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Title 12 — Banks and BankingRelease 119-73not60

§1747b Premium Charges; Fees for Examination and Inspection

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

Last updated Apr 3, 2026|Official source

Summary

The Secretary must set an annual insurance premium no higher than one-half of 1 percent (0.5%) of the outstanding investment for that operating year. The investor must pay this premium each year in advance, in cash or with debentures the Secretary issues at face value plus accrued interest. The premium is on top of the required yearly amortization and is figured without counting any excess earnings used to reduce the investment. 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 repaid from any later excess earnings. For projects offered for insurance, the Secretary can also charge reasonable fees for examination and for inspection during construction, but those fees together cannot exceed one-half of 1 percent of the estimated investment.

Full Legal Text

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.

Legislative History

Notes & Related Subsidiaries

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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 1747b

Title 12 — Banks and Banking

Last Updated

Apr 3, 2026

Release point: 119-73not60