facilities, $2,500,000; bombproofing communication centers, bombproofed shelters for personnel, and recreation facilities, $650,000. Eleventh Naval District: High frequency strategic direction finder station, including acquisition of land, $80,000. Fourteenth Naval District: Bombproofing communication centers, bombproof shelters for personnel, quarters for officers, and recreation facilities, $2,300,000. Fifteenth Naval District: Bombproofing communication centers, bombproof shelters for personnel, quarters for officers and recreation facilities, $1,340,000. Naval radio station, Bainbridge Island, Washington: Radio transmitting station including buildings and accessories, $350,000. Cost-plus-a-fixed-fee Provisos. The provisions of section 4 of the Act approved April 25, 1939 contracts. (53 Stat. 590-592), shall be applicable to all public works and public utilities projects authorized by this Act, regardless of location: Provided, That the fixed fee to be paid the contractor as a result of any contract hereafter entered into under the authority of the abovementioned Act shall not exceed 6 per centum of the estimated cost of the contract, exclusive of the fee, as determined by the Secretary of the Navy: Provided further, That the fact that any contract authorized by this or any other Act is entered into without regard to section 3709 of the Revised Statutes of the United States, or upon a cost-plus-a-fixed-fee basis or otherwise without advertising for proposals, shall not be construed to render inapplicable the provisions of the Act of March 3, 1931, as amended by the Act of August 30, 1935 (49 Stat. 1011; U. S. C., title 40, sec. 276 (a)), if such Act would otherwise be applicable to such contract. 41 U. S. C. § 5. 46 Stat. 1494. Increase of cost lim. itation. 54 Stat. 680. The provisions of section 8 (a) of the Act approved June 28, 1940 (Public, Numbered 671, Seventy-sixth Congress), shall be applicable to naval public works projects authorized by this and all prior note. Acts. The acquisition of necessary land is hereby authorized in connection with such of the projects provided in this Act as are enumerated in this paragraph, namely: (a) Navy Yards-Boston, Massachusetts (housing and messing facilities for crews of ships undergoing overhaul, and so forth), New York, New York, and Pearl Harbor, Hawaii; (b) naval stations-Guam and Key West, Florida; (c) submarine bases-Charlotte Amalie, Virgin Islands, and New London, Connecticut; (d) naval air stations-Unalaska, Alaska; Alameda, California; and Corpus Christi, Texas; (e) naval districts-Tenth and Fourteenth; (f) fleet operating facilities (security of fleet anchorage, Vieques, Puerto Rico); (g) general (underground fuel storage); (h) naval net depots; (i) medical supply depot, Brooklyn, New York; (j) naval radio station, Bainbridge Island, Washington; and (k) Marine barracks at Parris Island, Pearl Harbor, Quantico, and San Diego. The acquisition of such land shall be a part of the amount fixed for each respective project by this Act. Approved, March 23, 1941, 12 noon. Making supplemental appropriations for the national defense to provide aid to the government of any country whose defense the President deems vital to the defense of the United States, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That to enable the President, through such departments or agencies of the Government as he may designate, to carry out the provisions of An Act to Promote the Defense of the United States, approved March 11, 1941, and for Acquisition of land for designated proj ects. each and every purpose incident to or necessary therefor, there is hereby appropriated, out of any money in the Treasury not otherwise appropriated, the following sums for the following respective purposes, namely: (a) For the procurement, by manufacture or otherwise, of defense articles for the government of any country whose defense the President deems vital to the defense of the United States, including services and expenses in connection therewith, as follows: (1) Ordnance and ordnance stores, supplies, spare parts, and materials, including armor and ammunition and components thereof, $1,343,000,000. (2) Aircraft and aeronautical material, including engines, spare parts, and accessories, $2,054,000,000. (3) Tanks, armored cars, automobiles, trucks, and other automotive vehicles, spare parts, and accessories, $362,000,000. (4) Vessels, ships, boats, and other watercraft, and equipage, supplies, materials, spare parts, and accessories, $629,000,000. (5) Miscellaneous military equipment, supplies, and materials, $260,000,000. (6) Facilities and equipment, for the manufacture or production of defense articles, by construction or acquisition, including the acquisition of land, and the maintenance and operation of such facilities and equipment, $752,000,000. (7) Agricultural, industrial, and other commodities and articles, $1,350,000,000. (b) For testing, inspecting, proving, repairing, outfitting, reconditioning, or otherwise placing in good working order any defense articles for the government of any country whose defense the President deems vital to the defense of the United States, including services and expenses in connection therewith, $200,000,000. (c) Not to exceed 20 per centum of any of the foregoing eight appropriations may be transferred by the President to any other such appropriation, but no appropriation shall be increased by more than 30 per centum. (d) For necessary services and expenses for carrying out the purposes of such Act not specified or included in the foregoing, $40,000,000. (e) For administrative expenses, $10,000,000. (f) In all, $7,000,000,000, to remain available until June 30, 1943. SEC. 2. If any defense article procured from an appropriation made before March 11, 1941, is disposed of, under such Act of March 11, 1941, by any department or agency to the government of any country whose defense the President deemed vital to the defense of the United States, the President may transfer, from the appropriations made by this Act to the appropriate appropriation of such department or agency, an amount equivalent to the value (as computed for the purposes of the $1,300,000,000 limitation contained in section 3 (a) (2) of such Act of March 11, 1941) of the defense article so disposed of, but not to exceed in the aggregate $1,300,000,000. SEC. 3. Any defense article procured from an appropriation made by this Act shall be retained by or transferred to and for the use of such department or agency of the United States as the President may determine, in lieu of being disposed of to a foreign government, whenever in the judgment of the President the defense of the United States will be best served thereby. SEC. 4. No part of any appropriation contained in this Act shall be used to pay the salary or wages of any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided, That for the purposes hereof an affidavit shall be considered prima facie evidence that the person making the affidavit does not advocate, and is not a member of an organization that advocates, the overthrow of the Government of the United States by force or violence: Provided further, That any person who advocates, or who is a member of an organization that advocates, the overthrow of the Government of the United States by force or violence and accepts employment the salary or wages for which are paid from any appropriation in this Act shall be guilty of a felony and, upon conviction, shall be fined not more than $1,000 or imprisoned for not more than one year, or both: Provided further, That the above penalty clause shall be in addition to, and not in substitution for, any other provisions of existing law. SEC. 5. This Act may be cited as the "Defense Aid Supplemental Appropriation Act, 1941". Approved, March 27, 1941, 10:50 a. m., E. S. T. [CHAPTER 31] AN ACT To amend the National Housing Act, and for other purposes. Provisos. Penalty. Short title. March 28, 1941 National Housing Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the National Act, amendments. Housing Act, as amended, is amended by the addition of the following title at the end thereof: "TITLE VI-DEFENSE HOUSING INSURANCE "SEC. 601. As used in this title "(a) The term 'mortgage' means a first mortgage on real estate, in fee simple, or on a leasehold (1) under a lease for not less than ninetynine years which is renewable; or (2) under a lease having a period of not less than fifty years to run from the date the mortgage was executed; and the term 'first mortgage' means such classes of first liens as are commonly given to secure advances on, or the unpaid purchase price of, real estate, under the laws of the State in which the real estate is located, together with the credit instruments, if any, secured thereby. "(b) The term 'mortgagee' includes the original lender under a mortgage, and his successors and assigns approved by the Administrator; and the term 'mortgagor' includes the original borrower under a mortgage and his successors and assigns. "(c) The term 'maturity date' means the date on which the mortgage indebtedness would be extinguished if paid in accordance with periodic payments provided for in the mortgage. "(a) The term 'State' includes the several States, and Alaska, Hawaii, Puerto Rico, the District of Columbia, and the Virgin Islands. "SEC. 602. There is hereby created a Defense Housing Insurance Fund which shall be used by the Administrator as a revolving fund for the carrying out of the provisions of this title, and mortgages insured under this title shall be known and referred to as 'defense housing insured mortgages'. For this purpose, the Reconstruction Finance Corporation shall make available to the Administrator such funds as he may deem necessary, not to exceed $10,000,000, and the amount of notes, debentures, bonds, or other such obligations which the Corporation is authorized to issue and have outstanding at any one time under existing law is hereby increased by an amount suffi 48 Stat. 1246, 1265. 12 U. 8. C. §§ 17011733. "Mortgage." "First mortgage." "Mortgagee." "Mortgagor." "Maturity date." "State." Defense Housing Insurance Fund. Availability of RFC funds. Provisos. Cancelation of Corporation notes. of indebtedness, etc. cient to provide such funds: Provided, That the Secretary of the Treasury is authorized and directed to cancel from time to time, upon the request of the Corporation, notes of the Corporation (which notes are hereby made available to the Secretary of the Treasury for purposes of this section), and to discharge its liability, as respects all sums due and unpaid upon or in connection with such notes at the time of such cancelation and discharge in a principal amount equal to the funds made available to the Administrator by the Corporation under or by reason of this title together with interest paid to the Transfer of evidence Treasury thereon: Provided further, That any evidence of indebtedness with respect to funds so disbursed by the Corporation shall be transferred to the Secretary of the Treasury; that the Secretary and the Corporation are authorized and directed to make such adjustments on their books and records as may be necessary to carry out the purposes of this section; that the amount of notes, debentures, bonds, or other such obligations which the Corporation is authorized to issue and have outstanding at any one time under the provisions of this section shall be correspondingly reduced by the amount of notes so canceled by the Secretary, and that any sums at any time received by the Corporation, representing repayments or recoveries of funds so disbursed shall forthwith be covered into the general fund of the Allocation of funds. Treasury: And provided further, There shall be allocated immediately to the Defense Housing Insurance Fund the sum of $5,000,000 out of funds made available to the Administrator for this purpose. General expenses of operation of the Federal Housing Administration under this title may be charged to the Defense Housing Insurance Fund. Insurance of eligible mortgages. "SEC. 603. (a) The Administrator is authorized, upon application by the mortgagee, to insure as hereinafter provided any mortgage which is eligible for insurance as hereinafter provided and upon such terms as the Administrator may prescribe to make commitments for the insuring of such mortgages prior to the date of their execution or disbursement thereon: Provided, That the property covered by the mortgage is in an area or locality in which the President shall find that an acute shortage of housing exists or impends which would impede national-defense activities: Provided further, That the aggregate amount of principal obligations of all mortgages insured under this section shall not exceed $100,000,000: And provided further, That no mortgage shall be insured under this section after July 1, 1942, or after such earlier date as the emergency, declared by the President on September 8, 1939, to exist, has by his declaration ceased to exist, except pursuant to a commitment to insure issued on or before July 1, 1942, or such earlier date, whichever first occurs. "(b) To be eligible for insurance under this section a mortgage shall "(1) have been made to, and be held by, a mortgagee approved by the Administrator as responsible and able to service the mortgage properly; "(2) involve a principal obligation (including such initial service charges, appraisal, inspection, and other fees as the Administrator shall approve) in an amount not to exceed 90 per centum of the appraised value (as of the date the mortgage is accepted for insurance) of a property, urban, suburban, or rural upon which there is located a dwelling designed principally for residential use for not more than four families in the aggregate, which is approved for mortgage insurance or defense housing insurance prior to the beginning of construction, and (i) the construction of which is begun after the date of enactment of this title, or (ii) the construction of which was begun after January 1, 1940, and prior to the date of enactment of this title, and which has not been sold or occupied since completion. Such principal obligation shall not exceed “(A) $4,000 if such dwelling is designed for a singlefamily residence, or "(B) $6,000 if such dwelling is designed for a two-family residence, or "(C) $8,000 if such dwelling is designed for a three-family residence, or "(D) $10,500 if such dwelling is designed for a four-family residence; "(3) have a maturity satisfactory to the Administrator but not to exceed twenty years from the date of the insurance of the mortgage; "(4) contain complete amortization provisions satisfactory to the Administrator; "(5) bear interest (exclusive of premium charges for insurance) but not to exceed 5 per centum per annum on the amount of the principal obligation outstanding at any time, or not to exceed 6 per centum per annum if the Administrator finds that in certain areas or under special circumstances the mortgage market demands it; Mortgagor's periodic payments. Terms and provisions respecting in Premium charges for insurance of mortgages. "(6) provide, in a manner satisfactory to the Administrator, for the application of the mortgagor's periodic payments (exclusive of the amount allocated to interest and to the premium charge which is required for mortgage insurance as herein provided) to amortization of the principal of the mortgage; and "(7) contain such terms and provisions with respect to insurance, repairs, alterations, payment of taxes, default reserves, surance, repairs, etc. delinquency charges, foreclosure proceedings, anticipation of maturity, additional and secondary liens, and other matters as the Administrator may in his discretion prescribe. "(c) The Administrator is authorized to fix a premium charge for the insurance of mortgages under this title but in the case of any mortgage such charge shall not be less than an amount equivalent to one-half of 1 per centum per annum nor more than an amount equivalent to 12 per centum per annum of the amount of the principal obligation of the mortgage outstanding at any time, without taking into account delinquent payments or prepayments. Such premium charges shall be payable by the mortgagee, either in cash, or in debentures issued by the Administrator under this title at par plus accrued interest, in such manner as may be prescribed by the Administrator: Provided, That the Administrator may require the payment of one or more such premium charges at the time the mortgage is insured, at such discount rate as he may prescribe not in excess of the interest rate specified in the mortgage. If the Administrator finds upon the presentation of a mortgage for insurance and the tender of the initial premium charge or charges so required that the mortgage complies with the provisions of this title, such mortgage may be accepted for insurance by endorsement or otherwise as the Administrator may prescribe; but no mortgage shall be accepted for insurance under this section unless the Administrator finds that the project with respect to which the mortgage is executed is economically sound. In the event that the principal obligation of any mortgage accepted for insurance under this title is paid in full prior to the maturity date, the Administrator is further authorized Proviso. charge or charges. Initial premium Adjusted premium charge. |