Laws: Cases and Codes : U.S. Code : Title 12 : Section 1701g-5b


   
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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