PART 414-TRANSACTIONS AND | The Corporation may, from time to time, OPERATIONS IN HOME OWNERS' issue interim certificates temporarily in LOAN CORPORATION BONDS Transfers and exchanges. 414.4 Relief on account of lost, stolen, de- 414.5 414.6 lieu of definitive bonds in such form and in such manner as the Corporation, with the approval of the Secretary of the Treasury, may determine. Unless otherwise provided by specific reference or plain context, the term "bond" as used herein shall be deemed to include interim certificates.*† § 414.2 Transfers and exchanges. All § 414.0 Introductory. The following bonds of the same class and series are regulations governing the issuance of fully interchangeable as between authorCorporation bonds, the payment of in-ized denominations; registered bonds are terest thereon, the granting of relief on transferable upon proper assignment; account of loss, theft, destruction, muti- and where both coupon and registered lation or defacement of the bonds or bonds are issued in any series, they are mutilation or defacement of coupons interchangeable within authorized depertaining thereto, and other transac- nominations.*† tions and operations therein are hereby promulgated by the Board and the Corporation.*† § 414.3 Transactions and operations— (a) In general. The United States Treasury Department will act as agent for the Board and the Corporation in connection with the transactions and operations hereunder, and will maintain registration records for registered bonds. The general regulations of the United States Treasury Department now or hereafter in force governing transactions and operations in United States bonds and the payment of interest thereon are hereby adopted, so far as applicable, and except as herein modified, as the regulations of the Board and the Corporation for similar transactions and operations in the Corporation's bonds and the payment of interest thereon. (b) Form of assignment. The words "Home Owners' Loan Corporation" must be substituted for the words "Secretary of the Treasury" in assignments for redemption or exchange. § 414.1 Form of bonds. The bonds shall be in such forms and denominations, shall mature within such periods of not more than 18 years from the date of their issue, but in no event later than 1952, shall bear such rates of interest not exceeding 4 percent per annum, shall be subject to such terms and conditions, and shall be issued in such manner and sold at such prices as may be prescribed by the Corporation, with the approval of the Secretary of the Treasury. Bonds shall be executed in the name of the Corporation and authen(c) Detached assignments. Detached ticated by the engraved signature of the assignments will be recognized and acChairman of its Board of Directors, at-cepted in any particular case in which tested by the engraved signature of its the use of a detached assignment is speTreasurer, and the seal of the Corpora- cifically authorized by the Treasury Detion shall be affixed; coupons attached to partment. Any assignment not made coupon bonds shall be signed by the upon the bonds is considered a detached Corporation, by the facsimile signature assignment. of its Treasurer. The principal and interest shall be payable when due at the Treasury Department, Washington, D. C., or at any Government agency or agencies in the United States which the Secretary of the Treasury may from time to time designate for that purpose. (d) Assignments by corporations and unincorporated associations for redemption for their own account. A bond registered in the name of, or assigned to, a corporation or unincorporated association will ordinarily be redeemed for the account of such corporation or unincor regulations of the Corporation for the issuance of substitute securities or the payment of lost, stolen, destroyed, muti porated association, at maturity or ear- | modified to relate to securities and lier redemption date, upon an appro- coupons of the Home Owners' Loan Corpriate assignment for that purpose ex-poration, are hereby adopted as the ecuted on behalf of the corporation or unincorporated association by a duly authorized officer thereof, without proof of the officer's authority. In all such cases payment will be made only by check drawn to the order of the corporation or unincorporated association; or, if new registered bonds are offered in exchange for the bonds surrendered, by the issue of new bonds in the same form of registration. (e) Payment of final interest on maturing or called registered bonds. The final installment of interest payable on any registered bonds at maturity or earlier redemption date may be paid with the principal in accordance with the assignments of the bonds instead of by separate check drawn to the order of the registered payee and forwarded to him at his address of record, if the redemption circular or other instructions with respect to any issue shall so provide.*+ CROSS REFERENCE: For general regulations of the Department of the Treasury with re spect to United States bonds and notes, see 31 CFR Part 306. lated or defaced securities and mutilated or defaced coupons of the Corporation; all as more fully set forth in § 407.07a.*† CROSS REFERENCE: For regulations of the Department of the Treasury governing relief on account of lost, stolen, destroyed, mutilated or defaced securities of the United States, see 31 CFR 306.78-306.88. § 414.5 Administration. The Secretary of the Treasury or the Acting Secretary of the Treasury is hereby authorized and empowered on behalf of the Board and the Corporation to administer the regulations governing any transactions and operations in Corporation bonds, to do all things necessary to conduct such transactions and operations, and to delegate such authority at his discretion to other officers, employees and agents of the United States Treasury Department. The Secretary, the Under Secretary, or any Assistant Secretary of the Treasury, acting by direction of the Secretary, is hereby authorized to waive any such regulations on behalf of the Board and the Corporation at his discretion in any particular case where a similar regulation of the United States Treasury Department with respect to United States bonds or interest would be waived.*† § 414.4 Relief on account of lost, stolen, destroyed, mutilated or defaced bonds. The Statutes of the United States, now or hereafter in force, governing relief on account of the loss, theft, destruction, mutilation or defacement of United States securities, and the regula- § 414.6 Amendments. The Board and tions of the Treasury Department, now or the Corporation reserve the right at any hereafter in force, governing the issuance time, or from time to time, with the apof substitute securities or the payment proval of the Secretary of the Treasury, of lost, stolen, destroyed, mutilated or to revoke or amend the regulations in defaced securities and mutilated or de- this part or to prescribe and issue supfaced coupons of the United States, so plemental or amendatory rules and far as applicable and as necessarily regulations.*† CHAPTER V-FEDERAL HOUSING ADMINISTRATION Subchapter A-Property Improvement Loans 2, of the National Housing Act, as amended, effective July 1, 1939."* [Regs., June 20, 1939, effective July 1, 1939; 4 F.R. 2787] PART 501-PROPERTY IMPROVE. | made under the provisions of Title I, section § 501.19 Completion and installation certificate. When a lending institution purchases an obligation representing a loan or advance of credit for eligible purposes, or disburses the proceeds to one other than the borrower it shall not so disburse the proceeds until it has obtained a completion or installation certificate signed by the borrower, stating that the work has been done or the installation made: Provided, however, That the proceeds may be disbursed in escrow or into a special account to the credit of one other than the borrower. Funds so disbursed shall [Preceding section, in small type, superseded by following section, also in small type, during period covered by this Supplement] § 501.1 Citation. The regulations in this part may be cited and referred to as "Regulations effective September 1, 1939, of the Federal Housing Administrator governing the insurance of qualified lending institutions against loss resulting from loans made under the provisions of Title I, section 2, of the National Housing Act, as amended, effective July 1, 1939."* [As amended Aug. 24, 1939, effective Sept. 1, 1939; 4 F.R. 3789] [Preceding section, in small type, supernot be released from the escrow or special seded by following section during period covaccount, nor shall such obligations be re-ered by this Supplement] ported for insurance, until a completion certificate signed by the borrower has been obtained. NOTE: 501.19 of former Part 501 was amended June 1, 1939, effective until July 1, 1939, 4 F.R. 2207, to read as set forth above. All sections in former Part 501 were superseded as indicated by the following sections: Sec. 501.1 Citation. 501.2 Definitions. 501.3 Eligible notes. 501.4 Maximum loan. 501.5 Maximum permissible charges. 501.6 Credits. 501.7 501.8 501.9 501.10 Eligible improvements. financing Effect of prior mortgages insured or 501.11 Report of loans. § 501.1 Citation. The regulations in this part may be cited and referred to as "Regulations effective January 1, 1940, of the Federal Housing Administrator governing the insurance of qualified lending institutions against loss resulting from class 1 and class 2 loans made under the provisions of Title I, section 2, of the National Housing Act, as amended."* [As amended Dec. 14, 1939, effective Jan. 1, 1940; FR. 4984] §§ 501.1 to 501.21, inclusive, issued under the authority contained in sec. 2, as amended by secs. 1, 2, 53 Stat. 804, 805; 12 U.S.C., Sup., 1703. § 501.2 Definitions. As used in the regulations in this part (a) The term "owner" includes, in addition to owners in fee, persons holding an equity under a mortgage, trust or contract. (b) The term "note" includes a note, bond, mortgage, or other evidence of indebtedness. (c) The term “payment” includes a deposit to an account or fund. (d) The term "installment payment" inAdministrative reports and examina- cludes that deposit to an account or fund tion. Amendments. § 501.1 Citation. The regulations in this part may be cited and referred to as "Regulations of the Federal Housing Administrator governing the insurance of qualified lending institutions against loss resulting from loans which represents the partial repayment of an advance of credit. (e) The term "loan" includes any loan, advance of credit, or purchase of an obligation representing a loan or advance of credit for the purpose of financing eligible repairs, alterations or improvements as authorized by the National Housing Act, as amended, effec tive July 1, 1939, and by the regulations in company, mortgage company, building and this part. (f) The term "Administrator" means the Federal Housing Administrator. loan association, installment lending company or other such financial institution which the Administrator has found to be qualified by experience or facilities and has to which he has issued a contract of insurapproved as eligible for credit insurance and ance effective July 1, 1939. (g) The term "borrower" means one who is an eligible owner or lessee of real property to be improved pursuant to the provisions of the Act and who applies for and receives an advance of credit in reliance upon the pro-loan which is for the purpose of financing the (k) The term "class 1 loan" means any visions of the Act. (h) The term "Act" means the National Housing Act, as amended, effective July 1, 1939. (1) The term "contract of insurance" includes all of the provisions of the regulations in this part and of the applicable provisions of the Act. (1) The term "insured institution" means any bank, trust company, personal finance company, mortgage company, building and loan association, installment lending company or other such financial institution which the Administrator has found to be qualified by experience or facilities and has approved as eligible for credit insurance and to which he has issued a contract of insurance effective July 1, 1939.* [Regs., June 20, 1939, effective July 1, 1939; 4 F.R. 2787] [Preceding section, in small type, superseded by following section, also in small type, during period covered by this Supplement] § 501.2 Definitions. As used in the regulations in this part (a) The term "owner" includes, in addition to owners in fee, life tenants and persons holding an equity under a mortgage, trust or contract. (b) The term "note" includes a note, bond, mortgage, or other evidence of indebtedness. (c) The term "payment" includes a deposit to an account or fund. (d) The term "installment payment" includes that deposit to an account or fund which represents the partial repayment of an advance of credit. (e) The term "loan" includes any loan, advance of credit, or purchase of an obligation representing a loan or advance of credit for the purpose of financing eligible repairs, alterations or improvements as authorized by the National Housing Act, as amended, effective July 1, 1939, and by the regulations in this part. (f) The term "Administrator" means the Federal Housing Administrator. (g) The term "borrower" means one who is an eligible owner or lessee of real property to be improved pursuant to the provisions of the Act and who applies for and receives an advance of credit in reliance upon the provisions of the Act. ing structure or of the real property in conrepair, alteration or improvement of an existnection therewith, exclusive of the building of new structures. loan which is for the purpose of financing the (1) The term "class 2 (a) loan" means any construction of a new structure which is not to be used in whole or in part either for residential or agricultural purposes. (m) The term "class 2 (b) loan" means any loan which is for the purpose of financing the construction of a new structure for use in whole or in part for agricultural purposes. (n) The term "class 2 loan" includes both "class 2 (a)" and "class 2 (b)" loans as defined in paragraphs (1) and (m) of this section. (0) The term "class 3 loan" means any Federal Housing Administration.* seded by following section during period cov- § 501.2 Definitions. As used in the regulations in this part (a) The term "owner" includes, in addition to owners in fee, life tenants and persons holding an equity under a mortgage, trust or contract. (b) The term "note" includes a note, bond, mortgage, or other evidence of indebtedness. (c) The term "payment" includes a deposit to an account or fund. (d) The term "installment payment" includes that deposit to an account or fund which represents the partial repayment of an advance of credit. (e) The term "loan" includes any (h) The term "Act" means the National loan, advance of credit, or purchase of Housing Act, as amended, effective July 1, an obligation representing a loan or ad1939. vance of credit for the purpose of fi (i) The term "contract of insurance" in-nancing eligible repairs, alterations or cludes all of the provisions of the regula-improvements as authorized by the Nations in this part and of the applicable pro- tional Housing Act, as amended, effective July 1, 1939, and by the regulations in this part. visions of the Act. (1) The term "insured institution" means any bank, trust company, personal finance (f) The term "Administrator" means | after the maturity of the loan or advance of the Federal Housing Administrator. credit. enforceable in the jurisdiction in which they (b) Shall be in a form which is valid and are issued. (g) The term "borrower" means one who is an eligible owner or lessee of real property to be improved pursuant to the (c) Shall be payable in equal monthly, provisions of the Act and who applies for semi-monthly, or weekly installments. The and receives an advance of credit in re-than the other installments, subject to such final installment may be slightly more or less liance upon the provisions of the Act. exceptions as may be made by the Adminis(h) The term "Act" means the Na- trator. Notes may not provide for a first paytional Housing Act, as amended, effective dar months after the date of the note. Howment less than 6 days or more than 2 calenJuly 1, 1939. ever, if 51 percent or more of the income of the maker is derived directly from the sale stock produced by him, a note may be made of agricultural crops, commodities, or livepayable in installments corresponding to income periods shown on the credit statement. In such cases, the first payment must be made within 12 months of the date of the note and at least one payment must be made during each calendar year thereafter and the proportion of total principal to be paid in later years must not exceed the proportion of total principal payable in earlier years. (i) The term "contract of insurance" includes all of the provisions of the regulations in this part and of the applicable provisions of the Act. (j) The term "insured institution" means any bank, trust company, personal finance company, mortgage company, building and loan association, installment lending company or other such financial institution which the Administrator has found to be qualified by experience or facilities and has approved as eligible for credit insurance and to which he has issued a contract of insurance effective July 1, 1939. (k) The term "class 1 loan" means any loan which is for the purpose of financing the repair, alteration or improvement of an existing structure or of the real property in connection therewith, exclusive of the building of new structures. (1) The term "class 2 (a) loan" means any loan which is for the purpose of financing the construction of a new structure which is not to be used in whole or in part either for residential or agricultural purposes. (m) The term "class 2 (b) loan" means any loan which is for the purpose of financing the construction of a new structure for use in whole or in part for agricultural purposes. (n) The term "class 2 loan" includes both "class 2 (a)" and "class 2 (b)" loans as defined in paragraphs (1) and (m) of this section. (0) The term "Administration" means Federal Housing Administration.* [As amended Dec. 14, 1939, effective Jan. 1, 1940; 4 F.R. 4984] (d) Shall contain a provision for acceleration of maturity, either automatic or at the option of the holder, in the event of default in the payment of any installment upon the due date thereof. (e) Shall not have a final maturity in excess of 3 years and 32 days from the date thereof, except in the case of loans for the purpose of financing the building of new structures to be used in whole or in part for residential or agricultural purposes, in which shall not be in excess of 10 years and 32 days. event the final maturity of any such loan paid by the maker, not to exceed 5 cents for (f) May provide for a late charge, to be each $1 of each installment more than 15 days in arrears. In lieu of late charges, notes ments at a rate not in excess of the contract may provide for interest on past due installrate in the jurisdiction in which the note is drawn. No late charge or interest on a past $5. The borrower must be billed for the due installment may be accrued in excess of penalties collected as such, and evidence of such billing must be in the file if claim is made under the contract of insurance. of an equal amount as provided in this sec(g) May be in a series provided each is tion and that each note indicates on its face that it is one of a series signed by the same maker. [Regs., June 20, 1939, effective July 1, 1939; 4 F.R. 2787] [Preceding section, in small type, superseded by following section also in small type, during period covered by this Supplement.] § 501.3 Eligible notes. Promissory notes in order to be eligible for insurance: maker, of an owner of the real property to be (a) Shall bear the genuine signature, as improved or of a lessee thereof under a lease expiring not less than 6 calendar months § 501.3 Eligible notes. Promissory notes after the maturity of the loan or advance of in order to be eligible for insurance: (a) Shall bear the genuine signature, as maker, of an owner of the real property to be improved, or of a lessee thereof under a lease expiring not less than 6 calendar months credit in the case of class 1, class 2 (a) and class 2 (b) loans and shall bear the genuine signature, as maker, of an owner in fee simple of such real property or of a lessee thereof under a lease having at least 30 years to run |