Title 12, Banks and BankingRelease 119-102
§1735a Prepayment of Mortgages by Nonprofit Educational Institutions; Refunds
Title 12 › CHAPTER 13 — NATIONAL HOUSING › SUBCHAPTER V — MISCELLANEOUS › § 1735a
Summary
No extra premium fee can be charged when a borrower says the loan was paid off early by or for a nonprofit educational institution that plans to use the property for educational purposes. The borrower must give a written statement saying this. If such a fee was collected between July 1, 1962, and September 2, 1964, the Secretary must refund the fee when the borrower makes the same written statement.
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
Aug 21, 2026
Release point: 119-102