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U.S. Code as of:
01/19/04
Section 2704. Insurance for emergency mortgage loans and advances
(a) Institutions eligible
The Secretary is authorized, upon such terms and conditions as
the Secretary may prescribe, to insure banks, trust companies,
finance companies, mortgage companies, savings and loan
associations, insurance companies, credit unions, and such other
financial institutions, which the Secretary finds to be qualified
by experience and facilities and approves as eligible for
insurance, against losses which they may sustain as a result of
emergency loans or advances of credit made in accordance with the
provisions of section 2703 of this title and this section with
respect to mortgages eligible for assistance under this chapter.
(b) Amount of insurance
In no case shall the insurance granted by the Secretary under
this section to any financial institution on loans and advances
made by such financial institution for the purposes of this chapter
exceed 40 per centum of the total amount of such loans and advances
made by the institution, except that, with respect to any
individual loan or advance of credit, the amount of any claim for
loss on such individual loan or advance of credit paid by the
Secretary under the provision of this section shall not exceed 90
per centum of such loss.
(c) Premium charge; amount
The Secretary is authorized to fix a premium charge or charges
for the insurance granted under this section, but in the case of
any loan or advance of credit, such charge or charges shall not
exceed an amount equivalent to one-half of 1 per centum per annum
of the principal obligation of such loan or advance of credit
outstanding at any time.
(d) Waiver of compliance with rules and regulations; finality and
incontestability of payment for loss; transfer of insurance
The Secretary is authorized and empowered to waive compliance
with any rule or regulation prescribed by the Secretary for the
purposes of this section if, in the Secretary's judgment, the
enforcement of such rule or regulation would impose an injustice
upon an insured lending institution which has substantially
complied with such regulations in good faith. Any payment for loss
made to an insured financial institution under this section shall
be final and incontestable after two years from the date the claim
was certified for payment by the Secretary, in the absence of fraud
or misrepresentation on the part of such institution unless a
demand for repurchase of the obligation shall have been made on
behalf of the United States prior to the expiration of such
two-year period. The Secretary is authorized to transfer to any
financial institution approved for insurance under this chapter any
insurance in connection with any loan which may be sold to it by
another insured financial institution.
(e) Maximum aggregate amount of loans and advances insured
The aggregate amount of loans and advances insured under this
section shall not exceed $1,500,000,000 at any one time.
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