---
kind: "section"
citation: "12 U.S.C. § 1709–1a"
title: "12"
title_heading: "Banks and Banking"
number: "1709–1a"
heading: "State constitutional and legal limits upon interest chargeable on loans, mortgages, or other interim financing arrangements; applicability; covered arrangements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1709-1a"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter II — Mortgage Insurance"
---

# §1709–1a. State constitutional and legal limits upon interest chargeable on loans, mortgages, or other interim financing arrangements; applicability; covered arrangements

- (a) The provisions of the constitution of any [State](/usc/12/1707.md?p=d) expressly limiting the amount of interest which may be charged, taken, received, or reserved by certain classes of lenders and the provisions of any law of that [State](/usc/12/1707.md?p=d) expressly limiting the amount of interest which may be charged, taken, received, or reserved shall not apply to—
  - (1) any loan or [mortgage](/usc/12/1707.md?p=a) which is secured by a one- to four-family dwelling and which is (A) insured under title I or II [[12 U.S.C. 1702](/usc/12/1702.md) et seq. or 1707 et seq.] of the National Housing Act, or (B) insured, guaranteed, or made under [chapter 37](/usc/38/chptIII/ch37.md) of title 38; or
  - (2) any temporary construction loan or other interim financing if at the time such loan is made or financing is arranged, the intention to obtain permanent financing substantially by means of loans or [mortgages](/usc/12/1707.md?p=a) so insured, guaranteed, or made is declared.
- (b) The provisions of this section shall apply to such loans, [mortgages](/usc/12/1707.md?p=a), or other interim financing made or executed in any [State](/usc/12/1707.md?p=d) until the effective date (after June 30, 1976) of a provision of law of that [State](/usc/12/1707.md?p=d) limiting the amount of interest which may be charged, taken, received, or reserved on such loans, [mortgages](/usc/12/1707.md?p=a), or financing.

## Source credit

(Pub. L. 94–324, § 8, June 30, 1976, 90 Stat. 722.)

## Notes

### Editorial Notes

### References in Text

The National Housing Act, referred to in subsec. (a)(1), is act June 27, 1934, ch. 847, 48 Stat. 1246. Titles I and II of the National Housing Act are classified generally to subchapters I (§ 1702 et seq.) and II (§ 1707 et seq.), respectively, of this chapter. For complete classification of this Act to the Code, see section 1701 of this title and Tables.

### Codification

Section was enacted as part of the Veterans Housing Amendments Act of 1976, and not as part of the National Housing Act which comprises this chapter.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective June 30, 1976, see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of Title 38, Veterans’ Benefits.