§ 1715o. — Interest rate on debentures; method of establishment.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1715o]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER II--MORTGAGE INSURANCE
Sec. 1715o. Interest rate on debentures; method of establishment
Notwithstanding any other provisions of this chapter, debentures
issued under any section of this chapter with respect to a loan or
mortgage accepted for insurance on or after thirty days following August
2, 1954 (except debentures issued pursuant to paragraph (4) of section
1715l(g) of this title) shall bear interest at the rate in effect on the
date the commitment to insure the loan or mortgage was issued, or the
date the loan or mortgage was endorsed for insurance, or (when there are
two or more insurance endorsements) the date the loan or mortgage was
initially endorsed for insurance, whichever rate is the highest, except
that debentures issued pursuant to section 1715k(f), 1715k(h)(7),
1715l(g), 1715x, or 1715z-3 of this title may, at the discretion of the
Secretary, bear interest at the rate in effect on the date they are
issued. The Secretary shall from time to time, with the approval of the
Secretary of the Treasury, establish such interest rate in an amount not
in excess of the annual rate of interest determined by the Secretary of
the Treasury, at the request of the Secretary, by estimating the average
yield to maturity, on the basis of daily closing market bid quotations
or prices during the calendar month next preceding the establishment of
such rate of interest, on all outstanding marketable obligations of the
United States having a maturity date of fifteen years or more from the
first day of such next preceding month, and by adjusting such estimated
average annual yield to the nearest one-eighth of 1 per centum.
(June 27, 1934, ch. 847, title II, Sec. 224, as added Aug. 2, 1954, ch.
649, title I, Sec. 126, 68 Stat. 606; amended Pub. L. 87-70, title VI,
Sec. 612(i), June 30, 1961, 75 Stat. 182; Pub. L. 90-19, Sec. 1(a)(3),
May 25, 1967, 81 Stat. 17; Pub. L. 90-448, title I, Sec. 104(b), Aug. 1,
1968, 82 Stat. 488.)
Amendments
1968--Pub. L. 90-448 included debentures issued pursuant to section
1715z-3 of this title.
1967--Pub. L. 90-19 substituted ``Secretary'' for ``Commissioner''
wherever appearing.
1961--Pub. L. 87-70 changed the date for determination of the rate
of interest for debentures, other than those issued pursuant to section
1715k(f), 1715k(h)(7), 1715l(g), 1715l(g)(4), or 1715x, from the rate in
effect on the date the debentures are issued to the rate in effect on
the date the commitment to insure the loan or mortgage was issued, or
the date the loan or mortgage was endorsed for insurance, or (when there
are two or more insurance endorsements) the date the loan or mortgage
was initially endorsed for insurance, whichever rate is highest.
Section Referred to in Other Sections
This section is referred to in sections 1710, 1713, 1715n, 1748b of
this title.
