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.
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