Page:United States Statutes at Large Volume 63 Part 1.djvu/613

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63 STAT.] 81ST CONG. , 1ST SESS.-CH. 403-AUG. 8 , 1949 575 by any Territory, dependency, or possession of the United States or by the District of Columbia, or by any State, county, municipality, or local taxing authority. They shall be paid out of the Military Hous- ing Insurance Fund, which shall be primarily liable therefor, and they shall be fully and unconditionally guaranteed as to principal and interest by the United States, and such guaranty shall be expressed on the face of the debentures. In the event the Military Housing Failure of Fund to Insurance Fund fails to pay upon demand, when due, the principal of pay. or interest on any debentures so guaranteed, the Secretary of the Treasury shall pay to the holders the amount thereof which is hereby authorized to be appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such debentures. "(g) The certificate of claim issued by the Commissioner to any certificate of claim. mortgagee in connection with the insurance of mortgages under this title shall be for an amount determined in accordance with subsections (e) and (f) of section 604 of this Act, except that any amount remain- 55 Stat. 60. ing after the payment of the full amount under the certificate of (e), (f).' claim shall be retained by the Commissioner and credited to the Military Housing Insurance Fund. "(h) The provisions of section 207 (k) and section 207 (1) of this 52 Stat. 20, 21. Act shall be applicable to mortgages insured under this title and to (k), . . 171 property acquired by the Commissioner hereunder, except that as applied to such mortgages and property (1) all references in such sections to the 'Housing Fund' shall be construed to refer to the 'Military Housing Insurance Fund', and (2) the reference in section 207 (k) to 'subsection (g)' shall be construed to refer to 'subsection (d)' of this section 803. Ante, p.573. "(i) The Commissioner shall also have power to insure under this title or titles II or VI any mortgage executed in connection with 48 Stat. 1247; 55 the sale by him of any property acquired under this title without 12 .S. c. §§ 1707- 1715c, 1736 -1743; Supp. regard to any limit as to eligibility, time or aggregate amount con- ,§§ 170 3 tq. 743 tained in this title or titles II or VI. 173 6 e . 2, 4. "(j) Any contract of insurance executed by the Commissioner pot, pp. 576 , 61,i05 under this title shall be conclusive evidence of the eligibility of the bility.d of eligi- mortgage for insurance, and the validity of any contract of insurance so executed shall be incontestable in the hands of an approved mort- gagee from the date of the execution of such contract, except for fraud or misrepresentation on the part of such approved mortgagee. "(k) In order to assure an adequate market for mortgages insured under this title, the powers of the Federal National Mortgage Asso- ciation and of any other Federal corporation or other Federal agency hereafter established, to purchase, service, or sell any mortgages, or partial interests therein, may be utilized in connection with mortgages insured under this title. "SEC. 804. (a) Moneys in the Military Housing Insurance Fund Deposit of surplus not needed for current operations under this title shall be deposited moneys. with the Treasurer of the United States to the credit of the Military Housing Insurance Fund, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States. The Commissioner may, with the approval of Purchase of deben- the Secretary of the Treasury, purchase in the open market debentures sioner. issued under the provisions of this title. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures so purchased shall be cancelled and not reissued. "(b) Premium charges, adjusted premium charges, and appraisal charges and credits and other fees, received on account of the insurance of any mortgage insured under this title, the receipts derived from any such mortgage