
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1436c]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
Sec. 1436c. Insurance for public housing agencies and Indian 
        housing authorities
        
    On and after October 28, 1991, notwithstanding any other provision 
of State or Federal law, regulation or other requirement, any public 
housing agency or Indian housing authority that purchases any line of 
insurance from a nonprofit insurance entity, owned and controlled by 
public housing agencies or Indian housing authorities, and approved by 
the Secretary, may purchase such insurance without regard to competitive 
procurement.
    On and after October 28, 1991, the Secretary shall establish 
standards as set forth herein, by regulation, adopted after notice and 
comment rulemaking pursuant to subchapter II of chapter 5 of title 5, 
which will become effective not later than one year from October 28, 
1991.
    On and after October 28, 1991, in establishing standards for 
approval of such nonprofit insurance entities, the Secretary shall be 
assured that such entities have sufficient surplus capital to meet 
reasonably expected losses, reliable accounting systems, sound actuarial 
projections, and employees experienced in the insurance industry. The 
Secretary shall not place restrictions on the investment of funds of any 
such entity that is regulated by the insurance department of any State 
that describes the types of investments insurance companies licensed in 
such State may make. With regard to such entities that are not so 
regulated, the Secretary shall establish investment guidelines that are 
comparable to State law regulating the investments of insurance 
companies.
    On and after October 28, 1991, the Secretary shall not approve 
additional nonprofit insurance entities until such standards have become 
final, nor shall the Secretary revoke the approval of any nonprofit 
insurance entity previously approved by the Department unless for cause 
and after a due process hearing.
    On and after October 28, 1991, until the Department of Housing and 
Urban Development has adopted regulations specifying the nature and 
quality of insurance covering the potential personal injury liability 
exposure of public housing authorities and Indian housing authorities 
(and their contractors, including architectural and engineering 
services) as a result of testing and abatement of lead-based paint in 
federally subsidized public and Indian housing units, said authorities 
shall be permitted to purchase insurance for such risk, as an allowable 
expense against amounts available for capital improvements 
(modernization): Provided, That such insurance is competitively selected 
and that coverage provided under such policies, as certified by the 
authority, provides reasonable coverage for the risk of liability 
exposure, taking into consideration the potential liability concerns 
inherent in the testing and abatement of lead-based paint, and the 
managerial and quality assurance responsibilities associated with the 
conduct of such activities.

(Pub. L. 102-139, title II, Oct. 28, 1991, 105 Stat. 758.)

                       References in Text

    Herein, referred to in text, probably means Pub. L. 102-139, Oct. 
28, 1991, 105 Stat. 736, known as the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1992. For complete classification of this Act to the 
Code, see Tables.

                          Codification

    In the second undesignated par., ``subchapter II of chapter 5 of 
title 5'' was substituted for ``the Administrative Procedures Act'' on 
authority of Pub. L. 89-554, Sec. 7(b), Sept. 6, 1966, 80 Stat. 631, the 
first section of which enacted Title 5, Government Organization and 
Employees.
    Section was enacted as part of the Departments of Veterans Affairs 
and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1992, and not as part of the United States Housing 
Act of 1937 which comprises this chapter.
