76
STAT.]
PUBLIC LAW 87-70~JUNE 30, 1961
this section, and any extension or renewal thereof, shall not exceed 80 per centum of the unpaid principal balances of the mortgages securing the loan, and shall bear interest at a rate consistent with general loan policies established from time to time by the Association's board of directors. Any such loan shall mature in not more than twelve months and the term of any extension or renewal shall not exceed twelve months. The volume of the Association's lending activities and the establishment of its loan ratios, interest rates, maturities, and charges or fees, in its secondary market operations under this section, should be determined by the Association from time to time; and such determinations, in conjunction with determinations made under paragraph (1), should be consistent with the objectives that the lending activities should be conducted on such terms as will reasonably prevent excessive use of the Association's facilities, and that the operations of the Association under this section should be within its income derived from such operations and that such operations should be fully self-supporting. Notwithstanding any Federal, State, or other law to the contrary, the Association is hereby empowered, in connection with any loan under this section, whether before or after any default, to provide by contract with the borrower for the settlement or extinguishment, upon default, of any redemption, equitable, legal, or other right, title, or interest of the borrower in any mortgage or mortgages that constitute the security for the loan; and with respect to any such loan, in the event of default and pursuant otherwise to the terms of the contract, the mortgages that constitute such security shall become the absolute property of the Association." (e) Section 304(b), section 309(c) and section 310 of such Act are each amended by inserting "or other security holdings" after "mortgages". FHA
177
12 USC 1719, 1723a, 1723b.
INSURANCE PROGRAMS
LIMITATIONS ON INSURANCE AUTHORIZATIONS
SEC. 604. (a) Section 2(a) of the National Housing Act is amended 12 us^c m l. ' by striking out in the first sentence "1961" and inserting in lieu thereof "1965". (b) Section 203(a) of such Act is amended by striking out the 12 uVc ml." colon and all that follows the colon and inserting in lieu thereof a period. (c) Section 217 of such Act is amended to read as follows: l^ stet. esj. ^ '
12 USC 1 / 15n. " GENERAL M O R T G A G E INSURANCE AUTHORIZATION
"SEC. 217. Except with respect to the insurance of a loan or mortgage pursuant to section 2, section 221, or title VIII of this Act 17^5^,^748:17481.' (subject to any limitations thereunder on the time of such insurance), no loan or mortgage shall be insured under any provision of this Act after October 1, 1965, except pursuant to a commitment to insure before that date." (d) Section 803(a) of such Act is amended by striking out "1961" H ^^^' 322^1,. and inserting in lieu thereof "1962", and by striking out "twenty-five thousand" and inserting in lieu thereof "twenty-eight thousand". SECTION 2 0 3 RESIDENTIAL HOUSING INSURANCE
SEC. 605. (a) Section 203(b)(2) of such act is amended— (1) by striking out "$13,500" each place it appears and inserting in lieu thereof "$15,000"; (2) by striking out "$18,000" each place it appears and inserting in lieu thereof "$20,000"; and
^i stat_. 294^
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