Pub. L. 82-429, tit. I, sec. 116

Sec. 116. (a) Section 601 of the Defense Production Act of 1950, as amended, is hereby repealed. The heading of title VI of the Defense Production Act of 1950, as amended, is amended to read as follows: “TITLE VI—CONTROL OF REAL ESTATE CREDIT”, and the subheading of such title is amended to read as follows: “This title authorizes the regulation of real estate construction credit only”. The table of contents in the first section of the Defense Production Act of 1950, as amended, is amended by striking out “consumer and”. (b) Title VI of the Defense Production Act of 1950, as amended, is amended by adding at the end thereof the following new section: “Sec. 607. Notwithstanding the provisions of sections 602 and 605 of this title, the authority of the President which is derived from said sections to impose credit regulations relative to residential property shall not he exercised with respect to extensions of credit made during any ‘period of residential credit control relaxation’, as that term is herein defined, in such manner as to impose any down payment requirement in excess of 5 per centum of the transaction price. The President shall cause to be made estimates of the number of permanent, nonfarm, family dwelling units, the construction of which has been started during each calendar month and, on the basis of such estimates, he shall cause to be made estimates of the annual rate of construction starts during each such month, after making reasonable allowance for seasonal variations in the rate of construction. If for any three consecutive months the annual rate of construction starts so found for each of the three months falls to n level below an annual rate of 1.200,000 starts per year, the President shall cause to be published in the Federal Register an announcement of the beginning of a ‘period of residential credit control relaxation’, which period shall begin not later than the first day of the second calendar month following such three consecutive months. Each such relaxation period may be terminated by the President at any time after the annual rate of construction starts thereafter estimated for each of any three consecutive months exceeds the level referred to in the preceding sentence.” (c) Section 708 of the Defense Production Act of 1950, as amended, is amended by adding at the end thereof the following new subsection: “(f) After the date of enactment of the Defense Production Act Amendments of 1952, no voluntary program or agreement for the control of credit shall be approved or carried out under this section.”