---
kind: "section"
citation: "24 C.F.R. § 266.130"
title: "24"
number: "266.130"
heading: "Reinsurance."
url: "https://uscodex.org/cfr/24/266.130"
---

# §266.130. Reinsurance.


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

### Authority

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

### Source

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