PUBLIC LAW 87-70-JUNE 30, 1961
[75 S T A T.
of a mortgagee shall apply with respect to the Commissioner when he has acquired an insured mortgage under this paragraph, in accordance with and subject to regulations (modifying such provisions to the extent necessary to render their application for such purposes appropriate and effective) which shall be prescribed by the Commissioner, except that as applied to mortgages 12 USC 1710. so acquired (A) all references in section 204 to the Mutual Mortgage Insurance F u n d or the Fund shall be construed to refer to 12 USC i7isk. YiQ Section 220 Housing Insurance Fund, (B) all references in 12 USC 1709. section 204 to section 203 shall be construed to refer to this section, 12 USC 1713. and (C) all references in section 207 to the Housing Insurance Fund, the Housing Fund, or the Fund shall be construed to refer to the Section 220 Housing Insurance Fund." 12 USC 1715n, (h)(1) Section 223(a) of such Act is amended by striking out "213, 1715e. or 222" each place it appears and inserting in lieu thereof "213, 220, 12 USC 1715Z, 221, 222, 231, 232, or 233". Vsw™' ^ ^ ^ ^ (2) Section 223(a)(7) of such Act is amended— "^"'us^c \^7soc ^-^l ^y. striking out "section 903 or section 908 of title IX " and lyiog. inserting in lieu thereof "section 220, 221, 903, or 908"; and 12 USC 1743. (B) by striking out "insured under section 608 or 908". (3) Section 223 of such Act is further amended by adding at the end thereof the following new subsection: " (d) With respect to any mortgage, other than a mortgage covering a one- to four-family structure, heretofore or hereafter insured by the Commissioner, and notwithstanding any other provision of this Act, when the taxes, interest on the mortgage debt, mortgage insurance premiums, hazard insurance premiums, and the expense of maintenance and operation of the project covered by such mortgage during the first two years following the date of completion of the project, as determined by the Commissioner, exceed the project income, the Commissioner may, in his discretion and upon such terms and conditions as he may prescribe, permit the excess of the foregoing expenses over the project income to be added to the amount of such mortgage, and extend the coverage of the mortgage insurance thereto, and such additional amount shall be deemed to be part of the original face amount of the mortgage." 12 USC 17ISO. (j^ 'pj^e gps^ sentence of section 224 of such Act is amended to read as follows: "Notwithstanding any other provisions of this Act, debentures issued under any section of this Act with respect to a loan or mortgage accepted for insurance on or after thirty days following the 12 ^ifs c^°i703 effective date of the Housing Act of 1954 (except debentures issued "**i2'use 171SI pursuant to paragraph (4) of section 221(g)) shall bear interest at the rate in effect on the date the commitment to insure the loan or mortgage was issued, or the date the loan or mortgage was endorsed for insurance, or (when there are two or more insurance endorsements) the date the loan or mortgage was initially endorsed for insurance, whichever rate is the h i ^ e s t, except that debentures issued pursuant to section 220(f), section 220(h)(7), section 221(g), or section 233 may, at the discretion of the Commissioner, bear interest at the rate in effect on the date they are issued." 12 USC 17 isq. Q ^ Section 226 of such Act is amended by— 12 USC 1715m. (1) striking out in the first sentence "222, or" and inserting Ante.pp. 158.160. in Heu thereof "222,233,234, or"; and (2) striking out in the third sentence the words "that a written statement setting forth such estimate" and inserting in lieu thereof the following: "or on the basis of any other estimates of the Commissioner, that a written statement setting forth such estimate or estimates, as the case may be,".