PUBLIC LAWS-CH. 13-FEB. 3 , 1938 visngibility pro- ("() To be eligible for insurance under this section a mortgage on visions. Maximumamount. any property or project shall involve a principal obligation in an amount not to exceed $5,000,000 and not to exceed 80 per centum of the amount which the Administrator estimates will be the value of the property or project when the proposed improvements are com- pleted, and such part thereof as may be attributable to dwelling use Amortizaton and shall not exceed $1,350 per room, and the mortgage shall provide for complete amortization by periodic payments within such term as the Administrator shall prescribe, and shall bear interest (exclusive of premium charges for insurance) at not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any Releases. time. The Administrator may consent to the release of a part or parts of the mortgaged property from the lien of the mortgage upon such terms and conditions as he may prescribe and the mortgage may Property to be eo- provide for such release. No mortgage shall be accepted for insur- not, py.2. ance under this section or section 210 unless the Administrator finds that the property or project, with respect to which the mortgage is executed, is economically sound. Premium charge. "(d) The Administrator shall collect a premium charge for the insurance of mortgages under this section and section 210 which shall be payable annually in advance by the mortgagee, either in cash or in debentures issued by the Administrator under this title at par plus Appraisalcharge. accrued interest. In addition to the premium charge herein provided for, the Administrator is authorized to charge and collect such amounts as he may deem reasonable for the appraisal of a property or project offered for insurance and for the inspection of such prop- Limitation. erty or project during construction: Provided, That such charges for appraisal and inspection shall not aggregate more than one-half of 1 per centum of the original principal face amount of the mortgage. Adjusted remiu mortgage. charge if oblegation "(e) In the event that the principal obligation of any mortgage paidpriortomaturity. accepted for insurance under this section is paid in full prior to the maturity date, the Administrator is authorized in his discretion to require the payment by the mortgagee of an adjusted premium charge in such amount as the Administrator determines to be equi- table, but not in excess of the aggregate amount of the premium charges that the mortgagee would otherwise have been required to ay if the mortgage had continued to be insured until such maturity date. Funodig Isuane "(f) Thero is hereby created a Housing Insurance Fund (herein Use as revolving referred to as the 'Housing Fund') which shall be used by the Admin- und. istrator as a revolving fund for carrying out the provisions of this pa t 1).22 section and section 210, and the Administrator is hereby directed to transfer immediately to such Housing Fund the sum of $1,000,000 from that part of the Fund now held by him arising from appraisal cheratingeuenses fees heretofore collected by him. General expenses of operations of the Federal Housing Administration under this section and sec- tion 210 may be charged to the Housing Fund. payment deemed dt- "(g) The failure of the mortgagor to make any payment due faultundermortgage. under or provided to be paid by the terms of a mortgage insured under this section shall be considered a default under such mortgage Receiptofinsurane and if such default continues for a period of thirty days, the mort- gee; conditions. gagee shall be entitled to receive the benefits of the insurance as here- inafter provided, upon assignment, transfer, and delivery to the Administrator, within a period and in accordance with rules and regulations to be prescribed by the Administrator of (1) all rights and interests arising under the mortgage so in default; (2) all claims of the mortgagee against the mortgagor or others, arising out of 18 [52 STAT.
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