12 U.S.C. § 1747e — Financial statements by Secretary

Page 822 TITLE 12—BANKS AND BANKING § 1747d Editorial Notes AMENDMENTS 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’ wherever appearing. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. § 1747d. Excess earnings used for amortization of original investment For all of the purposes of any insurance con- tract made pursuant to this subchapter, 50 per centum of the excess earnings, if any, for any operating year may be applied, in addition to the minimum annual return, to return on the outstanding investment but only to the extent that such application thereof does not result in an annual return of more than 5 per centum of the outstanding investment for such operating year, and the balance of any such excess earn- ings shall be applied, in addition to the min- imum annual amortization charge, to amortiza- tion of the outstanding investment: Provided, That if in any preceding operating years the gross income shall have been less than the oper- ating expenses, such excess earnings shall be ap- plied to the extent necessary in whole or in part, first, to the reimbursement of the amount of the difference between such expenses (exclusive of any premium charges previously waived here- under) and such income, and, second, to the pay- ment of any premium charges previously waived hereunder. (June 27, 1934, ch. 847, title VII, § 705, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1277.) § 1747e. Financial statements by Secretary With respect to each project insured under this subchapter, the Secretary shall provide that, after the close of each operating year, the investor shall submit to him for approval a fi- nancial and operating statement covering such operating year. If any such financial and oper- ating statement shall not have been submitted or, for proper cause, shall not have been ap- proved by the Secretary, payment of any claim submitted by the investor may, at the option of the Secretary, be withheld, in whole or in part, until such statement shall have been submitted and approved. (June 27, 1934, ch. 847, title VII, § 706, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1278; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; 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. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. § 1747f. Payment of claims; assignment of bene- fits by investors If in any operating year the net income of a project insured under this subchapter is less than the aggregate of the minimum annual am- ortization charge and the insured annual return, the Secretary, upon submission by the investor of a claim for the payment of the amount of the difference between such net income and the ag- gregate of the minimum annual amortization charge and the insured annual return and after proof of the validity of such claim, shall pay to the investor, in cash from the General Insurance Fund, the amount of such difference, as deter- mined by the Secretary, but not exceeding, in any event, an amount equal to the aggregate of the minimum annual amortization charge and the insured annual return. Nothing contained in this subchapter or any other provision of law shall be construed as preventing or restricting an investor from assigning, pledging, or other- wise transferring or disposing of, subject to rules and regulations of the Secretary, any or all rights, claims, or other benefits under any insurance contract made pursuant to this sub- chapter to an assignee, pledgee, or other trans- feree, including the holders (or the trustee for such holders) of any debentures issued by the in- vestor in connection with the project to which such insurance contract relates, and the Sec- retary is authorized to pay claims or issue de- bentures in accordance with the provisions of this section and section 1747g of this title to any such assignee, pledgee, or other transferee. (June 27, 1934, ch. 847, title VII, § 707, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1278; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Sept. 1, 1951, ch. 378, title VI, § 609(b), 65 Stat. 316; Pub. L. 89–117, title XI, § 1108(s), Aug. 10, 1965, 79 Stat. 506; Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.) Editorial Notes REFERENCES IN TEXT The General Insurance Fund, referred to in text, was established by section 1735c of this title. AMENDMENTS 1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Com- missioner’’ wherever appearing. 1965—Pub. L. 89–117 substituted ‘‘General Insurance Fund’’ for ‘‘Housing Investment Insurance Fund’’. 1951—Act Sept. 1, 1951, inserted second sentence. 1950—Act Apr. 20, 1950, substituted ‘‘Commissioner’’ for ‘‘Administrator’’ wherever appearing. § 1747g. Debentures (a) Acquisition of project by Secretary; issuance of debentures If the aggregate of the amounts paid to the in- vestor pursuant to section 1747f of this title with respect to a project insured under this sub- chapter shall at any time equal or exceed 15 per centum of the established investment, the Sec- retary thereafter shall have the right, after written notice to the investor of his intentions so to do, to acquire, as of the first day of any op- erating year, such project in consideration of the issuance and delivery to the investor of de- bentures having a total face value equal to 90 per centum of the outstanding investment for such operating year. In any such case the inves- tor shall be obligated to convey to said Sec- retary title to the project which meets the re- quirements of the rules and regulations of the Secretary in force at the time the insurance