12 U.S.C. § 1735a — Prepayment of mortgages by nonprofit

Page 785 TITLE 12—BANKS AND BANKING § 1735b amounts and at such times as the Secretary de- termines, after consultations with the Secretary of the Treasury, that funds are available for that purpose, taking into consideration the con- tinued solvency of the funds involved. All pay- ments made pursuant to this section shall be covered into the Treasury as miscellaneous re- ceipts. (June 27, 1934, ch. 847, title V, § 516, as added June 30, 1953, ch. 170, § 9, 67 Stat. 123; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17; Pub. L. 98–479, title II, § 204(a)(21), Oct. 17, 1984, 98 Stat. 2232.) Editorial Notes REFERENCES IN TEXT Section 1715a of this title, referred to in par. (1), in the original was a reference to section 210 of the Na- tional Housing Act (June 27, 1934, ch. 847, § 210, as added Feb. 3, 1938, ch. 13, § 3, 52 Stat. 22), which was repealed by act June 3, 1939, ch. 175, § 13, 53 Stat. 807. See note set out under section 1715a. Section 484d of title 48, referred to in text, which au- thorized the Federal Housing Commissioner to pre- scribe a higher maximum for the principal obligation of mortgages, was omitted from the Code. Sections 1737, 1747i, and 1748a of this title, referred to in text, were repealed by Pub. L. 89–117, title II, § 1108(aa), Aug. 10, 1965, 79 Stat. 507. AMENDMENTS 1984—Pub. L. 98–479 inserted ‘‘Payment of certain funds to Treasury’’ as section catchline. 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’ wherever appearing. § 1735a. Prepayment of mortgages by nonprofit educational institutions; refunds (a) Notwithstanding any other provision of this chapter, no adjusted premium charge shall be collected in connection with the payment in full, prior to maturity, of any mortgage insured under this chapter, if the mortgagor certifies to the Secretary that the loan was paid in full by or on behalf of a nonprofit educational institu- tion which intends to use the property for edu- cational purposes. (b) The Secretary shall refund any adjusted premium charge collected subsequent to July 1, 1962, and prior to September 2, 1964, in connec- tion with the payment in full, prior to maturity, of any mortgage insured under this chapter, if the mortgagor under such mortgage makes the certification prescribed by subsection (a). (June 27, 1934, ch. 847, title V, § 517, as added Pub. L. 88–560, title I, § 120, Sept. 2, 1964, 78 Stat. 782; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes AMENDMENTS 1967—Subsecs. (a), (b). Pub. L. 90–19 substituted ‘‘Sec- retary’’ for ‘‘Commissioner’’ wherever appearing. § 1735b. Expenditures to correct or reimburse for structural or other major defects in mort- gaged homes (a) Prior to beginning of construction (1) The Secretary is authorized to make ex- penditures under this subsection with respect to any property that— (A) is a condominium unit (including com- mon areas) or is improved by a one-to-four family dwelling; (B) was approved, before the beginning of construction, for mortgage insurance under this chapter or for guaranty, insurance, or di- rect loan under chapter 37 of title 38 or was less than a year old at the time of insurance of the mortgage and was covered by a con- sumer protection or warranty plan acceptable to the Secretary; and (C) the Secretary finds to have structural defects. (2) Expenditures under this subsection may be made for (A) correcting such defects, (B) paying the claims of the owner of the property arising from such defects, or (C) acquiring title to the property: Provided, That such authority of the Secretary shall exist only (A) if the owner has requested assistance from the Secretary not later than four years (or such shorter time as the Secretary may prescribe) after insurance of the mortgage, and (B) if the property is encum- bered by a mortgage which is insured under this chapter after September 2, 1964. (b) Mortgages insured on or after August 1, 1968, but prior to January 1, 1973; requirements; reimbursement from seller; insurance fund chargeable The Secretary is authorized to make expendi- tures to correct, or to reimburse the owner for the correction of, structural or other major de- fects which so seriously affect use and livability as to create a serious danger to the life or safety of inhabitants of any one, two, three, or four family dwelling which is covered by a mortgage insured under section 1715z of this title or which is located in an older, declining urban area and is covered by a mortgage insured under section 1709 or 1715l of this title on or after August 1, 1968, but prior to January 1, 1973, and which is more than one year old on the date of the issuance of the insurance commitment, if (1) the owner requests assistance from the Secretary not later than one year after the insurance of the mortgage, or, in the case of a dwelling cov- ered by a mortgage insured under section 1709 or 1715l of this title the insurance commitment for which was issued on or after August 1, 1968, but prior to January 1, 1973, not more than four months after August 3, 1976, and (2) the defect is one that existed on the date of the issuance of the insurance commitment and is one that a proper inspection could reasonably be expected to disclose. The Secretary may require from the seller of any such dwelling an agreement to re- imburse him for any payments made pursuant to this subsection with respect to such dwelling. Expenditures pursuant to this subsection shall be made from the insurance fund chargeable for insurance benefits on the mortgage covering the structure to which the expenditures relate. There are hereby authorized to be appropriated such sums as may be necessary to cover the costs of such expenditures not otherwise pro- vided for. (c) Regulations; finality of decision The Secretary shall by regulations prescribe the terms and conditions under which expendi-