PAYMENT OF MORTGAGE INSURANCE CLAIMS.

SEC. 516. PAYMENT OF MORTGAGE INSURANCE CLAIMS. (a) Payment of Insurance.—Section 204 of the National Housing Act (12 U.S.C. 1710) is amended— (1) in the fifth sentence of subsection (a), by striking “, subject to the cash adjustment hereinafter provided, issue to the mortgagee debentures having a total face value” and insert in lieu thereof the following: “issue to the mortgagee debentures having a par value”; (2) by striking subsection (c) and inserting the following: “(c) Debentures issued under this section— (1) shall be in such form and amounts; (2) shall be subject to such terms and conditions; (3) shall include such provisions for redemption, if any, as may be prescribed by the Secretary of Housing and Urban Development, with the approval of the Secretary of the Treasury; and (4) may be in book entry or certificated registered form, or such other form as the Secretary of Housing and Urban Development may prescribe in regulations.”; (3) in the first sentence of subsection (d)— (A) by striking “executed” and inserting “issued”; and (B) by striking “, shall be signed by the Secretary by either his written or engraved signature, and shall be negotiable” and inserting the following: “and shall be negotiable, and, if in book entry form, transferable, in the manner described by the Secretary in regulations”; and (4) by striking in the fifth sentence of subsection (d) “and such guaranty” and inserting the following: “and, in the case of debentures issued in certificated registered form, such guaranty”. (b) Rental Housing Insurance.—Section 207 of the National Housing Act (12 U.S.C. 1713) is amended— (1) by striking in the second sentence of subsection (g) “, subject to the cash adjustment provided for in subsection (j), issue to the mortgagee a certificate of claim as provided in subsection (h), and debentures having a total face value” and inserting the following: “issue to the mortgagee a certificate of claim as provided in subsection (h), and debentures having a par value”; (2) by striking in the first sentence of subsection (i) “shall be signed by the Secretary, by either his written or engraved signature, shall be negotiable” and inserting the following: 106 STAT. 3791“shall be negotiable, and, if in book entry form, transferable, in the manner described by the Secretary in regulations”; (3) by striking in the fourth sentence of subsection (i) “and such guaranty” and inserting the following: “and, in the case of debentures issued in certificated registered form, such guaranty”; and (4) by striking subsection (j) and inserting the following: “(j) Debentures issued under this section— (1) shall be in such form and amounts; (2) shall be subject to such terms and conditions; (3) shall include such provisions for redemption, if any, as may be prescribed by the Secretary of Housing and Urban Development, with the approval of the Secretary of the Treasury; and (4) may be in book entry or certificated registered form, or such other form as the Secretary of Housing and Urban Development may prescribe in regulations”. (c) Rehabilitation and Neighborhood Conservation Housing Insurance.—Section 220(h) of the National Housing Act (12 U.S.C. 1715k) is amended— (1) by striking in the first sentence of paragraph (7), “shall be signed by the Secretary, by either his written or engraved signature, shall be negotiable” and inserting the following: “shall be negotiable, and, if in book entry form, transferable, in the manner described by the Secretary in regulations”; (2) by striking in the fourth sentence of paragraph (h)(7) “and the guaranty” and inserting the following: “and, in the case of debentures issued in certificated registered form, the guaranty”; (3) by striking the sixth sentence of paragraph (7), and inserting the following: “Debentures issued under this sub-section shall be in such form and amounts; shall be subject to such terms and conditions; and shall include such provisions for redemption, if any, as may be prescribed by the Secretary of Housing and Urban Development, with the approval of the Secretary of the Treasury; and may be in book entry or certificated registered form, or such other form as the Secretary of Housing and Urban Development may prescribe in regulations.”; and (4) by striking the last sentence of paragraph (7). (d) Housing for Moderate Income and Displaced Families.—The second sentence of section 221(g)(4)(A) of the National Housing Act (12 U.S.C. 17151(g)(4)(A)) is amended by striking “, subject to the cash adjustment provided herein, issue to the mortgagee debentures having total face value” and inserting the following: “issue to the mortgagee debentures having a par value”.