§1712 — Title 12 Banks and Banking | U.S. Code

Summary

Extra Fund money not needed for current HUD insurance work must go to the U.S. Treasury for the Fund or be invested in U.S. government or agency bonds. When possible, invest in bonds that directly support the residential mortgage market. With Treasury approval, Secretary may buy section 1710 debentures at yields no lower than other investments; bought debentures are canceled and charged to related group accounts.

Title 12, §1712

Banks and Banking — Source: USLM XML via OLRC

Moneys in the Fund not needed for the current operations of the Department of Housing and Urban Development related to insurance under section 1709 of this title shall be deposited with the Treasurer of the United States to the credit of the Fund, or invested in bonds or other obligations of, or in bonds or other obligations guaranteed as to principal and interest by, the United States or any agency of the United States: Provided, That such moneys shall to the maximum extent feasible be invested in such bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market. The Secretary may, with the approval of the Secretary of the Treasury, purchase in the open market debentures issued under the provisions of section 1710 of this title. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures so purchased shall be canceled and not reissued, and the several group accounts to which such debentures have been charged shall be charged with the amounts used in making such purchases.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1970—Pub. L. 91–609 provided for guarantee as to principal and interest by any agency of the United States and for investment of monies in bonds or other obligations the proceeds of which will be used to directly support the residential mortgage market. 1967—Pub. L. 90–19 substituted “Department of Housing and Urban Development” and “Secretary” for “Federal Housing Administration” and “Commissioner”, respectively, and inserted “related to insurance under section 1709 of this title” before “shall be deposited”. 1950—Act Apr. 20, 1950, substituted “Commissioner” for “Administrator”. 1938—Act Feb. 3, 1938, among other changes, inserted “or in bonds or other obligations guaranteed as to principal and interest by” in first sentence, and inserted third sentence.

§1712 Investment of funds

Summary

Title 12, §1712

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata