Title 12 — Banks and Banking
Chapter 13 — National Housing
§ 1747a. Eligibility for insurance
Statutory text
To be eligible for insurance under this subchapter, a project shall meet the following conditions:
The Secretary shall be satisfied that there is, in the locality or metropolitan area of such project, a need for new rental dwellings at rents comparable to the rents proposed to be charged for the dwellings in such project.
Such project shall be economically sound, and the dwellings in such project shall be acceptable to the Secretary as to quality, design, size, and type.
Any insurance contract executed by the Secretary under this subchapter shall be conclusive evidence of the eligibility of the project and the investor for such insurance, and the validity of any insurance contract so executed shall be incontestable in the hands of an investor from the date of the execution of such contract, except for fraud or misrepresentation on the part of such investor.
After completion of the project the investor must establish in a manner satisfactory to the Secretary that the project is free and clear of liens and that there are no other outstanding unpaid obligations contracted in connection with the construction of the project, except taxes and such other liens and obligations as may be approved or prescribed by the Secretary. Debentures issued by the investor which are payable out of net income from the project and from the benefits of the insurance contract shall not be construed as “unpaid obligations” as such term is used in this subsection.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
June 27, 1934, ch. 847, title VII, § 702, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1276 · 62 Stat. 1276
Enacted · 12 U.S.C. § 1747a
June 27, 1934, ch. 847, title VII, § 702, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1276
Source evidence
Code source credit
June 27, 1934, ch. 847, title VII, § 702, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1276Public Law not identified
Added · 12 U.S.C. § 1747a(c)
Subsec. (c). Act Sept. 1, 1951, added subsec. (c)
Unresolved: No Public Law or Statutes at Large citation in the Code source.
Source evidence
Code amendment note
Subsec. (c). Act Sept. 1, 1951, added subsec. (c).Pub. L. 90–19 § 1(a)(3) · 81 Stat. 17
Substituted · 12 U.S.C. § 1747a
Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a)(1), (2), (b), and (c)
Source evidence
Code amendment note
Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a)(1), (2), (b), and (c).Enacted provision · exact public law section
(1) by striking out “Federal Housing Administration” each place it appears and inserting in lieu thereof “Department of Housing and Urban Development”;
1 of 3 references resolved to an enrolled provision · 1 partial · 1 unresolved
Editorial Notes
Amendments1950–1967 · 3 rounds
1967
Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a)(1), (2), (b), and (c).
1951
Subsec. (c). Act , added subsec. (c).
1950
Act , substituted “Commissioner” for “Administrator” wherever appearing.
Credits
1934–1967 · 4 acts
- 1934June 27, 1934, ch. 847, title VII, § 702, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1276
- 1950amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59
- 1951Sept. 1, 1951, ch. 378, title VI, § 609(a), 65 Stat. 316
- 1967Pub. L. 90–19, § 1(a)(3), , 81 Stat. 17.
Show as published
(June 27, 1934, ch. 847, title VII, § 702, as added Aug. 10, 1948, ch. 832, title IV, § 401, 62 Stat. 1276; amended Apr. 20, 1950, ch. 94, title I, § 122, 64 Stat. 59; Sept. 1, 1951, ch. 378, title VI, § 609(a), 65 Stat. 316; Pub. L. 90–19, § 1(a)(3), , 81 Stat. 17.)