69 1 regulations shall require, as a condition to the granting of 2 3 any such request, that, during the period of such extension or modification, any part of the rents or other funds derived 4 by the mortgagor from the property covered by the mortgage 5 which is not required to meet actual and necessary expenses 6 arising in connection with the operation of such property, 7 including amortization charges under the mortgage, be held 8 in trust by the mortgagor and distributed only with the con9 sent of the Secretary; except that the Secretary may provide for the granting of consent to any request for an extension of the time for curing a default under any project mortgage or for a modification of the terms of such mortgage, without regard to the foregoing requirement, where an exemption from such requirement does not (as determined by the Secretary) jeopardize the interest of the United States. (b) Whoever, as an owner of a property which is security for a mortgage described in subsection (a), or as a stockholder of a corporation owning such property, or as a beneficial owner under any business organization owning such property, or as an officer, director, or agent of any such owner, (1) willfully uses or authorizes the use of any part of the rents or other funds derived from property cov ered by such mortgage in violation of a regulation prescribed by the Secretary under subsection (a), or (2) if such mort gage is determined, as provided in subsection (a), to be 1 70 exempt from the requirement of any such regulation or is 2 not otherwise covered by such regulation, willfully uses or 3 authorizes the use, while such mortgage is in default, of any 4 part of the rents or other funds derived from the property 5 covered by such mortgage for any purpose other than to meet actual and necessary expenses arising in connection 7 with such property (including amortization charges under 8 the mortgage), shall be fined not more than $5,000 or imprisoned not more than three years, or both. 9 10 11 12 13 14 15 16 17 SETTLEMENT OF INSURANCE CLAIMS WITH DEBENTURES SEC. 606. (a) The debentures issued by the Secretary in settlement of insurance claims shall be in registered form and in denominations which are multiples of $50, shall be subject to such terms and conditions, and shall include such provisions for redemption, as may be prescribed by the Secretary with the approval of the Secretary of the Treasury. (b) The debentures shall be issued in the name of the 18 applicable insurance fund carrying the insurance obligations with respect to the mortgage or loan. They shall be signed 19 by the Secretary using either his written or engraved signa ture, and shall be negotiable. (c) The debentures shall be dated as of the date of de fault or as of such later date as the Secretary, in his discretion, may establish by regulation. (d) Debentures shall bear interest at the rate in effect 72 1 or by any State, county, municipality, or local taxing 2 authority. 3 (h) The debentures shall be redeemed and paid out of 4 the insurance fund under which they are issued and such fund 5 shall be primarily liable for such payment. They shall be fully 6 and unconditionally guaranteed as to principal and interest by 7 the United States, and such guaranty shall be expressed on 8 9 10 11 12 13 14 15 16 the face of the debentures. In the event payment of principal or interest due on any debenture is not made, upon demand, from the obligated insurance fund, the Secretary of the Treas ury shall pay the holders the amount thereof. Such amount 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 Treas ury shall succeed to all the rights of the holders of such debentures. TITLE VII-MISCELLANEOUS GENERAL AUTHORIZATION FOR DEALING WITH AND DISPOSING OF PROPERTY SEC. 701. (a) The Secretary shall have the power, un der regulations to be prescribed by him and approved by the Secretary of the Treasury (1) to assign or sell at public or private sale, or otherwise dispose of, any evidence of debt, contract, claim, personal property, or security assigned to or held 11 12 13 14 exchange for stue a zhe te j. ada di te Act. Section 3719 of the rig strued to apply a my nude v za wodAK 16 $2,500. 17 (e) The power su curvey and i execute in the name of 18 the Secretary deeds of conveyance, deeds of release, assigte 19 20 21 1223 23 24 25 ments and satisfactions of mortgages, and any other written instrument relating to real or personal property or any inter est therein acquired by the Secretary pursuant to the provi sions of this Act, may be exercised by an officer appointed by the Secretary, without the execution of any express delega tion of power or power of attorney. The Secretary may dele gate such power by order or by power of attorney, in his 48-279-70 - pt. 2 33 |