53 STAT.] 76TH CONG., 1 ST SESS.-CH. 175-JUNE 3, 1939 such loan, advance of credit, or purchase by it (1) if the amount of such loan, advance of credit, or purchase exceeds $2,500; (2) if such obligation has a maturity in excess of three years and thirty-two days, unless such loan, advance of credit, or purchase is for the pur- pose of financing the construction of a new structure for use in whole or in part for residential or agricultural purposes; or (3) unless the obligation bears such interest, has such maturity, and contains such other terms, conditions, and restrictions as the Administrator shall prescribe in order to make credit available for the purposes of this title." SEC. 2 . Section 2 of such Act, as amended, is further amended by adding at the end thereof the following new subsections: "(f) The Administrator shall fix a premium charge for the insur- ance hereafter granted under this title, but in the case of any obliga- tion representing any loan, advance of credit, or purchase, such premium charge shall not exceed an amount equivalent to three- fourths of 1 per centum per annum of the net proceeds of such loan, advance of credit, or purchase, for the term of such obligation, and such premium charge shall be payable in advance by the financial institution and shall be paid at such time and in such manner as may be prescribed by the Administrator. The moneys derived from such premium charges shall be deposited in an account in the Treas- ury of the United States, which account shall be available for defray- ing the operating expenses of the Federal Housing Administration under this title, and any amounts in such account which are not needed for such purpose may be used for the payment of claims in connection with the insurance granted under this title. "(g) The Administrator is authorized and directed to make such rules and regulations as may be necessary to carry out the provisions of this title." SEC. 3 . Section 6 of such Act, as amended, is hereby repealed. SEc. 4. The provisions of sections 1, 2, and 3 of this Act shall take effect on July 1, 1939. SEC. 5. Section 202 of the National Housing Act, as amended, is hereby amended by striking out the word "create" and inserting in lieu thereof the word "created". SEC 6. Section 203 (a) of such Act, as amended, is amended to read as follows: "SEC. 203. (a) The Administrator is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage offered to him which is eligible for insurance as hereinafter provided, and, upon such terms as the Administrator may prescribe, to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon: Provided, That the aggregate amount of principal obligations of all mortgages insured under this title and outstanding at any one time shall not exceed $3,000,000,000, except that with the approval of the President such aggregate amount may be increased to not to exceed $4,000,000,000: Provided further, That the aggregate amount of principal obligations of all mortgages that cover property the construction of which was completed more than one year prior to the date of the application for insurance, and that are insured under this title after the effective date of this amendment and outstanding at any one time, shall not exceed 25 per centum of the total amount of the principal obligations of mortgages with respect to which insurance may be granted under this title after such effective date: Provided further,That on and after July 1, 1941, no mortgages shall be insured under this title except mortgages that cover prop- erty which is approved for mortgage insurance prior to the completion of the construction of such property, or which has been previously covered by a mortgage insured by the Administrator." 805 Amount of loan, etc. Maturity. Interest. 48 Stat. 1246 . 12 U. S.C. § 1703; Supp. IV, § 1703. Premium charge; amount. Advance payment. Deposit of receipts; use. Rules and regula- tions. Section repealed. 49 Stat. 1233. Effective dates of designated sections. Textual correction. 62 Stat. 10 . 12 II. S. t'., Spp. IV, § 170. 52 Stat. 10 . 10 U. S. C., Supp. IV, 1709. Insurance of mort- gages; authority of Administrator. Provisos. Aggregate amount of principal obllga- tions of insured mort- gages. Property, construc- tion of which was completed more than one year prior to ap- plication for insurance. Restrictions on in- surance of mortgages after July 1, 1941.
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