shall be used by the Secretary as a revolving 6 fund for carrying out both his obligations incurred pursuant to the National Housing Act and his obligations with respect to (1) project mortgages insured under section 501 where 7 8 9 10 the mortgagor is a cooperative, and (2) supplemental project loans insured under section 504 where the Cooperative 11 Management Housing Insurance Fund is obligated for the 12 insurance of the original mortgage or where the original 13 project mortgage covering a cooperative housing project is 14 uninsured. 15 "(d) All premiums, fees, charges, and other income 16 received by the Secretary in connection with the insurance 17 of mortgages or loans shall be credited to the fund obligated 18 for such insurance. All payments made pursuant to claims of 19 mortgages, cash adjustments, the principal of and interest 20 paid on debentures, expenses incurred in connection with 21 the acquisition and disposal of property, nonadministrative 22 and administrative expenses, and all other authorized expend23 itures incurred pursuant to this Act and the National Hous24 ing Act shall be paid out of the fund obligated for such 25 insurance. 18 1 "(e) The Secretary is authorized to borrow from the 2 Treasury from time to time such amounts as the Secretary 3 shall determine are necessary to pay insurance claims in cash, 4 in lieu of issuing debentures. Notes or other obligations issued 5 by the Secretary for amounts borrowed under this subsection 6 shall bear interest at a rate determined by the Secretary of 7 the Treasury, taking into consideration the current average 8 market yield on outstanding marketable obligations of the 9 United States with remaining periods to maturity comparable 10 to the average maturities of such notes or other obligations. 11 "(f) Moneys in an insurance fund not needed for current operations of the fund shall be deposited with the 13 Treasurer of the United States to the credit of the fund or 14 invested in bonds or other obligations of, or in bonds or 15 other obligations guaranteed by, the United States or any 16 agency of the United States. The Secretary, with the 17 approval of the Secretary of the Treasury, may purchase in 18 the open market debentures which are the obligation of the 19 fund. Such purchases shall be made at a price which will 20 provide an investment yield of not less than the yield obtained 21 from other investments authorized by this subsection. Deben22 tures so purchased shall be canceled and not reissued. 12 23 "(g) The Secretary is authorized to advance from one 24 insurance fund to another such amounts as he considers neces25 sary for the administration of the funds. Such advances shall 19 1 be repayable at such times and at such rates of interest as 2 3 4 the Secretary deems appropriate. "(h) There is authorized to be appropriated such sums as may be needed from time to time to cover losses sustained 5 by the Special Risk Insurance Fund. 6 7 "INSURANCE PREMIUMS AND CHARGES "SEC. 202. (a) The Secretary is authorized to fix an 8 insurance premium charge or charges for the insurance of 9 mortgages and loans under this Act. The Secretary may 10 require the payment of any insurance premiums on an 11 advance or a deferred basis. 12 "(b) In the event that the principal obligation of any 13 mortgage or loan insured under title IV or title V is paid in 14 full prior to the maturity date, the Secretary is authorized 15 in his discretion to require the payment by the mortgagee or 16 the lender of an adjusted premium charge in such amount as the Secretary determines to be equitable. Where such pre18 payment occurs, the Secretary is authorized to refund to the 19 mortgagee or the lender for the account of the mortgagor or 20 the borrower all, or such portion as he shall determine to be 21 equitable, of the current unearned insurance premium there22 tofore paid. 23 "(c) The Secretary is authorized to terminate any in24 surance contract upon request by the mortgagor or borrower 25 and the mortgagee or lender. As a condition to terminating 20 1 the insurance, the Secretary may require the payment of a 2 termination charge in such amount as he determines 3 equitable. 4 "(d) The payments specified in subsections (a), (b), 5 and (c) shall be payable by the mortgagee or the lender 6 either in cash or in debentures issued by the Secretary ex7 cept that the insurance premium for loans under title III 8 shall be paid only in cash. The debentures presented for such 9 payment shall represent obligations of the particular insurance fund to which such insurance premium is to be credited. "PROCESSING FEES AND SERVICE CHARGES 10 11 12 "SEC. 203. (a) The Secretary is authorized to charge 13 and collect from the mortgagee or lender such amounts as he 14 may deem reasonable for the processing of a mortgage or 15 loan insurance application and for the appraisal and inspec16 tion of the property or project to be covered by the mortgage 17 to be insured or for other services performed by the Secre18 tary. These fees and charges shall be payable by the mort19 gagee or lender in cash at such time as the Secretary may 20 require. 21 "(b) The Secretary is authorized to include in any 22 mortgage or loan insured under this Act or in any loan made 23 payable to the Secretary a provision requiring the mortgagor 24 or borrower to pay a service charge to the Secretary in the 25 event the mortgage or loan is held by the Secretary. 21 1 2 3 4 "TITLE III-PROPERTY IMPROVEMENT AND MOBILE HOME LOANS "TYPES OF LOANS "SEC. 301. (a) The Secretary is authorized to insure 5 financial institutions against losses which they may sustain 6 as a result of making, advancing credit in connection with, 7 or purchasing property improvement loans, mobile home 8 loans, and historic structure preservation loans meeting the 9 requirements of this title. 10 "(b) The property improvement loans shall be for the 11 purpose of financing alterations, repairs, and improvements 12 upon or in connection with existing structures or mobile 13 homes, and the building of new structures, upon urban, 14 suburban, or rural real property (including the restoration, 15 rehabilitation, rebuilding, and replacement of such improve16 ments which have been damaged or destroyed by earth17 quake, conflagration, tornado, hurricane, cyclone, flood, or 18 other catastrophe), by the owners thereof or by the lessees of 19 such real property or mobile homes under a lease expiring 20 not less than six months after the maturity of the loan or 21 advance of credit. Alterations, repairs and improvements 22 upon or in connection with existing structures may include 23 the provision of fire safety equipment which is designed to 24 reduce the risk of personal injury or property damage result 27-051 O-74-5 |