12 U.S.C. § 1735e — Acceptance of materials or products used

Page 788 TITLE 12—BANKS AND BANKING § 1735d 1 See References in Text note below. 1980—Subsec. (f). Pub. L. 96–399 substituted ‘‘$1,738,000,000’’ for ‘‘$1,341,000,000, which amount shall be increased by $165,000,000 on October 1, 1978, which shall be increased by not to exceed $93,000,000 on Octo- ber 1, 1979’’. 1979—Subsec. (f). Pub. L. 96–153 provided for an in- crease of $93,000,000 on October 1, 1979. 1978—Subsec. (f). Pub. L. 95–557 inserted ‘‘which amount shall be increased by $165,000,000 on October 1, 1978’’. 1977—Subsec. (f). Pub. L. 95–24 substituted ‘‘$1,341,000,000’’ for ‘‘$500,000,000’’. 1976—Subsec. (f). Pub. L. 94–375 added subsec. (f). 1970—Subsec. (c). Pub. L. 91–609 provided for guar- antee as to principal and interest by any agency of the United States and for investment of moneys in bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market. 1968—Subsec. (e). Pub. L. 90–448 prohibited use of Fund for carrying out provisions of sections 1715n(e), 1715x(a)(2), 1715z, 1715z–1 and 1715z–2 of this title. 1967—Pub. L. 90–19 substituted ‘‘Department of Hous- ing and Urban Development’’ for ‘‘Federal Housing Ad- ministration’’ wherever appearing in subsecs. (b) and (c) of this section and ‘‘Secretary’’ for ‘‘Commissioner’’ in subsecs. (a), (c), and (d) of this section, respectively. Statutory Notes and Related Subsidiaries 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. § 1735d. Payment of insurance benefits in cash or debentures; borrowing money from Treasury to make payments (a) Notwithstanding any other provisions of this chapter with respect to the payment of in- surance benefits, the Secretary is authorized, in his discretion, to pay in cash or in debentures any insurance claim or part thereof which is paid on or after August 10, 1965, on a mortgage or a loan which was insured under any section of this chapter either before or after such date. If payment is made in cash, it shall be in an amount equivalent to the face amount of the de- bentures that would otherwise be issued plus an amount equivalent to the interest which the de- bentures would have earned, computed to a date to be established pursuant to regulations issued by the Secretary. (b) The Secretary is authorized to borrow from the Treasury from time to time such amounts as the Secretary shall determine are necessary (1) to make payments in cash (in lieu of issuing de- bentures guaranteed by the United States, as provided in this chapter) pursuant to the provi- sions of this section, and (2) to make payments for reinsured and directly insured losses under subchapter IX–C 1 of this chapter: Provided, how- ever, That borrowings to make payments for re- insured and directly insured losses under sub- chapter IX–C 1 shall be limited to $250,000,000 or such further sum as the Congress, by joint reso- lution, may from time to time determine. Notes or other obligations issued by the Secretary in borrowing under this subsection shall be subject to such terms and conditions as the secretary of the Treasury may prescribe. Each sum borrowed pursuant to this subsection shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the average market yield on outstanding marketable obliga- tions of the United States of comparable matu- rities during the month preceding the issuance of such notes or other obligations. (June 27, 1934, ch. 847, title V, § 520, as added Pub. L. 89–117, title II, § 215, Aug. 10, 1965, 79 Stat. 472; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 90–448, title XI, § 1104, Aug. 1, 1968, 82 Stat. 566; Pub. L. 91–609, title VI, § 604, Dec. 31, 1970, 84 Stat. 1791.) Editorial Notes REFERENCES IN TEXT Subchapter IX–C of this chapter, referred to in sub- sec. (b), was classified to section 1749bbb et seq. of this title and was omitted from the Code. AMENDMENTS 1970—Subsec. (b)(2). Pub. L. 91–609 provided for mak- ing payments for directly insured losses and made limi- tation provision applicable to such payments. 1968—Subsec. (b). Pub. L. 90–448 empowered the Sec- retary to borrow to make payments for reinsured losses under subchapter IX–C of this chapter, and limited such borrowing to $250,000,000 or such further sum as Con- gress may determine. 1967—Subsecs. (a), (b). Pub. L. 90–19 substituted ‘‘Sec- retary’’ for ‘‘Commissioner’’ wherever appearing. § 1735e. Acceptance of materials or products used in structures The Secretary shall adopt a uniform procedure for the acceptance of materials and products to be used in structures approved for mortgages or loans insured under this chapter. Under such procedure any material or product which the Secretary finds is technically suitable for the use proposed shall be accepted. Acceptance of a material or product as technically suitable shall not be deemed to restrict the discretion of the Secretary to determine that a structure, with respect to which a mortgage is executed, is eco- nomically sound or an acceptable risk. (June 27, 1934, ch. 847, title V, § 521, as added Pub. L. 89–117, title II, § 216, Aug. 10, 1965, 79 Stat. 473; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes AMENDMENTS 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’ wherever appearing. § 1735e–1. Use of American materials and prod- ucts In the administration of housing assistance programs, the Secretary of Housing and Urban Development shall encourage the use of mate- rials and products mined and produced in the United States. (Pub. L. 100–242, title V, § 571, Feb. 5, 1988, 101 Stat. 1950.) Editorial Notes CODIFICATION Section was enacted as part of the Housing and Com- munity Development Act of 1987, and not as part of the National Housing Act which comprises this chapter.