12 U.S.C. 1735e

Page 773

shall be increased by not to exceed $93,000,000 on October 1, 1979’’.
1979—Subsec. (f). Pub. L. 96–153 provided for an increase of $93,000,000 on October 1, 1979.
1978—Subsec. (f). Pub. L. 95–557 inserted ‘‘which
amount shall be increased by $165,000,000 on October 1,
1978’’.
1977—Subsec.
(f).
Pub.
L.
95–24
substituted
‘‘$1,341,000,000’’ for ‘‘$500,000,000’’.
1976—Subsec. (f). Pub. L. 94–375 added subsec. (f).
1970—Subsec. (c). Pub. L. 91–609 provided for guarantee as to principal and interest by any agency of the
United States and for investment of moneys in bonds or
other obligations the proceeds of which will be used to
directly support the residential mortgage market.
1968—Subsec. (e). Pub. L. 90–448 prohibited use of
Fund for carrying out provisions of sections 1715n(e),
1715x(a)(2), 1715z, 1715z–1 and 1715z–2 of this title.
1967—Pub. L. 90–19 substituted ‘‘Department of Housing and Urban Development’’ for ‘‘Federal Housing Administration’’ wherever appearing in subsecs. (b) and
(c) of this section and ‘‘Secretary’’ for ‘‘Commissioner’’
in subsecs. (a), (c), and (d) of this section, respectively.
EFFECTIVE DATE OF 1981 AMENDMENT
Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see
section 371 of Pub. L. 97–35, set out as an Effective Date
note under section 3701 of this title.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 1709, 1715z–3,
1715z–11a, 1715z–12, 1715z–13, 1735f–20 of this title.

§ 1735d. Payment of insurance benefits in cash or
debentures; borrowing money from Treasury
to make payments
(a) Notwithstanding any other provisions of
this chapter with respect to the payment of insurance benefits, the Secretary is authorized, in
his discretion, to pay in cash or in debentures
any insurance claim or part thereof which is
paid on or after August 10, 1965, on a mortgage
or a loan which was insured under any section of
this chapter either before or after such date. If
payment is made in cash, it shall be in an
amount equivalent to the face amount of the debentures that would otherwise be issued plus an
amount equivalent to the interest which the debentures would have earned, computed to a date
to be established pursuant to regulations issued
by the Secretary.
(b) The Secretary is authorized to borrow from
the Treasury from time to time such amounts as
the Secretary shall determine are necessary (1)
to make payments in cash (in lieu of issuing debentures guaranteed by the United States, as
provided in this chapter) pursuant to the provisions of this section, and (2) to make payments
for reinsured and directly insured losses under
subchapter IX–C 1 of this chapter: Provided, however, That borrowings to make payments for reinsured and directly insured losses under subchapter IX–C 1 of this chapter shall be limited to
$250,000,000 or such further sum as the Congress,
by joint resolution, may from time to time determine. Notes or other obligations issued by
the Secretary in borrowing under this subsection shall be subject to such terms and conditions as the secretary of the Treasury may prescribe. Each sum borrowed pursuant to this subsection shall bear interest at a rate determined
by the Secretary of the Treasury, taking into
1 See

References in Text note below.

§ 1735f

TITLE 12—BANKS AND BANKING

consideration the average market yield on outstanding marketable obligations of the United
States of comparable maturities during the
month preceding the issuance of such notes or
other obligations.
(June 27, 1934, ch. 847, title V, § 520, as added Pub.
L. 89–117, title II, § 215, Aug. 10, 1965, 79 Stat. 472;
amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81
Stat. 17; Pub. L. 90–448, title XI, § 1104, Aug. 1,
1968, 82 Stat. 566; Pub. L. 91–609, title VI, § 604,
Dec. 31, 1970, 84 Stat. 1791.)
REFERENCES IN TEXT
Subchapter IX–C of this chapter, referred to in subsec. (b), was classified to section 1749bbb et seq. of this
title and was omitted from the Code.
AMENDMENTS
1970—Subsec. (b)(2). Pub. L. 91–609 provided for making payments for directly insured losses and made limitation provision applicable to such payments.
1968—Subsec. (b). Pub. L. 90–448 empowered the Secretary to borrow to make payments for reinsured losses
under subchapter IX–C of this chapter, and limited such
borrowing to $250,000,000 or such further sum as Congress may determine.
1967—Subsecs. (a), (b). Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing.
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in section 1710 of this title.

§ 1735e. Acceptance of materials or products used
in structures
The Secretary shall adopt a uniform procedure
for the acceptance of materials and products to
be used in structures approved for mortgages or
loans insured under this chapter. Under such
procedure any material or product which the
Secretary finds is technically suitable for the
use proposed shall be accepted. Acceptance of a
material or product as technically suitable shall
not be deemed to restrict the discretion of the
Secretary to determine that a structure, with
respect to which a mortgage is executed, is economically sound or an acceptable risk.
(June 27, 1934, ch. 847, title V, § 521, as added Pub.
L. 89–117, title II, § 216, Aug. 10, 1965, 79 Stat. 473;
amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81
Stat. 17.)
AMENDMENTS
1967—Pub. L. 90–19 substituted ‘‘Secretary’’ for ‘‘Commissioner’’ wherever appearing.

§ 1735e–1. Use of American materials and products
In the administration of housing assistance
programs, the Secretary of Housing and Urban
Development shall encourage the use of materials and products mined and produced in the
United States.
(Pub. L. 100–242, title V, § 571, Feb. 5, 1988, 101
Stat. 1950.)
CODIFICATION
Section was enacted as part of the Housing and Community Development Act of 1987, and not as part of the
National Housing Act which comprises this chapter.

§ 1735f. Water and sewerage facilities
Notwithstanding any other provision of this
chapter, no mortgage which covers new con-