1814
PUBLIC LAW 91-609-DEC. 31, 1970
[84 STAT.
expectation that such person will perform the covenants and conditions of the contract with respect to which the bond is required. "(5) The contract meets requirements established by the Administration for feasibility of successful completion and reasonableness of cost. "(6) The terms and conditions of any bond guaranteed under the authority of this part are reasonable in light of the risks involved and the extent of the surety's participation. "(b) Any contract of guarantee under this section shall obligate the Administration to pay to the surety a sum not to exceed 90 per centum of the loss incurred by the surety in fulfilling the terms of his contract as the result of the breach by the principal of the terms of a bid bond, performance bond, or payment bond. Fee. "(c) The Administration shall fix a uniform annual fee which it deems reasonable and necessary for any guarantee issued under this section, to be payable at such time and under such conditions as may be determined by the Administration. Such fee shall be subject to periodic review in order that the lowest fee that experience under the program shows to be justified will be placed into effect. The Administration shall also fix such uniform fees for the processing of applications for guarantees under this section as it determines are reasonable and necessary to pay administrative expenses incurred in connection therewith. Any contract of guarantee under this section shall obligate the surety to pay the Administration such portions of the bond fee as the Administration determines to be reasonable in the light of the relative risks and costs involved. 11 fc A ^nt r^ * " ( ^) The provisions of section 402 shall apply in the administration 01 this section. (b)(1) The Secretary of Housing and Urban Davelopment is authorized to take such steps and carry out such activities as he determines to be necessary or desirable to provide, either directly or by contract or other arrangement, technical assistance to any contractor or subcontractor for whom a bid, payment, or performance bond is guaranteed under part B of title IV of the Small Business Investment Ante, p. 1813. ^^QI of 1958 iu connection with any construction contract, in order to assist such contractor or subcontractor in obtaining or carrying out such contract. (2) There are authorized to be appropriated for each of the first three fiscal years ending after the date of the enactment of this Act such sums, not to exceed $1,500,000, as may be necessary to enable the Secretary to carry out his functions under paragraph (1). EQUITY SKIMMING
Penalty.
SEC. 912. Whoever, with intent to defraud, willfully engages in a pattern or practice of— (1) purchasing one- to four-family dwellings which are subject to a loan in default at time of purchase or in default within one year subsequent to the purchase and the loan is secured by a mortgage or deed of trust insured or held by the Secretary of Housing and Urban Development or guaranteed by the Veterans' Administration, or the loan is made by the Veterans' Administration, (2) failing to make payments under the mortgage or deed of trust as the payments become due, and (3) applying or authorizing the application of rents from such dwellings for his own use, shall be fined not more than $5,000 or imprisoned not more than three years, or both. This section shall apply to a purchaser of such a dwelling, or a beneficial owner under any business organization or trust
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