75TH CONG., 3D SESS.-CH. 13 -FEB. 3, 1938 (A) under a lease for not less than ninety-nine years which is renew- able or (B) under a lease having a period of not less than fifty years to run from the date the mortgage was executed, upon which there is located or upon which there is to be constructed a building or build- ings designed principally for residential use; and the term 'first "First mortgage. " mortgage' means such classes of first liens as are commonly given to secure advances (including but not being limited to advances dur- ing construction) on, or the unpaid purchase price of, real estate under the laws of the State, district, or Territory in which the real estate is located, together with the credit instrument or instruments, if any, secured thereby, and may be in the form of trust mortgages or mortgage indentures or deeds of trust securing notes, bonds, or other credit instruments. "(2) The term 'mortgagee' means the original lender under a mort- "Mortgagee." gage, and its successors and assigns, and includes the holders of credit instruments issued under a trust mortgage or deed of trust pursuant to which such holders act by and through a trustee therein named. "(3) The term 'mortgagor' means the original borrower under a "Mortgagor." mortgage and its successors and assigns. "(4) The term 'maturity date' means the date on which the mort- "Maturity date." gage indebtedness would be extinguished if paid in accordance with the periodic payments provided for in the mortgage. "(5) The term 'slum or blighted area' means any area where dwell- "S lum or blighted ings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals. "(6) The term 'rental housing' means housing, the occupancy of " Rental housing." which is permitted by the owner thereof in consideration of the pay- ment of agreed charges, whether or not, by the terms of the agree- ment, such payment over a period of time will entitle the occupant to the ownership of the premises. "(b) In addition to mortgages insured under section 203, the Additional in- Administrator is authorized to insure mortgages as defined in this certain propery on section (including advances on such mortgages during construction) which cover property held by- "(1) Federal or State, instrumentalities, municipal corporate in- Government instru- strumentalities of one or more States, or limited dividend corpora- mentalities etc. tions formed under and restricted by Federal or State housing laws as to rents, charges, capital structure, rate of return, or methods of operation; or "(2) Private corporations, associations, cooperative societies which Private corpora- are legal agents of owner-occupants, or trusts formed or created for tioTruet. the purpose of rehabilitating slum or blighted areas, or providing housing for rent or sale, and which possess powers necessary therefor and incidental thereto, and which, until the termination of all obli- gations of the Administrator under such insurance, are regulated or Regulation. restricted by the Administrator as to rents or sales, charges, capital structure, rate of return, and methods of operation to such extent and in such manner as to provide reasonable rentals to tenants and a rea- sonable return on the investment. The Administrator may make such Acquisition of stock contracts with, and acquire for not to exceed $100 such stock or inter- by Administrator. est in, any such corporation, association, cooperative society, or trust as he may deem necessary to render effective such restriction or regu- lation. Such stock or interest shall be paid for out of such Housing Redemption by cor- Fund, and shall be redeemed by the corporation, association, cooper- pora et ative society, or trust at par upon the termination of all obligations of the Administrator under the insurance. 36525°-38 2 17 52 STAT.
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