§266.130. Reinsurance.

24 C.F.R. § 266.130

Reinsurance will be permitted for the portion of the HFA risk, subject to the following requirements:

(a)

Neither HUD's nor the HFA's position shall be subordinated;

(b)

The reinsurance may not be used to reduce any reserve or fund balance requirements; and

(c)

Such reinsurance does not incur an obligation to the Federal Government.

Notes, amendments, and revision history

Authority: 12 U.S.C. 1715z-22.; 42 U.S.C. 3535(d).

Source: 59 FR 62524, Dec. 5, 1994, unless otherwise noted.