Page:United States Statutes at Large Volume 75.djvu/219

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[75 Stat. 179]
[75 Stat. 179]
PUBLIC LAW 87-000—MMMM. DD, 1961

75

STAT.]

PUBLIC LAW 87-70-JUNE 30, 1961

179

SECTION 213 COOPERATIVE HOUSING INSURANCE

SEC. 608. (a) Section 213 of the National Housing Act is amended ^4 Stat. S4.^^ by— (1) inserting in paragraph (2) of subsection (b) after the ^^ ^***' ^'^^• words "as may be attributable to dwelling use" the following: "(excluding exterior land improvements as defined by the Commissioner)"; (2) striking out "eight or more family units" in subsection (d) ^^ ^*^*' ^^s. and inserting in lieu thereof "five or more family units"; and (3) striking out in subsection (h) "such mortgagor shall not ^o Stat. io94. thereafter be eligible by reason of such paragraph (3) for insurance of any additional mortgage loans pursuant to this section" and inserting in lieu thereof the following: "the Commissioner is authorized to refuse, for such period of time as he shall deem appropriate under the circumstances, to insure under this section any additional investor-sponsor type mortgage loans made to such mortgagor or to any other investor-sponsor mortgagor where, in the determination of the Commissioner, any of its stockholders were identified with such mortgagor", (b) Section 213 of such Act is further amended by adding at the end thereof the following new subsection: "(j)(1) With respect to any property covered by a mortgage insured under this section (or any cooperative housing project covered by a mortgage insured under section 207 as in effect prior to the enact- 12 USC 1713. ment of the Housing Act of 1950), the Commissioner is authorized, ^^ ^u°s'c**i7oik upon such terms and conditions as he may prescribe, to make commit- note, ments to insure and to insure supplementary cooperative loans (including advances during construction or improvement) made by financial institutions approved by the Commissioner. As used in this subsection, 'supplementary cooperative loan' means a loan, advance of credit, or purchase of an obligation representing a loan or advance of credit made for the purpose of financing any of the following: " (A) Improvements or repairs of the property covered by such mortgage; or " (B) Community facilities necessary to serve the occupants of the property. "(2) To be eligible for insurance under this subsection, a supplementary cooperative loan shall— " (A) be limited to an amount which, when added to the outstanding mortgage indebtedness on the property, creates a total outstanding indebtedness which does not exceed the original principal obligation of the mortgage; " (B) have a maturity satisfactory to the Commissioner but not to exceed the remaining term of the mortgage; " (C) be secured in such manner as the Commissioner may require; " (D) contain such other terms, conditions, and restrictions as the Commissioner may prescribe; and " (E) represent the obligation of a borrower of the character described in paragraph (1) of subsection (a). " SECTION 220 SALES HOUSING MORTGAGE INSURANCE

SEC. 609. (a) Section 220(d)(3)(A)(i) of the National Housing Act is amended— (1) by striking out "$13,500" each place it appears and inserting in heu thereof "$15,000"; (2) by striking out "$18,000" each place it appears and inserting in lieu thereof "$20,000"; and

II f}j^i' «'57.

12 USC 1715k,