42 U.S.C. § 2362 : US Code - Section 2362: Financing by Commission

Search 42 U.S.C. § 2362 : US Code - Section 2362: Financing by Commission

(a) Acceptance of residential property notes
In the event that the Commission finds that financing on
reasonable terms is not available from other sources, the
Commission may, in order to facilitate the sale of residential
property under subchapter IV of this chapter, accept, in partial
payment of the purchase price of any such property notes secured by
first mortgages on such terms and conditions as the Commission
shall deem appropriate. In the case of houses and apartment
buildings, the maturity and percentage of appraised value in
connection with such notes and mortgages shall not exceed those
prescribed under section 1715n(a) of title 12, and the interest
rate shall equal the interest rate plus the premium being charged
(and any periodic service charge being authorized by the Secretary
of Housing and Urban Development for properties of similar
character) under section 1715n(a) of title 12, at the effective
date of such notes and mortgages.
(b) Advances
In connection with the sale of residential property financed
under subsection (a) of this section, the Commission is authorized
to make advances for necessary repairs, or for the rehabilitation,
modernization, rebuilding or enlargement of single and duplex
residential properties to priority purchasers, and to include such
advances in the amount of the note secured by the mortgage on such
property.
(c) Acceptance of commercial property notes
In the event that the Commission finds that financing on
reasonable terms is not available from other sources, the
Commission may, in order to facilitate the sale of commercial
property under subchapter IV of this chapter, accept, in partial
payment of the purchase price of any commercial property notes
secured by first mortgages on such terms and conditions as the
Commission shall deem appropriate.
(d) Sale of notes and mortgages
The Commission may sell any notes and mortgages acquired under
subsections (a) and (c) of this section on terms set by the
Commission. Notwithstanding any other provisions of law and without
regard to the provisions of section 5 of title 41, the Commission
may, in accordance with such terms and conditions as it may
prescribe, (1) enter into contracts for servicing any of the notes
and mortgages it has acquired, and (2) sell or enter into contracts
to sell to a servicer any notes and mortgages with respect to which
a servicing contract has been entered into by the servicer with the
Commission: Provided, That with respect to sales of notes and
mortgages under (2) the Commission shall comply with section 5 of
title 41 unless it determines that such compliance would not be
feasible.