5

1 gram expenses, advances and obligations necessary and inci2 dental to carrying out the provisions of this Act. The Secre

3 tary is authorized to borrow from the Treasury and advance

4

to the fund such amounts, not to exceed $10,000,000, and at 5 such times as he deems necessary.

6

7

12

(b) If at any time the moneys available in the fund

are insufficient to enable the Secretary to discharge his 8 responsibilities under guarantee agreements under this Act, 9 he shall issue to the Secretary of the Treasury notes or 10 other obligations in such forms and denominations, bearing 11 such maturities, and subject to such terms and conditions, as may be prescribed by the Secretary of the Treasury. 13 The Secretary of the Treasury shall purchase any notes or 14 other obligations issued hereunder and for that purpose he 15 is authorized to use as a public debt transaction the proceeds 16 from the sale of any securities issued under the Second 17 Liberty Bond Act and the purposes for which securities may 18 be issued under that Act are extended to include any pur19 chase of such notes or obligations. The Secretary of the Treas20 ury may at any time sell any of the notes or other obligations 21 acquired by him under this subsection. All redemptions, 22 purchases, and sales by the Secretary of the Treasury of 23 such notes or other obligations shall be treated as public 24 debt transactions of the United States.

6

1 (c) Notes or other obligations issued by the Secretary

2 for amounts borrowed under this section shall bear interest

3

at a rate determined by the Secretary of the Treasury, tak4 ing into consideration the average market yield on outstand5 ing marketable obligations of the United States of compara6 ble maturities during the month preceding the issuance of 7 the notes or other obligations.

8

(d) Moneys in the fund established under this Act 9 which the Secretary determines are not needed for the cur10 rent operations of the Department of Housing and Urban 11 Development with respect to obligations of the Secretary 12 under guarantee agreements entered into pursuant to this 13 Act shall be deposited by the Secretary with the Treasurer 14 of the United States to the credit of the fund or invested in 15 bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States or any agency of the United States.

16

17

18

19

20

PAYMENT OF CLAIMS

SEC. 7. (a) Guarantee agreements made by the Secre

tary under this Act may provide for payment of claims to 21 insured mortgagees in cash or debentures, or both.

222

(b) Debentures issued under this section shall be in

23 such form and denominations, shall be for such terms, shall 24 be subject to such conditions and shall include such provi

7

1 sions for redemption, if any, as may be prescribed by the 2 Secretary with the approval of the Secretary of the Treasury. 3 (c) Debentures shall be dated as of such date as may be 4 provided for in the guarantee agreement and shall bear in5 terest at the rate in effect under regulations of the Secretary

6

on the effective date of the guarantee agreement, which shall 7 be the same rate as that established by the Secretary under 8 section 602 (e) of the Revised National Housing Act. 9 (d) The principal and interest of the debentures shall be 10 subject to taxation (except surtaxes, estate, inheritance, and 11 gift taxes) in the same manner and to the same extent as ob12 ligations issued under the Second Liberty Bond Act. 13 (e) The debentures shall be redeemed and paid out of 14 the fund established by this Act and such fund shall be pri15 marily liable for such payment. They shall be fully and un16 conditionally guaranteed as to principal and interest by the 17 United States, and, notwithstanding any other provision of 18 law, the full faith and credit of the United States is pledged 19 to the payment of such debentures. Such guarantee shall be 20 expressed on the face of the debentures.

223

21

22

CLAIMS AND JUDICIAL REVIEW

SEC. 8. (a) All claims against the Secretary under this

23 Act shall be submitted in accordance with the terms and con24 ditions established by the Secretary.

8

1 (b) Upon disallowance of any claim under color of 2 guarantee by the Secretary under this Act, or upon refusal 3 of the claimant to accept the amount allowed upon any such 4 claim, the claimant may institute an action against the Secre5 tary on such claim in an appropriate United States district court. Any such action must be begun within one year after 7 the date upon which the claimant received written notice of

6

8 final administrative action disallowing such claim or a portion thereof.

9

10 (c) Upon payment of any claim under this Act, the 11 Secretary shall succeed to all of the rights of the claimant with 12 respect thereto.

23

13

14

15

16

in

RECORDS, ANNUAL STATEMENTS, AND AUDITS

SEC. 9. (a) Any private mortgage insurer participating

a guarantee program established under this Act shall fur

nish the Secretary with such information as may be required 17 by the Secretary to carry out the purposes of this Act in such

18

19

20

21

*22

23

24

25

form as the Secretary shall prescribe and shall furnish a true and correct copy of annual or other required statement

any

or amendment thereof submitted to a State insurance author

ity at the time filed with such State insurance authority.

(b) The Secretary or duly authorized representative shall have access, for the purpose of investigation, audit, and examination, to any books, documents, papers, and records of

an eligible private mortgage insurer guaranteed by the Sec

9

1 retary. The Secretary shall cooperate with the State insur

2

ance authorities and use their examining facilities to the ex3 tent feasible.

4

5

ADMINISTRATIVE PROVISIONS

SEC. 10. (a) In addition to his other powers under law,

6 the Secretary shall have all powers necessary and incidental

7 to carrying out this Act including the powers set forth in sec

8

tions 108, 701, 702, and 703 of the Revised National Hous9 ing Act.

10

(b) Financial transactions under this Act in connection with the writing or approval of guarantee agreements made 12 by the Secretary and the payment of claims made under

11

13

such agreements, shall be final and conclusive upon all of14 ficers of the Government.

15

(c) Any real property acquired and held by the Secre16 tary as a result of guarantee under this Act shall be subject 17 to taxation by any State, or subdivision thereof, to the same 18 extent, according to its value, as other real property is 19 taxed.

21.

APPROPRIATIONS

SEC. 11. There are hereby authorized to be appropriated

such sums as may be necessary to carry out this Act.