§1747b — Title 12 Banks and Banking | U.S. Code

Summary

The Secretary must set and collect a yearly insurance premium for projects under this part. The premium can be no more than one-half of one percent (0.5%) of the outstanding investment for the operating year. When calculating it, do not count extra earnings that were used to pay down the investment beyond the required minimum amortization. The investor must pay the premium in advance each year, in cash or in debentures the Secretary issues at face value plus accrued interest. If gross income is less than operating expenses in a year, the premium for that year is waived up to the amount of the shortfall, but it must be paid later out of any excess earnings. The Secretary may also charge reasonable fees for examining a project and for inspecting construction. Those fees together cannot be more than one-half of one percent (0.5%) of the estimated investment.

Title 12, §1747b

Banks and Banking — Source: USLM XML via OLRC

(a)For insurance granted pursuant to this subchapter the Secretary shall fix and collect a premium charge in an amount not exceeding one-half of 1 per centum of the outstanding investment for the operating year for which such premium charge is payable without taking into account the excess earnings, if any, applied, in addition to the minimum annual amortization charge, to amortization of the outstanding investment. Such premium charge shall be payable annually in advance by the investor, either in cash or in debentures issued by the Secretary under this subchapter at par plus accrued interest: Provided, That, if in any operating year the gross income shall be less than the operating expenses, the premium charge payable during such operating year shall be waived, but only to the extent of the amount of the difference between such expenses and such income and subject to subsequent payment out of any excess earnings as hereinafter provided.

(b)With respect to any project offered for insurance under this subchapter, the Secretary is authorized to charge and collect reasonable fees for examination, and for inspection during the construction of the project: Provided, That such fees shall not aggregate more than one-half of 1 per centum of the estimated investment.

Editorial Notes

Amendments

1967—Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing in subsecs. (a) and (b). 1950—Act Apr. 20, 1950, substituted “Commissioner” for “Administrator” wherever appearing.

§1747b Premium charges; fees for examination and inspection

Summary

Title 12, §1747b

Notes & Related Subsidiaries

Editorial Notes

Amendments

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