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Title 12 — Banks and BankingRelease 119-73

§1701m Credit and cancellation of notes transferred from Reconstruction Finance Corporation; net loss computation

Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › § 1701m

Last updated Apr 6, 2026|Official source

Summary

The Secretary of the Treasury must credit and cancel notes of the Housing and Home Finance Administrator that were given when loans were moved from the Reconstruction Finance Corporation to the Housing and Home Finance Agency under Reorganization Plan No. 23 of 1950 (64 Stat. 1279). The amount canceled is the Secretary’s estimate of the net loss from liquidating defaulted loans — unpaid principal, advances to care for collateral, accrued unpaid interest, and liquidation costs (except expenses limited as administrative) minus any money actually recovered.

Full Legal Text

Title 12, §1701m

Banks and Banking — Source: USLM XML via OLRC

The Secretary of the Treasury is authorized and directed from time to time to credit and cancel the note or notes of the Housing and Home Finance Administrator executed and delivered in connection with loans transferred from the Reconstruction Finance Corporation to the Housing and Home Finance Agency pursuant to Reorganization Plan Numbered 23 of 1950 (64 Stat. 1279), to the extent of the net loss, as determined by the Secretary of the Treasury, sustained by said Agency in the liquidation of defaulted loans. The net loss shall be the sum of the unpaid principal and advances for care and preservation of collateral, together with accrued and unpaid interest on said principal and advances, and all expenses and costs (other than those subject to administrative expense limitations) in connection with the liquidation of defaulted loans, less the amount actually realized by the Housing and Home Finance Agency on account of such defaulted loans.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

Reorganization Plan Numbered 23 of 1950, referred to in text, is set out in the Appendix to Title 5, Government Organization and Employees. Codification Section was enacted as part of the Housing Act of 1952, and not as part of the National Housing Act which comprises this chapter.

Statutory Notes and Related Subsidiaries

Transfer of Functions

Functions, powers, and duties of Housing and Home Finance Agency and its Administrator transferred to and vested in Secretary of Housing and Urban Development by Pub. L. 89–174, § 5, Sept. 9, 1965, 79 Stat. 669, classified to section 3534 of Title 42, The Public Health and Welfare. Termination and Liquidation of Re

Construction

Finance CorporationTermination on June 30, 1954, of Re

Construction

Finance Corporation and liquidation thereof, see section 608 and 609 of Title 15, Commerce and Trade, and notes thereunder.

Executive Documents

Abolition of Re

Construction

Finance Corporation section 6(a) of Reorg. Plan No. 1 of 1957, eff. June 30, 1957, 22 F.R. 4633, 71 Stat. 647, set out in the Appendix to Title 5, Government Organization and Employees, abolished Re

Construction

Finance Corporation.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1701m

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73