CITE

    16 USC Sec. 470d                                            01/08/2008

EXPCITE

    TITLE 16 - CONSERVATION
    CHAPTER 1A - HISTORIC SITES, BUILDINGS, OBJECTS, AND ANTIQUITIES
    SUBCHAPTER II - NATIONAL HISTORIC PRESERVATION
    Part A - Programs

HEAD

    Sec. 470d. Loan insurance program for preservation of property
      included on National Register

STATUTE

    (a) Establishment
      The Secretary shall establish and maintain a program by which he
    may, upon application of a private lender, insure loans (including
    loans made in accordance with a mortgage) made by such lender to
    finance any project for the preservation of a property included on
    the National Register.
    (b) Loan qualifications
      A loan may be insured under this section only if -
        (1) the loan is made by a private lender approved by the
      Secretary as financially sound and able to service the loan
      properly;
        (2) the amount of the loan, and interest rate charged with
      respect to the loan, do not exceed such amount, and such a rate,
      as is established by the Secretary, by rule;
        (3) the Secretary has consulted the appropriate State Historic
      Preservation Officer concerning the preservation of the historic
      property;
        (4) the Secretary has determined that the loan is adequately
      secured and there is reasonable assurance of repayment;
        (5) the repayment period of the loan does not exceed the lesser
      of forty years or the expected life of the asset financed;
        (6) the amount insured with respect to such loan does not
      exceed 90 per centum of the loss sustained by the lender with
      respect to the loan; and
        (7) the loan, the borrower, and the historic property to be
      preserved meet other terms and conditions as may be prescribed by
      the Secretary, by rule, especially terms and conditions relating
      to the nature and quality of the preservation work.
    The Secretary shall consult with the Secretary of the Treasury
    regarding the interest rate of loans insured under this section.
    (c) Limitation on amount of unpaid principal balance of loans
      The aggregate unpaid principal balance of loans insured under
    this section and outstanding at any one time may not exceed the
    amount which has been covered into the Historic Preservation Fund
    pursuant to section 470h of this title and subsections (g) and (i)
    of this section, as in effect on December 12, 1980, but which has
    not been appropriated for any purpose.
    (d) Assignability of insurance contracts; contract as obligation of
      United States; contestability
      Any contract of insurance executed by the Secretary under this
    section may be assignable, shall be an obligation supported by the
    full faith and credit of the United States, and shall be
    incontestable except for fraud or misrepresentation of which the
    holder had actual knowledge at the time it became a holder.
    (e) Conditions and methods of payment as result of loss
      The Secretary shall specify, by rule and in each contract entered
    into under this section, the conditions and method of payment to a
    private lender as a result of losses incurred by the lender on any
    loan insured under this section.
    (f) Protection of financial interests of Federal Government
      In entering into any contract to insure a loan under this
    section, the Secretary shall take steps to assure adequate
    protection of the financial interests of the Federal Government.
    The Secretary may -
        (1) in connection with any foreclosure proceeding, obtain, on
      behalf of the Federal Government, the property securing a loan
      insured under this part; and
        (2) operate or lease such property for such period as may be
      necessary to protect the interest of the Federal Government and
      to carry out subsection (g) of this section.
    (g) Conveyance to governmental or nongovernmental entity of
      property acquired by foreclosure
      (1) In any case in which a historic property is obtained pursuant
    to subsection (f) of this section, the Secretary shall attempt to
    convey such property to any governmental or nongovernmental entity
    under such conditions as will ensure the property's continued
    preservation and use; except that if, after a reasonable time, the
    Secretary, in consultation with the Advisory Council on Historic
    Preservation, determines that there is no feasible and prudent
    means to convey such property and to ensure its continued
    preservation and use, then the Secretary may convey the property at
    the fair market value of its interest in such property to any
    entity without restriction.
      (2) Any funds obtained by the Secretary in connection with the
    conveyance of any property pursuant to paragraph (1) shall be
    covered into the historic preservation fund, in addition to the
    amounts covered into such fund pursuant to section 470h of this
    title and subsection (i) of this section, and shall remain
    available in such fund until appropriated by the Congress to carry
    out the purposes of this subchapter.
    (h) Assessment of fees in connection with loans
      The Secretary may assess appropriate and reasonable fees in
    connection with insuring loans under this section. Any such fees
    shall be covered into the Historic Preservation Fund, in addition
    to the amounts covered into such fund pursuant to section 470h of
    this title and subsection (g) of this section, and shall remain
    available in such fund until appropriated by the Congress to carry
    out purposes of this subchapter.
    (i) Treatment of loans as non-Federal funds
      Notwithstanding any other provision of law, any loan insured
    under this section shall be treated as non-Federal funds for the
    purposes of satisfying any requirement of any other provision of
    law under which Federal funds to be used for any project or
    activity are conditioned upon the use of non-Federal funds by the
    recipient for payment of any portion of the costs of such project
    or activity.
    (j) Authorization of appropriations for payment of losses
      Effective after the fiscal year 1981 there are authorized to be
    appropriated, such sums as may be necessary to cover payments
    incurred pursuant to subsection (e) of this section.
    (k) Eligibility of debt obligation for purchase, etc., by Federal
      Financing Bank
      No debt obligation which is made or committed to be made, or
    which is insured or committed to be insured, by the Secretary under
    this section shall be eligible for purchase by, or commitment to
    purchase by, or sale or issuance to, the Federal Financing Bank.

SOURCE

    (Pub. L. 89-665, title I, Sec. 104, Oct. 15, 1966, 80 Stat. 917;
    Pub. L. 96-515, title II, Sec. 204, Dec. 12, 1980, 94 Stat. 2994.)

CODIFICATION

      In subsec. (c), "December 12, 1980" substituted for "the date of
    enactment of this Act". "This Act" probably meant the National
    Historic Preservation Act Amendments of 1980 (Pub. L. 96-515)
    rather than the National Historic Preservation Act of 1966 (Pub. L.
    89-665).

AMENDMENTS

      1980 - Subsec. (a). Pub. L. 96-515 substituted provision
    authorizing the Secretary to establish and maintain a program by
    which he, upon application of a private lender, insure loans made
    by such lender to finance any project for the preservation of a
    property included on the National Register for provision
    prohibiting grants to surveys or projects receiving assistance from
    any other Federal program or activity.
      Subsec. (b). Pub. L. 96-515 substituted provision prescribing
    loan qualifications for provision authorizing the President, in
    order to assure consistency in policies and actions and
    coordination of planning, acquisition, and development assistance
    to States with other related Federal programs, to issue regulations
    as deemed desirable.
      Subsecs. (c) to (k). Pub. L. 96-515 added subsecs. (c) to (k).

TRANSFER OF FUNCTIONS

      Enforcement functions of Secretary or other official in
    Department of the Interior and such functions of Secretary or other
    official in Department of Agriculture, insofar as they involve
    lands and programs under jurisdiction of that Department, related
    to compliance with historic preservation under sections 470 to
    470a, 470b, and 470c to 470w-6 of this title with respect to pre-
    construction, construction, and initial operation of
    transportation system for Canadian and Alaskan natural gas
    transferred to Federal Inspector, Office of Federal Inspector for
    Alaska Natural Gas Transportation System, until first anniversary
    of date of initial operation of Alaska Natural Gas Transportation
    System, see Reorg. Plan No. 1 of 1979, Secs. 102(e), (f), 203(a),
    44 F.R. 33663, 33666, 93 Stat. 1373, 1376, effective July 1, 1979,
    set out in the Appendix to Title 5, Government Organization and
    Employees. Office of Federal Inspector for the Alaska Natural Gas
    Transportation System abolished and functions and authority vested
    in Inspector transferred to Secretary of Energy by section 3012(b)
    of Pub. L. 102-486, set out as an Abolition of Office of Federal
    Inspector note under section 719e of Title 15, Commerce and Trade.
    Functions and authority vested in Secretary of Energy subsequently
    transferred to Federal Coordinator for Alaska Natural Gas
    Transportation Projects by section 720d(f) of Title 15.