Title 12 — Banks and BankingRelease 119-73

§1747h Termination of insurance contract by investor

Title 12 › Chapter CHAPTER 13— - NATIONAL HOUSING › Subchapter SUBCHAPTER VII— - INSURANCE FOR INVESTMENTS IN RENTAL HOUSING FOR FAMILIES OF MODERATE INCOME › § 1747h

Last updated Apr 6, 2026|Official source

Summary

An investor may end an insurance contract by giving written notice to the Secretary, and the end takes effect at the close of any operating year. The Secretary must write the rules that say when the Secretary can choose to end a contract and when a ended contract can be put back in effect. If an investor ends a contract, the Secretary may make the investor pay an adjusted premium charge that the Secretary thinks is fair, but it cannot be more than the total premiums the investor would have paid if the contract had continued.

Full Legal Text

Title 12, §1747h

Banks and Banking — Source: USLM XML via OLRC

The investor, after written notice to the Secretary of his intention so to do, may terminate, as of the close of any operating year, any insurance contract made pursuant to this subchapter. The Secretary shall prescribe the events and conditions under which said Secretary shall have the option to terminate any insurance contract made pursuant to this subchapter, and the events and conditions under which said Secretary may reinstate any insurance contract terminated pursuant to this section or section 1747g(a) of this title. If any insurance contract is terminated pursuant to this section, the Secretary may require the investor to pay an adjusted premium charge in such amount as the Secretary determines to be equitable, but not in excess of the aggregate amount of the premium charges which such investor otherwise would have been required to pay if such insurance contract had not been so terminated.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1967—Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing. 1950—Act Apr. 20, 1950, substituted “Commissioner” for “Administrator” wherever appearing.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1747h

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73