‘‘(2) FRAUD.—Where an insurer has made or
filed with the Director a false or fraudulent annual
statement or other document with the intent to
evade, in whole or in part, the payment of pre-
miums, a right for which a claim may be made shall
not be considered to have accrued for purposes of
this subsection until its discovery by the Director.
‘‘SEC. 1225. NATIONAL PROPERTY REINSURANCE FUND.
‘‘(a) ESTABLISHMENT.—To carry out the national
property reinsurance program under this part, the Direc-
tor shall establish in the Treasury of the United States
a fund to be known as the National Property Reinsurance
Fund (in this section referred to as the ‘‘Fund’’), which
shall be separate from the National Insurance Develop-
ment Fund established under section 1243. Amounts in
the Fund shall be available, to the extent provided in ap-
propriation Acts—
‘‘(1) to make such payments as may, from time
to time, be required under reinsurance contracts
under this part;
‘‘(2) to pay such administrative expenses as
may be necessary or appropriate to carry out this
part; and
‘‘(3) to repay to the Secretary of the Treasury
any amounts, including interest thereon, as may be
borrowed for the Secretary under section 520(b) for
purposes of the national property reinsurance pro-
gram under this part.
‘‘(b) CREDITS.—The Fund shall be credited with—
‘‘(1) reinsurance premiums, fees, and other
charges paid or collected in connection with reinsur-
ance provided under this part;
‘‘(2) any amounts appropriated for the Fund;
‘‘(3) interest earned on the investments of the
Fund pursuant to subsection (c); and
‘‘(4) amounts borrowed by the Director under
section 520(b) and deposited in the Fund.
‘‘(c) INVESTMENT.—If the Director determines that
the amounts in the Fund are in excess of amounts needed
to carry out the national property reinsurance program
under this part, the Director may request the Secretary
of the Treasury to invest any excess amounts the Director
determines advisable in obligations issued or guaranteed
by the United States.
‘‘(d) BUDGET.—An annual business-type budget for
the Fund shall be prepared, submitted to the Congress,
considered, and acted upon in the manner prescribed by
sections 9103 and 9104 of title 31, United States Code,
for wholly owned Government corporations.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
is 
authorized 
to 
be 
appropriated 
to 
the 
Fund
$250,000,000 for fiscal year 1995.’’.
SEC. 5. BORROWING AUTHORITY AND TAXATION.
(a) BORROWING AUTHORITY.—Section 520(b) of the
National Housing Act (12 U.S.C. 1735d(b)) is amended—
(1) by striking ‘‘(1)’’;
(2) by striking ‘‘, and (2)’’ and inserting ‘‘. The
Director of the Federal Emergency Management
Agency is authorized to borrow from the Treasury
from time to time such amounts as the Director
shall determine are necessary’’; and
(3) by inserting ‘‘or Director’’ before ‘‘in bor-
rowing’’.
(b) TAXATION.—Section 1250 of the National Hous-
ing Act (12 U.S.C. 1749bbb–20) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘and the National Prop-
erty Reinsurance Fund’’ after ‘‘Fund’’; and
(B) by striking ‘‘its reserves, surplus, and
income’’ and inserting ‘‘the reserves, surplus,
and income of such funds’’; and
(2) in subsection (b), by striking ‘‘section
1223(a)(1)’’ and inserting ‘‘section 1222(b)’’.
SEC. 6. ADVISORY BOARD.
(a) REESTABLISHMENT OF BOARD.—Notwithstand-
ing section 14 of the Federal Advisory Committee Act or
any other law, there is hereby reestablished the Advisory
Board under section 1202(a) of the National Housing Act.
(b) REAPPOINTMENT OF MEMBERS.—Not later than
the expiration of the 6-month period beginning on the date
of the enactment of this Act, the Director shall appoint
members of the Advisory Board referred to in subsection
(a) in accordance with the provisions of section 1202(a)
of the National Housing Act and, pursuant to paragraph
(2) of such section, shall designate a Chairman and Vice
Chairman of such Board.
(c) MEMBERSHIP.—Section 1202(a)(1) of the Na-
tional Housing Act (12 U.S.C. 1749bbb–1(a)(1)) is
amended—
(1) in the second sentence, by inserting ‘‘com-
munity and consumer groups,’’ after the last
comma; and
(2) in the last sentence—
(A) by striking ‘‘and’’ after ‘‘Govern-
ment,’’;
(B) by striking ‘‘and’’ after ‘‘industry’’ and
inserting a comma; and
(C) by inserting before the period at the
end the following: ‘‘, and not less than 4 shall
be representatives of community and consumer
groups’’.
(d) TERMINATION.—Section 1202 of the National
Housing Act (12 U.S.C. 1749bbb–1) is amended by add-
ing at the end the following new subsection:
‘‘(e) The Board shall terminate upon the date re-
ferred to in section 1201(b)(1) that relates to section
1222(f).’’.
(e) TECHNICAL CORRECTION.—Section 1202(d) of
the National Housing Act (12 U.S.C. 1749bbb–1(d)) is
amended by striking ‘‘rate for grade GS–18 of the General
Schedule under section 5332’’ and inserting ‘‘maximum
rate payable under section 5376’’.
SEC. 7. DEFINITIONS.
Section 1203(a) of the National Housing Act (12
U.S.C. 1749bbb–2(a)) is amended—
(1) in paragraph (5)—
(A) by striking ‘‘and extended coverage en-
dorsement thereon’’ and inserting ‘‘, extended
coverage endorsement thereon, and policies for
other allied lines of fire insurance’’; and
(B) by striking ‘‘. Such’’ and inserting ‘‘;
such’’;
(2) by striking paragraph (9) and inserting the
following new paragraph:
‘‘(9) The term ‘reinsurance agreement’ means a
reinsurance agreement under section 1223(b).’’;
(3) in paragraph (13)(K), by striking ‘‘damage
from riot or civil commotion’’ and inserting ‘‘loss of
or damage to property,’’; and
(4) by striking paragraph (14) and inserting
the following new paragraph:
‘‘(14) The term ‘State’ means the States of the
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, Guam, the Virgin Is-
lands, American Samoa, the Trust Territory of the
Pacific Islands, and any other territory or possession
of the United States.’’.
SEC. 8. CONFORMING AMENDMENTS.
(a) NATIONAL INSURANCE DEVELOPMENT FUND.—
Section 1243 of the National Housing Act (12 U.S.C.
1749bbb–13) is amended—
(1) in subsection (a)—
(A) in the matter preceding paragraph (1),
by striking ‘‘programs authorized under this
title’’ and inserting ‘‘insurance program author-
ized under part C’’;
(B) in paragraph (1), by striking ‘‘reinsur-
ance and direct insurance contracts under this
title’’ and inserting ‘‘direct insurance contracts
under such part’’;
(C) in paragraph (2), by inserting ‘‘(not
including such expenses for carrying out part
B)’’ after ‘‘title’’; and
(D) in paragraph (3), by striking ‘‘pro-
grams’’ and inserting ‘‘program’’;
(2) in subsection (b)(1)—
(A) by striking ‘‘reinsurance and’’ each
place it appears; and
(B) by striking ‘‘parts B and’’ and insert-
ing ‘‘part’’; and
(3) in paragraph (6), by inserting ‘‘for purposes
of the program under part C’’ after ‘‘section
520(b)’’.
(b) REPEAL.—Section 1245 of the National Housing
Act (12 U.S.C. 1749bbb–15) is hereby repealed.
SEC. 9. REGULATIONS AND EFFECTIVE DATE.
The Secretary shall issue regulations pursuant to sec-
tion 1247 of the National Housing Act necessary to carry
out the amendments made by this Act. Such regulations
shall be issued not later than 6 months after the date of
the enactment of this Act and shall provide for the avail-
ability of reinsurance coverage under part B of title XII
of such Act (pursuant to reinsurance agreements under
section 1223 of such Act) not later than 12 months after
such date of enactment.
Æ
HR 3298 IH——2