quired in connection with Federal Housing Administration insurance claims.

(y) With respect to the Appalachian Housing Fund, pursuant to the Appalachian Regional Development Act of 1965:

(1) To reserve or, as appropriate, record, or cause to be reserved or recorded, all approved reservations of funds and to record and control, or cause to be recorded and controlled, all obligations of funds for loans under this fund.

(2) To disburse, or cause to be disbursed, moneys in the fund for making loans to sponsors for development of applications for commitments for project mortgages for projects under section 207 of the Appalachian Regional Development Act of 1965 approved pursuant to section 223 of such Act and for general expenses of administration of section 207 of such Act; and

(3) To collect, or cause to be collected, the loan repayments and interest thereon, and to execute, or cause to be executed, the satisfaction of loan and trust agreement when the loan indebtedness has been paid in full or canceled.

(z) With respect to section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966: To perform, or cause to be performed, all fiscal duties and functions necessary to comply with the requirements of the agreement entered into between the Department of Defense and the Department of Housing and Urban Development.

(aa) With respect to the Low and Moderate Income Sponsor Fund, pursuant to section 106 of the Housing and Urban Development Act of 1968:

(1) To reserve or, as appropriate, record, or cause to be reserved or recorded, all appoved reservations of funds and to record and control, or cause to be recorded and controlled, all obligations of funds for loans or grants made under the fund.

(2) To disburse, or cause to be disbursed, moneys in the fund for making grants to public bodies, nonprofit or cooperative organizations, and loans, without interest, to nonprofit sponsors of housing for low- and moderate-income families: and

(3) To collect, or cause to be collected, the loan repayments, and to execute, or cause to be executed, the satisfaction of loan and trust agreements when the loan indebtedness has been paid in full or canceled.

(bb) To reserve or, as appropriate, record, or cause to be reserved or recorded,

all approved reservations thority and to record & cause to be recorded and contractual obligations thority pertaining to assi contracts under section 2 duction contracts under se tracts for debt managem ing services under section tracts for rent supplem pursuant to section 101 and Urban Development A amendments thereto.

(cc) To establish and cause to be established an under his direction an ac deposit of fees collected terstate Land Sales Full D and to make disbursement priated funds and receipt expenses of administration sales registration under s make refunds of overpayn sales registration fees.

(dd) To reendorse, or ca endorsed, for insurance und eligible mortgages on dwellings insured under mortgage sections of the A mortgages have been assum servicemen.

(ee) To approve or di cause to be approved or under his direction, the s mortgagees' applications f benefits without deduction surance benefits for losses d fire damage to home prop fire and other hazards to properties, in accordance w visions of §§ 203.379(b) and respectively, of the FHA reg

(ff) To extend, or cause to under his direction, the pe for assignment to the Se mortgage on which the ass ment contract has been ter cause of nonoccupancy by mortgagor or qualified pur

(gg) To approve or dis cause to be approved or disa tificates of interest rate c mitted by mortgagees with mortgages with flexible inte sured under section 236.

(hh) To establish and cause to be established and under his direction, an acc deposit of excess rental inco under section 236 of the Na ing Act.

(ii) To prepare and execute, or cause to be prepared and executed, certified statements of account on Secretary-held home properties for the General Counsel as requested by the Department of Justice.

(jj) To execute, or cause to be executed, agreements with mortgagors that provide for the deposit of the mortgagors' reserve for replacement funds in federally insured depositories when the Secretary is the holder of a multifamily mortgage; to open, or cause to be opened, for this purpose appropriate accounts with federally insured depositories and to deposit and withdraw, or cause to be deposited and withdrawn, funds in these accounts.

& 3.10 Director Accounting Division and Deputy.

To the position of Director, Accounting Division, and under his general supervision to the position of Deputy Director, Accounting Division, there is delegated the following basic authority and functions:

(a) To direct the activities of the Accounting Division.

(b) To devise and establish accounting procedures and policies and to maintain official accounting records for all activities of the Administration.

(c) To devise and establish procedures and policies and to maintain official records for all home properties and mortgages held by the Secretary.

(d) To provide technical advice and guidance to all organizational elements of the Administration in the fields of accounting, including property and mortgage servicing accounting.

(e) To maintain liaison with the General Accounting Office, Treasury Department and other agencies of the Government on accounting matters and to collaborate with such departments and agencies in the formation of accounting programs.

(f) To maintain liaison with the Government National Mortgage Association and other Government agencies on matters pertaining to the sale and insurance of Secretary-held mortgages.

(g) To endorse mortgage notes for insurance; to take any action necessary to consummate the sale of Secretary-held mortgages to purchasers of such mortgages, and to execute the satisfaction of Secretary-held mortgages when the mortgage indebtedness has been paid in full.

(h) To develop and maintain a p gram for the fiscal servicing of Sec tary-held hoine mortgages including execution of vouchers for expenditu from mortgagors' escrow accounts.

(1) To execute vouchers for paym of taxes on home properties where t is vested in the Secretary and for p ment of excess proceeds to effect fi settlement with mortgagees on cert cates of claim under provisions of National Housing Act.

(j) To act with the Comptroller a under his direction in the determinat of basic policies on accounting and fiscal servicing of home property a mortgage note accounts.

(k) With respect to the Appalachi Housing Fund, pursuant to the Appa chian Regional Development Act of 19

(1) To reserve or, as appropriate, cord all approved reservations of fu and to record and control all obligati of funds for loans under this fund.

(2) To disburse moneys in the fu for making loans to sponsors for dev opment of applications for commitme for project mortgages for projects un section 207 of such Act, approved p suant to section 223 of such Act, and general expenses of administration section 207 of such Act; and

(3) To collect the loan repayme and interest thereon, and to execute satisfaction of the loan and trust agr ments when the loan indebtedness been paid in full or canceled.

(1) With respect to section 1013 the Demonstration Cities and Me politan Development Act of 1966: perform all fiscal duties and functio necessary to comply with the requi ments of the agreement entered in between the Department of Defense a the Department of Housing and Urb Development.

(m) With respect to the Low a Moderate Income Sponsor Fund, pu suant to section 106 of the Housing a Urban Development Act of 1968:

(1) To reserve or, as appropriate, cord all approved reservations of fur and to record and control all oblig tions of funds for loans made under t fund.

(2) To disburse moneys in the fu for making loans, without interest. nonprofit sponsors of housing for lo and moderate-income families; and

(3) To collect the loan repaymer and to execute the satisfaction of lo and trust agreements when the loan 1

debtedness has been paid in full or canceled.

(n) To reserve or, as appropriate, record all approved reservations of contract authority and to record and control all contractual obligations of contract authority pertaining to assistance payment contracts under section 235; interest reduction contracts under section 236; contracts for debt management or counseling services under section 237; and contracts for rent supplement payments, pursuant to section 101 of the Housing and Urban Development Act of 1965, and amendments thereto; and

(0) To establish and maintain an account for the deposit of fees collected under the Interstate Land Sales Full Disclosure Act.

(p) To prepare and execute certified and notarized affidavits for the use of U.S. attorneys in presenting the fiscal status of Secretary-held mortgages at foreclosure trials.

(q) To establish and maintain an account for the deposit of excess rental income collected under section 236 of the National Housing Act.

(r) To issue duplicate or corrective mortgage Insurance certificates in connection with mortgages insured under the Government National Mortgage Association and/or Federal National Mortgage Association direct sales program.

(s) To prepare and execute certified statements of account on Secretary-held home properties for the General Counsel as requested by the Department of Justice.

§ 3.11

Director Insurance Division and Deputy.

To the position of Director, Insurance Division, and under his general supervision to the position of Deputy Director, Insurance Division, there is delegated the following basic authority and functions:

(a) To direct the activities of the Insurance Division.

(b) To devise and maintain procedures relating to the establishment of mortgage Insurance records, the modification and termination of such insurance for home and project mortgages and to register title I loans reported for insurance.

(c) To provide fiscal and technical advice and guidance with respect to mortgage modifications prior to administrative approval.

(d) To cancel the ins ment or the mortgage in cate on insured mortgag request for termination mortgagor and mortgage insurance endorsement o insurance certificate is canceled.

(e) To ascertain suffici and adjusted premium c respect to termination authorize refund of unea collected or institute billi lection of premiums due.

(f) To authorize paym distributive shares in the reserve account of the Mu Insurance Fund to the righ thereof.

(g) To devise and ma dures relating to the fisca Secretary-held project mo execute vouchers for paym penditures from mortgago counts relating thereto.

(h) To develop and m procedures for the operat tary-owned project proper of the Secretary under co management of such prope vide advice and guidance t with respect to such fisca and to execute vouchers fo real estate taxes, special hazard insurance, and repa such properties.

(1) To certify vouchers title I claims representing loss sustained and to refu mitter of record any collec in excess of the established

(j) To act with the Co under his direction in the of basic insurance fiscal se

(k) To direct and supe portfolio examinations of i sured under the provisions title I of the National Hou

(1) To execute satisfact leases of Secretary-held m the mortgage indebtedness in full.

(m) To issue duplicate mortgage insurance certific (n) To exercise the aut Assistant Secretary-Comm dorse any preferred stock c by him in any corporation pose of retirement and ca

(0) To reendorse for ins section 222 eligible mortga family dwellings insured

home mortgage sections of the Act, where the mortgages have been assumed by eligible servicemen; and

(p) To approve or disapprove certificates of interest rate changes submitted by mortgagees with respect to mortgages with flexible interest rates insured under section 236.

(q) To execute agreements with mortgagors that provide for the deposit of the mortgagors' reserve for replacement funds in federally insured depositories when the Secretary is the holder of a multifamily mortgage; to open for this purpose appropriate accounts with federally insured depositories and to deposit and withdraw funds in these accounts.

§3.12 Director Fiscal Deputy.

Division and

To the position of Director, Fiscal Division, and under his general supervision to the position of Deputy Director, Fiscal Division, there is delegated the following basic authority and functions:

(a) To direct the activities of the Fiscal Division.

(h) To act with the Comptroll under his direction in the determ of basic fiscal policy.

(1) To make disbursements to section 235; interest reduction pay gagees for assistance payments under section 236; payments unde tracts with public or private orga tions to provide budget, debt ma ment, and related counseling servi mortgagors whose mortgages are in under section 237; and paymen mortgagors under contracts for rent plement payments pursuant to se 101 of the Housing and Urban Dev ment Act of 1965 and amendm thereto, and to process notices of mination of assistance payment tracts due to nonoccupancy by orig mortgagors or qualified purchaser for other reasons and collect any o paid assistance payments.

(1) To be responsible for the col tion, receipt, and deposit of all funds ering fees, premiums, and other char affecting FHA programs.

(k) To approve or disapprove the tlement of mortgagees' applications insurance benefits without deduct from the insurance benefits for losses casioned by fire damage to home prop ties or by fire and other hazards to mul family properties, in accordance with t provisions of §§ 203.379 (b) and 207.2 (d), respectively, of the FHA regulation

(1) To approve or disapprove the pu chase of debentures submitted by mor gagees in connection with the paymen of mortgage insurance premiums and ad justed premium charges.

(m) To endorse checks and other ne

gotiable instruments for deposit or col

lection; to endorse loss drafts relatin to insurance coverage on Secretary-held home and project mortgages; to endorse checks and other negotiable instruments in order to perfect negotiability for other parties at interest, where the Secretary is not entitled to the proceeds of such instruments, relating applications for insurance benefits.

(n) To deposit fees collected under the Interstate Land Sales Full Disclosure Act, and to make disbursements from appro

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