miscellaneous housing insurance

miscellaneous housing insurance Sec. 312. (a) Section 223 of the National Housing Act is amended— (1) by striking out so much of subsection (a) as precedes paragraph (1) and inserting in lieu thereof the following: “(a) Notwithstanding any of the provisions of this Act and without regard to limitations upon eligibility contained in any section or title of this Act, the Secretary is authorized, upon application by the mortgagee, to insure or make commitments to insure under any section or title of this Act any mortgage—”; (2) by striking out “applicable to loans insured under section 203, 207, 213, 220, 221, 222, 231, 232, or 233, as the case may be” in the first and second provisos of subsection (a)(7) and inserting in lieu thereof “prescribed under the applicable section or title of this Act”; (3) by striking out “this title” each time it appears in subsection (c) and inserting in lieu thereof “this Act”; (4) by striking out “title I, title II. title VI, title VII, title VIII, or title IX” in subsection (c) and inserting in lieu thereof “any section or title of this Act”; and (5) by striking out “(except that in any case the payment of insurance shall be in debentures)” at the end of subsection (c). (b) Section 223(d) of such Act is amended by striking out all that follows “as he may prescribe,” and inserting m lieu thereof the following: “insure under the same section as the original mortgage a loan by the mortgagee in an amount not exceeding the excess of the foregoing expenses over the project income. Such loan shall (1) bear interest (exclusive of premium charges for insurance) at not to exceed the per centum per annum currently permitted for mortgages insured under the section under which it is to be insured, (2) be secured in such manner as the Secretary shall require, and (3) be limited to a term not exceeding the unexpired term of the original mortgage. The Secretary is authorized to collect a premium charge for insurance of loans pursuant to this subsection in an amount computed at the same premium rate as is applicable to the original mort-82 Stat. 511gage. This premium shall be payable in cash or in debentures of the insurance fund under which the loan is insured at par plus accrued interest. In the event of a failure of the borrower to make any payment due under such loan or under the original mortgage, both the loan and original mortgage shall be considered in default, and if such default continues for a period of thirty days, the lender shall be entitled to insurance benefits, computed in the same manner as for the original mortgage, except that in determining the interest rate under section 224 for the debentures representing the portion of the claim applicable to the loan, the date of the commitment to insure the loan and the insurance date of the loan shall lie taken into consideration rather than the commitment or insurance date for the original mortgage.”