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OF S.22A6
(1) The amendment introduced on March 9> 1950, by Senator Tobey for
himself and Senator Ives would eliminate the new corporation and the debentures provided fcy the present b i l l , and instead would provide for the
insurance of individual mortgages on cooperative housing by the F.H.A. i t
would strengthen the directives to the F.H.A# on the subject and also provide assistance in the organization of cooperatives.
(2) I f the separate corporation and the issuance of debentures are to
be retained, the Government's "insurance" of the debentures might be eliminated and the corporation might be directed to avoid the excessive use of
short-term financing which is likely to result in expansion of bank credit.
These changes might be made by amendments along the following lines:

To remove the guarantee of the Corporation's debentures:
"Strike out the subsection (b) beginning at line 17
on page 92 and going through line 3 on page 95*11


To limit the extent to which the Corporation may issue
short-term obligations to finance long-term mortgage
loans and thus limit the probable use of bank credit
in financing the program:
"On page 92, in line 16 change the period at the end of
the line to a semicolon and add thereafter the following:
and, Provided further, That not more than 50 per
centum of the aggregate amount outstanding at any one
time shall have a maturity of less than ten years from
the date of issue, and not more than 10 per centum, shall
have a maturity of less than two years from the date of


To reduce the maximum amount of loan from the f u l l amount of
the development cost of a cooperative project to 95 per cent
of the cost and thereby increase to 10 per cent the equity
(including its stock purchases) that the cooperative would
have when the project was ready for occupancy:
"On page 89 in line 11 insert the phrase '95 per centum o f
following the word 'exceeding'".


To make changes in the National Housing Act paralleling amendment 3 above for cooperatives:

"Wherever in the National Housing Act, as amended, and
in this b i l l , the maximum amount of a mortgage loan is
stated as 90 percentum of value or of cost, change '90'
to '85 f , and wherever the maximum amount of a mortgage
loan is stated as 95 percentum of value or of cost,
change *95* to '90'."