Sec. 401.05-1

401.05-2

United States Code

PART 401-GENERAL

CREDIT REPORTS

Who may order; cost limits. [Revised]

Additional costs. [Revised]

FEE ASSIGNMENTS TO SALARIED EMPLOYEES 401.07-1 To salaried employees of the U. S., etc. [Revised]

GOVERNMENT REQUESTS FOR TRANSPORTATION 401.10-20 Charges, how paid. [Revised]

401.12-4

PURCHASE AND SUPPLY

Variations in quantity. [Amended]

AUTHORITY: §§ 401.05-1 to 401.12-4, appearing in this Supplement, issued under secs. 4 (a), 4 (k), 48 Stat. 129, 132, 643, 647, 59 Stat. 986; 12 U.S.C. 1463; E.O. 9070, Feb. 24, 1942, 3 CFR Cum. Supp.

SOURCE: $401.05-1 to 401.12-4, appearing in this Supplement, contained in Bulletin 428, effective July 1, 1947, 12 F.R. 4263, except as noted following provisions affected.

CREDIT REPORTS

§ 401.05-1 Who may order; cost limits. Credit reports may be ordered from es

tablished and approved credit agencies by the Regional Manager or Regional Counsel, or by brokers when such credit reports are permitted or required by the regulations or are necessary in the business of the Corporation. The cost of such reports shall not exceed one dollar per report, except as is otherwise provided herein. Credit agencies must be approved by the General Manager or the Regional Manager, and notice of such approval shall be filed with the Comptroller.

§ 401.05-2 Additional costs. The General Manager may authorize compensation not exceeding two dollars per report to approved credit agencies in localities where such reports can not be obtained at a lower cost, and shall file with the Comptroller and with the Auditor a schedule of fees in excess of one dollar per report which are authorized generally for any locality; and such reports may be ordered within the limits of such schedules by the officers or brokers mentioned in § 401.05-1.

FEE ASSIGNMENTS TO SALARIED EMPLOYEES § 401.07-1 To salaried employees of the U. S., etc. Assignments for services to be performed on a fee basis shall not be made to a person who is a full-time or part-time salaried employee of the United States, or any department or agency thereof, or any corporate agency or instrumentality of the United States having no capital stock, or all of whose capital stock (except any qualifying shares of directors or similar officers which may be otherwise owned) is beneficially owned directly or indirectly, by the United States: Provided, That the foregoing is not applicable where an employee has ceased active duty under notice of separation by reduction in force and has ceased to receive salary. [Bull. 424, effective June 10, 1947, 12 F.R. 3858]

REPAIRS AND RECONDITIONING OF SECURITY PROPERTIES

§ 402.08-3 Processing advances for reconditioning under § 402.08-2 (a) •

When the home owner informs the Corporation of the satisfactory completion of the work and furnishes the necessary forms, properly executed, the Analysis and Real Estate Section shall prepare and process a voucher for payment of the work performed by the contractor, provided that the amount of such voucher shall not exceed the amount of the advance, assemble all papers, and transmit with Form R-18 to the Comptroller for certification and disbursement. Any unexpended portion of the advance shall be credited to the home owner's account. With the advice of the Regional Counsel, the Regional Manager may direct that the funds advanced by the Corporation be made payable to both the contractor and the home owner. [Sixth paragraph amended by Bull. 429, effective July 1, 1947, 12 F.R. 4263]

§ 402.08-4 Processing advances for reconditioning under § 402.08–2 (b)

Upon completion of the reconditioning and its acceptance by the home owner and by the Corporation, and after review by the Legal Department, if required, the Analysis and Real Estate Section shall prepare the proper vouchers for payment of the work and services performed, assemble all papers and transmit with Form R-18 to the Comptroller for certification and disbursement. Any unexpended portion of the advance shall be credited to the home owner's account. [Third paragraph

amended by Bull. 429, effective July 1, 1947, 12 F.R. 4263]

TAXES

§ 402.14-3 Obtaining tax information; tax searches. Information regarding the payment of taxes, assessments, or other governmental levies or charges, as may be necessary to maintain approved records and to protect the Corporation from loss, shall be obtained annually, unless otherwise directed by the General Manager, by search of the public record, information received from Tax Collectors, examination of tax receipts, or other evidence of payment furnished by home owners or other persons paying such items, or by such other method as the General Manager may determine. Generally, tax searches shall be limited to properties of home owners not having Tax and Insurance Accounts and whose loan accounts have been reduced less than 50%, but shall be extended to include properties of any home owners when, in the opinion of the Regional Manager with the advice of the Regional Counsel, it is considered necessary or prudent to do so. [First paragraph amended by Bull. 427, effective June 23, 1947, 12 F.R. 4291]

[First sentence amended by Bull. 441, effective July 11, 1947, 12 F.R. 4713]

§ 402.15-28

Disposition of insurance; loans paid in full. When a home owner advises that it is his intention to pay his loan in full, the Insurance Section shall be notified immediately. Insurance shall be ordered from the insurer under contract for that which has expired and not been replaced and the cost thereof included in the home owner's statement.

When the Comptroller's Division informs the Insurance Section that funds have been received purporting to pay a loan in full and the home owner has not previously informed the Corporation of his intention to do so, the Insurance Section shall review the insurance coverage held by the Corporation. If insurance has expired or will expire prior to the time that the home owner can be given reasonable notice of such expiration, the Insurance Section shall notify the home owner on Form 539 that the expired or expiring insurance coverage will not be renewed by the Corporation for a period in excess of fifteen days from the date of the notice to the home owner. An order and cancellation shall be forwarded to the contract carrier to provide coverage from expiration date to the cancellation date shown on Form 539.

If a loan is to be paid in full through an escrow agent, the Insurance Section shall deliver any direct policies or certificates being held for the account of the home owner to the Comptroller's Division with Forms RO-I-386-A, RO-I386-B and the carrier's "Release of Mortgage Interest" form where necessary.

When the Insurance Section receives a paid-in-full bulletin, the mortgagee clause on direct policies shall be cancelled as to the interest of the HOLC and the SCA "Release of Mortgage Interest" form attached to the certificates. These policies and/or certificates shall be forwarded to the Comptroller's Division.

Where necessary, the Insurance Section shall prepare and send to the Comptroller's Division Form RO-I-386-A to inform the home owner of the status of insurance ordered or to be ordered by the Corporation, and shall take the following action:

(a) An order shall be placed for any insurance which is required to be ordered by the Corporation for the home owner and which will expire prior to the time

that the home owner can receive sufficient notice of such expiration. These orders shall be cancelled as of a future date sufficient to permit notice of such cancellation to reach the home owner prior to such future date. Notice to the home owner of short term certificates shall be delivered to the Comptroller's Division to be forwarded to the home owner.

(b) When received by the Insurance Section, certificates which have been ordered by the Corporation for expiring insurance, for which the home owner has paid the premium, shall be delivered with Form RO-I-386-D to the Comptroller's Division to be sent to the appropriate party.

Any refunds due the home owner shall be returned to him by the Comptroller's Division.

The Insurance Section shall deliver the insurance jacket Form RO-I-246 to the Comptroller's Division for filing in the loan docket when all of the insurance held by or ordered for the home owner has been sent to the Comptroller's Division. [Bull. 420, effective Mar. 28, 1947, 12 F.R. 2356, as amended by Bull. 441, effective July 11, 1947, 12 F.R. 4713]

CODIFICATION: In § 402.15-28, the second undesignated paragraph set forth above was added by Bulletin 441, effective July 11, 1947, 12 F.R. 4713.

by the General Manager or by a Deputy General Manager. [Second undesignated paragraph amended effective Mar. 5, 1947, 12 F.R. 19801

CROSS REFERENCE: For an exception to the provisions of § 403.01-7, see Part 404 of this chapter, infra, authorizing the Treasurer and the Assistant Treasurer of the Home Owners' Loan Corporation to sign checks drawn on accounts maintained with the Treasurer of the United States.

PART 404-TREASURY, HOME OFFICE

Sec. 404.02-2

RECEIPTS AND DISBURSEMENTS

Signatories and countersignatories. [Revised]

404.02-6 Employee death and other claims. [Revised]

AUTHORITY: §§ 404.02-2 and 402.02-6 issued under sec. 4 (a) and (k), 48 Stat. 129, 132, 643, 647; 12 U.S.C. 1463. EO. 9070, Feb. 24, 1942, 3 CFR Cum. Supp.

§ 404.02-2 Signatories and countersignatories. The Treasurer and the Assistant Treasurer of the Home Owners' Loan Corporation are authorized individually to disburse funds from and sign checks, either in person or by facsimile signature, drawn on any or all of the accounts maintained with the Treasurer of the United States. All checks for amounts in excess of $5,000 signed under the authority conferred by the first sentence of this section shall be signed personally by the Treasurer or by the Assistant Treasurer and countersigned by the General Manager, Assistant to the General Manager, or Deputy General Manager. The provisions of the first sentence of the second paragraph of § 403.01-7 of this chapter relating to countersignatures on checks drawn on the Regional Working Fund shall not apply to checks signed under the authority conferred by the first sentence of this section. [Bull. 413, effective Dec. 23, 1946, 12 F.R. 828]

§ 404.02-6 Employee death and other claims. It is the responsibility of the Treasurer to submit to the General Accounting Office for settlement claims properly supported by an administrative report and certifiled by the auditor, for proceeds of checks erroneously issued and covered by United States Treasury into "Outstanding Liabilities Account." Claims for amounts due deceased or incompetent employees or creditors of the Corporation, claims for the proceeds of unpaid checks which have not been covered by the United States Treasury into "Outstanding Liabilities Account," and any other type

of claim on behalf of such employees or creditors, shall be disbursed by the Treasurer of the Corporation upon certification by the auditor or other authorized certifying officer. Such claims shall be supported by an administrative report prepared by the auditor or other authorized certifying officer and a signed copy of the determination of the General Counsel as to the payee or payees entitled to the proceeds thereof. [Bull. 413, effective Dec. 23, 1946, 12 F.R. 828]

[Preceding section, in small type, superseded by following section during period covered by this Supplement]

§ 404.02-6 Employee death and other claims. It is the responsibility of the Treasurer to submit to the General Accounting Office for settlement claims properly supported by an administrative report prepared by the Comptroller and concurred in by the Auditor, for proceeds of checks erroneously issued and covered by United States Treasury into "Outstanding Liabilities Account."

Claims for amounts due deceased or incompetent employees or creditors of the Corporation, claims for the proceeds of unpaid checks which have not been covered by the United States Treasury into "Outstanding Liabilities Account”, and any other type of claim on behalf of such employees or creditors, shall be disbursed by the Treasurer of the Corporation upon certification by the Authorized Certifying Officer. Such claims shall be supported by an administrative report prepared by the Comptroller and concurred in by the Auditor, and a signed copy of the determination of the General Counsel as to the payee or payees entitled to the proceeds thereof. [Bull. 437, effective July 1, 1947, 12 F.R. 4433] PART 406-LEGAL DEPARTMENT LEGAL DEPARTMENT EXPENSE

Sec. 406.02c Reimbursement. [Revised] 406.02-1 Regional Counsel's authority to incur expense. [Amended] 406.02-4d When receipts dispensed with. [Revised]

AUTHORITY: §§ 406.02c to 406.02-4d, appearing in this Supplement, issued under secs. 4 (a) and 4 (k), 48 Stat. 129, 132, 643, 647; 12 U.S.C. 1463. E.O. 9070, Feb. 24, 1942, 3 CFR Cum. Supp.

SOURCE: §§ 406.02c to 406.02-4d, appearing in this Supplement, contained in Bulletin 435, effective July 1, 1947, 12 F.R. 4434.

§ 406.02c Reimbursement. Where the payment of any such fees or ex

penses is made by a salaried attorney, fee attorney, title company or trustee, an itemized statement covering such disbursements, certified to by any such attorney, title company or trustee, shall, when approved by the General Counsel, be accepted by the Authorized Certifying Officer as sufficient evidence of the disbursement for the purpose of reimbursing the attorney, title company or trustee by whom the moneys were paid or as settlement for funds advanced. Where the payment of any such fees or expenses is made by other than an attorney, title company or trustee, a properly certified voucher, or approval by the General Counsel, supported by receipts for all funds actually expended, shall be accepted by the Authorized Certifying Officer either as sufficient evidence of the disbursement for the purpose of reimbursing the individual payer or as settlement for funds advanced. The statement of the General Counsel as to the reason for the absence of any receipts, exclusive of tax receipts, shall be accepted by the Authorized Certifying Officer in lieu thereof.

§ 406.02-1 Regional Counsel's authority to incur expense.

*

* *

(b) Where schedules of fees or expenses have been approved by the General Counsel and filed with the Authorized Certifying Officer and the Auditor, fees and expenses in excess of those authorized by such schedules shall be paid only when authorized or approved by the General Counsel. [Paragraph (b) amended]

§ 406.02-4d When receipts dispensed with. In cases where receipts are required in accounting for funds expended, the Regional Counsel may qualify any item or class of items of fees or expenses without receipts, either by assigning a reason for their absence on the voucher or by filing with the Authorized Certifying Officer a memorandum stating the reasons why it is not practical or possible to obtain receipts covering items within the particular class. But, in accounting for funds expended, all disbursements made in payment of real estate taxes or assessments must be supported by receipts, anything in this section to the contrary notwithstanding.