12 U.S.C. § 1748 — Definitions

Page 826 TITLE 12—BANKS AND BANKING § 1748 of the minimum annual amortization charge for each preceding operating year, plus (2) the ag- gregate of the excess earnings, if any, during each preceding operating year applied, in addi- tion to the minimum annual amortization charge, to amortization in accordance with the provisions of section 1747d of this title. (q) ‘‘State’’ shall include the several States and Puerto Rico, the District of Columbia, Guam, and the Virgin Islands. (June 27, 1934, ch. 847, title VII, § 713, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1281; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Sept. 1, 1951, ch. 378, title VI, §§ 610, 612, 65 Stat. 316; July 14, 1952, ch. 723, § 10(a)(4), 66 Stat. 603; Pub. L. 86–70, § 10(a), June 25, 1959, 73 Stat. 142; Pub. L. 86–624, § 6, July 12, 1960, 74 Stat. 411; 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 in subsecs. (a) to (e), (i), and (n). 1960—Subsec. (q). Pub. L. 86–624 struck out ‘‘Hawaii,’’ before ‘‘Puerto Rico’’. 1959—Subsec. (q). Pub. L. 86–70 struck out ‘‘Alaska,’’ before ‘‘Hawaii’’. 1952—Subsec. (q). Act July 14, 1952, added subsec. (q). 1951—Subsec. (n). Act Sept. 1, 1951, § 610, inserted ‘‘or such lesser amount as shall be agreed upon by the in- vestor and the Commissioner’’. Subsec. (o). Act Sept. 1, 1951, § 612, inserted ‘‘and in- come taxes’’. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. SUBCHAPTER VIII—ARMED SERVICES HOUSING MORTGAGE INSURANCE Editorial Notes AMENDMENTS 1955—Act Aug. 11, 1955, ch. 783, title IV, § 401, 69 Stat. 646, substituted ‘‘ARMED SERVICES’’ for ‘‘MILI- TARY’’ and inserted ‘‘MORTGAGE’’ in subchapter heading. § 1748. Definitions As used in this subchapter— (a) The term ‘‘mortgage’’ means a first mort- gage on real estate, in fee simple, or on a lease- hold (1) under a lease for not less than ninety- nine years which is renewable; or (2) under a lease for a period of not less than fifty years to run from the date the mortgage was executed; and the term ‘‘first mortgage’’ means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby. (b) The term ‘‘mortgagee’’ includes the origi- nal lender under a mortgage, and his successors and assigns approved by the Secretary; and the term ‘‘mortgagor’’ includes the original bor- rower under a mortgage, his successors and as- signs. (c) The term ‘‘maturity date’’ means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. (d) The term ‘‘housing accommodations’’ means housing designed for occupancy by mili- tary personnel and their dependents, assigned to duty at or near the military installation where such housing units are constructed. (e) The term ‘‘personnel’’ shall include mili- tary and civilian personnel approved by the Sec- retary of Defense, or his designee, and the de- pendents of all such personnel. (f) The term ‘‘military’’ includes Army, Navy, Marine Corps, Air Force, and Coast Guard. (g) The term ‘‘State’’ includes the several States, and Puerto Rico, the District of Colum- bia, Guam, the Virgin Islands, the Canal Zone, and Midway Island. (June 27, 1934, ch. 847, title VIII, § 801, as added Aug. 8, 1949, ch. 403, § 1, 63 Stat. 570; amended July 14, 1952, ch. 723, § 10(a)(2), 66 Stat. 603; Aug. 11, 1955, ch. 783, title IV, § 401, 69 Stat. 646; Aug. 7, 1956, ch. 1029, title V, § 501, 70 Stat. 1109; Pub. L. 86–70, § 10(a), June 25, 1959, 73 Stat. 142; Pub. L. 86–624, § 6, July 12, 1960, 74 Stat. 411; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes REFERENCES IN TEXT For definition of Canal Zone, referred to in subsec. (g), see section 3602(b) of Title 22, Foreign Relations and Intercourse. AMENDMENTS 1967—Subsec. (b). Pub. L. 90–19 substituted ‘‘Sec- retary’’ for ‘‘Commissioner’’. 1960—Subsec. (g). Pub. L. 86–624 struck out ‘‘Hawaii,’’ before ‘‘Puerto Rico’’. 1959—Subsec. (g). Pub. L. 86–70 struck out ‘‘Alaska,’’ before ‘‘Hawaii’’. 1956—Subsec. (g). Act Aug. 7, 1956, inserted reference to Canal Zone and Midway Island. 1955—Act Aug. 11, 1955, inserted definitions of ‘‘hous- ing accommodations’’ and ‘‘personnel’’ and included the Coast Guard in definition of ‘‘military’’. 1952—Subsec. (f). Act July 14, 1952, inserted ‘‘Guam,’’ after ‘‘District of Columbia,’’. Statutory Notes and Related Subsidiaries SAVINGS PROVISION Act Aug. 11, 1955, ch. 783, title IV, § 408, 69 Stat. 653, as amended by act Aug. 7, 1956, ch. 1029, title V, § 511, 70 Stat. 1110, provided that: ‘‘Notwithstanding the pro- visions of section 401 of this Act [amending this sub- chapter], the provisions of title VIII of the National Housing Act [this subchapter] in effect prior to the en- actment of the Housing Amendments of 1955 [August 11, 1955] shall continue in full force and effect with respect to all mortgages insured pursuant to a certification by the Secretary of Defense or his designee made on or be- fore June 30, 1955, and a commitment to insure issued on or before June 30, 1956 or pursuant to a certification by the Atomic Energy Commission or its designee made on or before June 30, 1956, except that the maximum dollar amount for each such mortgage shall be $12,500,000.] Nothing contained in the provisions of title VIII of the National Housing Act [this subchapter] in effect prior to August 11, 1955 or any related provision of law, shall be construed to exempt from State or local taxes or assessments the interest of a lessee from the Federal Government in or with respect to any property covered by a mortgage insured under such provisions of title VIII: Provided, That, no such taxes or assessments (not paid or encumbering such property or interest prior to June 15, 1956) on the interest of such lessee shall exceed the amount of taxes or assessments on Page 827 TITLE 12—BANKS AND BANKING § 1748b other similar property of similar value, less such amount as the Secretary of Defense or his designee de- termines to be equal to (1) any payments made by the Federal Government to the local taxing or other public agencies involved with respect to such property, plus (2) such amount as may be appropriate for any expendi- tures made by the Federal Government or the lessee for the provision or maintenance of streets, sidewalks, curbs, gutters, sewers, lighting, snow removal or any other services or facilities which are customarily pro- vided by the State, county, city, or other local taxing authority with respect to such other similar property: And provided further, That the provisions of this section shall not apply to properties leased pursuant to the provisions of section 805 of the National Housing Act [12 U.S.C. 1748d] as amended on or after August 11, 1955, which properties shall be exempt from State or local taxes or assessments.’’ TRANSFER OF FUNCTIONS For transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relat- ing thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(b), 551(d), 552(d), and 557 of Title 6, Domestic Secu- rity, and the Department of Homeland Security Reor- ganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6. COAST GUARD Subchapter as applicable to Coast Guard, see section 1594e of Title 42, The Public Health and Welfare. § 1748a. Repealed. Pub. L. 89–117, title XI, § 1108(aa), Aug. 10, 1965, 79 Stat. 507 Section, act June 27, 1934, ch. 847, title VIII, § 802, as added Aug. 8, 1949, ch. 403, § 1, 63 Stat. 571; amended Aug. 11, 1955, ch. 783, title IV, § 401, 69 Stat. 646, created the Armed Services Housing Insurance Fund. For establishment of the General Insurance Fund, see section 1735c of this title. § 1748b. Insurance of mortgages (a) Aggregate amount of insurance; termination date In order to assist in relieving the acute short- age and urgent need for family housing which now exists at or in areas adjacent to military in- stallations because of uncertainty as to the per- manency of such installations and to increase the supply of necessary family housing accom- modations for personnel at such installations, the Secretary is authorized, upon application of the mortgagee, to insure mortgages (including advances on such mortgages during construc- tion) which are eligible for insurance as herein- after provided, and, upon such terms as the Sec- retary may prescribe, to make commitments for so insuring such mortgages prior to the date of their execution or disbursement thereon: Pro- vided, That the aggregate amount of principal obligations of all mortgages insured under this subchapter (except mortgages insured pursuant to the provisions of this subchapter in effect prior to August 11, 1955) shall not exceed $2,300,000,000: And provided further, That the limi- tation in section 1715h of this title shall not apply to this subchapter: And provided further, That no more mortgages shall be insured under this section after October 1, 1962, except pursu- ant to a commitment to insure before such date, and not more than twenty-eight thousand fam- ily housing units shall be contracted for after June 30, 1959, pursuant to any mortgage insured under this section after such date. (b) Eligibility for insurance To be eligible for insurance under this sub- chapter a mortgage shall meet the following conditions: (1) The mortgaged property shall be held by a mortgagor approved by the Secretary. The Secretary may, in his discretion, require such mortgagor to be regulated or restricted as to capital structure, and methods of operation. The Secretary may make such contracts with, and acquire for not to exceed $100 stock or in- terest in, any such mortgagor, as the Sec- retary may deem necessary to render effective such restriction or regulation. Such stock or interest shall be paid for out of the General In- surance Fund, and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insur- ance. (2) The mortgaged property shall be designed for use for residential purposes by personnel of the armed services and situated at or near a military installation, and the Secretary of De- fense or his designee shall have certified that there is no intention, so far as can reasonably be foreseen, to substantially curtail the per- sonnel assigned or to be assigned to such in- stallation, and (i) shall have determined that for reasons of safety, security, or other essen- tial military requirements, it is necessary that the personnel involved reside in public quarters: Provided, however, That for the pur- poses of this subsection housing covered by a mortgage insured, or for which a commitment to insure has been issued, under this section prior to August 11, 1955, may be considered the same as available quarters, and (ii) with the approval of the Secretary, shall have deter- mined that adequate housing is not available for such personnel at reasonable rentals with- in reasonable commuting distance of the in- stallation and that the mortgaged property will not, so far as can reasonably be foreseen, substantially curtail occupancy in existing housing covered by mortgages insured under this chapter. The housing accommodations shall comply with such standards and condi- tions as the Secretary may prescribe to estab- lish the acceptability of such property for mortgage insurance, except that the certifi- cation of the Secretary of Defense or his des- ignee shall (for purposes of mortgage insur- ance under this subchapter) be conclusive evi- dence to the Secretary of the existence of the need for such housing. However, if the Sec- retary does not concur in the housing needs as certified by the Secretary of Defense, the Sec- retary may require the Secretary of Defense to guarantee the General Insurance Fund against loss with respect to the mortgage cov- ering such housing. There are authorized to be appropriated such sums as may be necessary to provide for payment to meet losses arising from such guaranty. (3) The mortgage shall involve a principal obligation in an amount— (A) not to exceed the amount which the Secretary estimates will be the replacement