1268 'Mortgagee^
"Lender."
•Mortgagor."
"Actual c o s t. "
Federal Ship Mortgage Insurance FiuuL
Authorization of Secretary to insure mortgage s.
PUBLIC LAW 7 8 1 - S E P T. 3, 1954
[68
STAT.
" (d) The term 'mortgagee' includes the original maker of a loan secured by a mortgage and his ^successors and assigns, except that in the case of a mortgage involving a trust indenture and an issue of bonds or notes thereunder, it means the trustee designated in such trust indenture and his successors and assigns as trustee, but does not include the holders of the bonds or notes issued under such trust indenture; and the term 'lender' includes the original maker of any loan or advance of credit other than a loan secured by a mortgage, and his successors and assigns, except that in the case of a loan or advance of credit involving a trust indenture and an issue of bonds or notes thereunder, it means the trustee designated in such trust indenture and his successors and assigns as trustee, but does not include the holders of the bonds or notes issued under such trust indenture; "(e) The term 'mortgagor' includes the original borrower under a mortgage and his successors and assigns approved by the Commission; and "(f) The term 'actual cost' of a vessel as of any specified date means the aggregate as determined by the Secretary of Commerce of (i) all amounts paid by or for the account of the mortgagor or borrower on or before that date, and (ii) all amounts which the mortgagor or borrower is then obligated to pay from time to time thereafter, for the construction, reconstruction or reconditioning (including designing, inspecting, outfitting, and equipping) of such vessel: Provided, That in no event, except for certain special purpose vessels as provided for in subsections (a) and (b) of section 1103 (46 U.S.C. 1273), shall the Secretary of Commerce pay as insurance under this title an amount in excess of 90 per centum of 75 per centum, or 90 per centum of 87% per centum, as the case may be, of the amount paid by or for the account of the mortgagor or borrower for the construction, reconstruction, or reconditioning (including designing, inspecting, outfitting, and equipping) of such vessel." SEC. 2. Section 1102 (46 U.S.C. 1272) is amended to read as follows: "There is hereby created a Federal Ship Mortgage Insurance Fund (hereinafter referred to as the 'fund') which shall be used by the Secretary of Commerce as a revolving fund for the purpose of carrying out the provisions of this title, and there shall be allocated to such fund the sum of $1,000,000 out of funds made available to the Secretary of Commerce under the appropriation authorized by section 1109 (46 U.S.C. 1279). Moneys in the fund shall be deposited in the Treasury of the United States to the credit of the fund or invested in bonds or other obligations of, or guaranteed as to principal and interest by, the United States." SEC. 3. Section 1103 (46 U.S.C. 1273) is amended to read as follows: " (a) The Secretary of Commerce, upon application by the mortgagor, is authorized to insure as hereinafter provided the interest on and 90 per centum of the unpaid balance of the principal of, any mortgage offered to him which is eligible for insurance as hereinafter provided and, upon such terms as the Secretary of Commerce may prescribe, is authorized to make commitments to insure any such mortgage prior to the date of execution or disbursement thereon: Provided, That in the case of special purpose vessels certified by the Secretary of Defense to be essential to national defense, the Secretary of Commerce may insure 100 per centum of the principal of and interest on any such mortgage eligible for insurance as hereinafter provided and upon such terms as the Secretary of Commerce may prescribe.
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