68 S T A T. ]
PUBLIC LAW 560-AUG. 2, 1954
633
clause 1 (a) of this subsection: Provided, That the amounts to be paid to the Authority and the local public bodies shall not exceed their respective total contribution to the project.". SEC. 404. Paragraph (6) of section 16 of said Act, as amended, is hereby repealed.
Re^a? lf\^ibor reporting require-
SEC. 405. Section 10 of the United States Housing Act of 1937, ad '"*42 USC 1410. amended, is hereby amended by adding the following subsection: se?tte^en'tf" ^^^ " (k) All expenditures of appropriations for the payment of annual 42 Stat. 20. contributions shall be subject to audit and final settlement by the Comptroller General of the United States under the provisions of the Budget and Accounting Act of 1921, as amended." SEC. 406. Section 10 of said Act, as amended, is hereby amended by adding the following new subsection: "(1) In any community where it has been determined by resolution oJg^f" P'^^'^*'^ or ordinance, or by referendum, that a project shall be liquidated by sale thereof to private ownership, such community may negotiate with the Federal Government with respect to the sale of the project, and the Authority shall agree that sale of the project may be made after public advertisement to the highest bidder upon (1) payment and retirement of all outstanding obligations (together with any interest payable thereon and any premiums prescribed for the redemption of any bonds, notes, or other obligations prior to maturity) in connection with the project, and (2) payment of any proceeds received from the sale of the project in excess of the amounts required to comply with the requirements of the preceding clause numbered (1) to the Authority and to local public bodies in proportion to the aggregate contribution which the Authority and such local public bodies have made to the project." TITLE V—HOME LOAN BANK BOARD SEC. 501. The National Housing Act, as amended, is hereby and^fjan \V^t~ amended— ance corp 12 USC 1725. (1) by amending section 402(c)(4) to read as follows: Service o f process. "(4) To sue and be sued, complain and defend, in any court of competent jurisdiction in the United States or its Territories or possessions or the Commonwealth of Puerto Rico, and may be served by serving a copy of process on any of its agents or any agent of the Home Loan Bank Board and mailing a copy of such process by registered mail to the Corporation at Washington, District of Columbia."; (2) by adding the following new subsection to section 405: ciaYmf ^^*' "(c) No action against the Corporation to enforce a claim for statute* of iinii.payment of insurance upon an insured account of an insured *®"°"*' institution in default shall be brought after the expiration of three years from the date of default unless, within such three-year period, the conservator, receiver, or other legal custodian of the insured institution shall have recognized such insured account as a valid claim against the insured institution and the claim for payment of insurance shall have been presented to the Corporation and its validity denied, in which event the action may be brought within two years from the date of such denial."; and (3) by striking the first four sentences of section 407 and V- ^^f- ^J^°- . ^ '. ' ' •, », •, ' '.
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inserting the lollowing: "Any insured institution other than a insurance. Federal savings and loan association may terminate its status as an insured institution by written notice to the Corporation. Whenever in the opinion of the Home Loan Bank Board any insured institution has violated its duty as such or has continued unsafe or unsound practices in conducting the business of such
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