55 STAT.] 77TH CONG. , 1ST SESS.-CH. 31-MAR. 28 , 1941 this title, or (ii) the construction of which was begun after Janu- ary 1, 1940, and prior to the date of enactment of this title, and which has not been sold or occupied since completion. Such prin- cipal obligation shall not exceed- "(A) $4,000 if such dwelling is designed for a single- family residence, or "(B) $6,000 if such dwelling is designed for a two-family residence, or "(C) $8,000 if such dwelling is designed for a three-family residence, or "(D) $10,500 if such dwelling is designed for a four-family residence; "(3) have a maturity satisfactory to the Administrator but not to exceed twenty years from the date of the insurance of the mortgage; "(4) contain complete amortization provisions satisfactory to the Administrator; "(5) bear interest (exclusive of premium charges for insur- ance) but not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time, or not to exceed 6 per centum per annum if the Administrator finds that in certain areas or under special circumstances the mortgage market demands it; "(6) provide, in a manner satisfactory to the Administrator, for the application of the mortgagor's periodic payments (exclu- sive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as herein provided) to amortization of the principal of the mortgage; and " (7) contain such terms and provisions with respect to insur- ance, repairs, alterations, payment of taxes, default reserves, delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Administrator may in his discretion prescribe. "(c) The Administrator is authorized to fix a premium charge for the insurance of mortgages under this title but in the case of any mortgage such charge shall not be less than an amount equivalent to one-half of 1 per centum per annum nor more than an amount equivalent to 1/2 per centum per annum of the amount of the prin- cipal obligation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. Such premium charges shall be payable by the mortgagee, either in cash, or in debentures issued by the Administrator under this title at par plus accrued interest, in such manner as may be prescribed by the Administrator: Provided, That the Administrator may require the payment of one or more such premium charges at the time the mortgage is insured, at such discount rate as he may prescribe not in excess of the interest rate specified in the mortgage. If the Administrator finds upon the presentation of a mortgage for insur- ance and the tender of the initial premium charge or charges so required that the mortgage complies with the provisions of this title, such mortgage may be accepted for insurance by endorsement or otherwise as the Administrator may prescribe; but no mortgage shall be accepted for insurance under this section unless the Administrator finds that the project with respect to which the mortgage is executed is economically sound. In the event that the principal obligation of any mortgage accepted for insurance under this title is paid in full prior to the maturity date, the Administrator is further authorized 57 Maturity, limita- tion. Amortization provi- sions. Interest. Mortgagor's period- ic payments. Terms and provi- sions respecting in- surance, repairs, etc. l'remiuml charges for insurance or Imort- gages. Proriso. Initial premium charge or charges. Adjusted premium charg.
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