Title 12, Banks and BankingRelease 119-73not60
§1735f–3 Insurance of Mortgage Proceeds Advanced During Construction or Rehabilitation or Prior to Final Endorsement of Project Mortgage
Title 12 › Chapter 13— NATIONAL HOUSING › Subchapter V— MISCELLANEOUS › § 1735f–3
Summary
The Secretary can insure mortgage money paid out during construction, rehab, or before final mortgage approval to pay for property improvements, materials already on site, and building parts set aside off-site, and can require security for that insurance.
Full Legal Text
Title 12, §1735f–3
Banks and Banking, Source: USLM XML via OLRC
The Secretary is authorized to insure mortgage proceeds advanced during construction or rehabilitation or otherwise prior to final endorsement of a project mortgage for the purpose of (1) financing improvements to the property and the purchase of materials and building components delivered to the property, and (2) providing funds to cover the cost of building components where such components have been assembled and specifically identified for incorporation into the property but are located at a site other than the mortgaged property, with such security as the Secretary may require.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1735f–3
Title 12, Banks and Banking
Last Updated
Apr 3, 2026
Release point: 119-73not60