Source: https://law.justia.com/codes/us/2016/title-42/chapter-8a/subchapter-iii/sec.-1487/
Timestamp: 2019-05-21 00:25:30
Document Index: 527994345

Matched Legal Cases: ['§ 1487', '§1487', '§517', '§1003', '§806', '§1', '§413', '§803', '§13', '§505', '§4', '§4', '§501', '§7', '§501', '§5', '§5', '§501', '§6', '§501', '§351', '§3', '§3', '§4', '§511', '§105', '§203', '§3006', '§243', '§501', '§707', '§364', '§3006', '§3006', '§3006', '§3006', '§3006', '§203', '§105', '§203', '§514', '§511', '§514', '§514', '§514', '§501', '§511', '§501', '§511', '§501', '§506', '§501', '§502', '§506', '§502', '§509', '§509', '§516', '§505', '§505', '§413', '§413', '§413', '§413', '§413', '§2001']

Sec. 1487 - Rural Housing Insurance Fund :: 2016 US Code :: US Codes and Statutes :: US Law :: Justia
Justia › US Law › US Codes and Statutes › US Code › 2016 US Code › Title 42 - The Public Health and Welfare › Chapter 8A - Slum Clearance, Urban Renewal, and Farm Housing › Subchapter III - Farm Housing › Sec. 1487 - Rural Housing Insurance Fund
Citation 42 U.S.C. § 1487 (2016)
§1487. Rural Housing Insurance Fund
(1) The Secretary may, in conformity with subsections (a), (b), and (m), insure the payment of principal and interest on loans made by lenders other than the United States, and on loans made from or otherwise acquired by the Rural Housing Insurance Fund which are sold by the Secretary. Any contract of insurance executed by the Secretary hereunder shall be an obligation supported by the full faith and credit of the United States, and shall be incontestable except for fraud or material misrepresentation of which the holder has actual knowledge. In connection with loans insured under this section, the Secretary may take liens running to the United States notwithstanding the fact that the notes evidencing such loans may be held by lenders other than the United States. Notes evidencing such loans shall be freely assignable, but the Secretary shall not be bound by any such assignment until notice thereof is given to and acknowledged by him.
(2) Each loan made by the Secretary or other lenders under this subchapter that is insured or guaranteed in accordance with this subsection shall, when offered for sale to the public, be accompanied by an agreement by the Secretary to pay to the holder of such loan (through an agreement to purchase such loan or through such other means as the Secretary determines to be appropriate) the difference between the rate of interest paid by the borrower of such loan and the market rate of interest (as determined by the Secretary) on obligations having comparable periods to maturity on the date of such sale.
(A) the purchaser or any assignee of the loan shall not diminish any substantive or procedural right of the borrower arising under this subchapter;
(B) upon any substantial default of the borrower, but prior to foreclosure, the loan shall be assigned to the Secretary for the purpose of avoiding foreclosure; and
(C) following any assignment under subparagraph (B) and before commencing any action to foreclose or otherwise dispossess the borrower, the Secretary shall afford the borrower all substantive and procedural rights arising under this subchapter, including consideration for interest subsidy, moratorium, reamortization, refinancing, and appeal of any adverse decision to an impartial officer.
(4) From the proceeds of loan sales under paragraph (2), the Secretary shall set aside as a reserve against future losses not less than 5 percent of the outstanding face amount of the loans held by the public at any time.
There is hereby created the Rural Housing Insurance Fund (hereinafter referred to as the "Fund") which shall be used by the Secretary as a revolving fund for carrying out the provisions of this section. There are authorized to be appropriated to the Secretary such sums as may be necessary for the purposes of the Fund. The guaranteed loan program under this subchapter shall be operated separately from the insured loan program operated under this subchapter and no funds designated for one program may be transferred to another program.
(j) Additional uses of Fund moneys
The Secretary may also utilize the Fund—
(1) to pay amounts to which the holder of the note is entitled in accordance with an insurance or sale agreement under this section accruing between the date of any payment by the borrower to the Secretary and the date of transmittal of any such payments to the holder of the note; and in the discretion of the Secretary, payments other than final payments need not be remitted to the holder until due or until the next agreed annual or semiannual remittance date;
(2) to pay the holder of any note insured under this section any defaulted installment or, upon assignment of the note to the Secretary at the Secretary's request, or pursuant to a purchase agreement, the entire balance outstanding on the note;
(3) to pay taxes, insurance, prior liens, expenses necessary to make fiscal adjustments in connection with the application and transmittal of collections or necessary to obtain credit reports on applicants or borrowers, and other services customary in the industry, independent audits of project expenses, construction inspections, commercial appraisals, servicing of loans, and other related program services and expenses, and other expenses and advances to protect the security for loans which are insured under this section or held in the Fund, and to acquire such security property at foreclosure sale or otherwise;
(4) to make assistance payments authorized by section 1490a(a) of this title;
(5) after October 1, 1977, and as approved in appropriations Acts, to make advances authorized by section 1471(e) of this title;
(6) to make payments and take other actions in accordance with agreements entered into under paragraphs (2) and (3) of subsection (d); and
(7) to provide advances and assistance required to carry out paragraphs (4) and (5) of section 1472(c) of this title.
The Secretary may guarantee and service loans made for the purchase of eligible residential properties under section 1441a(c) 1 of title 12 in accordance with subsection (d) of this section and the last sentence of section 1490a(a)(1)(A) of this title.
(1) The Secretary shall promulgate rules which encourage the rehabilitation or purchase of existing buildings for the purpose of providing housing which is economical in cost and operation.
(2) Not later than the expiration of the 90-day period following April 7, 1986, the Secretary shall issue regulations to facilitate the marketability in the secondary mortgage market of loans insured or guaranteed under this section. Such regulations shall ensure that such loans are competitive with other loans and mortgages insured or guaranteed by the Federal Government.
(July 15, 1949, ch. 338, title V, §517, as added Pub. L. 89–117, title X, §1003(a), Aug. 10, 1965, 79 Stat. 498; amended Pub. L. 89–754, title VIII, §806, Nov. 3, 1966, 80 Stat. 1282; Pub. L. 91–78, §1, Sept. 30, 1969, 83 Stat. 125; Pub. L. 91–152, title IV, §413(a)–(e)(2), (f)(2), Dec. 24, 1969, 83 Stat. 398–400; Pub. L. 91–609, title VIII, §803(d), Dec. 31, 1970, 84 Stat. 1807; Pub. L. 93–117, §13(c), Oct. 2, 1973, 87 Stat. 423; Pub. L. 93–383, title V, §§505(c), 509(b), 514(c), 516(b), 517, 519(b), Aug. 22, 1974, 88 Stat. 694–696, 698, 699; Pub. L. 95–60, §4(c), June 30, 1977, 91 Stat. 258; Pub. L. 95–80, §4(c), July 31, 1977, 91 Stat. 340; Pub. L. 95–128, title V, §§501(c), 502(b), (c), 506, 509, Oct. 12, 1977, 91 Stat. 1139–1141; Pub. L. 95–406, §7(c), Sept. 30, 1978, 92 Stat. 881; Pub. L. 95–557, title V, §§501(f), 506(b), Oct. 31, 1978, 92 Stat. 2111, 2113; Pub. L. 96–71, §5(c), Sept. 28, 1979, 93 Stat. 502; Pub. L. 96–105, §5(c), Nov. 8, 1979, 93 Stat. 795; Pub. L. 96–153, title V, §§501(g), 511, Dec. 21, 1979, 93 Stat. 1134, 1137; Pub. L. 96–372, §6(c), Oct. 3, 1980, 94 Stat. 1364; Pub. L. 96–399, title V, §§501(c), 511, Oct. 8, 1980, 94 Stat. 1668, 1671; Pub. L. 97–35, title III, §351(c), Aug. 13, 1981, 95 Stat. 421; Pub. L. 97–289, §3(b), Oct. 6, 1982, 96 Stat. 1231; Pub. L. 98–35, §3(b), May 26, 1983, 97 Stat. 198; Pub. L. 98–109, §4(b), Oct. 1, 1983, 97 Stat. 746; Pub. L. 98–181, title I [title V, §§511(c), 514], Nov. 30, 1983, 97 Stat. 1244, 1247; Pub. L. 98–479, title I, §105(f), title II, §203(d)(5), (6), Oct. 17, 1984, 98 Stat. 2227, 2230; Pub. L. 99–272, title III, §3006, Apr. 7, 1986, 100 Stat. 103; Pub. L. 100–242, title II, §243, Feb. 5, 1988, 101 Stat. 1890; Pub. L. 101–73, title V, §501(e)(2), Aug. 9, 1989, 103 Stat. 394; Pub. L. 102–550, title VII, §707(g), Oct. 28, 1992, 106 Stat. 3839.)
Section 1441a(c) of title 12, referred to in subsec. (n), was repealed by Pub. L. 111–203, title III, §364(b), July 21, 2010, 124 Stat. 1555.
1992—Subsec. (j)(3). Pub. L. 102–550 inserted "independent audits of project expenses," after "customary in the industry,".
1986—Subsec. (c). Pub. L. 99–272, §3006(a), inserted provision requiring any loan made and sold after Apr. 7, 1986, to be sold to the public and not to Federal Financing Bank unless required to service transactions between Secretary and Bank occurring on or before such date.
Subsec. (d). Pub. L. 99–272, §3006(b), (c), designated existing provisions as par. (1), and added pars. (2) to (4).
Subsec. (j)(6). Pub. L. 99–272, §3006(d), added par. (6).
Subsec. (n). Pub. L. 99–272, §3006(e), struck out subsec. (n) which restricted loans guaranteed under this section to borrowers with moderate or above-moderate incomes.
Subsec. (o). Pub. L. 99–272, §3006(f), designated existing provisions as par. (1), and added par. (2).
1984—Subsec. (h). Pub. L. 98–479, §203(d)(5), substituted "chapter 31 of title 31" for "the Second Liberty Bond Act, as amended" and "such chapter" for "such Act".
Subsec. (j)(4). Pub. L. 98–479, §105(f), inserted "and" after the semicolon at the end.
Subsec. (k). Pub. L. 98–479, §203(d)(6), substituted "chapter 11 of title 31" for "the Budget and Accounting Act, 1921".
1983—Subsec. (a). Pub. L. 98–181, §514(a)(1), substituted provisions relating to amount of loan to low income person or family, for provisions designated as pars. (1) and (2) relating to restrictions on loans with respect to amounts, interest, etc., where the borrowers are persons of low or moderate income, and similar restrictions where the borrowers are other persons.
Subsec. (a)(1). Pub. L. 98–181, §511(c), substituted "September 30, 1985" for "November 30, 1983".
Subsec. (b). Pub. L. 98–181, §514(a)(2), substituted "(b)(3)" for "(b)(4)".
Subsec. (j)(6). Pub. L. 98–181, §514(b), struck out par. (6) which related to making expenditures under section 1479(c) of this title after Oct. 1, 1977.
Subsec. (o). Pub. L. 98–181, §514(c), (d), added subsec. (o), and struck out former subsec. (o) which related to loans to persons of low income and to the minimum amounts available to such persons.
1982—Subsec. (a)(1). Pub. L. 97–289 substituted "May 20, 1983" for "September 30, 1982".
1981—Subsec. (a)(1). Pub. L. 97–35 substituted "1982" for "1981".
1980—Subsec. (a)(1). Pub. L. 96–399, §501(c), substituted "September 30, 1981" for "October 15, 1980".
Subsec. (n). Pub. L. 96–399, §511, inserted reference to moderate income borrowers.
1979—Subsec. (a)(1). Pub. L. 96–153, §501(g), substituted "September 30, 1980" for "November 30, 1979".
Subsec. (o). Pub. L. 96–153, §511, redesignated existing provisions as par. (1) and added par. (2).
1978—Subsec. (a)(1). Pub. L. 95–557, §501(f), substituted "September 30, 1979" for "October 31, 1978".
Subsec. (j)(4). Pub. L. 95–557, §506(b), substituted "1490a(a)" for "1490a(a)(2)".
1977—Subsec. (a)(1). Pub. L. 95–128, §501(c), substituted "September 30, 1978" for "September 30, 1977".
Subsec. (e). Pub. L. 95–128, §502(b), required separate operation of guaranteed loan program and insured loan program and prohibited transfer of funds from one program to the other.
Subsec. (j)(5), (6). Pub. L. 95–128, §506, added pars. (5) and (6).
Subsec. (n). Pub. L. 95–128, §502(c), added subsec. (n).
Subsec. (o). Pub. L. 95–128, §509, added subsec. (o).
1974—Subsec. (a)(1). Pub. L. 93–383, §509(b), substituted "June 30, 1977" for "October 1, 1974".
Subsec. (b). Pub. L. 93–383, §§516(b), 517, inserted reference to section 1490f of this title and provisions relating to transfer of notes from and compensation for the Agricultural Credit Insurance Fund.
Subsec. (d). Pub. L. 93–383, §505(c)(1), struck out "as it becomes due" after "principal and interest".
Subsec. (j). Pub. L. 93–383, §§505(c)(2), (3), 514(c), 519(b), in cl. (1) substituted "any payment" for "any prepayment" and "such payments" for "such prepayments" and inserted provision relating to next agreed annual or semiannual remittance date, in cl. (3) inserted provisions authorizing other services customary in the industry, etc., and added cl. (4).
1973—Subsec. (a)(1). Pub. L. 93–117 substituted "October 1, 1974" for "October 1, 1973".
1969—Subsec. (a)(1). Pub. L. 91–152, §413(a), substituted "October 1, 1973" for "January 1, 1970".
Subsec. (b). Pub. L. 91–152, §413(f)(2), inserted reference to section 1490d of this title.
Subsec. (c). Pub. L. 91–152, §413(b), struck out provision which imposed a limit of not to exceed $100,000,000 on the aggregate amount of loans held by the Secretary at any one time.
Subsec. (d). Pub. L. 91–152, §413(e)(2), inserted reference to subsec. (m) of this section and inserted "or otherwise acquired by" after "loans made from".
Subsecs. (k) to (m). Pub. L. 91–152, §413(c)–(e)(1), added subsecs. (k) to (m).
Pub. L. 99–509, title II, §2001, Oct. 21, 1986, 100 Stat. 1879, directed Secretary of Agriculture to take such actions as necessary to ensure that loans made under this subchapter are sold to public in amounts sufficient to provide a net reduction in outlays of not less than $1,715,000,000 in fiscal year 1987 from proceeds of such sales, specified procedures and terms of sales, required Secretary to report to specified Congressional committees not later than 20 days before initial sale estimating amount of discount at which loans will be sold at such initial sale and estimating such amount at each subsequent sale during fiscal year 1987 and periodic reports to such committees, the first not later than 60 days after Oct. 21, 1986, and subsequent reports each 60 days thereafter, on Secretary's activities regarding such sales, authorized audits and evaluations of Secretary's activities by Comptroller General and reports on such audits and evaluations to Congressional committees, and excluded applicability of subsec. (d)(2) and (3) of this section to sale of loans.
Statutes at Large References 79 Stat. 498
83 Stat. 125, 398-400
88 Stat. 694-696
91 Stat. 258, 340, 1139-1141
93 Stat. 502, 795, 1134
100 Stat. 103, 1879
101 Stat. 1890
103 Stat. 394
106 Stat. 3839
124 Stat. 1555
Public Law References Public Law 89-117, Public Law 89-754, Public Law 91-78, Public Law 91-152, Public Law 91-609, Public Law 93-117, Public Law 93-383, Public Law 95-60, Public Law 95-80, Public Law 95-128, Public Law 95-406, Public Law 95-557, Public Law 96-71, Public Law 96-105, Public Law 96-153, Public Law 96-372, Public Law 96-399, Public Law 97-35, Public Law 97-289, Public Law 98-35, Public Law 98-109, Public Law 98-181, Public Law 98-479, Public Law 99-272, Public Law 99-509, Public Law 100-242, Public Law 101-73, Public Law 102-550, Public Law 111-203