---
kind: "section"
citation: "12 U.S.C. § 1749aaa–1"
title: "12"
title_heading: "Banks and Banking"
number: "1749aaa–1"
heading: "Premiums and other charges"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1749aaa-1"
units:
  - "Chapter 13 — National Housing"
  - "Subchapter IX–B — Mortgage Insurance for Group Practice Facilities and Medical Practice Facilities"
---

# §1749aaa–1. Premiums and other charges


The [Secretary](/usc/12/1715z–22a.md?p=4) shall fix premium charges for the insurance of [mortgages](/usc/12/1749aaa–5.md?p=7) under this subchapter, but such charges shall not be more than 1 per centum per annum of the amount of the principal obligation of the [mortgage](/usc/12/1749aaa–5.md?p=7) outstanding at any time, without taking into account delinquent payments or prepayments. In addition to the premium charge, the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to charge and collect such amounts as he may deem reasonable for the analysis of a proposed project and the appraisal and inspection of the property and improvements. Where the principal obligation of any [mortgage](/usc/12/1749aaa–5.md?p=7) accepted for insurance under this subchapter is paid in full prior to the [maturity date](/usc/12/1707.md?p=c), the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to require the payment by the [mortgagee](/usc/12/1749aaa–5.md?p=8) of an adjusted premium charge. This charge shall be in such amount as the [Secretary](/usc/12/1715z–22a.md?p=4) determines to be equitable, but not in excess of the aggregate amount of the premium charges that the [mortgagee](/usc/12/1749aaa–5.md?p=8) would otherwise have been required to pay if the [mortgage](/usc/12/1749aaa–5.md?p=7) had continued to be insured until the [maturity date](/usc/12/1707.md?p=c). Where such prepayment occurs, the [Secretary](/usc/12/1715z–22a.md?p=4) is authorized to refund to the [mortgagee](/usc/12/1749aaa–5.md?p=8) for the account of the [mortgagor](/usc/12/1749aaa–5.md?p=9) all, or such portion as he shall determine to be equitable, of the current unearned premium charges theretofore paid. Premium charges fixed under this section shall be payable by the [mortgagee](/usc/12/1749aaa–5.md?p=8) either in cash, or in debentures which are the obligation of the General Insurance Fund at par plus accrued interest, at such times and in such manner as may be prescribed by the [Secretary](/usc/12/1715z–22a.md?p=4).


## Source credit

(June 27, 1934, ch. 847, title XI, § 1102, as added Pub. L. 89–754, title V, § 502(a), Nov. 3, 1966, 80 Stat. 1275.)