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Title 12, Banks and BankingRelease 119-102

§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 Aug 21, 2026|Official source

Summary

The Secretary must set a yearly insurance premium for projects covered here that is no more than one-half of 1 percent (0.5%) of the outstanding investment for that operating year. That premium is charged in addition to the required minimum annual amortization. The investor pays the premium yearly in advance, in cash or in government debentures at par plus accrued interest. If a year’s gross income is less than expenses, the premium is waived up to that shortfall and can later be paid from any excess earnings. For projects seeking insurance, the Secretary may also charge reasonable fees for examinations and for inspections during construction, but those fees cannot total more than one-half of 1 percent (0.5%) 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

Aug 21, 2026

Release point: 119-102