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82 STAT. 13

under this section, the Corporation or its designated representatives shall have power to administer oaths and affirmations, to issue subpenas and subpenas duces tecum, to take evidence, and to require the production of any books, papers, correspondence, memorandums, or other records which may be relevant or material to the inquiry. The attendance of witnesses and the production of any such records may be required from any place in any State or in any territory. The Corporation may apply to the United States district court for the judicial district or the United States court in-any territory in which any witness or company subpenaed resides or carries on business, for enforcement of any subpena or subpena duces tecum issued pursuant to this paragraph, and such courts shall have jurisdiction and power to order and require compliance therewith.

"(3) (A) In the course of or in connection with any proceeding under subsection (a) (2) (D) of this section, the Corporation or its designated representatives, including any person designated to conduct any hearing under said subsection, shall have power to administer oaths and affirmations, to take or cause to be taken depositions, and to issue, revoke, quash, or modify subpenas and subpenas duces tecum; and the Corporation is empowered to make rules and regulations with respect to any such proceedings. The attendance of witnesses and the production of documents provided for in this paragraph may be required from any place in any State or in any territory at any designated place where such proceeding is being conducted. Any party to such proceedings may apply to the United States District Court for the District of Columbia, or the United States district court for the judicial district or the United States court in any territory in which such proceeding is being conducted, or where the witness resides or carries on business, for enforcement of any subpena or subpena duces tecum issued pursuant to this paragraph, and such courts shall have jurisdiction and power to order and require compliance therewith. Witnesses subpenaed under this section shall be paid the same fees and mileage that are paid witnesses in the district courts of the United States.

"(B) Any hearing provided for in subsection (a)(2) (D) of this section shall be held in the Federal judicial district or in the territory in which the principal office of the institution or other company is located unless the party afforded the hearing consents to another place, and shall be conducted in accordance with the provisions of chapter 5 of title 5 of the United States Code.

“(4) Whenever it shall appear to the Corporation that any person is engaged or has engaged or is about to engage in any acts or practices which constitute or will constitute a violation of the provisions of this section or of any rule, regulation, or order thereunder, the Corporation may in its discretion bring an action in the proper United States district court, or the United States court of any territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices, to enforce compliance with this section or any rule, regulation, or order thereunder, or to require the divestiture of any acquisition in violation of this section, or for any combination of the foregoing, and such courts shall have jurisdiction of such actions, and upon a proper showing an injunction, decree, restraining order, order of divestiture, or other appropriate order shall be granted without bond.

(5) All expenses of the Federal Home Loan Bank Board or of the Corporation under this section shall be considered as nonadministrative expenses.

80 Stat. 381. 5 USC 501 et

seg.

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Nonadminis trative expenses.

or

82 STAT. 14 “(i) PROHIBITED ACTS.—It shall be unlawful for

“(1) any savings and loan holding company or subsidiary thereof, or any director, officer, employee, or person owning, controlling, or holding with power to vote, or holding proxies representing, more than 25 per centum of the voting shares, of such holding company or subsidiary, to hold, solicit, or exercise any proxies in respect of any voting rights in an insured institution which is a mutual institution;

“(2) any director or officer of a savings and loan holding company, or any person owning, controlling, or holding with power to vote, or holding proxies representing, more than 25 per centum of the voting shares of such holding company (A), except with the prior approval of the Corporation, to serve at the same time as a director, officer, or employee of an insured institution or another savings and loan holding company, not a subsidiary of such holding company, or (B) to acquire control, or to retain control for more than two years after the enactment of this subsection, of any insured institution not a subsidiary of such holding company; or

"(3) any individual, except with the prior approval of the Corporation, to serve or act as a director, officer, or trustee of, become a partner in, any savings and loan holding company after having been convicted of any criminal offense involving dishonesty or breach of trust. “(j). PENALTIES.—(1) Any company which willfully violates any provision of this section, or any rule, regulation, or order thereunder, shall upon" conviction be fined not more than $1,000 for each day during whieh the violation continues.

“(2) Any individual who willfully violates or participates in a violation of any provision of this section, or any rule, regulation, or order thereunder, shall upon conviction be fined not more than $10,000 or imprisoned not more than one year, or both.

“(3) Every director, officer, partner, trustee, agent, or employee of a savings and loan holding company shall be subject to the same penalties for false entries in any book, report, or statement of such savings and loan holding company as are applicable to officers, agents, and employees of an institution the accounts of which are insured by the Corporation for false entries in any books, reports, or statements of such institution under section 1006 of title 18 of the United States Code.

62 Stat, 7503 "(k) JUDICIAL REVIEW.-Any party aggrieved by an order of the Corporation under this section may obtain a review of such order by filing in the court of appeals of the United States for the circuit in which the principal office of such party is located, or in the United States Court of Appeals for the District of Columbia Circuit, within thirty days after the date of service of such order, a written petition praying that the order of the Corporation be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Corporation, and thereupon the Corporation shall file in the court the record in the proceeding, as provided in section 2112 of title 28 of the United States Code. Upon the filing of such 72 Stat. 941. petition, such court shall have jurisdiction, which upon the filing of the record shall be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Corporation. Review of such proceedings shall be had as provided in chapter 7 of title 5 of the United States Code. The judgment and decree of the court shall be 80 Stat. 392.

5 USC 701-706.

82 STAT. 15

62 Stat. 928.

final, except that the same shall be subject to review by the Supreme Court upon certiorari as provided in section 1254 of title 28 of the United States Code.

“(1) SAVING CLAUSE.-Nothing contained in this section, other than mergers or acquisitions approved under section 408(e) (2), shall be interpreted or construed as approving any act, action, or conduct which is or has been or may be in violation of existing law, nor shall anything herein contained constitute a defense to any action, suit, or proceeding pending or hereafter instituted on account of any act, action, or conduct in violation of the antitrust laws.”

Approved February 14, 1968.

LEGISLATIVE HISTORY :

HOUSE REPORT No. 997 acompanying H. R. 8696 (Comm. on Banking

& Currenoy).
SENATE REPORT No. 354 (Comm. on Banking & Currenoy).
CONGRESS IONAL RECORD:

Vol. 113 (1967): June 26, considered and passed Senate.
Vol. 114 (1968): Jan. 23, considered and passed House,

amended, in lieu of H. R. 8696.
Jan, 30, Senate concurred in House amendment.

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90th Congress, H. R. 10477

May 7, 1968

An Act

To amend chapter 37 of title 38 of the United States Code with respect to the

veterans' home loan program, to amend the National Housing Act with respect to interest rates on insured mortgages, and for other purposes.

.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) section Veterans' Admin1810(c) of title 38, United States Code, is amended by striking out istration. *$7,500" and inserting in lieu thereof “$12,500".

Home loans. (b) Paragraph (2) of section 1811(d) of such title is amended by striking out “$7,500“ each time it occurs and inserting in lieu thereof "$12,500".

SEC. 2. (a) Section 1810(b) of title 38, United States Code, is amended,

(1) by amending paragraph (5) thereof to read as follows:

*(5) the loan to be paid by the veteran for such property or for the cost of construction, repairs, or alterations, does not exceed the reasonable value thereof as determined by the Administrator; and," and

(2) by adding at the end thereof the following new sentence: “ After the reasonable value of any property, construction, repairs, or alterations is determined under paragraph (5), the Administrator shall, as soon as possible thereafter, notify the veteran concerned of such determination."

(b) Section 1822(a) of such title is amended by striking out “section 1810, 1812, 1813, or 1818 of this title, or made under section 1811 or 1818", and inserting in lieu thereof "section 1812 or 1813".

Sec. 3. (a) Notwithstanding the provisions of sections 203(b) (5), 12 USC 1709 207(c)(3), 213(d), 220(d) (4), 220(h) (2) (iii), 221(d) (5), 231(c) et seq. (6), 232(d) (3) (B), 231(f), and 1101(c) (4) of the National Housing Act regarding the maximum interest rates which the Secretary of Housing and Urban Development may establish for certain mortgage insurance programs authorized by that Act, the Secretary is authorized, until October 1, 1969, to set the maximum interest rates for such programs at not to exceed such per centum per annum on the amount of the principal obligation outstanding at any time as he finds necessary to meet the mortgage market, and during that time the interest rates so set shall be deemed to be for all purposes the interest rates in effect under the provisions of said section 203(b) (5) and the other sections referred to above: Provided, That in determining the rate to 82 STAT. 113 be applicable for the said section 203(b) (5) program, the Secretary 82 STAT. 114 shall consult with the Administrator of Veterans Affairs regarding the rate which the Administrator considers necessary to meet the mortgage market for guaranteed or insured home loans to veterans under chapter 37 of title 38, United States Code.

37 USC 1801. (b) Section 207(c)(3) of the National Housing Act is amended by inserting before the period at the end of the first sentence of the second paragraph the following: or not to exceed such per centum per annum not in excess of 6 per centum as the Secretary finds necessary to meet the mortgage market”.

(c) Section 213(d) of such Act is amended by striking ", except thatand all that follows preceding the period at the end of the first sentence and inserting in lieu thereof “on the amount of the principal obligation outstanding at any time, or not to exceed such per centum per annum not in excess of 6 per centum as the Secretary finds necessary to meet the mortgage market”.

(d) Section 231(c)(6) of such Act is amended by striking "or not to exceed" and all that follows preceding the semicolon and inserting

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in lieu thereof “or not to exceed such per centum per annum not in excess of 6 per centum as the Secretary finds necessary to meet the

inortgage market". 78 Stat. 781. (e) Section 234(f) of such Act is amended by inserting before the 12 USC 1715y. period at the end of the first sentence the following:“, or not to exceed

such per centum per annum not in excess of 6 per centum as the Secre

tary finds necessary to meet the mortgage market”. Mortgage credit Sec. 4. (a) The Congress finds that the national goal of "a decent interest rates. home and a suitable living environment for every American family”

cannot be reached unless there is an adequate supply of mortgage credit at rates of interest the American family can afford; that in recent years this credit has been available only at unreasonably high rates of interest, up as much as 50 per centum in the last three years; that for a moderate income family the cost of financing a home now is greater than the combined cost of land, labor, and construction material; that under existing constitutional arrangements our monetary and fiscal policies seem to be inadequate to cope with these high finance charges; that many financial institutions tend to withdraw from the mortgage market during tight money periods; that the purpose of Government ceilings seems to be thwarted by insidious discount points; that there exists in the public and private sections of the economy the resources and capabilities necessary to eliminate the problems; and that new and more effective ways should be explored to exploit the power of Government and the economic resources of our Nation to resolve this

difficult problem. Study com

(b) There is hereby established a commission to study mortgage mission.

interest rates and to make recommendations to assure the availability of an adequate supply of mortgage credit at a reasonable cost to the consumer (hereinafter referred to as the “Commission") which shall be comprised of fifteen members as follows:

(1) The chairman and ranking minority member of the Banking and Currency Committee of the United States Senate.

(2) The chairman and ranking minority member of the Banking and Currency Committee of the House of Representatives.

(3) The chairman and the ranking minority member of the Committee on Veterans' Affairs of the House of Representatives.

(4) Two members appointed by the President of the Senate, one

from the majority party and one from the minority party other than 82 STAT, 114

those referred to in paragraph (1). 82 STAT. 115 (5) Two members appointed by the Speaker of the House of Rep

resentatives, one from the majority party and one from the minority party other than those referred to in paragraphs (2) and (3).

(6) Five members appointed by the President, at least three of whom will be public members representing the consumer.

(c) A vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment.

(d) The Chairman of the Commission shall be designated by the President.

(e) Eight members of the Commission shall constitute a quorum, but a lesser number may conduct hearings.

(f) The Commission shall undertake a comprehensive study and make recommendations on

(1) The necessity for statutory or administrative controls over interest rates in connection with Government-assisted mortgages;

(2) The appropriate level for such interest rates to enable low- and moderate-income families to afford decent housing;

(3) Ways to assure the availability of an adequate supply of mortgage credit to produce the volume of housing required to meet the goals set forth in housing and urban development laws; and

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