---
kind: "section"
citation: "12 U.S.C. § 1735a"
title: "12"
title_heading: "Banks and Banking"
number: "1735a"
heading: "Prepayment of mortgages by nonprofit educational institutions; refunds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1735a"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter V — Miscellaneous"
---

# §1735a. Prepayment of mortgages by nonprofit educational institutions; refunds

- (a) Notwithstanding any other provision of this chapter, no adjusted premium charge shall be collected in connection with the payment in full, prior to maturity, of any [mortgage](/usc/12/1707.md?p=a) insured under this chapter, if the [mortgagor](/usc/12/1707.md?p=b) certifies to the [Secretary](/usc/12/1715z–22a.md?p=4) that the loan was paid in full by or on behalf of a nonprofit educational institution which intends to use the property for educational purposes.
- (b) The [Secretary](/usc/12/1715z–22a.md?p=4) shall refund any adjusted premium charge collected subsequent to July 1, 1962, and prior to September 2, 1964, in connection with the payment in full, prior to maturity, of any [mortgage](/usc/12/1707.md?p=a) insured under this chapter, if the [mortgagor](/usc/12/1707.md?p=b) under such [mortgage](/usc/12/1707.md?p=a) makes the certification prescribed by [subsection (a)](#a).

## Source credit

(June 27, 1934, ch. 847, title V, § 517, as added Pub. L. 88–560, title I, § 120, Sept. 2, 1964, 78 Stat. 782; amended Pub. L. 90–19, § 1(a)(3), May 25, 1967, 81 Stat. 17.)

## Notes

### Editorial Notes

### Amendments

1967—Subsecs. (a), (b). Pub. L. 90–19 substituted “Secretary” for “Commissioner” wherever appearing.