(5) the term "solar energy system" has the meaning given such term in section 504(8) of the Solar Energy and Energy Conservation Bank Act. AUTHORITY OF SOLAR ENERGY AND ENERGY CONSERVATION BANK TO PURCHASE MORTGAGES SECURED BY NEWLY CONSTRUCTED HOMES WITH SOLAR ENERGY SYSTEMS SEC. 316. (a) Unless the Board of Directors of the Solar Energy and Energy Conservation Bank established in section 505 of the Solar Energy and Energy Conservation Bank Act finds it unnecessary to utilize this section in order to advance the national program of energy conservation through the use of solar energy systems in residential buildings, the Board shall direct the Bank to begin making committments to purchase, and to purchase mortgages (and related purchase certificates and other related instruments) in accordance with this section. (b) In accordance with the directive issued by the Board under subsection (a), the Bank shall make commitments to purchase and purchase, and may service, sell (with or without recourse), or otherwise deal in mortgages (and related purchase certificates and other related instruments) which are secured by newly constructed oneto four-family dwelling units with solar energy systems and residential energy conserving improvements meeting or exceeding costeffective energy conservation standards established by the Secretary of Housing and Urban Development. A mortgage may be purchased under this section only if (1) the term of repayment does not exceed thirty years, except that there shall be no penalty imposed if the borrower repays such mortgage at any time before the term of repayment expires; (2) the interest rate charged with respect to such mortgage is acceptable to the Board; (3) the principal amount of such mortgage does not exceed the principal amount which could be insured under section 203(b) of the National Housing Act with respect to the dwelling unit concerned; (4) the security for such mortgage is acceptable to the Board; (5) such mortgage is not used for the refinancing of any other extension of credit; (6) the dwelling which secures such mortgage is purchased after the date of enactment of the Solar Energy and Energy Conservation Bank Act; and (7) such mortgage meets other requirements established by the Board as necessary to carry out this section in an efficient and effective manner. (c) The Bank may issue, to the extent and in such amounts as may be approved in appropriation Acts, to the Secretary of the Treasury its obligations in an amount outstanding at any one time sufficient to enable the Bank to carry out its functions under this section. Each such obligation shall mature at such time and be redeemable at the option of the Bank in such manner as may be determined by the Bank, and shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the cur 36-210 0-84-27 rent average yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the obligation of the Bank. The Secretary of the Treasury is authorized and directed to purchase any obligations of the Bank issued under this section, and for such purposes the Secretary of the Treasury is authorized to use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31, United States Code, and the purposes for which securities may be issued under chapter 31 of title 31, United States Code, are extended to include any purchase of the Bank's obligations hereunder. (d) No State or local usury law or comparable law establishing interest rates or prohibiting or limiting the collection or amount of discount points or other charges in connection with mortgage transactions and no State law prohibiting coverage of mortgage insurance required by the Bank shall apply to transactions under this section. (e) The Bank is authorized to (1) sell mortgages purchased under this section at prices which it determines will help promote the objectives of assuring that operations under this section are, to the extent feasible, fully self-supporting; and (2) pay for services performed in carrying out its functions under this section without regard to any limitation on administrative expenses heretofore enacted. (f) the total amount of outstanding purchases and commitments authorized by the Board to be made pursuant to this section shall not exceed amounts approved in appropriation Acts, but in no case may such amount exceed $800,000,000 at any one time. (g) The Board shall establish a purchase price to be paid by the Bank for mortgages under this section which shall be adequate to compensate the lender for a reasonable return on such mortgages plus such reasonable costs as are normally incurred in originating, servicing, and otherwise processing such mortgages. SEC. 306. EXCERPT FROM THE HOUSING ACT OF 1959 (b) In connection with the sale of any mortgages to the Government National Mortgage Association pursuant to section 306(e) of the Federal National Mortgage Association Charter Act, the Secretary of Housing and Urban Development is authorized and any other official, unit, or agency selling such mortgages thereunder is directed, to transfer to the Association from time to time, from authorizations, limitations, and funds available for administrative expenses of such official, unit, or agency in connection with the same mortgages, such amounts thereof as said Secretary determines to be required for administrative expenses of the Association in connection with the purchase, servicing, and sale of such mortgages: Provided, That no such transfer shall be made after a budget estimate of the Association with respect to the same mortgages has been submitted to and finally acted upon by the Congress. Approved September 23, 1959. EXCERPTS FROM THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968 [Public Law 90-448; 82 Stat. 476, 545; 12 U.S.C. 17166] TITLE VIII-SECONDARY MORTGAGE MARKET PURPOSES SEC. 801. The purposes of this title include the partition of the Federal National Mortgage Association as heretofore existing into two separate and distinct corporations, each of which shall have continuity and corporate succession as a separated portion of the previously existing corporation. One of such corporations, to be known as Federal National Mortgage Association, will be a Government-sponsored private corporation, will retain the assets and liabilities of the previously existing corporation accounted for under section 304 of the Federal National Mortgage Association Charter Act, and will continue to operate the secondary market operations authorized by such section 304. The other to be known as Government National Mortgage Association, will remain in the Government, will retain the assets and liabilities of the previously existing corporation accounted for under sections 305 and 306 of such Act, and will continue to operate the special assistance functions and management and liquidating functions authorized by such sections 305 and 306. EFFECTIVE DATE SEC. 808. The amendments made by this title shall be effective from and after a date, no more than one hundred and twenty days following the date of enactment of this Act, as established by the Secretary of Housing and Urban Development.1 Notice of the establishment of such effective date shall be published in the Federal Register at least thirty days prior thereto. SAVINGS PROVISIONS SEC. 809. (a) No cause of action by or against the Federal National Mortgage Association existing prior to the effective date established pursuant to section 808 shall abate by reason of the enactment of this title. Any such cause of action may thereafter be asserted by or against the appropriate corporate body named in section 302(a)(2) of the National Housing Act. (b) No suit, action, or other proceeding commenced by or against the Federal National Mortgage Association, or any officer thereof in his official capacity, prior to the effective date established pursuant to section 808 shall abate by reason of the enactment of this title. A court may at any time thereafter during the pendency of any such litigation, on its own motion or that of any party, order that the litigation may be maintained by or against the appropri 1 September 1, 1968, was established as the effective date. ate corporate body named in section 302(a)(2) of the National Housing Act or the appropriate corresponding officer thereof. TRANSITIONAL PROVISIONS SEC. 810. (a) On the effective date established pursuant to section 808 of this Act. each share of outstanding nonvoting common stock, with a par value of $100 per share, of the Federal National Mortgage Association shall be changed into and shall become one share of voting common stock, without par value, of such corporation. For the purposes of the Internal Revenue Code of 1954, no gain or loss is recognized by the holders of such stock on such change, and the basis and holder period of such stock in the hands of the stockholders immediately after such change are the same as the basis and holding period of such stock in their hands immediately prior to such change. (b) [Repealed.] (c) [Repealed.] (d) Those persons who are the officers and employees of the Federal National Mortgage Association immediately prior to the effective date established pursuant to section 808 shall become the officers and employees of the Government National Mortgage Association on such date. The Federal National Mortgage Association and the Government National Mortgage Association shall provide by contract for the conditions and methods under which and by which the Federal National Mortgage Association during the transitional period may employ those individuals who are employees of the Government National Mortgage Association on such effective date; and may provide by contract for the operation by either of such corporations of any of the functions of the other. The Secretary of Housing and Urban Development shall make every reasonable effort to place in other comparable Federal positions any individuals who are career or career-conditional employees of the Government National Mortgage Association on such effective date and who are subsequently during the transitional period neither employed by the Federal National Mortgage Association nor retained by the Government National Mortgage Association. Approved August 1, 1968. |