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U.S. Code as of:
01/19/04
Section 1701g-5b. Liquidation of New Communities Program; cancellation of debt
(a) Law applicable
In order to provide for the management and orderly liquidation of
the assets, and discharge the liabilities, acquired or incurred in
connection with the new communities program authorized pursuant to
title IV of the Housing and Urban Development Act of 1968 [42
U.S.C. 3901 et seq.] and title VII of the Housing and Urban
Development Act of 1970 [42 U.S.C. 4501 et seq.] (hereafter
referred to in this section as "title IV" and "title VII",
respectively), the liquidation of the new communities program shall
be carried out pursuant to the provisions of law applicable to the
revolving fund (liquidating programs) established pursuant to title
II of the Independent Offices Appropriations Act, 1955 [12 U.S.C.
1701g-5], upon the transfer by the Secretary of Housing and Urban
Development (hereafter in this section referred to as the
"Secretary") of the assets and liabilities of the fund authorized
under section 717 of title VII [42 U.S.C. 4518] to such revolving
fund, as required in title I of the Department of Housing and Urban
Development-Independent Agencies Appropriation Act, 1984 [12 U.S.C.
1701g-5a]. The Secretary shall report to the Congress not less than
sixty days prior to taking any action with respect to the
disposition of real property (other than a purchase money mortgage)
which involves any further potential liability of or assistance
from the Department of Housing and Urban Development with respect
to any property so transferred.
(b) Availability of revolving fund moneys for administrative and
other expenses
In carrying out the purposes of subsection (a) of this section,
all moneys in the revolving fund (liquidating programs) shall be
available for necessary administrative and other expenses of
servicing and liquidating obligations guaranteed pursuant to
section 403 and section 713 of title IV and title VII, respectively
[42 U.S.C. 3902, 4514], including costs of services (including
legal services) performed on a contract or fee basis, and to
discharge any other liability acquired or incurred in connection
with the new communities program. Notwithstanding any other
provision of law relating to the acquisition, handling,
improvement, or disposal of real and other property by the United
States, the Secretary of Housing and Urban Development shall also
have power, for the protection of the interests of the revolving
fund (liquidating programs), to pay out of any moneys in such fund
all expenses or charges in connection with the acquisition,
handling, improvement, or disposal of any property, real or
personal, acquired by the Secretary either prior or subsequent to
November 30, 1983, as a result of recoveries under security,
subrogation, or other rights in connection with the new communities
program.
(c) Issuance of obligations to Secretary of the Treasury
After making the transfer required in title I of the Department
of Housing and Urban Development-Independent Agencies Appropriation
Act, 1984 [12 U.S.C. 1701g-5a], the Secretary of Housing and Urban
Development may issue obligations to the Secretary of the Treasury
in an amount sufficient to enable the Secretary of Housing and
Urban Development to satisfy any guarantee made pursuant to section
403 or 713 of title IV or title VII, respectively [42 U.S.C. 3902,
4514], and otherwise carry out the functions authorized by this
section. The obligations issued under this subsection shall have
such maturities and bear such rate or rates of interest as shall be
determined by the Secretary of the Treasury. The Secretary of the
Treasury is authorized and directed to purchase any obligations so
issued, and for that purpose the Secretary of the Treasury is
authorized to use as a public debt transaction the proceeds from
the sale of any securities issued under chapter 31 of title 31, and
the purposes for which securities may be issued under such chapter
are extended to include purchases of obligations issued under this
subsection.
(d) Cancellation of obligations
Upon the transfer required in title I of the Department of
Housing and Urban Development-Independent Agencies Appropriation
Act, 1984 [12 U.S.C. 1701g-5a], each obligation issued by the
Secretary of Housing and Urban Development to the Secretary of the
Treasury pursuant to section 407(a) or 717(b) of title IV or title
VII, respectively [42 U.S.C. 3906(a), 4518(b)], together with any
promise to repay the principal and unpaid interest which has
accrued on each obligation, and any other term or condition
specified by each such obligation, is canceled.
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