12-U.S.C.-1715P
§1715P – Insurance of Advances Under Open-End Mortgages; Payment of Charges; Eligibility and Conditions
Pathway
Title 12 > Chapter 13 > Subchapter II > Section 1715p
Details
- Reference: Section 1715p
- Legend: §1715P – Insurance of Advances Under Open-End Mortgages; Payment of Charges; Eligibility and Conditions
- USCode Year: 2013
Provision Content
Notwithstanding any other provisions of this chapter, in connection with any mortgage insured pursuant to any section of this chapter which covers a property upon which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, the Secretary is authorized, upon such terms and conditions as he may prescribe, to insure under said section the amount of any advance for the improvement or repair of such property made to the mortgagor pursuant to an open-end provision in the mortgage, and to add the amount of such advance to the original principal obligation in determining the value of the mortgage for the purpose of computing the amounts of debentures and certificate of claim to which the mortgagee may be entitled: Provided, That the Secretary may require the payment of such charges, including charges in lieu of insurance premiums, as he may consider appropriate for the insurance of such open-end advances: Provided, further, That only advances for such improvements or repairs as substantially protect or improve the basic livability or utility of the property involved shall be eligible for insurance under this section; Provided further, That no such advance shall be insured under this section if the amount thereof plus the amount of the unpaid balance of the original principal obligation of the mortgage would exceed the amount of such original principal obligation unless the mortgagor certifies that the proceeds of such advance will be used to finance the construction of additional rooms or other enclosed space as a part of the dwelling: And provided further, That the insurance of open-end advances shall not be taken into account in determining the aggregate amount of principal obligations of mortgages which may be insured under this chapter.
(June 27, 1934, ch. 847, title II, §225, as added Aug. 2, 1954, ch. 649, title I, §126, 68 Stat. 607; amended Pub. L. 90–19, §1(a) (3), May 25, 1967, 81 Stat. 17.)
References in Text
This chapter, referred to in text, was in the original this Act, meaning act June 27, 1934, ch. 847, 48 Stat. 1246, which is classified principally to this chapter (§1701 et seq.). For complete classification of this Act to the Code, see Tables.
Amendments
1967—Pub. L. 90–19 substituted Secretary for Commissioner wherever appearing.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-1715G in the Legal Encyclopedia: Banking Law
In this entry about 12-U.S.C.-1715G, find legal reference material, bibliographies and premiere content related to banking law in the American Encyclopedia of Law, presenting a comprehensive view of the United States banking law-specific issues, written by authorities in the field.
12-U.S.C.-1713 in the Legal Encyclopedia: Mortgage
In this entry about 12-U.S.C.-1713, find legal reference material, bibliographies and premiere content related to mortgage in the American Encyclopedia of Law, presenting a comprehensive view of the United States mortgage-specific issues, written by authorities in the field.
12-U.S.C.-1712 in the Legal Encyclopedia: Housing
In this entry about 12-U.S.C.-1712, find legal reference material, bibliographies and premiere content related to housing in the American Encyclopedia of Law, presenting a comprehensive view of the United States housing-specific issues, written by authorities in the field.
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