575 



ever the moneys In the Federal Ship Mortgage Insurance 

 Fund are Insxifflclent to pay amounts required to be jMild 

 under subsec. (a) of this section. 



1956 — Subsec. (a) (1), (2). Act Aug. 7, 1»56. §I(e), 

 eliminated "the Insured portion of" preceding "the un- 

 paid principal amount", wherever appearing. 



Subsec. (c)(1). Act Aug. 7, 1956, §l(f). substituted 

 "such excess to the borrower" for "to the mortgagee such 

 cash amounts to the extent that the mortgagee has not 

 been made whole through other sources for amounts 

 advanced to the mortgagor but In no event shall such 

 payments to the mortgagee exceed 10 per centum of the 

 unpaid principal amount of mortgage and the Interest 

 thereon, and any excess of the amounts thus due the 

 Government and the mortgagee shall be paid to the 

 mortgagor". 



Subsec. (c)(2). Act Aug. 7, 1956, §l(g). substituted 

 "such excess to the borrower" for the words "to the lender 

 such cash amount to the extent that the lender has not 

 been made whole through other sources for amounts 

 advanced to the borrower but In no event shall such pay- 

 ment to the lender exceed 10 per centum of the unpaid 

 principal amount of loan and the Interest thereon, and 

 any excess of the amounts thus due the Government and 

 the lender shall be paid to the borrower". 



1954 — Act Sept 3. 1954, gave new rights to both bor- 

 rowers and lenders and set up new foreclosure procedures. 



1953 — ^Act Aug. 15. 1953, provided that In the event of 

 a default In payment of either principal or Interest, the 

 lender may tender an assignment of the mortgage and 

 all collateral to the Secretary wh'o shall promptly pay the 

 unpaid balance In cash, provided for the foreclosure and 

 repossession of mortgaged vessels; allowed the Secretary 

 to take any necessary steps to minimize the loss, and made 

 all Insurance commitments conclusive. 



§1276. Offenses and penalties. 



Whoever, for the purpose of obtaining any loan or 

 advance of credit from any person, partnership, 

 association, or corporation with the intent that an 

 obligation relating to such loan or advance of credit 

 shall be offered to or accepted by the Secretary of 

 Commerce to be guaranteed, or for the purpose of 

 obtaining any extension or renewal of any loan, ad- 

 vance of credit, or mortgage relating to an obligation 

 guaranteed by the said Secretary of Commerce, or 

 the acceptance, release, or substitution of any se- 

 curity on such a loan, advance of credit, or for the 

 purpose of influencing in any way the action of said 

 Secretary of Commerce under this subchapter, 

 makes, passes, utters, or publishes, or causes to be 

 made, passed, uttered, or published any statement, 

 knowing the same to be false, or alters, forges, or 

 counterfeits, or causes or procures to be altered, 

 forged, or counterfeited, any instrument, paper, or 

 document, or utters, publishes, or passes as true, or 

 causes to be uttered, published, or passed as true, 

 any instrument, paper, or document, knowing it to 

 have been altered, forged, or counterfeited, or will- 

 fully overvalues any security, asset, or Income shall 

 be guilty of a misdemeanor and punished as pro- 

 vided under the first paragraph of section 1228 of 

 this title. (As amended Oct. 19, 1972, Pub. L. 92-507. 

 § 3. 86 Stat. 915.) 



Amendments 



1972 — Pub. L. 92-507 substituted provisions relating to 

 offenses and penalties, for provisions relating to Insurance 

 of mortgages securing existing loans and refinancing of 

 existing mortgages. 



1960 — Pub. L. 86-518 substituted "twenty-flve years 

 from the date of the original mortgage" for "the maturity 

 date of the original mortgage" In clauses (1). (2), and 

 (3). 



1959 — Pub. L. 86-123 Inserted "as provided In section 

 1276a of this title or" following "except" In opening 

 provisions. 



1954 — Act Sept 3. 1954. limited a new mortgage for 

 refinancing to the same maturity date as the old mort- 

 gage, and added par. (4) 



§§ 1276a to 1278. Repealed. Pub. L. 92-507, §3, Oct. 19 



1972, 86 Stat. 910. 



Section 1276a, act June 29, 1936, ch. 858, 5 1107, as 

 added July 31, 1969, Pub. L. 86-123, S 1(5), 73 Stat. 269, 

 and amended June 12, 1960, Pub. L. 86-518, §§1, 7, 74 

 Stat. 216, related to the authority of the Secretary to 

 make commitments to Insure mortgages. 



Section 1277, act June 29. 1936, ch. 868, { 1108, formerly 

 5 1107, as added June 23, 1938, ch. 600, I 46, 62 Stat. 973, 

 amended Sept. 3, 1954, ch. 1266, § 7, 68 Stat. 1275, and 

 renumbered July 31. 1959. Pub. L. 86-123, 5 1(1), 73 Stat. 

 269, related to offenses and set the penalties therefor. 

 See section 1276 of this title. 



Section 1278. act June 29, 1936, ch. 858, § 1109, formerly 

 i 1108, as added June 23. 1938, ch. 600, § 46, 52 Stat. 973, 

 amended Sept. 3, 1954, ch. 1265, § 8, 68 Stat. 1276, and re- 

 numbered July 31, 1959, Pub. L. 85-123, § 1(1), 73 Stat. 

 269. authorized the promulgation of rules and regula- 

 tions. See now section 1279b of this title. 



§ 1279. Appropriations. 



There is authorized to be appropriated the sum 

 of $1,000,000 and such further sums as may be 

 necessary to carry out the provisions of this sub- 

 chapter. (June 29, 1936, ch. 858, § 1110, formerly 

 § 1109. as added June 23, 1938, ch. 600, § 46, 52 Stat. 

 973, amended Sept. 3, 1954, ch. 1265, § 9, 68 Stat. 

 1276, and renumbered July 31, 1959. Pub. L. 86-123, 

 § 1(1), 73 Stat. 269.) 



Amenomints 



1954— Act Sept. 3. 1954, reenacted section without 

 change. 



§ 1279a. Escrow fund, 

 (a) Creation. 



If the proceeds of an obligation guaranteed under 

 this subchapter are to be used to finance the con- 

 struction, reconstruction, or reconditioning of a ves- 

 sel or vessels which will serve as security for the 

 guarantee of the Secretary of Commerce, the Secre- 

 tary of Commerce is authorized to accept and hold, 

 In escrow under an escrow agreement with the 

 obligor, a portion of the proceeds of all obligations 

 guaranteed under this subchapter whose proceeds 

 are to be so used which is equal to: (i) the excess of 

 the principal amount of all obligations whose pro- 

 ceeds are to be so used over 75 per centum, or 87 Vi 

 per centum, whichever is applicable under section 

 1274 of this title, of the amount paid by or for the 

 account of the obligor for the construction, recon- 

 struction, or reconditioning of the vessel or vessels; 

 (11) with such interest thereon, if any, as the Secre- 

 tary of Commerce may require: Provided, That in 

 the event the security for the guarantee of an obliga- 

 tion by the Secretary of Commerce relates both to a 

 vessel or vessels to be constructed, reconstructed or 

 reconditioned and to a delivered vessel or vessels, 

 the principal amount of such obligation shall be pro- 

 rated for purposes of this subsection (a) under regu- 

 lations prescribed by the Secretary of Commerce. 



