Title 12 — Banks and BankingRelease 119-73not60
§1735a Prepayment of Mortgages by Nonprofit Educational Institutions; Refunds
Title 12 › Chapter 13— NATIONAL HOUSING › Subchapter V— MISCELLANEOUS › § 1735a
Summary
No extra prepayment fee can be charged when a mortgage insured under this law is paid off early if the borrower says in writing that the loan was paid in full by or for a nonprofit educational institution that plans to use the property for educational purposes. The Secretary must refund any such extra fee that was collected after July 1, 1962 and before September 2, 1964, if the borrower gives the same certification.
Full Legal Text
Title 12, §1735a
Banks and Banking — Source: USLM XML via OLRC
(a)Notwithstanding any other provision of this chapter, no adjusted premium charge shall be collected in connection with the payment in full, prior to maturity, of any mortgage insured under this chapter, if the mortgagor certifies to the Secretary that the loan was paid in full by or on behalf of a nonprofit educational institution which intends to use the property for educational purposes.
(b)The Secretary shall refund any adjusted premium charge collected subsequent to July 1, 1962, and prior to September 2, 1964, in connection with the payment in full, prior to maturity, of any mortgage insured under this chapter, if the mortgagor under such mortgage makes the certification prescribed by subsection (a).
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1967—Subsecs. (a), (b). Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1735a
Title 12 — Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60