17

1

a purchaser, the Corporation may originate and service the 2 mortgage covering such property. The Corporation may sell, 3 deal in, or otherwise dispose of the mortgage it originates, 4 but it shall continue to service all of the mortgages it origi5 nates, and may service other mortgages on properties it sells. 6 (k) Whenever the Corporation sells property improved 7 for occupancy by more than four families, the Corporation. 8 may provide the services referred to in subsection (i) to 9 low- and moderate-income families who occupy such hous10 ing, and originate and service the mortgage covering such 11 property. The Corporation may sell, deal in, or otherwise 12 dispose of the mortgages it originates, but it shall continue to 13 service all of the mortgages it originates, and may service 14 other mortgages on properties it sells. From time to time, 15 but not less than semiannually, the Corporation shall review 16 the management and maintenance of any project covered by a mortgage originated by it.

17

POWERS OF THE CORPORATION

SEC. 7. (a) The Corporation is authorized

(1) to sue and be sued in its own name and appear

by its own counsel in any legal proceedings brought by

or against it;

(2) to issue capital stock and other obligations sub

ject to the provisions of section 8;

(3) to refinance any mortgage, obligation, or lien,

18

1 and to grant an extension of time to any mortgagor for

2

3

4

5

6

7

8

9

10

11

1271

13

14

15

16

17

18

19

20

22

23

the payment of any installment of principal or interest

owned to the Corporation;

(4) to employ and fix the compensation of such officers, employees, attorneys, or agents as shall be necessary for the performance of its duties under this Act, without regard to the provisions of other laws applicable to the employment or compensation of officers, employees, attorneys, or agents of the United States, except that no such officer, employee, attorney, or agent shall be paid compensation at a rate in excess of the rate provided for members of the Board;

(5) to impose charges or fees for its services where necessary with the objective that all costs and expenses of its operation shall be fully self-supporting;

(6) to issue such regulations, orders, and reports as may be necessary to carry out the provisions of this Act; and

(7) to take such other actions as may be necessary to enable it to carry out its duties under the pro

visions of this Act.

CAPITALIZATION OF THE CORPORATION

SEC. 8. (a) The Board shall determine the minimum

24 amount of capital stock in the Corporation and is authorized

25 to increase such capital stock from time to time in such

19

1 amount as may be necessary, but not to exceed in the aggre2 gate $35,000,000. The Corporation is authorized and di

3

rected to issue and deliver to the Secretary of the Treasury, 4 and the Secretary of the Treasury is authorized and directed

5 to accept, the capital stock of the Corporation. Payments for

6

such capital stock shall be subject to call in whole or in part 7 by the Board and shall be made at such time or times as the

8 Secretary of the Treasury deems advisable. The Corporation

9

shall issue to the Secretary of the Treasury receipts for pay10 ments by him for or on account of such stock, and such re

11 ceipts shall be evidence of the stock ownership of the United 12 States.

13

(b) For the purposes of this section, the Corporation is 14 authorized to issue, upon the approval of the Secretary of the 15 Treasury, and have outstanding at any one time, obligations 16 having such maturities and bearing such rate or rates of inter17 est as may be determined by the Corporation, with the ap18 proval of the Secretary of the Treasury, to be redeemable at 19 the option of the Corporation before maturity in such manner as may be stipulated in such obligations; but the aggregate 21 amount of the obligations of the Corporation under this sub22 section outstanding at any one time shall not exceed 10 23 times the sum of the capital stock issued by the Corporation. 24 In no event shall any such obligation be issued if, at the 25 time of such proposed issuance, and as a consequence thereof,

20

20

1 the resulting aggregate amount of its outstanding obligations 2 under this subsection would exceed the amount of the Corpo3 ration's interest pursuant to this Act free from any liens or 4 encumbrances, or property, cash, mortgages, or other secu5 rity holdings, and obligations issued or guaranteed by the 6 United States, or obligations, participations, or other instru7 ments which are lawful investments for fiduciaries, trusts, or 8 public funds. The Corporation shall insert appropriate lan9 guage in all of its obligations issued under this subsection. 10 clearly indicating that such obligations, together with the in11 terest thereon, is not guaranteed by the United States and 12 does not constitute a debt or obligation of the United States 13 or any agency or instrumentality thereof other than the Cor14 poration. The Corporation is authorized to purchase in the 15 open market any of its obligations outstanding under this 16 subsection at any time and at any price.

17 (c) The Secretary of the Treasury is authorized in his 18 discretion to purchase any obligations issued pursuant to 19 subsection (b) of this section, and for such purpose the Sec20 retary of the Treasury is authorized to use as a public debt 21 transaction the proceeds of the sale of any securities here22 after issued under the Second Liberty Bond Act, and the 23 purposes for which securities may be issued under the Sec24 ond Liberty Bond Act are extended to include such pur25 chases. The Secretary of the Treasury shall not at any time

21

1 purchase any obligations under this subsection if such pur2 chase would increase the aggregate principal amount of his 3 then outstanding holdings of such obligations under this sub4 section to an amount greater than $350,000,000. Each pur5 chase of obligations by the Secretary of the Treasury under 6 this subsection shall be upon such terms and conditions as to 7 yield a return at a rate determined by the Secretary of the 8 Treasury, taking into consideration the current average rate 9 on outstanding marketable obligations of the United States as of the last day of the month preceding the making of such 11 purchase. The Secretary of the Treasury may, at any time, 12 sell, upon such terms and conditions and at such price or 13 prices that he shall determine, any of the obligations ac14 quired by him under this subsection. All redemptions, pur15 chases, and sales by the Secretary of the Treasury of such 16 obligations under this subsection shall be treated as public 17 debt transactions of the United States.

10

18

19

ΤΑΧΑΤΙΟΝ OF THE CORPORATION

SEC. 9. The Corporation, including its franchise, capital, 20 reserve, surplus, and income shall be exempt from all taxa21 tion now or hereafter imposed by the United States or any 22 district, territory, dependency, or possession thereof, or by 23 any State, county, municipality, or local taxing authority. 24 Any residential or other real property of the Corporation