82 STAT. ]
PUBLIC LAW 90-448-AUG. 1, 1968
" (g) The Association is authorized, upon such terms and conditions jis it may deem appropriate, to guarantee the timely payment of principal of and interest on such trust certificates or other securities as shall (1) be issued by the corporation under section 304(d), or by any other issuer approved for the purposes of this subsection by the Association, and (2) be based on and backed by a trust or pool composed of mortgages which are insured under the National Housing Act or title V of the Housing Act of 1949, or which are insured or guaranteed under the Servicemen's Readjustment Act of 1944 or chapter 37 of title 38, United States Code. The Association shall collect from the issuer a reasonable fee for any guaranty under this subsection and shall make such charges as it may determine to he reasonable for the analysis of any trust or other security arrangement proposed by the issuer. I n the event the issuer is unable to make any payment of principal of or interest on any security guaranteed under this subsection, the Association shall make such payment as and when due in cash, and thereupon shall be subrogated fully to the rights satisfied by such payment. Any Federal, State, or other law to the contrary notwithstanding, the Association is hereby empowered, in connection with any guaranty under this subsection, whether before or after any default, to provide by contract with the issuer for the extinguishment, upon default by the issuer, of any redemption, equitable, legal, or other right, title, or interest of the issuer in any mortgage or mortgages constituting the trust or jx)ol against which the guaranteed securities are issued; and with respect to any issue of guaranteed securities, in the event of default and pursuant otherwise to the terms of the contract, the mortgages that constitute such trust or pool shall become the absolute propert}^ of the Association subject only to the unsatisfied rights of the holders of the securities based on and backed by such trust or pool. The full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guaranty under this subsection. There shall be excluded from the total amounts set forth in subsection (c) the amounts of any mortgages acquired by the Association as a result of its operations under this subsection." (c) Section 5136 of the Revised Statutes (12 U.S.C. 24) is amended by adding at the end thereof the following: "Ninth. To issue and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act." (d) The first proviso of section 21(aj (1) of the Banking Act of 1933 (12 U.S.C. 3 7 8 (a)(1)) is amended by inserting ", or issuing securities," immediately following "investment securities". (e) Section 5(c) of the Home Owners' Loan Act of 1933 (12 U.S.C. 1464(c)) is amended by adding at the end thereof a new paragraph as follows: "Any such association may issue and sell securities which are guaranteed pursuant to section 306(g) of the National Housing Act."
^"'e- P- 542. ^8 Stat. m e. and note. 63 Stat. 432. 1490."^^ ^^^^ , ss Stat. 284; ^^7f*|tat^Y2^63 38 USC isoi.
^g^l^^JJy^'^' '^^ s*^* ^32.
SUBORDINATED AND (ONVERTIBLE OBLIGATIONS
SEC. 805. Section 304 of the National Housing Act is amended by adding thereto (after subsection (d) as added by section 804 of this Act) the following new subsection: "(e) For the purposes of this section, the corporation is authorized to issue, upon the approval of the Secretary of the Treasury, obligations which are subordinated to any or all other obligations of the corporation, including subsequent obligations. The obligations issued under this subsection shall have such maturities and bear such rate or rates of interest as may be determined by the corporation with the approvaf of the Secretary of the Treasury and may be made redeem-
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