Utilization of farm tenant mortgage insurance fund; additions to and deposits in fund; deposits in Treasury
The Secretary shall utilize the insurance fund created by section 1005a of title 7 1 1 See References in Text note below. and the provisions of section 1005c(a), (b), and (c) of title 7 1 to discharge obligations under insurance contracts made pursuant to this section, and
(1)
(1)#
the Secretary may utilize the insurance fund to pay taxes, insurance, prior liens, and other expenses to protect the security for loans which have been insured hereunder and to acquire such security property at foreclosure sale or otherwise;
(2)#
the notes and security therefor acquired by the Secretary under insurance contracts made pursuant to this section shall become a part of the insurance fund. Loans insured under this section may be held in the fund and collected in accordance with their terms or may be sold and reinsured. All proceeds from such collections, including the liquidation of security and the proceeds of sales, shall become a part of the insurance fund; and
(3)∀ 1#
of the charges retained by the Secretary out of interest payments by the borrower, amounts not less than one-half of 1 per centum per annum of the unpaid principal balance of the loan shall be deposited in and become a part of the insurance fund. The remainder of such charges shall be deposited in the Treasury of the United States and shall be available for administrative expenses of the Farmers Home Administration, to be transferred annually to and become merged with any appropriation for such expenses.