Page:United States Statutes at Large Volume 60 Part 1.djvu/1103

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PUBLIC LAWS-CH. 964-AUG. 14 , 1946 Report on status of fund. g C "(d) The Secretary shall include in his annual report a complete statement with respect to the status of the fund. "INSURANCE OF MORTGAGES "SEC. 12. (a) The Secretary is authorized, upon application of a prospective mortgagor or mortgagee under a first mortgage eligible for insurance under this title, to insure such mortgage and to make commitments for the insurance of any such mortgage prior to the date of its execution. "(b) The aggregate amount of principal obligations on all mort- gages insured under this title, on all mortgages with respect to which commitments to insure have been made, and on all mortgages accepted Post, p. 1078. for the account of the fund and not disposed of under section 14 shall not exceed $100,000,000 in any one fiscal year. With respect to any fiscal year, the amount available for insurance, commitment and accept- ance of mortgages under this title shall be distributed among the Ante, p. 1075. several States and Territories on the basis provided in section 4 and preferences shall be given to mortgages executed by veterans qualified Ante, p . 1072. under section 1. Eligibility of mort- "(C) In order for a mortgage to be eligible under this title- age. (1) the person obligated to pay thereunder shall be a person Ante, p. 1072. who would be eligible under section 1 for a loan under title I; "(2) the farm mortgaged shall be one with respect to which, Ante, p. 1073. under section 1 (c), a loan could be made under title I; "(3) there shall be an appropriate certification by the county Ante, p. 1073. committee as required by section 2 of this Act; Ante, p. 1074. " (4) the mortgage instruments shall comply with section 3 (b), except that the base rate of interest shall be 21/2 per centum per annum; Limitationon prin- "(5) the principal obligation (and fees and other charges eipal obligation, etc. chargeable under subsection (d) of this section) shall not exceed 90 per centum of the reasonable value of the farm and necessary repairs and improvements thereon, as such values are certified Ante, p. 1073. by the county committee pursuant to section 2 (b); Covenant. "(6) the mortgage instruments shall contain a covenant to pay to the Secretary the initial and annual charges provided for in subsections (d) and (e) of this section, and a covenant to pay to the Secretary, as collection agent for the mortgagee, the amlounts payable by the mortgagor to the mortgagee under the mortgage; and Acceptance of bene- ";(7) the mortgage instruments shall contain a stipulation (not binding upon the Secretary) that the holder of the mortgage will Po.t, p. 1077. accept the benefits provided by section 13 in lieu of any right of foreclosure which he may have against the property and any right to a deficiency judgment against the mortgagor on account of the mortgage. Payment of initial "(d) The Secretary shall require the payment by the mortgagor or mortgagee of such initial fees for inspection, appraisal, and other charges as it finds necessary and such amounts may be included in the principal obligation of the mortgage, and the payment of such delinquency charges and default reserves as it finds necessary. The proceeds of such fees shall be deposited in the Treasury for use for administrative expense as provided in subparagraph (e) (2) hereof. Collection of "(e) (1) The Secretary shall collect from the mortgagor, upon insurance of the mortgage, an initial charge of 1 per centum of the principal obligation of the mortgage and annually thereafter when payment of an installment of principal and interest is due, a charge of 1 per centum of the principal obligation remaining unpaid after fi fe el 1076 [60 STAT.