12 U.S.C. § 1748a — Repealed. Pub. L. 89–117, title XI,

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 Repealed.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