12 USC 4747 - Reimbursement by Fund

U.S Code last checked for updates: Apr 28, 2024

§ 4747.

Reimbursement by Fund

(a)

Reimbursements

(b)

Size of assisted borrower

(c)

Three-year maximum

(d)

Loans totaling less than $2,000,000

In connection with a loan in which the covered amount of the loan plus the covered amount of all previous loans enrolled by a participating financial institution does not exceed $2,000,000, the amount of reimbursement by the Fund to the participating State shall not exceed the lesser of—

(1)

75 percent of the sum of the premium charges paid to the reserve fund by the borrower and the participating financial institution; or

(2)

5.25 percent of the covered amount of the loan.

(e)

Loans totaling more than $2,000,000

In connection with a loan in which the sum of the covered amounts of all previous loans enrolled by the participating financial institution in the Program equals or exceeds $2,000,000, the amount of reimbursement to be provided by the Fund to the participating State shall not exceed the lesser of—

(1)

50 percent of the sum of the premium charges paid by the borrower and the participating financial institution; or

(2)

3.5 percent of the covered amount of the loan.

(f)

Other amounts

In connection with the enrollment of a loan that will cause the aggregate covered amount of all enrolled loans to exceed $2,000,000, the amount of reimbursement by the Fund to the participating State shall be determined—

(1)

by applying subsection (d) to the portion of the loan, which when added to the aggregate covered amount of all previously enrolled loans equals $2,000,000; and

(2)

by applying subsection (e) to the balance of the loan.

(Pub. L. 103–325, title II, § 257, Sept. 23, 1994, 108 Stat. 2212.)

cite as: 12 USC 4747