Page:United States Statutes at Large Volume 63 Part 1.djvu/464

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PUBLIC LAWS-CH. 338-JULY 15,1949 50 Stat. 889. 42U.S.C.§1402 (10). " Going Federal rate." 50 Stat. 891. 42U.S.C.§1409. Ante, p. 425. Loan periods. Interest rate. 50 Stat. 892. 42U.S.C . 1410 (c). Contractsforannual contributions. Fixed contribution. Ante, p. 425. 50 Stat. 892. 42U.8. C .§ 1410(c). Application of ex- cess receipts. 50 Stat. 895. 42U.S. C. 1414. Amending or super- seding contract. Restriction. there are substituted the words "applicable going Federal rate"; and subsection 2 (10) is amended to read as follows: "(10) The term 'going Federal rate' means the annual rate of interest (or, if there shall be two or more such rates of interest, the highest thereof) specified in the most recently issued bonds of the Federal Government having a maturity of ten years or more, determined, in the case of loans or annual contributions, respectively, at the date of Presidential approval of the contract pursuant to which such loans or contributions are made: Provided, That for the purposes of this Act, the going Federal rate shall be deemed to be not less than 21/2 per centum."; (d) Section 9 is amended by striking out the period at the end of said section and adding a colon and the following: "Provided, That in the case of projects initiated after March 1, 1949, with respect to which annual contributions are contracted for pursuant to this Act, loans shall not be made for a period exceeding forty years from the date of the bonds evidencing the loan: And provided further, That, in the case of such projects or any other projects with respect to which the contracts (including contracts which amend or supersede contracts previously made) provide for loans for a period not exceeding forty years from the date of the bonds evidencing the loan and for annual contributions for a period not exceeding forty years from the date the first annual contribution for the project is paid, such loans shall bear interest at a rate not less than the applicable going Federal rate."; (e) Subsection 10 (c) is amended by striking out the period at the end of the last sentence and adding a colon and the following: "Pro- vided, That, in the case of projects initiated after March 1, 1949, contracts for annual contributions shall not be made for a period exceeding forty years from the date the first annual contribution for the project is paid: And provided further, That, in the case of such projects or any other projects with respect to which the contracts for annual contributions (including contracts which amend or supersede contracts previously made) provide for annual contributions for a period not exceeding forty years from the date the first annual con- tribution for the project is paid, the fixed contribution may exceed the amount provided in the first proviso of subsection (b) of this section by 1 per centum of development or acquisition cost."; (f) The first sentence of subsection 10 (c) is amended to read as follows: "Every contract for annual contributions shall provide that whenever in any year the receipts of a public housing agency in connection with a low-rent housing project exceed its expenditures (including debt service, administration, maintenance, establishment of reserves, and other costs and charges), an amount equal to such excess shall be applied, or set aside for application, to purposes which, in the determination of the Authority, will effect a reduction in the amount of subsequent annual contributions."; (g) Section 14 is amended by inserting the following after the first sentence: "When the Authority finds that it would promote economy or be in the financial interest of the Federal Government, any contract heretofore or hereafter made for annual contributions, loans, or both, may, with Presidential approval, be amended or superseded by a con- tract of the Authority so that the going Federal rate on the basis of which such annual contributions or interest rate on the loans, or both, respectively, are fixed shall mean the going Federal rate, as herein defined, on the date of Presidential approval of such amending or superseding contract: Provided,That contracts may not be amended or superseded in a manner which would impair the rights of the holders of any outstanding obligations of the public housing agency involved for which annual contributions have been pledged.'; 426 [63 STAT.