PUBLIC LAWS-CH. 13-FEB. 3, 1938 exceed 3 per centum per annum,payable semiannually on the 1st dayof Maturity. January and the 1st day of July of each year, and shall mature three years after the 1st day of July following the maturity date of the mortgage on the property in exchange for which the debentures were Debentures in re- issued. Such debentures as are issued in exchange for property mortgages, taxationu covered by mortgages insured under section 203 or section 207 prior provisions. to the date of enactment of the National Housing Act Amendments of 1938 shall be subject only to such Federal, State, and local taxes as the mortgages in exchange for which they are issued would be subject to in the hands of the holder of the debentures and shall be a GuarantybyUnited liability of the Fund. but such debentures shall be fully and uncon- s ta te s ditionally guaranteed as to principal and interest by the United gagee to recive ash States; but any mortgagee entitled to receive any such debentures may adjustment and de- elect to receive in lieu thereof a cash adjustment and debentures issued bentures. as hereinafter provided and bearing the current rate of interest. xemption;x romtao Such debentures as are issued in exchange for property covered by mortgages insured after the date of enactment of the National Housing Act Amendments of 1938 shall be exempt, both as to prin- cipal and interest, from all taxation (except surtaxes, estate, inherit- ance, and gift taxes) now or hereafter imposed by the United States, by any Territory, dependency, or possession thereof, or by any State, Payment; funds county, municipality or local taxmg authority; and such debentures shall be paid out of the Fund, or the Housing Fund, as the case may be, which shall be primarily liable therefor, and they shall be fully and unconditionally guaranteed as to principal and interest by the United States, and such guaranty shall be expressed on the face If Fnd Housing of the debentures. In the event that the Fund or the Housing Fund Fund fails to pay. fails to pay upon demand, when due, the principal of or interest on any debentures issued under this section, the Secretary of the Treasury shall pay to the holders the amount thereof which is hereby authorized to be appropriated, out of any money in the Treasury not otherwise appropriated, and thereupon to the extent of the amount so paid the Secretary of the Treasury shall succeed to all the rights of the holders of such debentures. certifcate o aim "(e) The certificate of claim issued by the Administrator to any mortgagee shall be for an amount which the Administrator deter- mines to be sufficient, when added to the face value of the debentures issued and the cash adjustment paid to the mortgagee, to equal the amount which the mortgagee would have received if, at the time of the conveyance to the Administrator of the property covered by the mortgage, the mortgagor had redeemed the property and paid in full all obligations under the mortgage and a reasonable amount for necessary expenses incurred by the mortgagee in connection with the foreclosure proceedings, or the acquisition of the mortgaged property Increment. otherwise, and the conveyance thereof to the Administrator. Each such certificate of claim shall provide that there shall accrue to the holder of such certificate with respect to the face amount of such certificate, an increment at the rate of 3 per centum per annum Determination of which shall not be compounded. The amount to which the holder of amount to which cer- tiite holderhl be any such certificate shall be entitled shall be determined as provided entitled. in subsection (f). "(f) If the net amount realized from any property conveyed to the Administrator under this section and the claims assigned there- with, after deducting all expenses incurred by the Administrator in handling, dealing with, and disposing of such property and in col- lecting such claims, exceeds the face value of the debentures issued and the cash paid in exchange for such property plus all interest paid on such debentures, such excess shall be divided as follows: "(1) If such excess is greater than the total amount payable under the certificate of claim issued in connection with such [52 STAT.
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