12 U.S.C. § 1703 — Insurance of financial institutions

Page 519 TITLE 12—BANKS AND BANKING § 1703 trator with respect to Federal Housing Administration and its functions to Housing and Home Finance Admin- istrator. Federal Housing Administration continued as a constituent agency within Housing and Home Fi- nance Agency. For provisions concerning appointment and compensation of Federal Housing Commissioner, see section 3 of Reorganization Plan. Functions, powers, and duties of National Housing Agency with respect to property, funds, and other as- sets which were formerly under administration of Farm Security Administration and were transferred to Na- tional Housing Agency by Ex. Ord. No. 9070, Feb. 24, 1942, 7 F.R. 1529, as amended, were abolished by section 2(a)(3) of act Aug. 14, 1946, ch. 964, 60 Stat. 1063, as amended, set out as a note under sections 1001 to 1005d of Title 7, Agriculture, except with respect of housing projects and such other properties and assets in process of liquidation. Federal Housing Administration consolidated with other agencies into National Housing Agency during World War II, see Ex. Ord. No. 9070. Functions of National Housing Agency with respect to non-farm-housing projects and other properties re- maining under its jurisdiction pursuant to section 2(a)(3) of act Aug. 14, 1946, transferred to Public Hous- ing Commissioner by Reorg. Plan No. 3 of 1947, § 4(b), eff. July 27, 1947, 12 F.R. 4983, 61 Stat. 955, set out in the Appendix to Title 5. Federal Housing Administration to be administered by Federal Loan Administrator within Federal Loan Agency, see Reorg. Plan No. I of 1939, § 402, eff. July 1, 1939, 4 F.R. 2730, 53 Stat. 1429 set out in the Appendix to Title 5. EXECUTIVE ORDER NO. 7058 Ex. Ord. No. 7058, May 29, 1935, authorized Federal Housing Administrator to adopt a seal for Federal Housing Administration, provided that copies of any books, records, papers, documents, agreements, orders, rules, or regulations of Administration were admissible in evidence equally with originals thereof, and empow- ered Administrator or his designee to certify or exem- plify copies of any books, records, papers, or documents of Administration. EXECUTIVE ORDER NO. 7280 Ex. Ord. No. 7280, Jan. 28, 1936, was issued as evidence of creation of Federal Housing Administration and validated and confirmed creation thereof. § 1702a. Repealed. June 28, 1955, ch. 189, § 12(c)(14), 69 Stat. 182 Section, act June 27, 1934, ch. 847, title II, § 228, as added Aug. 2, 1954, ch. 649, title I, § 126, 68 Stat. 809, au- thorized Commissioner to establish one position in GS–18, four in GS–17, and eight in GS–16 in Federal Housing Administration. § 1703. Insurance of financial institutions (a) Authority to insure financial institutions The Secretary is authorized and empowered upon such terms and conditions as he may pre- scribe, to insure banks, trust companies, per- sonal finance companies, mortgage companies, building and loan associations, installment lend- ing companies and other such financial institu- tions, which the Secretary finds to be qualified by experience or facilities and approves as eligi- ble for credit insurance, against losses which they may sustain as a result of loans and ad- vances of credit, and purchases of obligations representing loans and advances of credit, made by them for the purpose of (i) financing alter- ations, repairs, and improvements upon or in connection with existing structures or manufac- tured homes, and the building of new structures, upon urban, suburban, or rural real property (in- cluding the restoration, rehabilitation, rebuild- ing, and replacement of such improvements which have been damaged or destroyed by earth- quake, conflagration, tornado, hurricane, cy- clone, flood, or other catastrophe), by the own- ers thereof or by lessees of such real property under a lease expiring not less than six months after the maturity of the loan or advance of credit; and for the purpose of (ii) financing the purchase of a manufactured home to be used by the owner as his principal residence or financing the purchase of a lot on which to place such home and paying expenses reasonably necessary for the appropriate preparation of such lot, in- cluding the installation of utility connections, sanitary facilities, and paving, and the construc- tion of a suitable pad, or financing only the ac- quisition of such a lot either with or without such preparation by an owner of a manufactured home; and for the purpose of financing the pres- ervation of historic structures, and, as used in this section, the term ‘‘historic structures’’ means residential structures which are reg- istered in the National Register of Historic Places or which are certified by the Secretary of the Interior to conform to National Register cri- teria; and the term ‘‘preservation’’ means res- toration or rehabilitation undertaken for such purposes as are approved by the Secretary in regulations issued by him, after consulting with the Secretary of the Interior. Other than in con- nection with a manufactured home or a lot on which to place such a home (or both), in no case shall the insurance granted by the Secretary under this section to any such financial institu- tion on loans, advances of credit, and purchases made by such financial institution for such pur- poses exceed 10 per centum of the total amount of such loans, advances of credit, and purchases. With respect to any loan, advance of credit, or purchase, the amount of any claim for loss on any such individual loan, advance of credit or purchase paid by the Secretary under the provi- sions of this section to a lending institution shall not exceed 90 per centum of such loss. After August 2, 1954, (i) the Secretary shall not enter into contracts for insurance pursuant to this section except with lending institutions which are subject to the inspection and super- vision of a governmental agency required by law to make periodic examinations of their books and accounts, and which the Secretary finds to be qualified by experience or facilities to make and service such loans, advances or purchases, and with such other lending institutions which the Secretary approves as eligible for insurance pursuant to this section on the basis of their credit and their experience or facilities to make and service such loans, advances or purchases; (ii) only such items as substantially protect or improve the basic livability or utility of prop- erties shall be eligible for financing under this section, and therefore the Secretary shall from time to time declare ineligible for financing under this section any item, product, alteration, repair, improvement, or class thereof which he determines would not substantially protect or improve the basic livability or utility of such properties, and he may also declare ineligible Page 520 TITLE 12—BANKS AND BANKING § 1703 1 So in original. The word ‘‘and’’ probably should not appear. 2 So in original. The period probably should be ‘‘; and’’. 3 So in original. The period probably should be a semicolon. for financing under this section any item which he determines is especially subject to selling abuses; and (iii) the Secretary is authorized and directed, by such regulations or procedures as he shall deem advisable, to prevent the use of any financial assistance under this section (1) with respect to new residential structures (other than manufactured homes) that have not been com- pleted and occupied for at least six months, or (2) which would, through multiple loans, result in an outstanding aggregate loan balance with respect to the same structure exceeding the dol- lar amount limitation prescribed in this sub- section for the type of loan involved: Provided, That this clause (iii) may in the discretion of the Secretary be waived with respect to the pe- riod of occupancy or completion of any such new residential structures. The Secretary is hereby authorized and directed, with respect to manu- factured homes to be financed under this sec- tion, to (i) prescribe minimum property stand- ards to assure the livability and durability of the manufactured home and the suitability of the site on which the manufactured home is to be located; and (ii) obtain assurances from the borrower that the manufactured home will be placed on a site which complies with the stand- ards prescribed by the Secretary and with local zoning and other applicable local requirements. The insurance authority provided under this section may be made available with respect to any existing manufactured home that has not been insured under this section if such home was constructed in accordance with the standards issued under the National Manufactured Hous- ing Construction and Safety Standards Act of 1974 [42 U.S.C. 5401 et seq.] and it meets stand- ards similar to the minimum property standards applicable to existing homes insured under sub- chapter II. Alterations, repairs, and improvements upon or in connection with existing structures may include the provision of fire safety equipment, energy conserving improvements, or the instal- lation of solar energy systems. Alterations, re- pairs, and improvements upon or in connection with existing structures may also include the evaluation and reduction of lead-based paint hazards. As used in this section— (1) the term ‘‘fire safety equipment’’ means any device or facility which is designed to re- duce the risk of personal injury or property damage resulting from fire and is in con- formity with such criteria and standards as shall be prescribed by the Secretary; (2) the term ‘‘energy conserving improve- ments’’ means the purchase and installation of weatherization materials as defined in section 6862(9) of title 42; and 1 (3) the term ‘‘solar energy system’’ means any addition, alteration, or improvement to an existing or new structure which is designed to utilize wind energy or solar energy either of the active type based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types to reduce the energy requirements of that struc- ture from other energy sources, and which is in conformity with such criteria and standards as shall be prescribed by the Secretary in con- sultation with the Secretary of Energy.2 (4) the terms ‘‘evaluation’’, ‘‘reduction’’, and ‘‘lead-based paint hazard’’ have the same meanings given those terms in section 4851b of title 42. (b) Conditions for denial of insurance (1) Except as provided in the last sentence of this paragraph, no insurance shall be granted under this section to any such financial institu- tion with respect to any obligation representing any such loan, advance of credit, or purchase by it if the amount of such loan, advance of credit, or purchase exceeds— (A)(i) $25,000 if made for the purpose of fi- nancing alterations, repairs and improvements upon or in connection with existing single- family structures; and (ii) $25,090 if made for the purpose of financ- ing alterations, repairs and improvements upon or in connection with existing manufac- tured homes; (B) $60,000 or an average amount of $12,000 per family unit if made for the purpose of fi- nancing the alteration, repair, improvement, or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; (C) $69,678 if made for the purpose of financ- ing the purchase of a manufactured home; (D) $92,904 if made for the purpose of financ- ing the purchase of a manufactured home and a suitably developed lot on which to place the home; and 1 (E) $23,226 if made for the purpose of financ- ing the purchase, by an owner of a manufac- tured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within 6 months after the date of such loan.3 (F) $15,000 per family unit if made for the purpose of financing the preservation of an historic structure; and (G) such principal amount as the Secretary may prescribe if made for the purpose of fi- nancing fire safety equipment for a nursing home, extended health care facility, inter- mediate health care facility, or other com- parable health care facility. The Secretary shall, by regulation, annually in- crease the dollar amount limitations in subpara- graphs (A)(ii), (C), (D), and (E) (as such limita- tions may have been previously adjusted under this sentence) in accordance with the index es- tablished pursuant to paragraph (9). (2) Because of prevailing higher costs, the Sec- retary may, by regulation, in Alaska, Guam, or Hawaii, increase any dollar amount limitation on manufactured homes or manufactured home lot loans contained in this subsection by not to exceed 40 per centum. In other areas, the max- imum dollar amounts specified in subsections Page 521 TITLE 12—BANKS AND BANKING § 1703 (b)(1)(D) and (b)(1)(E) may be increased on an area-by-area basis to the extent the Secretary deems necessary, but in no case may such lim- its, as so increased, exceed the lesser of (A) 185 percent of the dollar amount specified, or (B) the dollar amount specified as increased by the same percentage by which 95 percent of the me- dian one-family house price in the area (as de- termined by the Secretary) exceeds $67,500. (3) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it if the term to maturity of such loan, advance of credit or purchase exceeds— (A)(i) twenty years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connec- tion with an existing single-family structure; and (ii) fifteen years and thirty-two days if made for the purpose of financing alterations, re- pairs, and improvements upon or in connec- tion with an existing manufactured home; (B) twenty years and thirty-two days if made for the purpose of financing the alter- ation, repair, improvement or conversion of an existing structure used or to be used as an apartment house or a dwelling for two or more families; (C) twenty years and thirty-two days (twen- ty-three years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of fi- nancing the purchase of a manufactured home; (D) twenty years and thirty-two days (twen- ty-five years and thirty-two days in the case of a manufactured home composed of two or more modules) if made for the purpose of fi- nancing the purchase of a manufactured home and a suitably developed lot on which to place the home; (E) twenty years and thirty-two days if made for the purpose of financing the pur- chase, by the owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home; (F) fifteen years and thirty-two days if made for the purpose of financing the preservation of an historic structure; (G) such term to maturity as the Secretary may prescribe if made for the purpose of fi- nancing the construction of a new structure for use in whole or in part for agricultural pur- poses; and (H) such term to maturity as the Secretary may prescribe if made for the purpose of fi- nancing fire safety equipment for a nursing home, extended health care facility, inter- mediate health care facility, or other com- parable health care facility. (4) For the purpose of this subsection— (A) the term ‘‘developed lot’’ includes an in- terest in a condominium project (including any interest in the common areas) or a share in a cooperative association; (B) a loan to finance the purchase of a manu- factured home or a manufactured home and lot may also finance the purchase of a garage, patio, carport, or other comparable appur- tenance; and (C) a loan to finance the purchase of a manu- factured home or a manufactured home and lot shall be secured by a first lien upon such home or home and lot, its furnishings, equip- ment, accessories, and appurtenances. (5) No insurance shall be granted under this section to any such financial institution with respect to any obligation representing any such loan, advance of credit, or purchase by it unless the obligation has such maturity, bears such in- surance premium charges, and contains such other terms, conditions, and restrictions as the Secretary shall prescribe, in order to make cred- it available for the purpose of this subchapter. Any such obligation with respect to which insur- ance is granted under this section shall bear in- terest at such rate as may be agreed upon by the borrower and the financial institution. (6)(A) Any obligation with respect to which in- surance is granted under this section may be re- financed and extended in accordance with such terms and conditions as the Secretary may pre- scribe, but in no event for an additional amount or term in excess of any applicable maximum provided for in this subsection. (B) The owner of a manufactured home lot purchased without assistance under this section but otherwise meeting the requirements of this section may refinance such lot under this sec- tion in connection with the purchase of a manu- factured home if the borrower certifies that the home and lot is or will be his or her principal residence within six months after the date of the loan. (C) The owner-occupant of a manufactured home or a home and lot which was purchased without assistance under this section but which otherwise meets the requirements of this sec- tion may refinance such home or home and lot under this section if the home was constructed in accordance with standards established under section 604 of the National Manufactured Hous- ing Construction and Safety Standards Act of 1974 [42 U.S.C. 5403]. (7) With respect to the financing of alter- ations, repairs, and improvements to existing structures or the building of new structures as authorized under clause (i) of the first sentence of subsection (a), any loan broker (as defined by the Secretary) or any other party having a fi- nancial interest in the making of such a loan or advance of credit or in providing assistance to the borrower in preparing the loan application or otherwise assisting the borrower in obtaining the loan or advance of credit who knowingly (as defined in section 1735f–14(g) of this title) sub- mits to any such financial institution or to the Secretary false information shall be subject to a civil money penalty in the amount and manner provided under section 1735f–14 of this title with respect to mortgagees and lenders under this chapter. (8) INSURANCE BENEFITS FOR MANUFACTURED HOUSING LOANS.—Any contract of insurance with respect to loans, advances of credit, or pur- chases in connection with a manufactured home or a lot on which to place a manufactured home (or both) for a financial institution that is exe- cuted under this subchapter after July 30, 2008, by the Secretary shall be conclusive evidence of the eligibility of such financial institution for Page 522 TITLE 12—BANKS AND BANKING § 1703 4 See References in Text note below. insurance, and the validity of any contract of insurance so executed shall be incontestable in the hands of the bearer from the date of the exe- cution of such contract, except for fraud or mis- representation on the part of such institution. (9) ANNUAL INDEXING OF MANUFACTURED HOUS- ING LOANS.—The Secretary shall develop a meth- od of indexing in order to annually adjust the loan limits established in subparagraphs (A)(ii), (C), (D), and (E) of this subsection. Such index shall be based on the manufactured housing price data collected by the United States Census Bureau. The Secretary shall establish such index no later than 1 year after July 30, 2008. (10) FINANCIAL SOUNDNESS OF MANUFACTURED HOUSING PROGRAM.—The Secretary shall estab- lish such underwriting criteria for loans and ad- vances of credit in connection with a manufac- tured home or a lot on which to place a manu- factured home (or both), including such loans and advances represented by obligations pur- chased by financial institutions, as may be nec- essary to ensure that the program under this subchapter for insurance for financial institu- tions against losses from such loans, advances of credit, and purchases is financially sound. (11) LEASEHOLD REQUIREMENTS.—No insurance shall be granted under this section to any such financial institution with respect to any obliga- tion representing any such loan, advance of credit, or purchase by it, made for the purposes of financing a manufactured home which is in- tended to be situated in a manufactured home community pursuant to a lease, unless such lease— (A) expires not less than 3 years after the origination date of the obligation; (B) is renewable upon the expiration of the original 3 year term by successive 1 year terms; and (C) requires the lessor to provide the lessee written notice of termination of the lease not less than 180 days prior to the expiration of the current lease term in the event the lessee is required to move due to the closing of the manufactured home community, and further provides that failure to provide such notice to the mortgagor in a timely manner will cause the lease term, at its expiration, to automati- cally renew for an additional 1 year term. (c) Handling and disposal of property (1) Authority of Secretary Notwithstanding any other provision of law, the Secretary may— (A) deal with, complete, rent, renovate, modernize, insure, or assign or sell at public or private sale, or otherwise dispose of, for cash or credit in the Secretary’s discretion, and upon such terms and conditions and for such consideration as the Secretary shall de- termine to be reasonable, any real or per- sonal property conveyed to or otherwise ac- quired by the Secretary, in connection with the payment of insurance heretofore or here- after granted under this subchapter, includ- ing any evidence of debt, contract, claim, personal property, or security assigned to or held by him in connection with the payment of insurance heretofore or hereafter granted under this section; and (B) pursue to final collection, by way of compromise or otherwise, all claims as- signed to or held by the Secretary and all legal or equitable rights accruing to the Sec- retary in connection with the payment of such insurance, including unpaid insurance premiums owed in connection with insur- ance made available by this subchapter. (2) Advertisements for proposals Section 6101 of title 41 shall not be construed to apply to any contract of hazard insurance or to any purchase or contract for services or supplies on account of such property if the amount thereof does not exceed $25,000. (3) Delegation of authority The power to convey and to execute in the name of the Secretary, deeds of conveyance, deeds of release, assignments and satisfactions of mortgages, and any other written instru- ment relating to real or personal property or any interest therein heretofore or hereafter acquired by the Secretary pursuant to the pro- visions of this subchapter may be exercised by an officer appointed by the Secretary without the execution of any express delegation of power or power of attorney. Nothing in this subsection shall be construed to prevent the Secretary from delegating such power by order or by power of attorney, in the Secretary’s dis- cretion, to any officer or agent the Secretary may appoint. (d) Authority to transfer insurance The Secretary is authorized and empowered, under such regulations as he may prescribe, to transfer to any such approved financial institu- tion any insurance in connection with any loans and advances of credit which may be sold to it by another approved financial institution. (e) Authority to waive compliance with regula- tions The Secretary is authorized to waive compli- ance with regulations heretofore or hereafter prescribed by him with respect to the interest and maturity of and the terms, conditions, and restrictions under which loans, advances of cred- it, and purchases may be insured under this sec- tion and section 1706a 4 of this title, if in his judgment the enforcement of such regulations would impose an injustice upon an insured insti- tution which has substantially complied with such regulations in good faith and refunded or credited any excess charge made, and where such waiver does not involve an increase of the obligation of the Secretary beyond the obliga- tion which would have been involved if the regu- lations had been fully complied with. (f) Premium charges; manufactured home loans (1) Premium charges The Secretary shall fix a premium charge for the insurance hereafter granted under this section, but in the case of any obligation rep- resenting any loan, advance of credit, or pur- chase, such premium charge shall not exceed an amount equivalent to 1 per centum per annum of the net proceeds of such loan, ad- Page 523 TITLE 12—BANKS AND BANKING § 1703 vance of credit, or purchase, for the term of such obligation, and such premium charge shall be payable in advance by the financial institution and shall be paid at such time and in such manner as may be prescribed by the Secretary. (2) Manufactured home loans Notwithstanding paragraph (1), in the case of a loan, advance of credit, or purchase in connection with a manufactured home or a lot on which to place such a home (or both), the premium charge for the insurance granted under this section shall be paid by the bor- rower under the loan or advance of credit, as follows: (A) At the time of the making of the loan, advance of credit, or purchase, a single pre- mium payment in an amount not to exceed 2.25 percent of the amount of the original in- sured principal obligation. (B) In addition to the premium under sub- paragraph (A), annual premium payments during the term of the loan, advance, or ob- ligation purchased in an amount not exceed- ing 1.0 percent of the remaining insured principal balance (excluding the portion of the remaining balance attributable to the premium collected under subparagraph (A) and without taking into account delinquent payments or prepayments). (C) Premium charges under this paragraph shall be established in amounts that are suf- ficient, but do not exceed the minimum amounts necessary, to maintain a negative credit subsidy for the program under this section for insurance of loans, advances of credit, or purchases in connection with a manufactured home or a lot on which to place such a home (or both), as determined based upon risk to the Federal Government under existing underwriting requirements. (D) The Secretary may increase the limi- tations on premium payments to percent- ages above those set forth in subparagraphs (A) and (B), but only if necessary, and not in excess of the minimum increase necessary, to maintain a negative credit subsidy as de- scribed in subparagraph (C). (g) Finality of payment for loss Any payment for loss made to an approved fi- nancial institution under this section shall be final and incontestable after two years from the date the claim was certified for payment by the Secretary, in the absence of fraud or misrepre- sentation on the part of such institution, unless a demand for repurchase of the obligation shall have been made on behalf of the United States prior to the expiration of such two-year period. (h) Authority to regulate The Secretary is authorized and directed to make such rules and regulations as may be nec- essary to carry out the provisions of this sub- chapter. (i) ‘‘Manufactured home’’ defined For purposes of this section, the term ‘‘manu- factured home’’ includes any elder cottage hous- ing opportunity unit that is small, freestanding, barrier-free, energy efficient, removable, and de- signed to be installed adjacent to an existing 1- to 4-family dwelling. (June 27, 1934, ch. 847, title I, § 2, 48 Stat. 1246; May 28, 1935, ch. 150, § 28, 49 Stat. 299; Aug. 23, 1935, ch. 614, title III, § 344(b), 49 Stat. 722; Apr. 3, 1936, ch. 165, § 1, 49 Stat. 1187; Apr. 17, 1936, ch. 234, § 4, 49 Stat. 1234; Apr. 22, 1937, ch. 121, § 2, 50 Stat. 71; Feb. 3, 1938, ch. 13, § 2, 52 Stat. 9; June 3, 1939, ch. 175, §§ 1, 2, 53 Stat. 804, 805; June 28, 1941, ch. 261, §§ 1–5, 55 Stat. 364, 365; May 26, 1942, ch. 319, § 13, 56 Stat. 305; Mar. 23, 1943, ch. 21, § 2, 57 Stat. 43; Oct. 15, 1943, ch. 259, §§ 3, 4, 57 Stat. 571; June 26, 1947, ch. 152, 61 Stat. 182; Aug. 10, 1948, ch. 832, title I, § 101(s), 62 Stat. 1275; July 15, 1949, ch. 338, title II, § 201(1), 63 Stat. 421; Aug. 30, 1949, ch. 524, 63 Stat. 681; Oct. 25, 1949, ch. 729, § 1(1), 63 Stat. 905; Apr. 20, 1950, ch. 94, title I, §§ 101(a), 122, 64 Stat. 48, 59; Mar. 10, 1953, ch. 5, § 1, 67 Stat. 4; Aug. 2, 1954, ch. 649, title I, §§ 101(a), 102, 68 Stat. 590; June 30, 1955, ch. 251, § 1(1), 69 Stat. 225; Aug. 11, 1955, ch. 783, title I, § 101, 69 Stat. 635; Feb. 10, 1956, ch. 33, 70 Stat. 11; Aug. 7, 1956, ch. 1029, title I, § 101, 70 Stat. 1091; Pub. L. 85–104, title I, § 105, July 12, 1957, 71 Stat. 297; Pub. L. 86–372, title I, § 101, Sept. 23, 1959, 73 Stat. 654; Pub. L. 86–788, § 2(a), Sept. 14, 1960, 74 Stat. 1028; Pub. L. 87–70, title VI, § 604(a), June 30, 1961, 75 Stat. 177; Pub. L. 88–560, title I, § 101, Sept. 2, 1964, 78 Stat. 769; Pub. L. 89–117, title II, § 202(a), title XI, § 1108(a), Aug. 10, 1965, 79 Stat. 465, 504; Pub. L. 90–19, § 1(a)(3), (d), May 25, 1967, 81 Stat. 17, 18; Pub. L. 90–448, title III, § 308, Aug. 1, 1968, 82 Stat. 509; Pub. L. 91–78, § 2(a), Sept. 30, 1969, 83 Stat. 125; Pub. L. 91–152, title I, §§ 101(a), 103(c), Dec. 24, 1969, 83 Stat. 379, 380; Pub. L. 91–432, § 1(a), Oct. 2, 1970, 84 Stat. 886; Pub. L. 91–473, § 1(a), Oct. 21, 1970, 84 Stat. 1064; Pub. L. 91–525, § 1(a), Dec. 1, 1970, 84 Stat. 1384; Pub. L. 91–609, title I, §§ 101(a), 113, Dec. 31, 1970, 84 Stat. 1770, 1773; Pub. L. 92–503, § 1(a), Oct. 18, 1972, 86 Stat. 906; Pub. L. 93–85, § 1(a), Aug. 10, 1973, 87 Stat. 220; Pub. L. 93–117, § 1(a), Oct. 2, 1973, 87 Stat. 421; Pub. L. 93–383, title III, §§ 309(a)–(d), 316(a), Aug. 22, 1974, 88 Stat. 680, 681, 685; Pub. L. 93–449, § 4(a), Oct. 18, 1974, 88 Stat. 1366; Pub. L. 94–173, § 1, Dec. 23, 1975, 89 Stat. 1027; Pub. L. 95–60, § 1(a), June 30, 1977, 91 Stat. 257; Pub. L. 95–80, § 1(a), July 31, 1977, 91 Stat. 339; Pub. L. 95–128, title II, §§ 301(a), 306, Oct. 12, 1977, 91 Stat. 1131, 1134; Pub. L. 95–406, § 1(a), Sept. 30, 1978, 92 Stat. 879; Pub. L. 95–557, title III, §§ 301(a), 320, Oct. 31, 1978, 92 Stat. 2095, 2101; Pub. L. 95–619, title II, § 241, Nov. 9, 1978, 92 Stat. 3228; Pub. L. 96–71, § 1(a), Sept. 28, 1979, 93 Stat. 501; Pub. L. 96–105, § 1(a), Nov. 8, 1979, 93 Stat. 794; Pub. L. 96–153, title III, §§ 301(a), 313(a), Dec. 21, 1979, 93 Stat. 1111, 1116; Pub. L. 96–372, § 1(a), Oct. 3, 1980, 94 Stat. 1363; Pub. L. 96–399, title III, §§ 301(a), 308(a)–(c)(1), Oct. 8, 1980, 94 Stat. 1638, 1640; Pub. L. 97–35, title III, §§ 331(a), 338(a), 339B(c), Aug. 13, 1981, 95 Stat. 412, 414, 417; Pub. L. 97–289, § 1(a), Oct. 6, 1982, 96 Stat. 1230; Pub. L. 98–35, § 1(a), May 26, 1983, 97 Stat. 197; Pub. L. 98–109, § 1(a), Oct. 1, 1983, 97 Stat. 745; Pub. L. 98–181, title I [title IV, §§ 401(a), 404(b)(1), 415–417], Nov. 30, 1983, 97 Stat. 1207, 1208, 1212; Pub. L. 99–120, § 1(a), Oct. 8, 1985, 99 Stat. 502; Pub. L. 99–156, § 1(a), Nov. 15, 1985, 99 Stat. 815; Pub. L. 99–219, § 1(a), Dec. 26, 1985, 99 Stat. 1730; Pub. L. 99–267, § 1(a), Mar. 27, 1986, 100 Stat. 73; Pub. L. 99–272, title III, § 3007(a), Apr. 7, 1986, 100 Stat. 104; Pub. L. 99–289, Page 524 TITLE 12—BANKS AND BANKING § 1703 § 1(b), May 2, 1986, 100 Stat. 412; Pub. L. 99–345, § 1, June 24, 1986, 100 Stat. 673; Pub. L. 99–430, Sept. 30, 1986, 100 Stat. 986; Pub. L. 100–122, § 1, Sept. 30, 1987, 101 Stat. 793; Pub. L. 100–154, Nov. 5, 1987, 101 Stat. 890; Pub. L. 100–170, Nov. 17, 1987, 101 Stat. 914; Pub. L. 100–179, Dec. 3, 1987, 101 Stat. 1018; Pub. L. 100–200, Dec. 21, 1987, 101 Stat. 1327; Pub. L. 100–242, title IV, § 401(b), Feb. 5, 1988, 101 Stat. 1898; Pub. L. 101–235, title I, § 134(a), Dec. 15, 1989, 103 Stat. 2027; Pub. L. 101–625, title III, § 340(b)(1), (c), title VIII, § 806(a), Nov. 28, 1990, 104 Stat. 4147, 4323; Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1592, 1593; Pub. L. 102–550, title V, § 503(c)(1), title X, § 1012(k)(1), Oct. 28, 1992, 106 Stat. 3779, 3906; Pub. L. 106–569, title IX, § 901, Dec. 27, 2000, 114 Stat. 3026; Pub. L. 110–289, div. B, title I, §§ 2143, 2144(a), 2145–2148(a), 2150, July 30, 2008, 122 Stat. 2844–2848.) Editorial Notes REFERENCES IN TEXT The National Manufactured Housing Construction and Safety Standards Act of 1974, referred to in subsec. (a), is title VI of Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 700, which is classified generally to chapter 70 (§ 5401 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5401 of Title 42 and Tables. This chapter, referred to in subsec. (b)(7), was in the original ‘‘this Act’’, meaning act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§ 1701 et seq.). For complete classification of this Act to the Code, see Tables. Section 1706a of this title, referred to in subsec. (e), was repealed by act June 3, 1939, ch. 175, § 3, 53 Stat. 805, eff. July 1, 1939. CODIFICATION In subsec. (c)(2), ‘‘Section 6101 of title 41’’ substituted for ‘‘Section 3709 of the Revised Statutes’’ on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. AMENDMENTS 2008—Subsec. (a). Pub. L. 110–289, § 2147(a), in first un- designated par., struck out ‘‘on and after July 1, 1939,’’ after ‘‘made by them’’ and after ‘‘institution for such purposes’’ and struck out ‘‘made after August 2, 1954’’ after ‘‘credit, or purchase’’. Pub. L. 110–289, § 2143, in first undesignated par., sub- stituted ‘‘Other than in connection with a manufac- tured home or a lot on which to place such a home (or both), in no case’’ for ‘‘In no case’’ and ‘‘. With’’ for ‘‘: Provided, That with’’. Subsec. (b)(1). Pub. L. 110–289, § 2145(c), substituted ‘‘Except as provided in the last sentence of this para- graph, no’’ for ‘‘No’’ in introductory provisions and in- serted concluding provisions. Subsec. (b)(1)(A)(ii). Pub. L. 110–289, § 2145(a)(1), sub- stituted ‘‘$25,090’’ for ‘‘$17,500’’. Subsec. (b)(1)(C) to (E). Pub. L. 110–289, § 2145(a)(2)–(5), realigned margins and substituted ‘‘$69,678’’ for ‘‘$48,600’’ in subpar. (C), ‘‘$92,904’’ for ‘‘$64,800’’ in sub- par. (D), and ‘‘$23,226’’ for ‘‘$16,200’’ in subpar. (E). Subsec. (b)(8). Pub. L. 110–289, § 2144(a), added par. (8). Subsec. (b)(9). Pub. L. 110–289, § 2145(b), added par. (9). Subsec. (b)(10). Pub. L. 110–289, § 2148(a), added par. (10). Subsec. (b)(11). Pub. L. 110–289, § 2150, added par. (11). Subsec. (c). Pub. L. 110–289, § 2147(b), amended subsec. (c) generally. Prior to amendment, subsec. (c) related to the Secretary’s powers with respect to any debt, contract, claim, personal property, or security assigned or held in connection with the payment of insurance. Subsec. (f). Pub. L. 110–289, § 2146, designated existing provisions as par. (1), inserted heading, and added par. (2). 2000—Subsec. (b)(3)(E). Pub. L. 106–569 substituted ‘‘twenty years’’ for ‘‘fifteen years’’. 1992—Subsec. (a). Pub. L. 102–550, § 1012(k)(1), which directed amendment of fifth undesignated par. by in- serting ‘‘Alterations, repairs, and improvements upon or in connection with existing structures may also in- clude the evaluation and reduction of lead-based paint hazards.’’, and by adding par. (4), was executed to fourth undesignated par. to reflect the probable intent of Congress. Subsec. (b)(1)(C) to (E). Pub. L. 102–550, § 503(c)(1), added subpars. (C) to (E) and struck out former sub- pars. (C) to (E) which read as follows: ‘‘(C) 70 percent of the median 1-family house price in the area, as determined by the Secretary under section 1709(b)(2) of this title, if made for the purpose of financ- ing the purchase of a manufactured home; ‘‘(D) 80 percent of the median 1-family house price in the area, as determined by the Secretary under section 1709(b)(2) of this title, if made for the purpose of financ- ing the purchase of a manufactured home and a suit- ably developed lot on which to place the home; ‘‘(E) the greater of (i) 20 percent of the median 1-fam- ily house price in the area, as determined by the Sec- retary under section 1709(b)(2) of this title, or (ii) $13,500, if made for the purpose of financing the pur- chase, by an owner of a manufactured home which is the principal residence of the owner, of a suitably de- veloped lot on which to place that manufactured home, and if the owner certifies that the owner will place the manufactured home on the lot acquired with such loan within 6 months after the date of such loan;’’. Pub. L. 102–389 added subpars. (C) to (E) and struck out former subpars. (C) to (E) which read as follows: ‘‘(C) $40,500 if made for the purpose of financing the purchase of a manufactured home; ‘‘(D) $54,000 if made for the purpose of financing the purchase of a manufactured home and a suitably devel- oped lot on which to place the home; ‘‘(E) $13,500, if made for the purpose of financing the purchase, by an owner of a manufactured home which is the principal residence of that owner, of a suitably developed lot on which to place that manufactured home, and if the owner certifies that he or she will place the manufactured home on the lot acquired with such loan within six months after the date of such loan;’’. Subsec. (b)(2). Pub. L. 102–389 substituted ‘‘but in no case may such limits, as so increased, exceed the lesser of (A) 185 percent of the dollar amount specified, or (B) the dollar amount specified as increased by the same percentage by which 95 percent of the median one-fam- ily house price in the area (as determined by the Sec- retary) exceeds $67,500’’ for ‘‘but not to exceed the per- centage by which the maximum mortgage amount of a one-family residence in the area is increased by the Secretary under section 1709(b)(2) of this title’’. 1990—Subsec. (b)(1)(A). Pub. L. 101–625, § 340(b)(1)(A), added subpar. (A) and struck out former subpar. (A) which read as follows: ‘‘$17,500 ($20,000 where financing the installation of a solar energy system is involved) if made for the purpose of financing alterations, repairs and improvements upon or in connection with existing single-family structures or manufactured homes;’’. Subsec. (b)(1)(B). Pub. L. 101–625, § 340(b)(1)(B), sub- stituted ‘‘$60,000 or an average amount of $12,000 per family unit’’ for ‘‘$43,750 or an average amount of $8,750 per family unit ($50,000 and $10,000, respectively, where financing the installation of a solar energy system is involved)’’. Subsec. (b)(3)(A). Pub. L. 101–625, § 340(c)(1), added sub- par. (A) and struck out former subpar. (A) which read as follows: ‘‘fifteen years and thirty-two days if made for the purpose of financing alterations, repairs, and improvements upon or in connection with an existing single-family structure or manufactured home;’’. Subsec. (b)(3)(B). Pub. L. 101–625, § 340(c)(2), sub- stituted ‘‘twenty years’’ for ‘‘fifteen years’’. Subsec. (i). Pub. L. 101–625, § 806(a), added subsec. (i). 1989—Subsec. (b)(7). Pub. L. 101–235 added par. (7). Page 525 TITLE 12—BANKS AND BANKING § 1703 1988—Subsec. (a). Pub. L. 100–242 struck out ‘‘and not later than March 15, 1988,’’ after ‘‘made by them on or after July 1, 1939,’’. 1987—Subsec. (a). Pub. L. 100–200 substituted ‘‘March 15, 1988’’ for ‘‘December 16, 1987’’. Pub. L. 100–179 substituted ‘‘December 16, 1987’’ for ‘‘December 2, 1987’’. Pub. L. 100–170 substituted ‘‘December 2, 1987’’ for ‘‘November 15, 1987’’. Pub. L. 100–154 substituted ‘‘November 15, 1987’’ for ‘‘October 31, 1987’’. Pub. L. 100–122 substituted ‘‘October 31, 1987’’ for ‘‘September 30, 1987’’. 1986—Subsec. (a). Pub. L. 99–430 substituted ‘‘Sep- tember 30, 1987’’ for ‘‘September 30, 1986’’. Pub. L. 99–345 substituted ‘‘September 30, 1986’’ for ‘‘June 6, 1986’’. Pub. L. 99–289 substituted ‘‘June 6, 1986’’ for ‘‘April 30, 1986’’. Pub. L. 99–272 made amendment identical to Pub. L. 99–219. See 1985 Amendment note below. Pub. L. 99–267 substituted ‘‘April 30, 1986’’ for ‘‘March 17, 1986’’. 1985—Subsec. (a). Pub. L. 99–219 substituted ‘‘not later than March 17, 1986’’ for ‘‘prior to December 16, 1985’’. Pub. L. 99–156 substituted ‘‘December 16, 1985’’ for ‘‘November 15, 1985’’. Pub. L. 99–120 substituted ‘‘November 15, 1985’’ for ‘‘October 1, 1985’’. 1983—Subsec. (a). Pub. L. 98–181, § 415, inserted new undesignated par. authorizing insurance be made avail- able to existing manufactured homes not insured under this section if such homes were constructed in accord- ance with the standards issued under the National Manufactured Housing Construction and Safety Stand- ards Act of 1974 and meet standards similar to the min- imum property standards applicable to existing homes issued under subchapter II of this chapter. Pub. L. 98–181, § 401(a), substituted ‘‘October 1, 1985’’ for ‘‘December 1, 1983’’. Pub. L. 98–109 substituted ‘‘December 1, 1983’’ for ‘‘Oc- tober 1, 1983’’. Pub. L. 98–35 substituted ‘‘October 1, 1983’’ for ‘‘May 21, 1983’’. Subsec. (b)(1)(C). Pub. L. 98–181, § 416(a)(1), substituted ‘‘$40,500’’ for ‘‘$22,500 ($35,000 in the case of a manufac- tured home composed of two or more modules)’’. Subsec. (b)(1)(D). Pub. L. 98–181, § 416(a)(2), sub- stituted ‘‘$54,000’’ for ‘‘$35,000 ($47,500 in the case of a manufactured home composed of two or more mod- ules)’’. Subsec. (b)(1)(E). Pub. L. 98–181, § 416(a)(3), substituted ‘‘$13,500’’ for ‘‘such an amount as may be necessary, but not exceeding $12,500,’’. Subsec. (b)(2). Pub. L. 98–181, § 416(b), substituted pro- vision authorizing the Secretary, in other areas, to in- crease the maximum dollar amounts specified in sub- sec. (b)(1)(D) and (E) on an area-by-area basis as deemed necessary, but not to exceed the percentage by which the maximum mortgage amount of a one-family residence in the area is increased by the Secretary under section 1709(b)(2) of this title for provision which authorized the Secretary, by regulation, in other areas where needed to meet the higher costs of land acquisi- tion, etc., in connection with the purchase of a manu- factured home or lot, to increase any dollar amount limitation otherwise applicable by an additional $7,500. Subsec. (b)(5). Pub. L. 98–181, § 404(b)(1), amended par. (5) generally, substituting provision that any obliga- tion with respect to which insurance is granted under this section bear interest at such rate as agreed upon by the borrower and the financial institution for provi- sion that any such obligation bear interest and insur- ance premium charges as do not exceed an amount de- termined by a specified formula. Subsec. (b)(6)(C). Pub. L. 98–181, § 417, added subpar. (C). 1982—Subsec. (a). Pub. L. 97–289 substituted ‘‘May 21, 1983’’ for ‘‘October 1, 1982’’. 1981—Pub. L. 97–35, § 339B(c), provided that for pur- poses of section 308(c)(1) of Pub. L. 96–399, the terms ‘‘mobile home’’ and ‘‘manufactured home’’ shall be deemed to include the terms ‘‘mobile homes’’ and ‘‘manufactured homes’’, respectively. See 1980 Amend- ment notes below. Subsec. (a). Pub. L. 97–35, § 331(a), substituted ‘‘1982’’ for ‘‘1981’’. Subsec. (b). Pub. L. 97–35, § 338(a), completely revised and reorganized provisions respecting computations, adjustments, applicability, etc., for granting of insur- ance to financial institutions for obligations rep- resenting loans, advances of credit, or purchases. 1980—Subsec. (a). Pub. L. 96–399, § 308(c)(1), which di- rected substitution of ‘‘manufactured home’’ for ‘‘mo- bile home’’ wherever appearing, was executed by sub- stituting ‘‘manufactured home’’ for ‘‘mobile home’’ and ‘‘manufactured homes’’ for ‘‘mobile homes’’ wherever appearing pursuant to Pub. L. 97–35, § 339B(c). See 1981 Amendment note above. Pub. L. 96–399, § 301(a), substituted ‘‘October 1, 1981’’ for ‘‘October 16, 1980’’. Pub. L. 96–372 substituted ‘‘October 16, 1980’’ for ‘‘Oc- tober 1, 1980’’. Subsec. (b). Pub. L. 96–399, § 308(c)(1), which directed substitution of ‘‘manufactured home’’ for ‘‘mobile home’’ wherever appearing, was executed by sub- stituting ‘‘manufactured home’’ for ‘‘mobile home’’ and ‘‘manufactured homes’’ for ‘‘mobile homes’’ wherever appearing pursuant to Pub. L. 97–35, § 339B(c). See 1981 Amendment note above. Pub. L. 96–399, § 308(a), (b), inserted provisions re- specting areas of high land costs or high set-up costs and increased amounts with respect to financing pur- chases of such homes from $18,000 to $20,000 (from $27,000 to $30,000 where there are two or more modules), where an undeveloped lot is concerned from $24,000 to $26,675 (from $33,000 to $36,675 where there are two or more modules), where a suitably developed lot is con- cerned from $27,500 to $30,550 (from $36,500 to $40,550 where there are two or more modules), and where a principal place of residence of the owner is concerned from $6,250 to $6,950 and $9,375 to $10,425, respectively, for undeveloped and developed lots. 1979—Subsec. (a). Pub. L. 96–153, § 301(a), substituted ‘‘October 1, 1980’’ for ‘‘December 1, 1979’’. Pub. L. 96–105 substituted ‘‘December 1, 1979’’ for ‘‘No- vember 1, 1979’’. Pub. L. 96–71 substituted ‘‘November 1, 1979’’ for ‘‘Oc- tober 1, 1979’’. Subsec. (b). Pub. L. 96–153, § 313(a), substituted: in cl. (1) of first sentence of first unlettered paragraph ‘‘$18,000 ($27,000 in the case of a mobile home con- taining’’ for ‘‘$16,000 ($24,000 in the case of a mobile home composing’’, in subpar. (A) of second unlettered paragraph ‘‘such an amount not exceeding $24,000 ($33,000 in the case of a mobile home composed of two or more modules)’’ for ‘‘an amount not exceeding (i) the maximum amount under clause (1) of the first para- graph of this subsection, and (ii) such amount not to exceed $5,000 as may be necessary to cover the cost of purchasing the lot’’, in subpar. (B) of second unlettered paragraph ‘‘twenty years and thirty-two days (twenty- five’’ for ‘‘fifteen years and thirty-two days (twenty- three’’, in subpar. (A) of third unlettered paragraph ‘‘such an amount not exceeding $27,500 ($36,500 in the case of a mobile home composed of two or more mod- ules)’’ for ‘‘an amount not exceeding (i) the maximum amount under clause (1) of the first paragraph of this subsection, and (ii) such amount not to exceed $7,500 as may be necessary to cover the cost of purchasing the lot’’, in subpar. (B) of such unlettered paragraph ‘‘twen- ty years and thirty-two days (twenty-five’’ for ‘‘fifteen years and thirty-two days (twenty-three’’, in subpar. (A) of the fourth unlettered paragraph ‘‘$6,250 in the case of an undeveloped lot, or (ii) $9,375’’ for ‘‘$5,000 in the case of an undeveloped lot, or (ii) $7,500’’, and in subpar. (B) of such paragraph ‘‘fifteen years and thirty- two days’’ for ‘‘ten years and thirty-two days’’. 1978—Subsec. (a). Pub. L. 95–557, § 301(a), substituted ‘‘October 1, 1979’’ for ‘‘November 1, 1978’’. Pub. L. 95–406 substituted ‘‘November 1, 1978’’ for ‘‘Oc- tober 1, 1978’’. Page 526 TITLE 12—BANKS AND BANKING § 1703 Subsec. (a)(2). Pub. L. 95–619 defined ‘‘energy con- serving improvements’’ in terms of purchase and instal- lation of weatherization materials as defined in section 6862(9) of title 42 rather than additions, alterations, or improvements of an existing or new structure, designed to reduce the total energy requirements of a structure in conformity with standards prescribed by the Sec- retary. Subsec. (a)(3). Pub. L. 95–619 expanded definition of ‘‘solar energy system’’ to include the utilization of wind energy and added the distinction between active and passive types of energy systems. Subsec. (b). Pub. L. 95–557, § 320, substituted ‘‘not in excess of $37,500 nor an average amount of $7,500 per family unit and having a maturity not in excess of fif- teen years’’ for ‘‘not in excess of $25,000 nor an average amount of $5,000 per family unit and having a maturity not in excess of twelve years’’. 1977—Subsec. (a). Pub. L. 95–128, § 301(a), substituted ‘‘October 1, 1978’’ for ‘‘October 1, 1977’’. Pub. L. 95–80 substituted ‘‘October 1, 1977’’ for ‘‘Au- gust 1, 1977’’. Pub. L. 95–60 substituted ‘‘August 1, 1977’’ for ‘‘June 30, 1977’’. Subsec. (b). Pub. L. 95–128, § 306, substituted: in cl. (1) of first sentence ‘‘$15,000’’ for ‘‘$10,000’’ and ‘‘$16,000 ($24,000’’ for ‘‘$12,500 ($20,000’’, and in cl. (2) ‘‘fifteen years’’ for ‘‘twelve years’’; inserted at end of proviso in cl. (2) ‘‘(twenty-three years and thirty-two days in the case of a mobile home composed of two or more mod- ules)’’; substituted in subpar. (B) of the second and third paragraphs ‘‘twenty-three years’’ for ‘‘twenty years’’; and inserted paragraph at end of subsec. (b) which authorized the Secretary to increase by regula- tion any dollar amount limitation on mobile homes or mobile home lot loans contained in this subsection by not to exceed 40 per centum. 1975—Subsec. (b). Pub. L. 94–173 substituted ‘‘$12,500 ($20,000’’ for ‘‘$10,000 ($15,000’’ in cl. 1. 1974—Subsec. (a). Pub. L. 93–449, § 4(a)(1), inserted pro- visions relating to financing preservation of historic structures and defining ‘‘historic structures’’ and ‘‘preservation’’. Pub. L. 93–383, §§ 309(b)(1), (2), (c), 316(a), substituted ‘‘June 30, 1977’’ for ‘‘October 1, 1974’’ in provisions pre- ceding initially designated cl. (i), inserted ‘‘or mobile homes’’ after ‘‘in connection with existing structures’’ in initial cl. (i), provisions relating to the financing of the purchase of a lot on which a mobile home is to be placed and payment of reasonable expenses for the ap- propriate preparation of such lot, and paragraph relat- ing to alteration, repair, and improvement upon or in connection with existing structures with respect to in- clusion of fire safety equipment, etc. Subsec. (b). Pub. L. 93–449, § 4(a)(2), added par. relat- ing to loans financing preservation of historic struc- tures. Pub. L. 93–383, § 309(a), (b)(3), (d), in cl. (1) substituted ‘‘exceeds $10,000’’ for ‘‘exceeds $5,000’’, in cl. (2) sub- stituted provisions relating to maturity of obligation in excess of twelve years and thirty-two days for provi- sions relating to maturity of obligation in excess of three years and thirty-two days and authorization of increase to seven years and thirty-two days under con- ditions determined by the Secretary and substituted ‘‘fifteen years and thirty-two days’’ for ‘‘twelve years and thirty-two days (fifteen years and thirty-two days in the case of a mobile home composed of two or more modules)’’, in cl. (3) substituted ‘‘$25,000’’ for ‘‘$15,000’’, ‘‘$5,000’’ for ‘‘$2,500’’, and ‘‘twelve years’’ for ‘‘seven years’’, inserted provision relating to loans to finance fire safety equipment for a nursing home, etc., and in- serted paragraphs relating to financing the purchase of a mobile home and an undeveloped lot on which the mobile home is to be placed, financing the purchase of a mobile home and a suitably developed lot on which the mobile home is to be placed, and financing the pur- chase by the owner of a mobile home of a lot on which the mobile home is to be placed. 1973—Subsec. (a). Pub. L. 93–117 substituted ‘‘October 1, 1974’’ for ‘‘October 1, 1973’’. Pub. L. 93–85 substituted ‘‘October 1, 1973’’ for ‘‘June 30, 1973’’. 1972—Subsec. (a). Pub. L. 92–503 substituted ‘‘June 30, 1973’’ for ‘‘October 1, 1972’’. 1970—Subsec. (a). Pub. L. 91–609, § 101(a), substituted ‘‘October 1, 1972’’ for ‘‘January 1, 1971’’. Pub. L. 91–525 substituted ‘‘January 1, 1971’’ for ‘‘De- cember 1, 1970’’. Pub. L. 91–473 substituted ‘‘December 1, 1970’’ for ‘‘No- vember 1, 1970’’. Pub. L. 91–432 substituted ‘‘November 1, 1970’’ for ‘‘Oc- tober 1, 1970’’. Subsec. (b). Pub. L. 91–609, § 113(1), (2), in cl. (1) pro- hibited insurance with respect to obligations rep- resenting a loan where loan exceeds ‘‘($15,000 in the case of a mobile home composed of two or more mod- ules)’’, and in cl. (2) prescribed maturity date for obli- gation financing purchase of a mobile home of ‘‘(fifteen years and thirty-two days in the case of a mobile home composed of two or more modules)’’. 1969—Subsec. (a). Pub. L. 91–152, §§ 101(a), 103(c)(1)(4), substituted ‘‘October 1, 1970’’ for ‘‘January 1, 1970’’, des- ignated as ‘‘(i)’’ provisions authorizing and empowering the Secretary to insure institutions financing alter- ations, repairs, and improvements, etc., inserted provi- sions designated as ‘‘(ii)’’ dealing with institutions which finance the purchase of mobile homes used by the owner as his principal residence, inserted ‘‘(other than mobile homes)’’ after ‘‘(1) with respect to new res- idential structures’’, and inserted provisions author- izing and directing the Secretary to prescribe min- imum property standards and conformance to local zoning requirements with respect to mobile homes fi- nanced by insured institutions. Pub. L. 91–78 substituted ‘‘January 1, 1970’’ for ‘‘Octo- ber 1, 1969’’. Subsec. (b). Pub. L. 91–152, § 103(c)(5), (6), in cl. (1) in- serted provision excepting obligations financing the purchase of mobile homes in an amount not exceeding $10,000, and in cl. (2) inserted proviso limiting obliga- tions financing the purchase of mobile homes to a ma- turity date not in excess of twelve years and thirty-two days. Subsec. (c)(2). Pub. L. 91–152, § 103(c)(7), substituted ‘‘real or personal property’’ for ‘‘real property’’ wher- ever appearing. 1968—Subsec. (b). Pub. L. 90–448 substituted ‘‘$5,000’’ for ‘‘$3,500’’, ‘‘seven years’’ for ‘‘five years’’, ‘‘$5.50 dis- count’’ for ‘‘$5 discount’’, and ‘‘$4.50 discount’’ for ‘‘$4 discount’’. 1967—Pub. L. 90–19, § 1(a)(3), substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing in subsecs. (a), (b), (c)(1), (2), and (d) to (h). Subsec. (c)(2). Pub. L. 90–19, § 1(d), substituted ‘‘an of- ficer’’ for ‘‘the Commissioner or by any Assistant Com- missioner’’. 1965—Subsec. (a). Pub. L. 89–117, § 202(a), substituted ‘‘October 1, 1969’’ for ‘‘October 1, 1965’’. Subsec. (f). Pub. L. 89–117, § 1108(a), struck out provi- sions directing the deposit of premium charges and fees and property held with respect to insurance into a United States Treasury account to be used to defray Federal Housing Administration expenses and to pay insurance claims and making allowance for transfer and merger of funds and disposition of surplus funds. 1964—Subsec. (g). Pub. L. 88–560 struck out ‘‘after De- cember 31, 1957,’’ after ‘‘Any payment for loss made’’. 1961—Subsec. (a). Pub. L. 87–70 substituted ‘‘October 1, 1965’’ for ‘‘October 1, 1961’’. 1960—Subsec. (a). Pub. L. 86–788 substituted ‘‘October 1, 1961’’ for ‘‘October 1, 1960’’, and struck out provisions limiting the aggregate amount of all loans, advances of credit, and obligations purchased, with respect to which insurance could be granted under the section, at $1,750,000,000. 1959—Subsec. (a). Pub. L. 86–372 substituted ‘‘October 1, 1960’’ for ‘‘September 30, 1959’’. 1957—Subsecs. (g), (h). Pub. L. 85–104 added subsec. (g) and redesignated former subsec. (g) as (h). 1956—Subsec. (a). Act Aug. 7, 1956, § 101(a), substituted ‘‘September 30, 1959’’ for ‘‘September 30, 1956’’ and pro- Page 527 TITLE 12—BANKS AND BANKING § 1703 viso of second par. authorizing waiver of clause (iii) in discretion of Commissioner with respect to occupancy of completion of new residential structures, for former proviso providing that the clause (iii) occupancy re- quirement should not be mandatory with respect to new residences damaged by a major disaster. Act Feb. 10, 1956, removed the six months’ occupancy requirement with respect to new residences damaged by a major disaster. Subsec. (b). Act Aug. 7, 1956, § 101(b), (c), increased amount of loans which can be insured to $3,500 in lieu of former provisions providing $2,500 for improvement of existing structures and $3,000 for construction of new structures, increased maximum term of loans which can be insured from 3 years and thirty-two days to 5 years and thirty-two days, inserted proviso limiting in- terest and premium charges equivalent to $5 discount per $100 for proceeds of loan up to $2,500 and $4 discount per $100 for proceeds in excess of $2,500, and substituted ‘‘$15,000 nor an average amount of $2,500 per family unit’’ for ‘‘$10,000’’. 1955—Subsec. (a). Act Aug. 11, 1955, substituted ‘‘Sep- tember 30, 1956’’ for ‘‘August 1, 1955’’. Act June 30, 1955, substituted ‘‘August 1, 1955’’ for ‘‘July 1, 1955’’. 1954—Subsec. (a). Act Aug. 2, 1954, § 101(a), in second sentence, inserted proviso restricting claims for losses on individual loans, advances of credit, and purchases to 90 per centum of loss in each such case, and added second par. Subsec. (f). Act Aug. 2, 1954, § 102, inserted last two sentences with respect to termination of the Title I Claims Account as of August 1, 1954. 1953—Subsec. (a). Act Mar. 10, 1953, increased the Sub- chapter I loan insurance authorization from $1,250,000,000 to $1,750,000,000. 1950—Act Apr. 20, 1950, § 122, substituted ‘‘Commis- sioner’’ for ‘‘Administrator’’ wherever appearing. Subsec. (a). Act Apr. 20, 1950, § 101(a)(1), (2), sub- stituted ‘‘July 1, 1955’’ for ‘‘Mar. 1, 1950’’, and limited the total amount of outstanding loans with respect to which insurance is granted under this section to $1,250,000,000 outstanding at any one time. Subsec. (b)(1). Act Apr. 20, 1950, § 101(a)(3), substituted ‘‘$3,000’’ for ‘‘$4,500’’. Subsec. (b)(2). Act Apr. 20, 1950, § 101(a)(4), struck out ‘‘residential or’’ before ‘‘agricultural purposes’’. Subsec. (f). Act Apr. 20, 1950, § 101(a)(5), substituted ‘‘section’’ for ‘‘subchapter’’ wherever appearing. 1949—Subsec. (a). Joint Res. Oct. 25, 1949, substituted ‘‘March 1, 1950’’ for ‘‘November 1, 1949’’ in first sentence and ‘‘$225,000,000’’ for ‘‘$200,000,000’’ in last sentence. Act Aug. 30, 1949, substituted ‘‘November 1, 1949’’ for ‘‘September 1, 1949’’. Act July 15, 1949, substituted ‘‘September 1, 1949’’ for ‘‘July 1, 1949’’. 1948—Subsec. (a). Act Aug. 10, 1948, § 101(s)(1), sub- stituted ‘‘$200,000,000’’ for ‘‘$165,000,000’’. Subsec. (b). Act Aug. 10, 1948, § 101(s)(2)–(4), sub- stituted ‘‘$4,500’’ for ‘‘$3,000’’, struck out first proviso and inserted in lieu a new proviso, and struck out last sentence. 1947—Subsec. (a). Act June 26, 1947, extended provi- sions of section for two years from 1947 to 1949. 1943—Subsec. (a). Act Oct. 15, 1943, substituted ‘‘1947’’ for ‘‘1944’’ in first sentence. Act Mar. 23, 1943, substituted ‘‘1944’’ for ‘‘1943’’ in first sentence. Subsec. (f). Act Oct. 15, 1943, § 4, struck out ‘‘three- fourths of’’ before ‘‘1 per centum’’ in first sentence. 1942—Subsec. (b). Act May 26, 1942, amended provi- sions generally. 1941—Subsec. (a). Act June 28, 1941, §§ 1, 2, substituted ‘‘July 1, 1943’’ for ‘‘July 1, 1941’’ in first sentence; in- serted ‘‘and other sources’’ after ‘‘premiums’’; and sub- stituted ‘‘$165,000,000’’ for ‘‘$100,000,000’’. Subsec. (b). Act June 28, 1941, § 3, substituted ‘‘made for the purpose of financing the alteration, repair, or improvement of existing structures exceeds $2,500 (or in the case of the alteration, repair, or improvement of an existing dwelling designed or to be designed for more than one family, exceeds $5,000), or for the purpose of fi- nancing the construction of new structures exceeds $3,000’’ for ‘‘exceeds $2,500’’; substituted in cl. (2) ‘‘where the loan, advance of credit, or purchase does not exceed $2,500, or has a maturity in excess of five years and thirty-two days, where the loan, advance of credit, or purchase exceeds $2,500 but does not exceed $5,000; ex- cept that such maturity limitations shall not apply if’’ for ‘‘unless’’; and inserted proviso at end. Subsec. (c). Act June 28, 1941, § 4, designated existing provisions as par. (1), inserted ‘‘personal’’ before ‘‘prop- erty’’, and added par. (2). Subsec. (f). Act June 28, 1941, § 5, inserted ‘‘and all moneys collected by the Administrator as fees of any kind in connection with the granting of insurance as provided in this section, and all moneys derived from the sale, collection, disposition, or compromise of any evidence of debt, contract, claim, property, or security assigned to or held by the Administrator as provided in subsection (c) of this section with respect to insurance collected on and after July 1, 1939’’ in last sentence. 1939—Subsecs. (a), (b). Act June 3, 1939, § 1, amended provisions generally. Subsecs. (f), (g). Act June 3, 1939, § 2, added subsecs. (f) and (g). 1938—Subsecs. (a), (b). Act Feb. 3, 1938, amended pro- visions generally. 1937—Subsec. (a). Act Apr. 22, 1937, in third sentence, limited the total liability for all insurance under this section and former section 1026a of this title, not to ex- ceed in the aggregate $100,000,000. 1936—Subsecs. (a) to (d). Act Apr. 3, 1936, amended provisions generally. Subsec. (e). Act Apr. 17, 1936, added subsec. (e). 1935—Subsec. (a). Act Aug. 23, 1935, substituted ‘‘and the purchase and installation of equipment and ma- chinery on real property’’ for ‘‘including the installa- tion of equipment and machinery’’ in first sentence. Act May 28, 1935, substituted ‘‘April’’ for ‘‘January’’ in first sentence and inserted ‘‘including the installa- tion of equipment and machinery’’, and amended gen- erally the last sentence. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–289, div. B, title I, § 2144(b), July 30, 2008, 122 Stat. 2844, provided that: ‘‘The amendment made by subsection (a) [amending this section] shall only apply to loans that are registered or endorsed for insurance after the date of the enactment of this title [July 30, 2008].’’ EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–625, title III, § 340(b)(2), Nov. 28, 1990, 104 Stat. 4147, provided that: ‘‘The amendments made by this subsection [amending this section] shall apply to loans executed on or after June 1, 1991.’’ EFFECTIVE DATE OF 1989 AMENDMENT Pub. L. 101–235, title I, § 134(b), Dec. 15, 1989, 103 Stat. 2028, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall apply only with respect to— ‘‘(1) violations referred to in the amendment that occur on or after the date of the enactment of this Act [Dec. 15, 1989]; and ‘‘(2) in the case of a continuing violation (as deter- mined by the Secretary of Housing and Urban Devel- opment), any portion of a violation referred to in the amendment that occurs on or after such date.’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of this title. EFFECTIVE DATE OF 1954 AMENDMENT Act Aug. 2, 1954, ch. 649, title I, § 101(b), 68 Stat. 590, provided that, as used in the amendments made by such Page 528 TITLE 12—BANKS AND BANKING § 1704 act (see 1954 Amendments note above), the words ‘‘ef- fective date of the Housing Act of 1954 [Act Aug. 2, 1954]’’ mean the first day after the first full calendar month following the date of approval of such act (Aug. 2, 1954). EFFECTIVE DATE OF 1950 AMENDMENT Act Apr. 20, 1950, ch. 94, title I, § 101(b), 64 Stat. 48, provided that ‘‘This section [amending this section] shall take effect as of March 1, 1950.’’ EFFECTIVE DATE OF 1949 AMENDMENT Act July 15, 1949, ch. 338, title II, § 202, 63 Stat. 421, provided that: ‘‘This title [amending this section and sections 1709 and 1738 of this title] shall take effect as of June 30, 1949.’’ EFFECTIVE DATE OF 1939 AMENDMENT Act June 3, 1939, ch. 175, § 4, 53 Stat. 805, provided that: ‘‘The provisions of sections 1, 2, and 3 of this Act [amending this section and repealing section 1706a of this title] shall take effect on July 1, 1939.’’ EFFECTIVE DATE OF 1936 AMENDMENT Act Apr. 3, 1936, ch. 165, § 1, 49 Stat. 1187, provided that the amendment made by that section is effective Apr. 1, 1936. INCONSISTENT LAWS Act Aug. 2, 1954, ch. 649, title VIII, § 818, 68 Stat. 648, provided that: ‘‘Insofar as the provisions of any other law are inconsistent with the provisions of this Act [see 1954 Short Title note set out under section 1701 of this title], the provisions of this Act shall be controlling.’’ POWERS AND AUTHORITIES OF ACT AUGUST 2, 1954 AS CUMULATIVE; SEPARABILITY Act Aug. 2, 1954, ch. 649, title VIII, § 819, 68 Stat. 648, provided that: ‘‘Except as may be otherwise expressly provided in this Act [see Short Title of 1954 Amend- ments note set out under section 1701 of this title], all powers and authorities conferred by this Act shall be cumulative and additional to and not in derogation of any powers and authorities otherwise existing. Not- withstanding any other evidences of the intention of Congress, it is hereby declared to be the controlling in- tent of Congress that if any provisions of this Act, or the application thereof to any persons or cir- cumstances, shall be adjudged by any court of com- petent jurisdiction to be invalid, such judgment shall not affect, impair, or invalidate the remainder of this Act or its application to other persons and cir- cumstances.’’ PURPOSES Pub. L. 110–289, div. B, title I, § 2142, July 30, 2008, 122 Stat. 2844, provided that: ‘‘The purposes of this subtitle [subtitle B (§§ 2141–2150) of title I of div. B of Pub. L. 110–289, see Short Title of 2008 Amendment note set out under section 1701 of this title] are— ‘‘(1) to provide adequate funding for FHA-insured manufactured housing loans for low- and moderate- income homebuyers during all economic cycles in the manufactured housing industry; ‘‘(2) to modernize the FHA title I insurance pro- gram for manufactured housing loans to enhance par- ticipation by Ginnie Mae and the private lending markets; and ‘‘(3) to adjust the low loan limits for title I manu- factured home loan insurance to reflect the increase in costs since such limits were last increased in 1992 and to index the limits to inflation.’’ TIMING Pub. L. 110–289, div. B, title I, § 2148(b), July 30, 2008, 122 Stat. 2847, provided that: ‘‘Not later than the expi- ration of the 6-month period beginning on the date of the enactment of this title [July 30, 2008], the Secretary of Housing and Urban Development shall revise the ex- isting underwriting criteria for the program referred to in paragraph (10) of section 2(b) of the National Housing Act [12 U.S.C. 1703(b)(10)] (as added by subsection (a) of this section) in accordance with the requirements of such paragraph.’’ ‘‘MOBILE HOME’’ AND ‘‘MANUFACTURED HOME’’ TO IN- CLUDE ‘‘MOBILE HOMES’’ AND ‘‘MANUFACTURED HOMES’’ Pub. L. 97–35, title III, § 339B(c), Aug. 13, 1981, 95 Stat. 417, provided that: ‘‘For purposes of paragraphs (1) and (4) of section 308(c) of the Housing and Community De- velopment Act of 1980 [amending sections 1703 and 1713 of this title, and section 5401 et seq. of Title 42, The Public Health and Welfare], the term ‘mobile home’ and the term ‘manufactured home’ shall be deemed to include the term ‘mobile homes’ and the term ‘manu- factured homes’, respectively.’’ DATA COLLECTION AND REPORTING PROCEDURES RE- SPECTING MEAN AND MEDIAN SALES PRICES ON MAN- UFACTURED HOMES AND LOTS; DEVELOPMENT, CON- TENTS, ETC. Pub. L. 96–399, title III, § 308(e), Oct. 8, 1980, 94 Stat. 1641, provided that: ‘‘Not later than January 1, 1982, the Secretary of Housing and Urban Development shall de- velop a procedure for collecting and regularly reporting data on the mean and median sales price for new manu- factured homes, and, where available, data on the mean and median sales price for manufactured home lots and combination new manufactured home and lot packages. Such reports shall contain, to the maximum extent fea- sible, sales price information for the Nation, each cen- sus region, each State on an annual basis, and selected standard metropolitan statistical areas having suffi- cient activity on an annual basis.’’ REPORT RESPECTING OWNERSHIP OF MOBILE HOME SITES Pub. L. 96–153, title III, § 321, Dec. 21, 1979, 93 Stat. 1119, required the Secretary of Housing and Urban De- velopment to submit a report to Congress by Mar. 31, 1980, containing recommendations for programs and policies which encourage individual ownership of mo- bile home lots through several methods. REPAYMENT TO TREASURY ON CAPITAL ACCOUNT OF SUBCHAPTER I INSURANCE FUND Act Mar. 10, 1953, ch. 5, § 2, 67 Stat. 5, directed the Federal Housing Commissioner to pay out of the cap- ital account of the Title I Insurance Fund to the Sec- retary of the Treasury, prior to June 30, 1954, the sum of $8,333,313.65 either in one lump sum or in install- ments, except that the first payment was to be made on July 1, 1953. § 1704. Repealed. Apr. 3, 1936, ch. 165, § 2, 49 Stat. 1188 Section, act June 27, 1934, ch. 847, title I, § 3, 48 Stat. 1247, related to loans to financial institutions. § 1705. Allocation of funds For the purposes of carrying out the provi- sions of this subchapter and subchapters II and III, the President, in his discretion, is author- ized to provide such funds or any portion thereof by allotment to the Secretary from any funds that are available, or may hereafter be made available, to the President for emergency pur- poses. (June 27, 1934, ch. 847, title I, § 4, 48 Stat. 1247; June 30, 1947, ch. 166, title II, § 206(l), 61 Stat. 208; Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17; Pub.