---
kind: "section"
citation: "24 C.F.R. § 248.203"
title: "24"
number: "248.203"
heading: "General prepayment limitation."
url: "https://uscodex.org/cfr/24/248.203"
---

# §248.203. General prepayment limitation.

- (a) An owner of eligible low income housing may prepay, and a mortgagee may accept prepayment of, a mortgage on such housing only in accordance with a plan of action approved by the Commissioner.
- (b) A mortgage insurance contract with respect to eligible low income housing may be terminated pursuant to section 229 of the National Housing Act only in accordance with a plan of action approved by the Commissioner.
- (c) A mortgagee's acceptance of a prepayment in violation of [paragraph (a)](#a) or termination of a mortgage insurance contract in violation of [paragraph (b)](#b) of this section is grounds for administrative action under parts [24](/cfr/24/part24.md) and [25](/cfr/24/part25.md) of this title, in addition to any other remedies available by law, including rescission of the prepayment or reinstatement on the insurance contract.

## Notes

### Source

Source: 55 FR 38952, Sept. 21, 1990, unless otherwise noted. Redesignated at 57 FR 12041, Apr. 8, 1992.

### Authority

Authority: 12 U.S.C. 17151 note, 4101 note, and 4101-4124; 42 U.S.C. 3535(d).