§ 1709-1a. — State constitutional and legal limits upon interest chargeable on loans, mortgages, or other interim financing arrangements; applicability; covered arrangements.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1709-1a]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 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 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 expressly limiting the amount of interest which may be
charged, taken, received, or reserved shall not apply to--
(1) any loan or mortgage 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 et seq. or 1707 et seq.] of the National Housing Act, or
(B) insured, guaranteed, or made under chapter 37 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 so insured, guaranteed, or made is declared.
(b) The provisions of this section shall apply to such loans,
mortgages, or other interim financing made or executed in any State
until the effective date (after June 30, 1976) of a provision of law of
that State limiting the amount of interest which may be charged, taken,
received, or reserved on such loans, mortgages, or financing.
(Pub. L. 94-324, Sec. 8, June 30, 1976, 90 Stat. 722.)
References in Text
The National Housing Act, referred to in subsec. (a)(1), is act June
27, 1934, ch. 847, 48 Stat. 1246, as amended. Titles I and II of the
National Housing Act are classified generally to subchapters I
(Sec. 1702 et seq.) and II (Sec. 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.
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.
