{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 203 sorted by section_id", "rows": [["14:14:4.0.1.1.3.0.1.1", 14, "Aeronautics and Space", "II", "A", "203", "PART 203\u2014WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES", "", "", "", "\u00a7 203.1 Scope.", "FAA", "", "", "[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]", "This part requires that certain U.S. and foreign direct air carriers waive the passenger liability limits and certain carrier defenses in the Warsaw Convention in accordance with the provisions of Agreement 18900, dated May 13, 1966, and provides that acceptance of authority for, or operations by the carrier in, air transportation shall be considered to act as such a waiver by that carrier."], ["14:14:4.0.1.1.3.0.1.2", 14, "Aeronautics and Space", "II", "A", "203", "PART 203\u2014WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES", "", "", "", "\u00a7 203.2 Applicability.", "FAA", "", "", "", "This part applies to all direct U.S. and foreign direct air carriers, except for air taxi operators as defined in part 298 of this chapter that (a) are not commuter air carriers, (b) do not participate in interline agreements, and (c) do not engage in foreign air transportation."], ["14:14:4.0.1.1.3.0.1.3", 14, "Aeronautics and Space", "II", "A", "203", "PART 203\u2014WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES", "", "", "", "\u00a7 203.3 Filing requirements for adherence to Montreal Convention.", "FAA", "", "", "[Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]", "All direct U.S. and foreign air carriers shall have and maintain in effect and on file in the Department's Docket Operations Office (DOT-OST-1995-236) on OST Form 4523 a signed counterpart to Agreement 18900, an agreement relating to liability limitations of the Warsaw Convention and Hague Protocol, (the Montreal Agreement), dated May 13, 1966, and/or a signed counterpart of any amendment or replacement to such Agreement that may be approved by the Department and to which the air carrier or foreign air carrier becomes a party. U.S. air taxi operators registering under part 298 of this chapter and Canadian charter air taxi operators registering under part 294 of this chapter may comply with this requirement by filing completed OST Forms 4507 and 4523, respectively, in accordance with the provisions of those parts."], ["14:14:4.0.1.1.3.0.1.4", 14, "Aeronautics and Space", "II", "A", "203", "PART 203\u2014WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES", "", "", "", "\u00a7 203.4 Montreal Agreement as part of airline-passenger contract and conditions of carriage.", "FAA", "", "", "[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by ER-1338, 48 FR 31013, July 6, 1983; Doc. No. 47939, 57 FR 40100, Sept. 2, 1992; Doc. No. DOT-OST-2014-0140, 84 FR 15924, Apr. 16, 2019]", "(a) As required by the Montreal Agreement, carriers that are otherwise generally required to file tariffs shall file with the Department's Pricing and Multilateral Affairs Division a tariff that includes the provisions of the counterpart to Agreement 18900.\n\n(b) As further required by that Agreement, each participating carrier shall include the Agreement's terms as part of its conditions of carriage. The participating carrier shall give each of its passengers the notice required by the Montreal Agreement as provided in \u00a7 221.105 of this chapter.\n\n(c) Participation in the Montreal Agreement, whether by signing the Agreement, filing a signed counterpart to it under \u00a7 203.3, or by operation of law under \u00a7 203.5, shall constitute a special agreement between the carrier and its passengers as a condition of carriage that a liability limit of not less than $75,000 (U.S.) shall apply under Article 22(1) of the Warsaw Convention for passenger injury and death. Such participation also constitutes a waiver of the defense under Article 20(1) of the Convention that the carrier was not negligent."], ["14:14:4.0.1.1.3.0.1.5", 14, "Aeronautics and Space", "II", "A", "203", "PART 203\u2014WAIVER OF WARSAW CONVENTION LIABILITY LIMITS AND DEFENSES", "", "", "", "\u00a7 203.5 Compliance as condition on operations in air transportation.", "FAA", "", "", "[ER-1324, 48 FR 8044, Feb. 25, 1983, as amended by Doc. No. 47939, 57 FR 40100, Sept. 2, 1992]", "It shall be a condition on the authority of all direct U.S. and foreign carriers to operate in air transportation that they have and maintain in effect and on file with the Department a signed counterpart of Agreement 18900, and a tariff (for those carriers otherwise generally required to file tariffs) that includes its provisions, as required by this subpart. Notwithstanding any failure to file that counterpart and such tariff, any such air carrier or foreign air carrier issued license authority (including exemptions) by the Department or operating in air transportation shall be deemed to have agreed to the provisions of Agreement 18900 as fully as if that air carrier or foreign air carrier had in fact filed a properly executed counterpart to that Agreement and tariff."], ["17:17:3.0.1.1.4.1.17.1", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "A", "Subpart A\u2014In General", "", "\u00a7 203.1 Application of the rules of this part.", "SEC", "", "", "", "The rules of this part apply only to investigations conducted by the Commission. They do not apply to adjudicative or rulemaking proceedings."], ["17:17:3.0.1.1.4.1.17.2", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "A", "Subpart A\u2014In General", "", "\u00a7 203.2 Information obtained in investigations and examinations.", "SEC", "", "", "[58 FR 52419, Oct. 8, 1993, as amended at 59 FR 5945, Feb. 9, 1994; 73 FR 32227, June 5, 2008]", "Information or documents obtained by the Commission in the course of any investigation or examination, unless made a matter of public record, shall be deemed non-public, but the Commission approves the practice whereby officials of the Divisions of Enforcement, Corporation Finance, Market Regulation and Investment Management and the Office of International Affairs at the level of Assistant Director or higher, and officials in Regional Offices at the level of Assistant Regional Director or higher, may engage in and may authorize members of the Commission's staff to engage in discussions with persons identified in \u00a7 240.24c-1(b) of this chapter concerning information obtained in individual investigations or examinations, including formal investigations conducted pursuant to Commission order."], ["17:17:3.0.1.1.4.1.17.3", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "A", "Subpart A\u2014In General", "", "\u00a7 203.3 Suspension and disbarment.", "SEC", "", "", "[29 FR 3620, Mar. 21, 1964, as amended at 60 FR 32823, June 23, 1995]", "The provisions of \u00a7 201.102(e) of this chapter (Rule 102(e) of the Commission's rules of practice) are hereby made specifically applicable to all investigations."], ["17:17:3.0.1.1.4.2.17.1", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "B", "Subpart B\u2014Formal Investigative Proceedings", "", "\u00a7 203.4 Applicability of \u00a7\u00a7 203.4 through 203.8.", "SEC", "", "", "", "(a) Sections 203.4 through 203.8 shall be applicable to a witness who is sworn in a proceeding pursuant to a Commission order for investigation or examination, such proceeding being hereinafter referred to as a  formal investigative proceeding.\n\n(b) Formal investigative proceedings may be held before the Commission, before one or more of its members, or before any officer designated by it for the purpose of taking testimony of witnesses and received other evidence. The term  officer conducting the investigation  shall mean any of the foregoing."], ["17:17:3.0.1.1.4.2.17.2", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "B", "Subpart B\u2014Formal Investigative Proceedings", "", "\u00a7 203.5 Non-public formal investigative proceedings.", "SEC", "", "", "", "Unless otherwise ordered by the Commission, all formal investigative proceedings shall be non-public."], ["17:17:3.0.1.1.4.2.17.3", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "B", "Subpart B\u2014Formal Investigative Proceedings", "", "\u00a7 203.6 Transcripts.", "SEC", "", "", "[37 FR 25166, Nov. 28, 1972]", "Transcripts, if any, of formal investigative proceedings shall be recorded solely by the official reporter, or by any other person or means designated by the officer conducting the investigation. A person who has submitted documentary evidence or testimony in a formal investigative proceeding shall be entitled, upon written request, to procure a copy of his documentary evidence or a transcript of his testimony on payment of the appropriate fees:  Provided, however,  That in a nonpublic formal investigative proceeding the Commission may for good cause deny such request. In any event, any witness, upon proper identification, shall have the right to inspect the official transcript of the witness' own testimony."], ["17:17:3.0.1.1.4.2.17.4", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "B", "Subpart B\u2014Formal Investigative Proceedings", "", "\u00a7 203.7 Rights of witnesses.", "SEC", "", "", "[29 FR 3620, Mar. 21, 1964, as amended at 52 FR 12148, Apr. 15, 1987; 59 FR 5945, Feb. 9, 1994; 60 FR 32823, June 23, 1995; 73 FR 32227, June 5, 2008]", "(a) Any person who is compelled or requested to furnish documentary evidence or testimony at a formal investigative proceeding shall, upon request, be shown the Commission's order of investigation. Copies of formal orders of investigation shall not be furnished, for their retention, to such persons requesting the same except with the express approval of officials in the Regional Offices at the level of Assistant Regional Director or higher, or officials in the Division or Divisions conducting or supervising the investigation at the level of Assistant Director or higher. Such approval shall not be given unless the person granting such approval, in his or her discretion, is satisfied that there exist reasons consistent both with the protection of privacy of persons involved in the investigation and with the unimpeded conduct of the investigation.\n\n(b) Any person compelled to appear, or who appears by request or permission of the Commission, in person at a formal investigative proceeding may be accompanied, represented and advised by counsel, as defined in \u00a7 201.101(a) of this chapter (Rule 101(a) of the Commission's rules of practice):  Provided,  however, That all witnesses shall be sequestered, and unless permitted in the discretion of the officer conducting the investigation no witness or the counsel accompanying any such witness shall be permitted to be present during the examination of any other witness called in such proceeding.\n\n(c) The right to be accompanied, represented and advised by counsel shall mean the right of a person testifying to have an attorney present with him during any formal investigative proceeding and to have this attorney (1) advise such person before, during and after the conclusion of such examination, (2) question such person briefly at the conclusion of the examination to clarify any of the answers such person has given, and (3) make summary notes during such examination solely for the use of such person.\n\n(d) Unless otherwise ordered by the Commission, in any public formal investigative proceeding, if the record shall contain implications of wrongdoing by any person, such person shall have the right to appear on the record; and in addition to the rights afforded other witnesses hereby, he shall have a reasonable opportunity of cross-examination and production of rebuttal testimony or documentary evidence.  Reasonable  shall mean permitting persons as full an opportunity to assert their position as may be granted consistent with administrative efficiency and with avoidance of undue delay. The determination of reasonableness in each instance shall be made in the discretion of the officer conducting the investigation.\n\n(e) The officer conducting the investigation may report to the Commission any instances where any witness or counsel has been guilty of dilatory, obstructionist or contumacious conduct during the course of an investigation or any other instance of violation of these rules. The Commission will thereupon take such further action as the circumstances may warrant, including suspension or disbarment of counsel from further appearance or practice before it, in accordance with \u00a7 201.102(e) of this chapter (Rule 102(e) of the Commission's rules of practice), or exclusion from further participation in the particular investigation."], ["17:17:3.0.1.1.4.2.17.5", 17, "Commodity and Securities Exchanges", "II", "", "203", "PART 203\u2014RULES RELATING TO INVESTIGATIONS", "B", "Subpart B\u2014Formal Investigative Proceedings", "", "\u00a7 203.8 Service of subpoenas.", "SEC", "", "", "[29 FR 3620, Mar. 21, 1964, as amended at 60 FR 32823, June 23, 1995]", "Service of subpoenas issued in formal investigative proceedings shall be effected in the manner prescribed by Rule 232(c) of the Commission's Rules of Practice, \u00a7 201.232(c) of this chapter."], ["20:20:1.0.2.8.4.0.155.1", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.1 Statutory provisions.", "SSA", "", "", "", "The term \u201cemployee\u201d means (1) any individual in the service of one or more employers for compensation, (2) any individual who is in the employment relation to one or more employers, and (3) an employee representative. The term \u201cemployee\u201d shall include an employee of a local lodge or division defined as an employer in sub-section (a) only if he was in the service of or in the employment relation to a carrier on or after the enactment date. The term \u201cemployee representative\u201d means any officer or official representative of a railway labor organization other than a labor organization included in the term \u201cemployer\u201d as defined in section 1(a) who before or after the enactment date was in the service of an employer as defined in section 1(a) and who is duly authorized and designated to represent employees in accordance with the Railway Labor Act, as amended, and any individual who is regularly assigned to or regularly employed by such officer or official representative in connection with the duties of his office.\n\nThe term \u201cemployee\u201d shall not include any individual while such individual is engaged in the physical operations consisting of the mining of coal, the preparation of coal, the handling (other than movement by rail with standard railroad locomotives) of coal not beyond the mine tipple, or the loading of coal at the tipple.\n\nAn individual is in the service of an employer whether his service is rendered within or without the United States if (i) he is subject to the continuing authority of the employer to supervise and direct the manner of rendition of his service, or he is rendering professional or technical services and is integrated into the staff of the employer, or he is rendering, on the property used in the employer's operations, other personal services the rendition of which is integrated into the employer's operations, and (ii) he renders such service for compensation, or a method of computing the monthly compensation for such service is provided in section 3(c):  Provided, however,  That an individual shall be deemed to be in the service of an employer, other than a local lodge or division or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the United States only when he is rendering service to it in the United States; and an individual shall be deemed to be in the service of such a local lodge or division only if (1) all, or substantially all, the individuals constituting its membership are employees of an employer conducting the principal part of its business in the United States; or (2) the headquarters of such local lodge or division is located in the United States; and an individual shall be deemed to be in the service of such a general committee only if (1) he is representing a local lodge or division described in clauses (1) or (2) immediately above; or (2) all, or substantially all, the individuals represented by it are employees of an employer conducting the principal part of its business in the United States; or (3) he acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer, but in such case if his office or headquarters is not located in the United States and the individuals represented by such general committee are employees of an employer not conducting the principal part of its business in the United States, only such proportion of the remuneration for such service shall be regarded as compensation as the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, unless such mileage formula is inapplicable in which case the Board may prescribe such other formula as it finds to be equitable, and if the application of such mileage formula, or such other formula as the Board may prescribe, would result in the compensation of the individual being less than 10 per centum of his remuneration for such service no part of such remuneration shall be regarded as compensation:  Provided further,  That an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required under the laws applicable in the place where the service is rendered to employ therein, in whole or in part, citizens or residents thereof; and the laws applicable on August 29, 1935, in the place where the service is rendered shall be deemed to have been applicable there at all times prior to that date."], ["20:20:1.0.2.8.4.0.155.2", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.2 General definition of employee.", "SSA", "", "", "", "An individual shall be an employee whenever (a) he is engaged in performing compensated service for an employer or (b) he is in an employment relation to an employer, or (c) he is an employee representative, or (d) he is an officer of an employer."], ["20:20:1.0.2.8.4.0.155.3", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.3 When an individual is performing service for an employer.", "SSA", "", "", "", "(a) The legal relationship of employer and employee is defined by the act. Thus, an individual is performing service for an employer if:\n\n(1) He is subject to the right of an employer, directly or through another, to supervise and direct the manner in which his services are rendered; or\n\n(2) In rendering professional or technical services he is integrated into the staff of the employer; or\n\n(3) He is rendering personal services on the property used in the operations of the employer and the services are integrated into those operations.\n\n(b) The provisions in paragraph (a) of this section are controlling irrespective of whether the service is performed on a part-time basis, and, with respect to paragraph (a)(1) of this section, irrespective of whether the right to supervise and direct is exercised."], ["20:20:1.0.2.8.4.0.155.4", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.4 When service is compensated.", "SSA", "", "", "", "Service shall be \u201ccompensated\u201d if it is performed for compensation, as that term is defined in part 222 of this chapter:  Provided, however,  That service prior to September 1941 of a station employee whose duties consisted of or included the carrying of passengers' hand baggage and otherwise assisting passengers at passenger stations shall be considered compensated service although the individual's remuneration was, in whole or in part, in the form of tips. (For the effect of compensation of less than $3.00 per month earned after December 31, 1936, for service to a local lodge or division of a railway-labor-organization employer, see part 222 of this chapter.)"], ["20:20:1.0.2.8.4.0.155.5", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.5 Service outside the United States.", "SSA", "", "", "", "(a) An individual shall not be an employee by reason of rendition of service to an employer other than a local lodge or division, or a general committee of a railway-labor-organization employer, not conducting the principal part of its business in the United States except while engaged in performing service for it in the United States.\n\n(b) An individual shall not be an employee by reason of rendition of service to a local lodge or division, unless:\n\n(1) All, or substantially all the individuals constituting the membership of such local lodge or division are employees of an employer conducting the principal part of its business in the United States; or\n\n(2) The headquarters of such local lodge or division is located in the United States.\n\n(c) An individual shall not be an employee by reason of rendition of service to a general committee of a railway-labor-organization employer, unless:\n\n(1) Such individual is representing a local lodge or division, all or substantially all of whose members are employees of an employer conducting the principal part of its business in the United States, or the headquarters of such local lodge or division is located in the United States; or\n\n(2) All or substantially all the individuals represented by such a general committee are employees of an employer conducting the principal part of its business in the United States; or\n\n(3) Such an individual acts in the capacity of a general chairman or an assistant general chairman of a general committee which represents individuals rendering service in the United States to an employer;  Provided, however,  That if the office or headquarters of such general chairman or assistant general chairman is not located within the United States he will not be an employee unless 10 percent or more of his remuneration for service as general chairman or assistant general chairman is creditable as compensation, the creditable compensation to be computed according to the proportion which the mileage in the United States under the jurisdiction of such general committee bears to the total mileage under its jurisdiction, or according to a formula to be prescribed by the Board if the mileage formula is inapplicable."], ["20:20:1.0.2.8.4.0.155.6", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.6 Age, citizenship, and other factors.", "SSA", "", "", "[Board Order 55-89, 20 FR 3706, May 27, 1955]", "The age, citizenship, or residence of an individual, or his designation as other than an \u201cemployee\u201d shall not be controlling in determining whether or not such individual is an employee within the meaning of the act, except that an individual not a citizen or resident of the United States shall not be deemed to be in the service of an employer when rendering service outside the United States to an employer who is required by the laws of the place where the service is performed to employ, in whole or in part, citizens or residents thereof and the laws in force therein on August 29, 1935, shall be deemed to have been in force at all times prior to that date."], ["20:20:1.0.2.8.4.0.155.7", 20, "Employees' Benefits", "II", "B", "203", "PART 203\u2014EMPLOYEES UNDER THE ACT", "", "", "", "\u00a7 203.7 Local lodge employee.", "SSA", "", "", "", "An individual who, prior to January 1, 1937, shall have rendered service to a local lodge or division of a railway labor organization included as an employer under section 1(a) of the act, shall be an employee with respect to such service to such local lodge or division only if he was on August 29, 1935, in the service of or in an employment relation to an employer which was a carrier. An individual who, subsequent to December 31, 1936, shall have rendered service to a local lodge or division of a railway labor organization included as an employer under section 1(a) of the act, shall be an employee with respect to such service to such local lodge or division only with respect to such service as was preceded by service, or an employment relation, on or after August 29, 1935, to an employer which was a carrier. (For the effect of compensation less than $3.00 per month earned after December 31, 1936, for service to a local lodge or division of a railway-labor-organization employer, see part 222 of this chapter.)"], ["21:21:4.0.1.1.4.1.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "A", "Subpart A\u2014General Provisions", "", "\u00a7 203.1 Scope.", "FDA", "", "", "", "This part sets forth procedures and requirements pertaining to the reimportation and wholesale distribution of prescription drugs, including both bulk drug substances and finished dosage forms; the sale, purchase, or trade of (or the offer to sell, purchase, or trade) prescription drugs, including bulk drug substances, that were purchased by hospitals or health care entities, or donated to charitable organizations; and the distribution of prescription drug samples. Blood and blood components intended for transfusion are excluded from the restrictions in and the requirements of the Prescription Drug Marketing Act of 1987 and the Prescription Drug Amendments of 1992."], ["21:21:4.0.1.1.4.1.1.2", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "A", "Subpart A\u2014General Provisions", "", "\u00a7 203.2 Purpose.", "FDA", "", "", "", "The purpose of this part is to implement the Prescription Drug Marketing Act of 1987 and the Prescription Drug Amendments of 1992, except for those sections relating to State licensing of wholesale distributors (see part 205 of this chapter), to protect the public health, and to protect the public against drug diversion by establishing procedures, requirements, and minimum standards for the distribution of prescription drugs and prescription drug samples."], ["21:21:4.0.1.1.4.1.1.3", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "A", "Subpart A\u2014General Provisions", "", "\u00a7 203.3 Definitions.", "FDA", "", "", "[64 FR 67756, Dec. 3, 1999, as amended at 73 FR 59500, Oct. 9, 2008]", "(a)  The act  means the Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 301  et seq. ).\n\n(b)  Authorized distributor of record  means a distributor with whom a manufacturer has established an ongoing relationship to distribute such manufacturer's products.\n\n(c)  Blood  means whole blood collected from a single donor and processed either for transfusion or further manufacturing.\n\n(d)  Blood component  means that part of a single-donor unit of blood separated by physical or mechanical means.\n\n(e)  Bulk drug substance  means any substance that is represented for use in a drug and that, when used in the manufacturing, processing, or packaging of a drug, becomes an active ingredient or a finished dosage form of the drug, but the term does not include intermediates used in the synthesis of such substances.\n\n(f)  Charitable institution  or  charitable organization  means a nonprofit hospital, health care entity, organization, institution, foundation, association, or corporation that has been granted an exemption under section 501(c)(3) of the Internal Revenue Code of 1954, as amended.\n\n(g)  Common control  means the power to direct or cause the direction of the management and policies of a person or an organization, whether by ownership of stock, voting rights, by contract, or otherwise.\n\n(h)  Distribute  means to sell, offer to sell, deliver, or offer to deliver a drug to a recipient, except that the term \u201cdistribute\u201d does not include:\n\n(1) Delivering or offering to deliver a drug by a common carrier in the usual course of business as a common carrier; or\n\n(2) Providing of a drug sample to a patient by:\n\n(i) A practitioner licensed to prescribe such drug;\n\n(ii) A health care professional acting at the direction and under the supervision of such a practitioner; or\n\n(iii) The pharmacy of a hospital or of another health care entity that is acting at the direction of such a practitioner and that received such sample in accordance with the act and regulations.\n\n(i)  Drug sample  means a unit of a prescription drug that is not intended to be sold and is intended to promote the sale of the drug.\n\n(j)  Drug coupon  means a form that may be redeemed, at no cost or at reduced cost, for a drug that is prescribed in accordance with section 503(b) of the act.\n\n(k)  Electronic record  means any combination of text, graphics, data, audio, pictorial, or other information representation in digital form that is created, modified, maintained, archived, retrieved, or distributed by a computer system.\n\n(l)  Electronic signature  means any computer data compilation of any symbol or series of symbols executed, adopted, or authorized by an individual to be the legally binding equivalent of the individual's handwritten signature.\n\n(m)  Emergency medical reasons  include, but are not limited to, transfers of a prescription drug between health care entities or from a health care entity to a retail pharmacy to alleviate a temporary shortage of a prescription drug arising from delays in or interruption of regular distribution schedules; sales to nearby emergency medical services, i.e., ambulance companies and fire fighting organizations in the same State or same marketing or service area, or nearby licensed practitioners, of drugs for use in the treatment of acutely ill or injured persons; provision of minimal emergency supplies of drugs to nearby nursing homes for use in emergencies or during hours of the day when necessary drugs cannot be obtained; and transfers of prescription drugs by a retail pharmacy to another retail pharmacy to alleviate a temporary shortage; but do not include regular and systematic sales to licensed practitioners of prescription drugs that will be used for routine office procedures.\n\n(n)  FDA  means the U.S. Food and Drug Administration.\n\n(o)  Group purchasing organization  means any entity established, maintained, and operated for the purchase of prescription drugs for distribution exclusively to its members with such membership consisting solely of hospitals and health care entities bound by written contract with the entity.\n\n(p)  Handwritten signature  means the scripted name or legal mark of an individual handwritten by that individual and executed or adopted with the present intention to authenticate a writing in a permanent form. The act of signing with a writing or marking instrument such as a pen or stylus is preserved. The scripted name or legal mark, while conventionally applied to paper, may also be applied to other devices that capture the name or mark.\n\n(q)  Health care entity  means any person that provides diagnostic, medical, surgical, or dental treatment, or chronic or rehabilitative care, but does not include any retail pharmacy or any wholesale distributor. Except as provided in \u00a7 203.22(h) and (i), a person cannot simultaneously be a \u201chealth care entity\u201d and a retail pharmacy or wholesale distributor.\n\n(r)  Licensed practitioner  means any person licensed or authorized by State law to prescribe drugs.\n\n(s)  Manufacturer  means any person who is a manufacturer as defined by \u00a7 201.1 of this chapter.\n\n(t)  Nonprofit affiliate  means any not-for-profit organization that is either associated with or a subsidiary of a charitable organization as defined in section 501(c)(3) of the Internal Revenue Code of 1954.\n\n(u)  Ongoing relationship  means an association that exists when a manufacturer and a distributor enter into a written agreement under which the distributor is authorized to distribute the manufacturer's products for a period of time or for a number of shipments. If the distributor is not authorized to distribute a manufacturer's entire product line, the agreement must identify the specific drug products that the distributor is authorized to distribute.\n\n(v)  PDA  means the Prescription Drug Amendments of 1992.\n\n(w)  PDMA  means the Prescription Drug Marketing Act of 1987.\n\n(x)  Person  includes any individual, partnership, corporation, or association.\n\n(y)  Prescription drug  means any drug (including any biological product, except for blood and blood components intended for transfusion or biological products that are also medical devices) required by Federal law (including Federal regulation) to be dispensed only by a prescription, including finished dosage forms and bulk drug substances subject to section 503(b) of the act.\n\n(z)  Representative  means an employee or agent of a drug manufacturer or distributor who promotes the sale of prescription drugs to licensed practitioners and who may solicit or receive written requests for the delivery of drug samples. A detailer is a representative.\n\n(aa)  Sample unit  means a packet, card, blister pack, bottle, container, or other single package comprised of one or more dosage units of a prescription drug sample, intended by the manufacturer or distributor to be provided by a licensed practitioner to a patient in an unbroken or unopened condition.\n\n(bb)  Unauthorized distributor  means a distributor who does not have an ongoing relationship with a manufacturer to sell or distribute its products.\n\n(cc)  Wholesale distribution  means distribution of prescription drugs to persons other than a consumer or patient, but does not include:\n\n(1) Intracompany sales;\n\n(2) The purchase or other acquisition by a hospital or other health care entity that is a member of a group purchasing organization of a drug for its own use from the group purchasing organization or from other hospitals or health care entities that are members of such organizations;\n\n(3) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug by a charitable organization to a nonprofit affiliate of the organization to the extent otherwise permitted by law;\n\n(4) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug among hospitals or other health care entities that are under common control;\n\n(5) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug for emergency medical reasons;\n\n(6) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug under a prescription executed in accordance with section 503(b) of the act;\n\n(7) The distribution of drug samples by manufacturers' and authorized distributors' representatives;\n\n(8) The sale, purchase, or trade of blood or blood components intended for transfusion;\n\n(9) Drug returns, when conducted by a hospital, health care entity, or charitable institution in accordance with \u00a7 203.23; or\n\n(10) The sale of minimal quantities of drugs by retail pharmacies to licensed practitioners for office use.\n\n(dd)  Wholesale distributor  means any person engaged in wholesale distribution of prescription drugs, including, but not limited to, manufacturers; repackers; own-label distributors; private-label distributors; jobbers; brokers; warehouses, including manufacturers' and distributors' warehouses, chain drug warehouses, and wholesale drug warehouses; independent wholesale drug traders; and retail pharmacies that conduct wholesale distributions."], ["21:21:4.0.1.1.4.2.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "B", "Subpart B\u2014Reimportation", "", "\u00a7 203.10 Restrictions on reimportation.", "FDA", "", "", "", "No prescription drug or drug composed wholly or partly of insulin that was manufactured in a State and exported from the United States may be reimported by anyone other than its manufacturer, except that FDA may grant permission to a person other than the manufacturer to reimport a prescription drug or insulin-containing drug if it determines that such reimportation is required for emergency medical care."], ["21:21:4.0.1.1.4.2.1.2", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "B", "Subpart B\u2014Reimportation", "", "\u00a7 203.11 Applications for reimportation to provide emergency medical care.", "FDA", "", "", "[64 FR 67756, Dec. 3, 1999, as amended at 69 FR 17292, Apr. 2, 2004]", "(a) Applications for reimportation for emergency medical care shall be submitted to the director of the FDA District Office in the district where reimportation is sought (addresses found in part 5, subpart M of this chapter).\n\n(b) Applications for reimportation to provide emergency medical care shall be reviewed and approved or disapproved by each district office."], ["21:21:4.0.1.1.4.2.1.3", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "B", "Subpart B\u2014Reimportation", "", "\u00a7 203.12 An appeal from an adverse decision by the district office.", "FDA", "", "", "[80 FR 18090, Apr. 3, 2015]", "An appeal from an adverse decision by the district office involving insulin-containing drugs or human prescription drugs or biological products regulated by the Center for Drug Evaluation and Research may be made to the Office of Compliance, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002. An appeal from an adverse decision by the district office involving human prescription biological products regulated by the Center for Biologics Evaluation and Research may be made to the Food and Drug Administration, Center for Biologics Evaluation and Research, Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993-0002."], ["21:21:4.0.1.1.4.3.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "C", "Subpart C\u2014Sales Restrictions", "", "\u00a7 203.20 Sales restrictions.", "FDA", "", "", "", "Except as provided in \u00a7 203.22 or \u00a7 203.23, no person may sell, purchase, or trade, or offer to sell, purchase, or trade any prescription drug that was:\n\n(a) Purchased by a public or private hospital or other health care entity; or\n\n(b) Donated or supplied at a reduced price to a charitable organization."], ["21:21:4.0.1.1.4.3.1.2", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "C", "Subpart C\u2014Sales Restrictions", "", "\u00a7 203.22 Exclusions.", "FDA", "", "", "[64 FR 67756, Dec. 3, 1999, as amended at 73 FR 59500, Oct. 9, 2008]", "Section 203.20 does not apply to:\n\n(a) The purchase or other acquisition of a drug for its own use by a hospital or other health care entity that is a member of a group purchasing organization from the group purchasing organization or from other hospitals or health care entities that are members of the organization.\n\n(b) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug by a charitable organization to a nonprofit affiliate of the organization to the extent otherwise permitted by law.\n\n(c) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug among hospitals or other health care entities that are under common control.\n\n(d) The sale, purchase, or trade of a drug or an offer to sell, purchase, or trade a drug for emergency medical reasons.\n\n(e) The sale, purchase, or trade of a drug, an offer to sell, purchase, or trade a drug, or the dispensing of a drug under a valid prescription.\n\n(f) The sale, purchase, or trade of a drug or the offer to sell, purchase, or trade a drug by hospitals or health care entities owned or operated by Federal, State, or local governmental units to other hospitals or health care entities owned or operated by Federal, State, or local governmental units.\n\n(g) The sale, purchase, or trade of, or the offer to sell, purchase, or trade blood or blood components intended for transfusion.\n\n(h) The sale, purchase, or trade of, or the offer to sell, purchase, or trade, by a registered blood establishment that qualifies as a health care entity any:\n\n(1) Drug indicated for a bleeding or clotting disorder, or anemia;\n\n(2) Blood collection container approved under section 505 of the act; or\n\n(3) Drug that is a blood derivative (or a recombinant or synthetic form of a blood derivative); as long as all of the health care services that the establishment provides are related to its activities as a registered blood establishment or the health care services consist of collecting, processing, storing, or administering human hematopoietic stem/progenitor cells or performing diagnostic testing of specimens provided that these specimens are tested together with specimens undergoing routine donor testing. Blood establishments relying on the exclusion in this paragraph must satisfy all other requirements of the act and this part applicable to a wholesale distributor or retail pharmacy.\n\n(i) The sale, purchase, or trade of, or the offer to sell, purchase, or trade, by a comprehensive hemophilia diagnostic treatment center that is receiving a grant under section 501(a)(2) of the Social Security Act and that qualifies as a health care entity, any drug indicated for a bleeding or clotting disorder, or anemia, or any drug that is a blood derivative (or a recombinant or synthetic form of a blood derivative). Comprehensive hemophilia diagnostic treatment centers relying on the exclusion in this paragraph must satisfy all other requirements of the act and this part applicable to a wholesale distributor or retail pharmacy."], ["21:21:4.0.1.1.4.3.1.3", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "C", "Subpart C\u2014Sales Restrictions", "", "\u00a7 203.23 Returns.", "FDA", "", "", "", "The return of a prescription drug purchased by a hospital or health care entity or acquired at a reduced price by or donated to a charitable institution is exempt from the prohibitions in \u00a7 203.20, provided that:\n\n(a) The hospital, health care entity, or charitable institution documents the return by filling out a credit memo specifying:\n\n(1) The name and address of the hospital, health care entity, or charitable institution;\n\n(2) The name and address of the manufacturer or wholesale distributor from which it was acquired;\n\n(3) The product name and lot or control number;\n\n(4) The quantity returned; and\n\n(5) The date of the return.\n\n(b) The hospital, health care entity, or charitable institution forwards a copy of each credit memo to the manufacturer and retains a copy of each credit memo for its records;\n\n(c) Any drugs returned to a manufacturer or wholesale distributor are kept under proper conditions for storage, handling, and shipping, and written documentation showing that proper conditions were maintained is provided to the manufacturer or wholesale distributor to which the drugs are returned."], ["21:21:4.0.1.1.4.4.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.30 Sample distribution by mail or common carrier.", "FDA", "", "", "", "(a)  Requirements for drug sample distribution by mail or common carrier.  A manufacturer or authorized distributor of record may distribute a drug sample to a practitioner licensed to prescribe the drug that is to be sampled or, at the written request of a licensed practitioner, to the pharmacy of a hospital or other health care entity, by mail or common carrier, provided that:\n\n(1) The licensed practitioner executes and submits a written request to the manufacturer or authorized distributor of record, as set forth in paragraph (b) of this section, before the delivery of the drug sample;\n\n(2) The manufacturer or authorized distributor of record verifies with the appropriate State authority that the practitioner requesting the drug sample is licensed or authorized under State law to prescribe the drug product;\n\n(3) The recipient executes a written receipt, as set forth in paragraph (c) of this section, when the drug sample is delivered; and\n\n(4) The receipt is returned to the manufacturer or distributor from which the drug sample was received.\n\n(b)  Contents of the written request form for delivery of samples by mail or common carrier.  (1) A written request for a drug sample to be delivered by mail or common carrier to a licensed practitioner is required to contain the following:\n\n(i) The name, address, professional title, and signature of the practitioner making the request;\n\n(ii) The practitioner's State license or authorization number or, where a scheduled drug product is requested, the practitioner's Drug Enforcement Administration number.\n\n(iii) The proprietary or established name and the strength of the drug sample requested;\n\n(iv) The quantity requested;\n\n(v) The name of the manufacturer and the authorized distributor of record, if the drug sample is requested from an authorized distributor of record; and\n\n(vi) The date of the request.\n\n(2) A written request for a drug sample to be delivered by mail or common carrier to the pharmacy of a hospital or other health care entity is required to contain, in addition to all of the information in paragraph (b)(l) of this section, the name and address of the pharmacy of the hospital or other health care entity to which the drug sample is to be delivered.\n\n(c)  Contents of the receipt to be completed upon delivery of a drug sample.  The receipt is to be on a form designated by the manufacturer or distributor, and is required to contain the following:\n\n(1) If the drug sample is delivered to the licensed practitioner who requested it, the receipt is required to contain the name, address, professional title, and signature of the practitioner or the practitioner's designee who acknowledges delivery of the drug sample; the proprietary or established name and strength of the drug sample and the quantity of the drug sample delivered; and the date of the delivery.\n\n(2) If the drug sample is delivered to the pharmacy of a hospital or other health care entity at the request of a licensed practitioner, the receipt is required to contain the name and address of the requesting licensed practitioner; the name and address of the hospital or health care entity pharmacy designated to receive the drug sample; the name, address, professional title, and signature of the person acknowledging delivery of the drug sample; the proprietary or established name and strength of the drug sample; the quantity of the drug sample delivered; and the date of the delivery."], ["21:21:4.0.1.1.4.4.1.10", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.39 Donation of drug samples to charitable institutions.", "FDA", "", "", "", "A charitable institution may receive a drug sample donated by a licensed practitioner or another charitable institution for dispensing to a patient of the charitable institution, or donate a drug sample to another charitable institution for dispensing to its patients, provided that the following requirements are met:\n\n(a) A drug sample donated by a licensed practitioner or donating charitable institution shall be received by a charitable institution in its original, unopened packaging with its labeling intact.\n\n(b) Delivery of a donated drug sample to a recipient charitable institution shall be completed by mail or common carrier, collection by an authorized agent or employee of the recipient charitable institution, or personal delivery by a licensed practitioner or an agent or employee of the donating charitable institution. Donated drug samples shall be placed by the donor in a sealed carton for delivery to or collection by the recipient charitable institution.\n\n(c) A donated drug sample shall not be dispensed to a patient or be distributed to another charitable institution until it has been examined by a licensed practitioner or registered pharmacist at the recipient charitable institution to confirm that the donation record accurately describes the drug sample delivered and that no drug sample is adulterated or misbranded for any reason, including, but not limited to, the following:\n\n(1) The drug sample is out of date;\n\n(2) The labeling has become mutilated, obscured, or detached from the drug sample packaging;\n\n(3) The drug sample shows evidence of having been stored or shipped under conditions that might adversely affect its stability, integrity, or effectiveness;\n\n(4) The drug sample is for a prescription drug product that has been recalled or is no longer marketed; or\n\n(5) The drug sample is otherwise possibly contaminated, deteriorated, or adulterated.\n\n(d) The recipient charitable institution shall dispose of any drug sample found to be unsuitable by destroying it or by returning it to the manufacturer. The charitable institution shall maintain complete records of the disposition of all destroyed or returned drug samples.\n\n(e) The recipient charitable institution shall prepare at the time of collection or delivery of a drug sample a complete and accurate donation record, a copy of which shall be retained by the recipient charitable institution for at least 3 years, containing the following information:\n\n(1) The name, address, and telephone number of the licensed practitioner (or donating charitable institution);\n\n(2) The manufacturer, brand name, quantity, and lot or control number of the drug sample donated; and\n\n(3) The date of the donation.\n\n(f) Each recipient charitable institution shall maintain complete and accurate records of donation, receipt, inspection, inventory, dispensing, redistribution, destruction, and returns sufficient for complete accountability and auditing of drug sample stocks.\n\n(g) Each recipient charitable institution shall conduct, at least annually, an inventory of prescription drug sample stocks and shall prepare a report reconciling the results of each inventory with the most recent prior inventory. Drug sample inventory discrepancies and reconciliation problems shall be investigated by the charitable institution and reported to FDA.\n\n(h) A recipient charitable institution shall store drug samples under conditions that will maintain the sample's stability, integrity, and effectiveness, and will ensure that the drug samples will be free of contamination, deterioration, and adulteration.\n\n(i) A charitable institution shall notify FDA within 5 working days of becoming aware of a significant loss or known theft of prescription drug samples."], ["21:21:4.0.1.1.4.4.1.2", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.31 Sample distribution by means other than mail or common carrier (direct delivery by a representative or detailer).", "FDA", "", "", "", "(a)  Requirements for drug sample distribution by means other than mail or common carrier.  A manufacturer or authorized distributor of record may distribute by means other than mail or common carrier, by a representative or detailer, a drug sample to a practitioner licensed to prescribe the drug to be sampled or, at the written request of such a licensed practitioner, to the pharmacy of a hospital or other health care entity, provided that:\n\n(1) The manufacturer or authorized distributor of record receives from the licensed practitioner a written request signed by the licensed practitioner before the delivery of the drug sample;\n\n(2) The manufacturer or authorized distributor of record verifies with the appropriate State authority that the practitioner requesting the drug sample is licensed or authorized under State law to prescribe the drug product;\n\n(3) A receipt is signed by the recipient, as set forth in paragraph (c) of this section, when the drug sample is delivered;\n\n(4) The receipt is returned to the manufacturer or distributor; and\n\n(5) The requirements of paragraphs (d) through (e) of this section are met.\n\n(b)  Contents of the written request forms for delivery of samples by a representative.  (1) A written request for delivery of a drug sample by a representative to a licensed practitioner is required to contain the following:\n\n(i) The name, address, professional title, and signature of the practitioner making the request;\n\n(ii) The practitioner's State license or authorization number, or, where a scheduled drug product is requested, the practitioner's Drug Enforcement Administration number;\n\n(iii) The proprietary or established name and the strength of the drug sample requested;\n\n(iv) The quantity requested;\n\n(v) The name of the manufacturer and the authorized distributor of record, if the drug sample is requested from an authorized distributor of record; and\n\n(vi) The date of the request.\n\n(2) A written request for delivery of a drug sample by a representative to the pharmacy of a hospital or other health care entity is required to contain, in addition to all of the information in paragraph (b) of this section, the name and address of the pharmacy of the hospital or other health care entity to which the drug sample is to be delivered.\n\n(c)  Contents of the receipt to be completed upon delivery of a drug sample.  The receipt is to be on a form designated by the manufacturer or distributor, and is required to contain the following:\n\n(1) If the drug sample is received at the address of the licensed practitioner who requested it, the receipt is required to contain the name, address, professional title, and signature of the practitioner or the practitioner's designee who acknowledges delivery of the drug sample; the proprietary or established name and strength of the drug sample; the quantity of the drug sample delivered; and the date of the delivery.\n\n(2) If the drug sample is received by the pharmacy of a hospital or other health care entity at the request of a licensed practitioner, the receipt is required to contain the name and address of the requesting licensed practitioner; the name and address of the hospital or health care entity pharmacy designated to receive the drug sample; the name, address, professional title, and signature of the person acknowledging delivery of the drug sample; the proprietary or established name and strength of the drug sample; the quantity of the drug sample delivered; and the date of the delivery.\n\n(d)  Inventory and reconciliation of drug samples of manufacturers' and distributors' representatives.  Each drug manufacturer or authorized distributor of record that distributes drug samples by means of representatives shall conduct, at least annually, a complete and accurate physical inventory of all drug samples. All drug samples in the possession or control of each manufacturer's and distributor's representatives are required to be inventoried and the results of the inventory are required to be recorded in an inventory record, as specified in paragraph (d)(1) of this section. In addition, manufacturers and distributors shall reconcile the results of the physical inventory with the most recently completed prior physical inventory and create a report documenting the reconciliation process, as specified in paragraph (d)(2) of this section.\n\n(1) The inventory record is required to identify all drug samples in a representative's stock by the proprietary or established name, dosage strength, and number of units.\n\n(2) The reconciliation report is required to include:\n\n(i) The inventory record for the most recently completed prior inventory;\n\n(ii) A record of each drug sample shipment received since the most recently completed prior inventory, including the sender and date of the shipment, and the proprietary or established name, dosage strength, and number of sample units received;\n\n(iii) A record of drug sample distributions since the most recently completed inventory showing the name and address of each recipient of each sample unit shipped, the date of the shipment, and the proprietary or established name, dosage strength, and number of sample units shipped. For the purposes of this paragraph and paragraph (d)(2)(v) of this section, \u201cdistributions\u201d includes distributions to health care practitioners or designated hospital or health care entity pharmacies, transfers or exchanges with other firm representatives, returns to the manufacturer or authorized distributor, destruction of drug samples by a sales representative, and other types of drug sample dispositions. The specific type of distribution must be specified in the record;\n\n(iv) A record of drug sample thefts or significant losses reported by the representative since the most recently completed prior inventory, including the approximate date of the occurrence and the proprietary or established name, dosage strength, and number of sample units stolen or lost; and\n\n(v) A record summarizing the information required by paragraphs (d)(2)(ii) through (d)(2)(iv) of this section. The record must show, for each type of sample unit ( i.e. , sample units having the same established or proprietary name and dosage strength), the total number of sample units received, distributed, lost, or stolen since the most recently completed prior inventory. For example, a typical entry in this record may read \u201c50 units risperidone (1 mg) returned to manufacturer\u201d or simply \u201cRisperidone (1 mg)/50/returned to manufacturer.\u201d\n\n(3) Each drug manufacturer or authorized distributor of record shall take appropriate internal control measures to guard against error and possible fraud in the conduct of the physical inventory and reconciliation, and in the preparation of the inventory record and reconciliation report.\n\n(4) A manufacturer or authorized distributor of record shall carefully evaluate any apparent discrepancy or significant loss revealed through the inventory and reconciliation process and shall fully investigate any such discrepancy or significant loss that cannot be justified.\n\n(e)  Lists of manufacturers' and distributors' representatives.  Each drug manufacturer or authorized distributor of record who distributes drug samples by means of representatives shall maintain a list of the names and addresses of its representatives who distribute drug samples and of the sites where drug samples are stored."], ["21:21:4.0.1.1.4.4.1.3", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.32 Drug sample storage and handling requirements.", "FDA", "", "", "", "(a)  Storage and handling conditions.  Manufacturers, authorized distributors of record, and their representatives shall store and handle all drug samples under conditions that will maintain their stability, integrity, and effectiveness and ensure that the drug samples are free of contamination, deterioration, and adulteration.\n\n(b)  Compliance with compendial and labeling requirements.  Manufacturers, authorized distributors of record, and their representatives can generally comply with this section by following the compendial and labeling requirements for storage and handling of a particular prescription drug in handling samples of that drug."], ["21:21:4.0.1.1.4.4.1.4", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.33 Drug sample forms.", "FDA", "", "", "", "A sample request or receipt form may be delivered by mail, common carrier, or private courier or may be transmitted photographically or electronically ( i.e. , by telephoto, wirephoto, radiophoto, facsimile transmission (FAX), xerography, or electronic data transfer) or by any other system, provided that the method for transmission meets the security requirements set forth in \u00a7 203.60(c)."], ["21:21:4.0.1.1.4.4.1.5", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.34 Policies and procedures; administrative systems.", "FDA", "", "", "", "Each manufacturer or authorized distributor of record that distributes drug samples shall establish, maintain, and adhere to written policies and procedures describing its administrative systems for the following:\n\n(a) Distributing drug samples by mail or common carrier, including methodology for reconciliation of requests and receipts;\n\n(b) Distributing drug samples by means other than mail or common carrier including the methodology for:\n\n(1) Reconciling requests and receipts, identifying patterns of nonresponse, and the manufacturer's or distributor's response when such patterns are found;\n\n(2) Conducting the annual physical inventory and preparation of the reconciliation report;\n\n(3) Implementing a sample distribution security and audit system, including conducting random and for-cause audits of sales representatives by personnel independent of the sales force; and\n\n(4) Storage of drug samples by representatives;\n\n(c) Identifying any significant loss of drug samples and notifying FDA of the loss; and\n\n(d) Monitoring any loss or theft of drug samples."], ["21:21:4.0.1.1.4.4.1.6", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.35 Standing requests.", "FDA", "", "", "", "Manufacturers or authorized distributors of record shall not distribute drug samples on the basis of open-ended or standing requests, but shall require separate written requests for each drug sample or group of samples. An arrangement by which a licensed practitioner requests in writing that a specified number of drug samples be delivered over a period of not more than 6 months, with the actual delivery dates for parts of the order to be set by subsequent oral communication or electronic transmission, is not considered to be a standing request."], ["21:21:4.0.1.1.4.4.1.7", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.36 Fulfillment houses, shipping and mailing services, comarketing agreements, and third-party recordkeeping.", "FDA", "", "", "", "(a)  Responsibility for creating and maintaining forms, reports, and records.  Any manufacturer or authorized distributor of record that uses a fulfillment house, shipping or mailing service, or other third party, or engages in a comarketing agreement with another manufacturer or distributor to distribute drug samples or to meet any of the requirements of PDMA, PDA, or this part, remains responsible for creating and maintaining all requests, receipts, forms, reports, and records required under PDMA, PDA, and this part.\n\n(b)  Responsibility for producing requested forms, reports, or records.  A manufacturer or authorized distributor of record that contracts with a third party to maintain some or all of its records shall produce requested forms, reports, records, or other required documents within 2 business days of a request by an authorized representative of FDA or another Federal, State, or local regulatory or law enforcement official."], ["21:21:4.0.1.1.4.4.1.8", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.37 Investigation and notification requirements.", "FDA", "", "", "[64 FR 67756, Dec. 3, 1999, as amended at 69 FR 48775, Aug. 11, 2004; 70 FR 14981, Mar. 24, 2005; 74 FR 13112, Mar. 26, 2009; 80 FR 18090, Apr. 3, 2015]", "(a)  Investigation of falsification of drug sample records.  A manufacturer or authorized distributor of record that has reason to believe that any person has falsified drug sample requests, receipts, or records, or is diverting drug samples, shall:\n\n(1) Notify FDA, by telephone or in writing, within 5 working days;\n\n(2) Immediately initiate an investigation; and\n\n(3) Provide FDA with a complete written report, including the reason for and the results of the investigation, not later than 30 days after the date of the initial notification in paragraph (a)(1) of this section.\n\n(b)  Significant loss or known theft of drug samples.  A manufacturer or authorized distributor of record that distributes drug samples or a charitable institution that receives donated drug samples from a licensed practitioner shall:\n\n(1) Notify FDA, by telephone or in writing, within 5 working days of becoming aware of a significant loss or known theft;\n\n(2) Immediately initiate an investigation into the significant loss or known theft; and\n\n(3) Provide FDA with a complete written report, including the reason for and the results of the investigation, not later than 30 days after the date of the initial notification in paragraph (b)(1) of this section.\n\n(c)  Conviction of a representative.  (1) A manufacturer or authorized distributor of record that distributes drug samples shall notify FDA, by telephone or in writing, within 30 days of becoming aware of the conviction of one or more of its representatives for a violation of section 503(c)(1) of the act or any State law involving the sale, purchase, or trade of a drug sample or the offer to sell, purchase, or trade a drug sample.\n\n(2) A manufacturer or authorized distributor of record shall provide FDA with a complete written report not later than 30 days after the date of the initial notification.\n\n(d)  Selection of individual responsible for drug sample information.  A manufacturer or authorized distributor of record that distributes drug samples shall inform FDA in writing within 30 days of selecting the individual responsible for responding to a request for information about drug samples of that individual's name, business address, and telephone number.\n\n(e)  Whom to notify at FDA.  Notifications and reports concerning human prescription drugs or biological products regulated by the Center for Drug Evaluation and Research shall be made to the Division of Compliance Risk Management and Surveillance, Office of Compliance, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002. Notifications and reports concerning human prescription biological products regulated by the Center for Biologics Evaluation and Research shall be made to the Food and Drug Administration, Center for Biologics Evaluation and Research, Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993-0002."], ["21:21:4.0.1.1.4.4.1.9", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "D", "Subpart D\u2014Samples", "", "\u00a7 203.38 Sample lot or control numbers; labeling of sample units.", "FDA", "", "", "", "(a)  Lot or control number required on drug sample labeling and sample unit label.  The manufacturer or authorized distributor of record of a drug sample shall include on the label of the sample unit and on the outside container or packaging of the sample unit, if any, an identifying lot or control number that will permit the tracking of the distribution of each drug sample unit.\n\n(b)  Records containing lot or control numbers required for all drug samples distributed.  A manufacturer or authorized distributor of record shall maintain for all samples distributed records of drug sample distribution containing lot or control numbers that are sufficient to permit the tracking of sample units to the point of the licensed practitioner.\n\n(c)  Labels of sample units.  Each sample unit shall bear a label that clearly denotes its status as a drug sample, e.g., \u201csample,\u201d \u201cnot for sale,\u201d \u201cprofessional courtesy package.\u201d\n\n(1) A drug that is labeled as a drug sample is deemed to be a drug sample within the meaning of the act.\n\n(2) A drug product dosage unit that bears an imprint identifying the dosage form as a drug sample is deemed to be a drug sample within the meaning of the act.\n\n(3) Notwithstanding paragraphs (c)(1) and (c)(2) of this section, any article that is a drug sample as defined in section 503(c)(1) of the act and \u00a7 203.3(i) that fails to bear the label required in this paragraph (c) is a drug sample."], ["21:21:4.0.1.1.4.5.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "E", "Subpart E\u2014Wholesale Distribution", "", "\u00a7 203.50 Requirements for wholesale distribution of prescription drugs.", "FDA", "", "", "", "(a)  Identifying statement for sales by unauthorized distributors.  Before the completion of any wholesale distribution by a wholesale distributor of a prescription drug for which the seller is not an authorized distributor of record to another wholesale distributor or retail pharmacy, the seller shall provide to the purchaser a statement identifying each prior sale, purchase, or trade of such drug. This identifying statement shall include:\n\n(1) The proprietary and established name of the drug;\n\n(2) Dosage;\n\n(3) Container size;\n\n(4) Number of containers;\n\n(5) The drug's lot or control number(s);\n\n(6) The business name and address of all parties to each prior transaction involving the drug, starting with the manufacturer; and\n\n(7) The date of each previous transaction.\n\n(b) The drug origin statement is subject to the record retention requirements of \u00a7 203.60 and must be retained by all wholesale distributors involved in the distribution of the drug product, whether authorized or unauthorized, for 3 years.\n\n(c)  Identifying statement not required when additional manufacturing processes are completed.  A manufacturer that subjects a drug to any additional manufacturing processes to produce a different drug is not required to provide to a purchaser a statement identifying the previous sales of the component drug or drugs.\n\n(d)  List of authorized distributors of record.  Each manufacturer shall maintain at the corporate offices a current written list of all authorized distributors of record.\n\n(1) Each manufacturer's list of authorized distributors of record shall specify whether each distributor listed thereon is authorized to distribute the manufacturer's full product line or only particular, specified products.\n\n(2) Each manufacturer shall update its list of authorized distributors of record on a continuing basis.\n\n(3) Each manufacturer shall make its list of authorized distributors of record available on request to the public for inspection or copying. A manufacturer may impose reasonable copying charges for such requests from members of the public."], ["21:21:4.0.1.1.4.6.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "F", "Subpart F\u2014Request and Receipt Forms, Reports, and Records", "", "\u00a7 203.60 Request and receipt forms, reports, and records.", "FDA", "", "", "", "(a)  Use of electronic records, electronic signatures, and handwritten signatures executed to electronic records.  (1) Provided the requirements of part 11 of this chapter are met, electronic records, electronic signatures, and handwritten signatures executed to electronic records may be used as an alternative to paper records and handwritten signatures executed on paper to meet any of the record and signature requirements of PDMA, PDA, or this part.\n\n(2) Combinations of paper records and electronic records, electronic records and handwritten signatures executed on paper, or paper records and electronic signatures or handwritten signatures executed to electronic records, may be used to meet any of the record and signature requirements of PDMA, PDA, or this part, provided that:\n\n(i) The requirements of part 11 of this chapter are met for the electronic records, electronic signatures, or handwritten signatures executed to electronic records; and\n\n(ii) A reasonably secure link between the paper-based and electronic components exists such that the combined records and signatures are trustworthy and reliable, and to ensure that the signer cannot readily repudiate the signed records as not genuine.\n\n(3) For the purposes of this paragraph (a), the phrase \u201crecord and signature requirements of PDMA, PDA, or this part\u201d includes drug sample request and receipt forms, reports, records, and other documents, and their associated signatures required by PDMA, PDA, and this part.\n\n(b)  Maintenance of request and receipt forms, reports, records, and other documents created on paper.  Request and receipt forms, reports, records, and other documents created on paper may be maintained on paper or by photographic imaging (i.e., photocopies or microfiche), provided that the security and authentication requirements described in paragraph (c) of this section are followed. Where a required document is created on paper and electronically scanned into a computer, the resulting record is an electronic record that must meet the requirements of part 11 of this chapter.\n\n(c)  Security and authentication requirements for request and receipt forms, reports, records, and other documents created on paper.  A request or receipt form, report, record, or other document, and any signature appearing thereon, that is created on paper and that is maintained by photographic imaging, or transmitted electronically (i.e., by facsimile) shall be maintained or transmitted in a form that provides reasonable assurance of being:\n\n(1) Resistant to tampering, revision, modification, fraud, unauthorized use, or alteration;\n\n(2) Preserved in accessible and retrievable fashion; and\n\n(3) Available to permit copying for purposes of review, analysis, verification, authentication, and reproduction by the person who executed the form or created the record, by the manufacturer or distributor, and by authorized personnel of FDA and other regulatory and law enforcement agencies.\n\n(d)  Retention of request and receipt forms, reports, lists, records, and other documents.  Any person required to create or maintain reports, lists, or other records under PDMA, PDA, or this part, including records relating to the distribution of drug samples, shall retain them for at least 3 years after the date of their creation.\n\n(e)  Availability of request and receipt forms, reports, lists, and records.  Any person required to create or maintain request and receipt forms, reports, lists, or other records under PDMA, PDA, or this part shall make them available, upon request, in a form that permits copying or other means of duplication, to FDA or other Federal, State, or local regulatory and law enforcement officials for review and reproduction. The records shall be made available within 2 business days of a request."], ["21:21:4.0.1.1.4.7.1.1", 21, "Food and Drugs", "I", "C", "203", "PART 203\u2014PRESCRIPTION DRUG MARKETING", "G", "Subpart G\u2014Rewards", "", "\u00a7 203.70 Application for a reward.", "FDA", "", "", "[64 FR 67756, Dec. 3, 1999, as amended at 69 FR 48775, Aug. 11, 2004; 74 FR 13112, Mar. 26, 2009; 80 FR 18091, Apr. 3, 2013]", "(a)  Reward for providing information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample.  A person who provides information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample, or the offer to sell, purchase, or trade a drug sample, in violation of section 503(c)(1) of the act, is entitled to one-half the criminal fine imposed and collected for such violation, but not more than $125,000.\n\n(b)  Procedure for making application for a reward for providing information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample.  A person who provides information leading to the institution of a criminal proceeding against, and conviction of, a person for the sale, purchase, or trade of a drug sample, or the offer to sell, purchase, or trade a drug sample, in violation of section 503(c)(1) of the act, may apply for a reward by making written application to:\n\n(1) Director, Office of Compliance, Center for Drug Evaluation and Research, Food and Drug Administration, 10903 New Hampshire Ave., Silver Spring, MD 20993-0002; or\n\n(2) Food and Drug Administration, Center for Biologics Evaluation and Research, Office of Compliance and Biologics Quality (ATTN: Director), Document Control Center, 10903 New Hampshire Ave., Bldg. 71, Rm. G112, Silver Spring, MD 20993-0002, as appropriate."], ["24:24:2.1.1.2.4.1.79.1", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.1 Underwriting procedures.", "HUD", "", "", "[62 FR 30225, June 2, 1997]", "The three underwriting procedures for single family mortgages are:\n\n(a)  Direct Endorsement.  This procedure, which is described in \u00a7 203.5, is available for mortgagees that are eligible under \u00a7 203.3.\n\n(b)  Lender insurance.  This procedure, which is described in \u00a7 203.6, is available for mortgagees that are eligible for the Direct Endorsement program under \u00a7 203.5, and that are also approved according to \u00a7 203.4.\n\n(c)  Issuing of commitments through HUD offices.  Processing through HUD offices as described in \u00a7 203.7, with issuance of commitments, is available only for mortgages that are not eligible for Direct Endorsement processing under \u00a7 203.5(b) or to the extent required in \u00a7 203.3(b)(4), \u00a7 203.3(d)(1), or as determined by the Secretary."], ["24:24:2.1.1.2.4.1.79.2", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.3 Approval of mortgagees for Direct Endorsement.", "HUD", "", "", "[57 FR 58345, Dec. 9, 1992, as amended at 60 FR 42758, Aug. 16, 1995; 61 FR 2651, Jan. 26, 1996; 62 FR 20088, Apr. 24, 1997; 62 FR 65182, Dec. 10, 1997]", "(a)  Direct Endorsement approval.  To be approved for the Direct Endorsement program set forth in \u00a7 203.5, a mortgagee must be an approved mortgagee meeting the requirements of \u00a7\u00a7 202.13, 202.14 or 202.17 and this section.\n\n(b)  Special requirements.  The mortgagee must establish that it meets the following qualifications.\n\n(1) The mortgagee has five years of experience in the origination of single family mortgages. The Secretary will approve a mortgagee with less than five years experience in the origination of single family mortgages if a principal officer has had a minimum of five years of managerial experience in the origination of single family mortgages.\n\n(2) The mortgagee has on its permanent staff an underwriter that is authorized by the mortgagee to bind the mortgagee on matters involving the origination of mortgages through the Direct Endorsement procedure and that is registered with the Secretary and such registration is maintained with the Secretary. The technical staff may be employees of the mortgagee or may be hired on a fee basis from a roster maintained by the Secretary. The mortgagee shall use appraisers permitted by \u00a7 203.5(e).\n\n(3) [Reserved]\n\n(4) The mortgagee must submit initially 15 mortgages processed in accordance with \u00a7\u00a7 203.5 and 203.255. Separate approval is required to originate mortgages under part 206 of this chapter through the Direct Endorsement program unless at least 50 mortgages closed by the mortgagee have been insured under part 206 of this chapter prior to September 15, 1995. Other mortgagees who have not closed at least 50 mortgages under part 206 of this chapter must submit five (5) Home Equity Conversion Mortgages, processed in accordance with \u00a7\u00a7 203.3 and 203.255. The documents required by \u00a7 203.255 will be reviewed by the Secretary and, if acceptable, commitments will be issued prior to endorsement of the mortgages for insurance. If the underwriting and processing of these 15 mortgages (or the 5 Home Equity Conversion Mortgages) is satisfactory, then the mortgagee may be approved to close subsequent mortgages and submit them directly for endorsement for insurance in accordance with the process set forth in \u00a7 203.255. Unsatisfactory performance by the mortgagee at this stage constitutes grounds for denial of participation in the program, or for continued pre-endorsement review of a mortgagee's submissions. If participation in the program is denied, such denial is effective immediately and may be appealed in accordance with the procedures set forth in paragraph (d)(2) of this section. Unsatisfactory performance solely with respect to mortgages under 24 CFR part 206 may, at the option of the Secretary, be grounds for denial of participation or for continued pre-endorsement review for 24 CFR part 206 mortgages without affecting the mortgagee's processing of mortgages under other parts.\n\n(5) The mortgagee shall promptly notify those HUD offices which have granted approval under this section of any changes that affect qualifications under this section.\n\n(c) [Reserved]\n\n(d)  Mortgagee sanctions.  Depending upon the nature and extent of the noncompliance with the requirements applicable to the Direct Endorsement process, as determined by the Secretary, the Secretary may take any of the following actions:\n\n(1)  Probation.  The Secretary may place a mortgagee on Direct Endorsement probation for a specified period of time for the purpose of evaluating the mortgagee's compliance with the requirements of the Direct Endorsement procedure. Such probation is distinct from probation imposed by the Mortgagee Review Board under part 25 of this chapter. During the probation period specified by this section, the mortgagee may continue to process Direct Endorsement mortgages, subject to conditions required by the Secretary. The Secretary may require the mortgagee to:\n\n(i) Process mortgages in accordance with paragraph (b)(4) of this section;\n\n(ii) Submit to additional training;\n\n(iii) Make changes in the quality control plan required by \u00a7 202.5(h) of this chapter; and\n\n(iv) Take other actions, which may include, but are not limited to, periodic reporting to the Secretary, and submission to the Secretary of internal audits.\n\n(2)  Termination of Direct Endorsement approval.  (i) A mortgagee's approval to participate in the Direct Endorsement program may be terminated in a particular jurisdiction by the local HUD office or on a nationwide basis by HUD Central Office. The HUD office instituting the termination action shall provide the mortgagee with written notice of the grounds for the action and of the right to an informal hearing before the office initiating the termination action. Such hearing shall be expeditiously arranged, and the mortgagee may be represented by counsel. Any termination instituted under this section is distinct from withdrawal of mortgagee approval by the Mortgagee Review Board under part 25 of this title.\n\n(ii) After consideration of the materials presented, the decision maker shall advise the mortgagee in writing whether the termination is rescinded, modified or affirmed.\n\n(iii) The mortgagee may appeal such decision to the Deputy Assistant Secretary for Single Family Housing or his or her designee. A decision by the Deputy Assistant Secretary or designee shall constitute final agency action.\n\n(iv) Termination of an origination approval agreement under part 202 of this chapter for a mortgagee or one or more branch offices automatically terminates Direct Endorsement approval for the mortgagee or the branch office or offices without any further requirement to comply with this paragraph."], ["24:24:2.1.1.2.4.1.79.3", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.4 Approval of mortgagees for Lender Insurance.", "HUD", "", "", "[62 FR 30226, June 2, 1997, as amended at 62 FR 65182, Dec. 10, 1997; 77 FR 3604, Jan. 25, 2012]", "Each mortgagee that chooses to participate in the Lender Insurance program must use the Lender Insurance process to insure all of the mortgages that it underwrites, unless the mortgages are ineligible for the Direct Endorsement program as provided in \u00a7 203.5(b), or unless HUD determines that the mortgages are ineligible for the Lender Insurance program.\n\n(a)  Direct Endorsement approval.  To be approved for the Lender Insurance program described in \u00a7 203.6, a mortgagee must be unconditionally approved for the Direct Endorsement program as provided in \u00a7 203.3.\n\n(b)  Performance: Claim and default rate.  (1) In addition to being unconditionally approved for the Direct Endorsement program, a mortgagee must have had an acceptable claim and default rate (as described in paragraph (b)(3) of this section) for at least 2 years prior to its application for participation in the Lender Insurance program, and must maintain such a claim and default rate in order to retain Lender Insurance approval.\n\n(2) HUD may approve a mortgagee that is otherwise eligible for Lender Insurance approval, but has an acceptable claim and default record of less than 2 years, if:\n\n(i) The mortgagee is an entity created by a merger, acquisition, or reorganization completed less than 2 years prior to the date of the mortgagee's application for Lender Insurance approval;\n\n(ii) One or more of the entities participating in the merger, acquisition, or reorganization had Lender Insurance approval at the time of the merger, acquisition, or reorganization;\n\n(iii) All of the lending institutions participating in the merger, acquisition, or reorganization that had Lender Insurance approval at the time of the merger, acquisition, or reorganization had an acceptable claim and default record for the 2 years preceding the mortgagee's application for Lender Insurance approval; and\n\n(iv) The claim and default record of the mortgagee derived by aggregating the claims and defaults of the entities participating in the merger, acquisition, or reorganization, for the 2-year period prior to the mortgagee's application for Lender Insurance approval, constitutes an acceptable rate of claims and defaults, as defined by this section.\n\n(3) A mortgagee has an acceptable claim and default rate if its rate of claims and defaults is at or below 150 percent of the average rate for insured mortgages in the state(s) in which the mortgagee operates.\n\n(c)  Reviews.  HUD will monitor a mortgagee's eligibility to participate in the Lender Insurance program on an ongoing basis.\n\n(d)  Termination of approval.  (1) HUD may immediately terminate the mortgagee's approval to participate in the Lender Insurance program, in accordance with section 256(d) of the National Housing Act (12 U.S.C. 1715z-21(d)), if the mortgagee:\n\n(i) Violates any of the requirements and procedures established by the Secretary for mortgagees approved to participate in HUD's Lender Insurance program, Direct Endorsement program, or the Title II Single Family mortgage insurance program; or\n\n(ii) If HUD determines that other good cause exists.\n\n(2) Such termination will be effective upon receipt of HUD's notice advising of the termination. Within 30 days after receiving HUD's notice of termination, a mortgagee may request an informal conference with the Deputy Assistant Secretary for Single Family Housing or designee. The conference will be conducted within 30 days after HUD receives a timely request for the conference. After the conference, the Deputy Assistant Secretary (or designee) may decide to affirm the termination action or to reinstate the mortgagee's Lender Insurance program approval. The decision will be communicated to the mortgagee in writing, will be deemed a final agency action, and, pursuant to section 256(d) of the National Housing Act (12 U.S.C. 1715z-21(d)), is not subject to judicial review.\n\n(3) Lender Insurance authority is automatically terminated for a mortgagee whose nationwide Direct Endorsement approval under \u00a7 203.3(d)(2) is terminated, without imposing any further requirement on the mortgagee to comply with this paragraph.\n\n(4) Any termination instituted under this section is distinct from withdrawal of mortgagee approval by the Mortgagee Review Board under 24 CFR part 25.\n\n(e)  Reinstatement.  A mortgagee whose Lender Insurance authority is terminated under this section may apply for reinstatement if the Lender Insurance authority for the mortgagee has been terminated for at least 6 months. In addition to addressing the criteria for Lender Insurance approval specified in paragraphs (a) and (b) of this section, the application for reinstatement must be accompanied by a corrective action plan addressing the issues resulting in the termination of the mortgagee's Lender Insurance authority, along with evidence that the mortgagee has implemented the corrective action plan. HUD may grant the mortgagee's application for reinstatement if the mortgagee's application is complete and HUD determines that the underlying causes for the termination have been satisfactorily remedied."], ["24:24:2.1.1.2.4.1.79.4", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.5 Direct Endorsement process.", "HUD", "", "", "[57 FR 58346, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993, as amended at 59 FR 50463, Oct. 3, 1994; 60 FR 42759, Aug. 16, 1995; 61 FR 36263, July 9, 1996; 62 FR 20088, Apr. 24, 1997; 62 FR 30226, June 2, 1997; 69 FR 43509, July 20, 2004; 77 FR 51469, Aug. 24, 2012]", "(a)  General.  Under the Direct Endorsement program, the Secretary does not review applications for mortgage insurance before the mortgage is executed or issue conditional or firm commitments, except to the extent required by \u00a7 203.3(b)(4), \u00a7 203.3(d)(1), or as determined by the Secretary. Under this program, the mortgagee determines that the proposed mortgage is eligible for insurance under the applicable program regulations, and submits the required documents to the Secretary in accordance with the procedures set forth in \u00a7 203.255. This subpart provides that certain functions shall be performed by the Secretary (or Commissioner), but the Secretary may specify that a Direct Endorsement mortgagee shall perform such an action without specific involvement or approval by the Secretary, subject to statutory limitations. In each case, the Direct Endorsement mortgagee's performance is subject to pre-endorsement and post-endorsement review by the Secretary under \u00a7 203.255 (c) and (e).\n\n(b)  Eligible programs.  (1) All single family mortgages authorized for insurance under the National Housing Act must be originated through the Direct Endorsement program, except the following:\n\n(i) Mortgages underwritten for insurance by mortgagees that have applied for participation in, and have been approved for, the Lender Insurance program;\n\n(ii) Mortgages authorized under sections 203(n), 203(p), 213(d), 221(h), 221(i), 225, 233, 237, 809, or 810 of the National Housing Act, or any other insurance programs announced by  Federal Register  notice; or\n\n(iii) As provided in \u00a7 203.1.\n\n(2) The provision contained in \u00a7 221.55 of this chapter regarding deferred sales to displaced families is not available in the Direct Endorsement program.\n\n(c)  Underwriter due diligence.  A Direct Endorsement mortgagee shall exercise the same level of care which it would exercise in obtaining and verifying information for a loan in which the mortgagee would be entirely dependent on the property as security to protect its investment. Mortgagee procedures that evidence such due diligence shall be incorporated as part of the quality control plan required under \u00a7 202.5(h) of this chapter. The Secretary shall publish guidelines for Direct Endorsement underwriting procedures in a handbook, which shall be provided to all mortgagees approved for the Direct Endorsement procedure. Compliance with these guidelines is deemed to be the minimum standard of due diligence in underwriting mortgages.\n\n(d)  Mortgagor's income.  The mortgagee shall evaluate the mortgagor's credit characteristics, adequacy and stability of income to meet the periodic payments under the mortgage and all other obligations, and the adequacy of the mortgagor's available assets to close the transaction, and render an underwriting decision in accordance with applicable regulations, policies and procedures.\n\n(e)  Appraisal.  (1) A mortgagee shall have the property appraised in accordance with such standards and requirements as the Secretary may prescribe. A mortgagee must select an appraiser whose name is on the FHA Appraiser Roster, in accordance with 24 CFR part 200, subpart G.\n\n(2) The mortgagee shall not discriminate on the basis of race, color, religion, national origin, sex, age, or disability in the selection of an appraiser.\n\n(3) A mortgagee and an appraiser must ensure that an appraisal and related documentation satisfy FHA appraisal requirements, and both bear responsibility for the quality of the appraisal in satisfying such requirements. A Direct Endorsement Mortgagee that submits, or causes to be submitted, an appraisal or related documentation that does not satisfy FHA requirements is subject to administrative sanction by the Mortgagee Review Board pursuant to parts 25 and 30 of this title."], ["24:24:2.1.1.2.4.1.79.5", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.6 Lender Insurance process.", "HUD", "", "", "[62 FR 30226, June 2, 1997]", "Under the Lender Insurance program, a mortgagee approved for the program conducts its own pre-insurance review, insures the mortgage, and agrees to indemnify HUD in accordance with \u00a7 203.255(f)."], ["24:24:2.1.1.2.4.1.79.6", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.7 Commitment process.", "HUD", "", "", "[57 FR 58346, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993, as amended at 62 FR 30226, June 2, 1997]", "For single family mortgage programs that are not eligible for Direct Endorsement processing under \u00a7 203.5, or for Lender Insurance processing under \u00a7 203.6, the mortgagee must submit an application for mortgage insurance in a form prescribed by the Secretary prior to making the mortgage loan. If:\n\n(a) A mortgage for a specified property has been accepted for insurance through issuance of a conditional commitment by the Secretary or a certificate of reasonable value by the Department of Veterans Affairs, and\n\n(b) A specified mortgagor and all other proposed terms and conditions of the mortgage meet the eligibility requirements for insurance as determined by the Secretary, the Secretary shall approve the application for insurance by issuing a firm commitment setting forth the terms and conditions of insurance."], ["24:24:2.1.1.2.4.1.79.7", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.8 Approval of mortgagees for Direct Endorsement Lender Review and Approval Process (DELRAP).", "HUD", "", "", "[84 FR 41874, Aug. 15, 2019]", "(a)  General.  Each mortgagee that chooses to participate in the review and approval of Condominium Projects, as set forth in \u00a7 203.43b, must be granted authority to participate in the Direct Endorsement Lender Review and Approval Process (DELRAP).\n\n(b)  DELRAP Authority \u2014(1)  Eligibility.  To be granted DELRAP authority, as described in \u00a7 203.43b, a mortgagee must be unconditionally approved for the Direct Endorsement program as provided in \u00a7 203.3 and meet the following requirements:\n\n(i) Have staff with at least one year of experience in underwriting mortgages on condominiums and/or Condominium Project approval;\n\n(ii) Have originated no fewer than 10 condominium loans in projects approved by the Commissioner;\n\n(iii) Have an acceptable quality control plan that includes specific provisions related to DELRAP; and\n\n(iv) Ensure that staff members that participate in the approval of a Condominium Project using DELRAP authority meet the above requirements in paragraph (b)(1)(i) of this section or are supervised by staff that meet such requirements.\n\n(2)  Conditional DELRAP Authority.  Mortgagees will be granted conditional DELRAP authority upon provision of notice to the Commissioner of the intent to use DELRAP. Mortgagees with conditional DELRAP authority must submit all recommended Condominium Project approvals, denials, and recertifications to FHA for review. If FHA agrees with the mortgagee's recommendation, it will advise the mortgagee that it may proceed with the recommended decision on the Condominium Project.\n\n(3)  Unconditional DELRAP Authority.  Mortgagees will be granted unconditional DELRAP authority after completing at least five (5) DELRAP reviews, or such lower number of DELRAP reviews as HUD may specify, to the satisfaction of HUD, and may then exercise DELRAP authority to approve projects in accordance with requirements of HUD.\n\n(c)  Reviews.  HUD will monitor a mortgagee's performance in DELRAP on an ongoing basis.\n\n(1) If the review shows that there are no material deficiencies, subsequent project approvals, denials, or recertifications may be selected for post-action review based on a percentage as determined by the Commissioner.\n\n(2) If the review shows that there are material deficiencies in the mortgagee's DELRAP performance, the mortgagee may be returned to conditional DELRAP status.\n\n(3) If additional reviews continue to show material deficiencies in the mortgagee's DELRAP performance, the mortgagee's authority to participate in DELRAP may be terminated or other action taken against the mortgagee or responsible staff reviewer.\n\n(d)  Termination of DELRAP Authority.  (1) HUD may immediately terminate the mortgagee's authority to participate in DELRAP or take any action listed in 24 CFR 203.3(d) if:\n\n(i) The mortgagee violates any of the requirements and procedures established by the Secretary for mortgagees approved to participate in DELRAP, the Direct Endorsement program, or the Title II Single Family mortgage insurance program; or\n\n(ii) HUD determines that other good cause exists.\n\n(2) Such termination will be effective upon the date of receipt of HUD's notice advising of the termination.\n\n(3) Notwithstanding any provisions of this section, the Commissioner reserves the right to take administrative action, including revocation of DELRAP authority, against any mortgagee and staff reviewer because of unacceptable performance. Any termination instituted under this section is distinct from withdrawal of mortgagee approval by the Mortgagee Review Board under 24 CFR part 25.\n\n(e)  Reinstatement.  A mortgagee whose DELRAP authority is terminated under this section may request reinstatement if the mortgagee's DELRAP authority has been terminated for at least 6 months. In addition to addressing the eligibility criteria specified in paragraph (b)(1) of this section, the application for reinstatement must be accompanied by a corrective action plan addressing the issues that led to the termination of the mortgagee's DELRAP authority, along with evidence that the mortgagee has implemented the corrective action plan. The Commissioner may grant conditional DELRAP authority if the mortgagee's application is complete and the Commissioner determines that the underlying causes for the termination have been satisfactorily remedied. The mortgagee will be required to complete successfully at least five DELRAP reviews in accordance with paragraph (b)(2) of this section in order to receive unconditional DELRAP authority as provided in paragraph (b)(3) of this section."], ["24:24:2.1.1.2.4.1.80.10", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.12 Mortgage insurance on proposed or new construction.", "HUD", "", "", "[64 FR 56110, Oct. 15, 1999]", "(a)  Applicability.  This section applies to an application for insurance of a mortgage on a one-to four-family dwelling, unless the mortgage will be secured by a dwelling that:\n\n(1) Was completed more than one year before the date of the application for insurance or, under the Direct Endorsement Program, was completed more than one year before the date of the appraisal; or\n\n(2) Is being sold to a second or subsequent purchaser.\n\n(b)  Procedures.  (1) Applications for insurance to which this section applies will be processed in accordance with procedures prescribed by the Secretary. These procedures may only provide for endorsement for insurance of a mortgage covering a dwelling that is:\n\n(i) Approved under the Direct Endorsement Program or the Lender Insurance Program; or\n\n(ii) Located in a subdivision approved by the Rural Housing Service.\n\n(2) The mortgagee must submit a signed Builder's Certification of Plans, Specifications and Site (Builder's Certification). The Builder's Certification must be in a form prescribed by the Secretary and must cover:\n\n(i) Flood hazards;\n\n(ii) Noise;\n\n(iii) Explosive and flammable materials storage hazards;\n\n(iv) Runway clear zones/clear zones;\n\n(v) Toxic waste hazards;\n\n(vi) Other foreseeable hazards or adverse conditions (i.e., rock formations, unstable soils or slopes, high ground water levels, inadequate surface drainage, springs, etc.) that may affect the health and safety of the occupants or the structural soundness of the improvements. The Builder's Certification must be provided to the appraiser for reference before the performance of an appraisal on the property.\n\n(3) If a builder (or developer) intends to sell five or more properties in a subdivision, an Affirmative Fair Housing Marketing Plan (AFHMP) that meets the requirements of 24 CFR part 200, subpart M must be submitted and approved by HUD no later than the date of the first application for mortgage insurance in that subdivision. Thereafter, applications for insurance on other properties sold by the same builder (or developer) in the same subdivision may make reference to the existing previously approved AFHMP."], ["24:24:2.1.1.2.4.1.80.11", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.14 Builders' warranty.", "HUD", "", "", "[57 FR 58346, Dec. 9, 1992]", "Applications relating to proposed construction must be accompanied by an agreement in form satisfactory to the Secretary, executed by the seller or builder or such other person as the Secretary may require, and agreeing that in the event of any sale or conveyance of the dwelling, within a period of one year beginning with the date of initial occupancy, the seller, builder, or such other person will at the time of such sale or conveyance deliver to the purchaser or owner of such property a warranty in form satisfactory to the Secretary warranting that the dwelling is constructed in substantial conformity with the plans and specifications (including amendments thereof or changes and variations therein which have been approved in writing by the Secretary) on which the Secretary has based on the valuation of the dwelling. Such agreement must provide that upon the sale or conveyance of the dwelling and delivery of the warranty, the seller, builder or such other person will promptly furnish the Secretary with a conformed copy of the warranty establishing by the purchaser's receipt thereon that the original warranty has been delivered to the purchaser in accordance with this section."], ["24:24:2.1.1.2.4.1.80.12", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.15 Certification of appraisal amount.", "HUD", "", "", "[58 FR 41001, July 30, 1993]", "An application with respect to insurance of mortgages must be accompanied by an agreement satisfactory to the Commissioner, executed by the seller, builder or such other person as may be required by the Commissioner, whereby the person agrees that before any sale of the dwelling, the person will deliver to the purchaser of the property a written statement, in a form satisfactory to the Commissioner, setting forth the amount of the appraised value of the property as determined by the Commissioner."], ["24:24:2.1.1.2.4.1.80.13", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.16 Certificate and contract regarding use of dwelling for transient or hotel purposes.", "HUD", "", "", "", "Every application filed with respect to insurance of mortgages on a two-, three-, or four-family dwelling, or a single-family dwelling which is one of a group of 5 or more single-family dwellings held by the same mortgagor, must be accompanied by a contract in form satisfactory to the Commissioner, signed by the proposed mortgagor covenanting and agreeing that so long as the proposed mortgage is insured by the Commissioner the mortgagor will not rent the housing or any part thereof covered by the mortgage for transient or hotel purposes, together with the mortgagor's certification under oath that the housing or any part thereof covered by the proposed mortgage will not be rented for transient or hotel purposes. For the purpose of this subchapter rental for transient or hotel purposes shall mean (a) rental for any period less than 30 days or (b) any rental if the occupants of the housing accommodations are provided customary hotel services such as room service for food and beverages, maid service, furnishing and laundering of linen, and bellboy service."], ["24:24:2.1.1.2.4.1.80.14", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.16a Mortgagor and mortgagee requirement for maintaining flood insurance coverage.", "HUD", "", "", "[87 FR 70742, Nov. 21, 2022]", "(a)  In general.  (1) The requirements of this section apply if a mortgage is to cover property improvements that:\n\n(i) Are located in an area designated by the Federal Emergency Management Agency (FEMA) as a floodplain area having special flood hazards;\n\n(ii) Are otherwise determined by the Commissioner to be subject to flood hazard; or\n\n(iii) Are not otherwise covered by the flood insurance standard for condominium projects established under \u00a7 203.43b(d)(6)(iii) or (i)(1).\n\n(2) No mortgage may be insured that covers property improvements located in an area that has been identified by FEMA as an area having special flood hazards unless the community in which the area is situated is participating in the National Flood Insurance Program and flood insurance under the National Flood Insurance Program (NFIP) is available with respect to such property improvements. Such requirement for flood insurance shall be effective one year after the date of notification by FEMA to the chief executive officer of a flood prone community that such community has been identified as having special flood hazards.\n\n(3) For purposes of this section, property improvement means a dwelling and related structures/equipment essential to the value of the property and subject to flood damage.\n\n(b)  Flood insurance obligation.  The mortgagor and mortgagee shall be obligated, by a special condition to be included in the mortgage commitment, to obtain and maintain either NFIP flood insurance or private flood insurance coverage on the property improvements.\n\n(c)  Insurance policy.  A mortgagee may accept a flood insurance policy in the form of the standard policy issued under the NFIP or a private flood insurance policy as defined in this section, and the mortgagee shall be named as the loss payee for flood insurance benefits. A mortgagee may determine that a private flood insurance policy meets the definition of private flood insurance in this section, without further review of the policy, if the following statement is included within the policy or as an endorsement to the policy: \u201cThis policy meets the definition of private flood insurance contained in 24 CFR 203.16a(e) for FHA-insured mortgages.\u201d\n\n(d)  Duration and amount of coverage.  The flood insurance must be maintained during such time as the mortgage is insured in an amount at least equal to the lowest of the following:\n\n(1) 100 percent replacement cost of the insurable value of the improvements, which consists of the development or project cost less estimated land cost; or\n\n(2) The maximum amount of NFIP insurance available with respect to the particular type of property; or\n\n(3) The outstanding principal balance of the loan.\n\n(e)  Private flood insurance defined.  The term \u201cprivate flood insurance\u201d means an insurance policy that:\n\n(1) Is issued by an insurance company that is:\n\n(i) Licensed, admitted, or otherwise approved to engage in the business of insurance in the State or jurisdiction in which the insured building is located, by the insurance regulator of that State or jurisdiction; or\n\n(ii) In the case of a policy of difference in conditions, multiple peril, all risk, or other blanket coverage insuring nonresidential commercial property, is recognized, or not disapproved, as a surplus lines insurer by the insurance regulator of the State or jurisdiction where the property to be insured is located;\n\n(2) Provides flood insurance coverage that is at least as broad as the coverage provided under a standard flood insurance policy under the National Flood Insurance Program for the same type of property, including when considering deductibles, exclusions, and conditions offered by the insurer. To be at least as broad as the coverage provided under a standard flood insurance policy under the National Flood Insurance Program, the policy must, at a minimum:\n\n(i) Define the term \u201cflood\u201d to include the events defined as a \u201cflood\u201d in a standard flood insurance policy under the National Flood Insurance Program;\n\n(ii) Contain the coverage specified in a standard flood insurance policy under the National Flood Insurance Program, including that relating to building property coverage; personal property coverage, if purchased by the insured mortgagor(s); other coverages; and increased cost of compliance coverage;\n\n(iii) Contain deductibles no higher than the specified maximum, and include similar non-applicability provisions, as under a standard flood insurance policy under the National Flood Insurance Program, for any total policy coverage amount up to the maximum available under the NFIP at the time the policy is provided to the lender;\n\n(iv) Provide coverage for direct physical loss caused by a flood and may only exclude other causes of loss that are excluded in a standard flood insurance policy under the National Flood Insurance Program. Any exclusions other than those in a standard flood insurance policy under the National Flood Insurance Program may pertain only to coverage that is in addition to the amount and type of coverage that could be provided by a standard flood insurance policy under the National Flood Insurance Program or have the effect of providing broader coverage to the policyholder; and\n\n(v) Not contain conditions that narrow the coverage provided in a standard flood insurance policy under the National Flood Insurance Program;\n\n(3) Includes all of the following:\n\n(i) A requirement for the insurer to give 45 days' written notice of cancellation or non-renewal of flood insurance coverage to:\n\n(A) The insured;\n\n(B) The mortgagee, if any; and\n\n(C) Federal Housing Administration (FHA), in cases where the mortgagee has assigned the loan to FHA in exchange for claim payment;\n\n(ii) Information about the availability of flood insurance coverage under the National Flood Insurance Program;\n\n(iii) A mortgage interest clause similar to the clause contained in a standard flood insurance policy under the National Flood Insurance Program; and\n\n(iv) A provision requiring an insured to file suit not later than 1 year after the date of a written denial of all or part of a claim under the policy; and\n\n(4) Contains cancellation provisions that are as restrictive as the provisions contained in a standard flood insurance policy under the National Flood Insurance Program."], ["24:24:2.1.1.2.4.1.80.8", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.9 Disclosure regarding interest due upon mortgage prepayment.", "HUD", "", "", "[56 FR 18947, Apr. 24, 1991, as amended at 79 FR 50837, Aug. 26, 2014]", "Each mortgagee with respect to a mortgage under this part shall at or before closing with respect to any such mortgage, provide the mortgagor with written notice in a form prescribed by the Commissioner describing any requirements the mortgagor must fulfill upon prepayment of the principal amount of the mortgage to prevent the accrual of any interest on the principal amount after the date of such prepayment. This paragraph shall apply to any mortgage executed after August 22, 1991, and before January 21, 2015."], ["24:24:2.1.1.2.4.1.80.9", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.10 Informed consumer choice for prospective FHA mortgagors.", "HUD", "", "", "[64 FR 29765, June 2, 1999, as amended at 64 FR 34984, June 30, 1999]", "(a)  Mortgagee to provide disclosure notice.  A mortgagee must provide a prospective FHA mortgagor with an informed consumer choice disclosure notice if, in the mortgagees's judgment, the prospective FHA mortgagor may qualify for similar conventional mortgage products offered by the mortgagee. The mortgagee should base this judgment on the mortgagee's initial assessment of the prospective FHA mortgagor's eligibility for a conventional mortgage product. If a mortgagee is unsure about a prospective FHA mortgagor's eligibility for a conventional mortgage product, the mortgagee should provide the prospective FHA mortgagor with an informed consumer choice disclosure notice.\n\n(b)  Informed consumer choice disclosure notice \u2014(1)  Contents of notice.  The informed consumer choice disclosure notice must:\n\n(i) Provide a one page generic analysis comparing the mortgage costs of an FHA-insured mortgage with the mortgage costs of similar conventional mortgage products offered by the mortgagee that the prospective FHA mortgagor may qualify for;\n\n(ii) Provide information about when the requirement to pay FHA mortgage insurance premiums terminates; and\n\n(iii) Meet the requirements of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)).\n\n(2)  Format of disclosure notice.  The informed consumer choice disclosure notice must be provided in a format prescribed by the Commissioner. HUD has prepared a model informed consumer choice disclosure notice that represents this format and that meets the requirements of section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)). The model informed consumer choice disclosure notice contains the minimum elements of an informed consumer choice disclosure notice. These elements must be included in a mortgagee's informed consumer choice disclosure notice. A mortgagee, however, may include additional elements in an informed consumer choice disclosure notice to better reflect the mortgagee's products or to provide information that the mortgagee believes is meaningful and helpful to the mortgagee's customers.\n\n(3)  Availability of model disclosure notice.  HUD's model informed consumer choice disclosure notice is made available to FHA-approved mortgagees through Mortgagee Letter and is available to the public through the internet at HUD's web site at  http://www.hud.gov  or by contacting: Home Mortgage Insurance Division, Office of Insured Single Family Housing, U.S. Department of Housing and Urban Development, 451 Seventh Street, SW, Washington, DC 20410-8000; telephone (202) 708-2700 (this is not a toll-free number), or the nearest HUD Homeownership Center (Atlanta, GA (888) 696-4687; Denver, CO (800) 543-9378; Philadelphia, PA (800) 440-8647; or Santa Ana, CA (888) 827-5605). Hearing- or speech-impaired individuals may access these numbers via TTY by calling the toll-free Federal Information Relay Service at (800) 877-8339.\n\n(c)  Timing.  When required under paragraph (a) of this section, a mortgagee must provide an informed consumer choice disclosure notice to a prospective FHA mortgagor not later than three business days after the mortgagee receives the prospective FHA mortgagor's application.\n\n(d)  Revision of notice.  A mortgagee should revise its informed consumer choice disclosure notice periodically to reflect prevailing market conditions. To ensure that the informed consumer choice disclosure notice reflects prevailing market conditions, a mortgagee must revise its informed consumer choice disclosure notice at least once annually.\n\n(e)  Applicability.  This section applies to any application for mortgage insurance authorized under section 203(b) of the National Housing Act (12 U.S.C. 1709) that the mortgagee receives on or after September 2, 1999.\n\n(f)  Definitions.  As used in this section:\n\nApplication  means the submission of financial information in anticipation of a credit decision.\n\nConventional mortgage  means conventional mortgage as used in section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)) or section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)), as applicable.\n\nMortgagee  means mortgagee as defined in \u00a7 202.2 of this chapter.\n\nProspective FHA mortgagor  means a person who submits an application to a mortgagee to obtain mortgage insurance authorized under section 203(b) of the National Housing Act (12 U.S.C. 1709)."], ["24:24:2.1.1.2.4.1.81.15", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.17 Mortgage provisions.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 45 FR 29278, May 2, 1980; 48 FR 28804, June 23, 1983; 49 FR 21319, May 21, 1984; 53 FR 34281, Sept. 6, 1988; 54 FR 39525, Sept. 27, 1989; 57 FR 58347, Dec. 9, 1992; 61 FR 36263, July 9, 1996; 84 FR 41875, Aug. 15, 2019]", "(a)  Mortgage form.  (1) The term \u201cmortgage\u201d as used in this part, except \u00a7 203.43c, shall have the meaning given in Section 201 of the National Housing Act, as amended (12 U.S.C. 1707).\n\n(2)(i) The mortgage shall be in a form meeting the requirements of the Commissioner. The Commissioner may prescribe complete mortgage instruments. For each case in which the Commissioner does not prescribe complete mortgage instruments, the Commissioner\n\n(A) Shall require specific language in the mortgage which shall be uniform for every mortgage, and\n\n(B) May also prescribe the language or substance of additional provisions for all mortgages as well as the language or substance of additional provisions for use only in particular jurisdictions or for particular programs.\n\n(ii) Each mortgage shall also contain any provisions necessary to create a valid and enforceable secured debt under the laws of the jurisdiction in which the property is located.\n\n(b)  Mortgage multiples.  A mortgage shall involve a principal obligation in a multiple of $1.\n\n(c)  Payments.  The mortgage shall:\n\n(1) Come due on the first of the month.\n\n(2) Contain complete amortization provisions satisfactory to the Secretary and an amortization period not in excess of the term of the mortgage.\n\n(3) Provide for payments to principal and interest to begin not later than the first day of the month following 60 days from the date the mortgage is executed (or the date a construction mortgage is converted to a permanent mortgage, if applicable).\n\n(d)  Maturity.  The mortgage shall have a term of not more than 30 years from the date of the beginning of amortization.\n\n(e)  Property Standards.  The mortgage must be a first lien upon the property that conforms with property standards prescribed by the Commissioner.\n\n(f)  Disbursement.  The entire principal amount of the mortgage must have been disbursed to the mortgagor or to his or her creditors for his or her account and with his or her consent."], ["24:24:2.1.1.2.4.1.81.16", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.18 Maximum mortgage amounts.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971]", "(a)  Mortgagors of principal or secondary residences.  The principal amount of the mortgage must not exceed the lesser of the following amounts that apply:\n\n(1) The dollar amount limitation that applies for the area under section 203(b)(2)(A) of the National Housing Act including any increase in the dollar limitation under \u00a7 203.29, as announced in accordance with \u00a7 203.18(h);\n\n(2)(i) The amount based on appraised value that is permitted by section 203(b)(10) of the National Housing Act, if that provision is in effect and applies to the mortgage; or\n\n(ii) If section 203(b)(10) is not in effect or otherwise does not apply to the mortgage, the lesser of the amounts based on appraised value that are permitted by section 203(b)(2)(B) of the National Housing Act and paragraph (g) of this section;\n\n(3) An amount equal to 85 percent of the appraised value if the mortgage covers a dwelling that is to be occupied as a secondary residence (as defined in paragraph (f)(2) of this section).\n\n(b)  Veteran qualifications.  The special veteran terms provided in section 203(b)(2) of the National Housing Act shall apply only if the mortgagor submits one of the following certifications:\n\n(1) A certification issued by the Secretary of Defense establishing that the veteran performed extra hazardous service while serving in the armed forces for a period of less than 90 days; or\n\n(2) A Certificate of Eligibility from the Department of Veterans Affairs establishing that the person served 90 days or more on active duty in the armed forces (U.S. Army, Navy, Marine Corps, Air Force, Coast Guard, the Army Reserve, the Naval Reserve, the Marine Corps Reserve, the Air Force Reserve, the Coast Guard Reserve, the National Guard of the United States, or the Air National Guard of the United States); that he or she enlisted before September 8, 1980; and that he or she was discharged or released under conditions other than dishonorable (a copy of the veteran's discharge papers or Form DD-214 shall be submitted with the certificate); or\n\n(3) A Certificate of Eligibility from the Department of Veterans Affairs establishing that the person:\n\n(i)(A) Originally enlisted in a regular component of the armed forces after September 7, 1980; or entered on active duty after October 16, 1981, and he or she had not previously completed a period of active duty of at least 24 months or been discharged or released from active duty under 10 U.S.C. 1171; and\n\n(B) Has completed, since enlistment or entering on active duty, either:\n\n( 1 ) Twenty-four months of continuous active duty, or the full period for which he or she was called or ordered to active duty, whichever is shorter; or\n\n( 2 ) Any other period of active duty if he or she was discharged or released from duty under 10 U.S.C. 1171 or 1173; was discharged or released from duty for disability incurred or aggravated in the line of duty; or has a disability which the Department of Veterans Affairs has determined to be compensable under 38 U.S.C. chap. 11; and\n\n(ii) Was discharged or released under conditions other than dishonorable (a copy of the veteran's discharge papers or Form DD-214 shall be submitted with the certification).\n\n(c)  Eligible non-occupant mortgagors.  A mortgage may be executed by an eligible non-occupant mortgagor (as that term is defined in paragraph (f)(3) of this section) for up to an amount authorized for the appropriate loan type in paragraph (a) of this section except where a lesser amount is expressly provided for in this part.\n\n(d)  Outlying area properties.  A mortgage covering a single family residence located in an area in which the Commissioner finds that it is not practicable to obtain conformity with many of the requirements essential to the insurance of mortgages in built-up, urban areas; or a mortgage covering a single family dwelling that is to be used as a farm home on a plot of land that is two and one-half or more acres in size and adjacent to an all-weather public road, may not exceed:\n\n(1) In the case of a mortgagor who is to occupy the dwelling as a principal residence (as defined in paragraph (f)(1) of this section):\n\n(i) 75 percent of the dollar limitation under (a)(1).\n\n(ii) 97 percent of the appraised value of the property as of the date the mortgage is accepted for insurance, if:\n\n(A) The Commissioner approved the dwelling for insurance before the beginning of construction; or\n\n(B) Construction was completed more than one year before the date of the application for insurance; or\n\n(C) The Secretary of Veterans Affairs approved the dwelling for guaranty, insurance, or direct loan before the beginning of construction.\n\n(iii) If the property does not meet the requirements of paragraph (d)(1)(ii) of this section, 90 percent of the appraised value of the property as of the date the mortgage is accepted for insurance.\n\n(2) In the case of a mortgagor who is to occupy the dwelling as a secondary residence (as defined in paragraph (f)(2) of this section):\n\n(i) The amount permitted in paragraph (d)(1)(i) of this section, or\n\n(ii) 85 percent of the appraised value of the property as of the date the mortgage is accepted for insurance.\n\n(e)  Disaster victims.  A mortgage covering a single family dwelling, in an amount not in excess of the maximum dollar limitation specified in paragraph (a)(1) of this section (unless a higher maximum mortgage amount is authorized under \u00a7 203.29), and not in excess of the lesser of 100 percent of the appraised value of the property or the cost of acquisition as of the date the mortgage is accepted for insurance, shall be eligible for insurance if:\n\n(1) The mortgage is executed by a mortgagor who is to occupy the dwelling as a principal residence (as defined in paragraph (f)(1) of this section);\n\n(2) The mortgagor establishes that the home which he or she previously occupied as owner or tenant was destroyed or damaged to such an extent that reconstruction or replacement is required as a result of a flood, fire, hurricane, earthquake, storm, riot or civil disorder or other catastrophe which the President has determined to be a major disaster; and\n\n(3) The application for insurance is filed within one year from the date of such presidential determination, or within such additional period of time as the period of federal assistance with respect to such disaster may be extended.\n\n(f)  Definitions.  As used in this section:\n\n(1)  Principal residence  means the dwelling where the mortgagor maintains (or will maintain) his or her permanent place of abode, and typically spends (or will spend) the majority of the calendar year. A person may have only one principal residence at any one time.\n\n(2) Secondary residence means a dwelling: (i) Where the mortgagor maintains or will maintain a part-time place of abode and typically spends (or will spend) less than a majority of the calendar year; (ii) which is not a vacation home; and (iii) which the Commissioner has determined to be eligible for insurance in order to avoid undue hardship to the mortgagor. A person may have only one secondary residence at a time.\n\n(3)  Eligible non-occupant mortgagor  means a mortgagor (or co-mortgagor, as appropriate) who is not to occupy the dwelling as a principal residence or a secondary residence and who is\u2014\n\n(i) A public entity, as provided in section 214 or 247 of the National Housing Act, or any other State or local government or agency thereof;\n\n(ii) A private nonprofit or public entity, as provided in section 221(h) or 235(j) of the National Housing Act, or other private nonprofit organization that is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986 and intends to sell or lease the mortgaged property to low or moderate income persons, as determined by the Secretary;\n\n(iii) An Indian tribe, as provided in section 248 of the National Housing Act;\n\n(iv) A serviceperson who is unable to meet the occupancy requirement because of his or her duty assignment, as provided in section 216 of the National Housing Act or subsection (b)(4) or (f) of section 222 of the National Housing Act;\n\n(v) A mortgagor or co-mortgagor under subsection 203(k) of the National Housing Act; or\n\n(vi) A mortgagor who, pursuant to \u00a7 203.43(c) of this part, is refinancing an existing mortgage insured under the National Housing Act for not more than the outstanding balance of the existing mortgage, if the amount of the monthly payment due under the refinancing mortgage is less than the amount due under the existing mortgage for the month in which the refinancing mortgage is executed.\n\n(4)  Appraised value  means the sum of:\n\n(i) The lesser of sales price (with any adjustments required by the Secretary) or the amount set forth in the written statement required under \u00a7 203.15; and\n\n(ii) Borrower-paid closing costs allowed under \u00a7 203.27(a)(1)-(3), except that closing costs do not apply if section 203(b)(10) of the National Housing Act is in effect and neither sales price nor closing costs apply for purposes of paragraph (g) of this section.\n\n(5)  Undue hardship  means that affordable housing which meets the needs of the mortgagor is not available for lease, or within reasonable commuting distance from the mortgagor's home to his or her work place.\n\n(6)  Vacation home  means a dwelling that is used primarily for recreational purposes and enjoyment, and that is not a primary or secondary residence.\n\n(g)  Maximum principal obligation.  Except for mortgages meeting the requirements of \u00a7 203.18(b), \u00a7 203.18(e) or \u00a7 203.50(f), and notwithstanding any other provision of this section, a mortgage may not involve a principal obligation in excess of 98.75 percent of the appraised value of the property (97.75 percent, in the case of a mortgage with an appraised value in excess of $50,000), plus the amount of the mortgage insurance premium paid at the time the mortgage is insured.\n\n(h)  Notice of maximum mortgage amount.  A maximum mortgage amount based on the 1-family median house price for an area under paragraph (a)(1) of this section may be made effective by:\n\n(1) Providing direct notice to affected mortgagees through an administrative issuance; or\n\n(2) Publishing a notice in the  Federal Register.\n\n(i)  Energy efficient mortgages.  The principal amount of energy efficient mortgages may exceed the maximum amounts determined under paragraph (a)(1) of this section under conditions prescribed by the Secretary in accordance with section 106 of the Energy Policy Act of 1992."], ["24:24:2.1.1.2.4.1.81.17", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.18a Solar energy system.", "HUD", "", "", "[45 FR 51770, Aug. 5, 1980]", "(a) The dollar limitation provided in \u00a7 203.18(a) may be increased by up to 20 percent if such an increase is necessary to account for the increased cost of the residence due to the installation of a solar energy system.\n\n(b)  Solar energy system  is defined as any addition, alteration, or improvement to an existing or new structure which is designed to utilize wind energy or solar energy either of the active type based on mechanically forced energy transfer or of the passive type based on convective, conductive, or radiant energy transfer or some combination of these types to reduce the energy requirements of that structure from other energy sources and which is in conformity with such criteria and standards as shall be prescribed by the Secretary in consultation with the Secretary of Energy."], ["24:24:2.1.1.2.4.1.81.18", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.18b Increased mortgage amount.", "HUD", "", "", "[45 FR 76377, Nov. 18, 1980, as amended at 47 FR 917, Jan. 7, 1982; 49 FR 12697, Mar. 30, 1984; 49 FR 14338, Apr. 11, 1984; 53 FR 8880, Mar. 18, 1988; 56 FR 18947, Apr. 24, 1991; 58 FR 41002, July 30, 1993; 59 FR 13882, Mar. 24, 1994; 60 FR 16033, Mar. 28, 1995]", "(a) If any party believes that a mortgage limit established by the Secretary under \u00a7 203.18(a)(1) does not accurately reflect the median house prices in an area, the party may submit documentation in support of an alternative mortgage limit. For purposes of this section, an area (1) must be at least the size of a county, whether or not the area is located within a metropolitan statistical area, as established by the Office of Management and Budget; and (2) may be an area for which the mortgage limits established under \u00a7 203.18(b)(1) apply.\n\n(b)(1) The documentation referred to in paragraph (a) of this section must consist of sufficient housing sales price data for the entire geographic area for which the request is made to justify an alternative mortgage limit. The documentation should include a listing of actual sales prices in the area for all or nearly all new and existing 1-family homes and condominiums, over a period of time varies with sales volume, as follows:\n\n(i) For 500 or more sales per month, a one-month reporting period;\n\n(ii) For 250 through 499 sales per month, a two-month reporting period.\n\n(iii) For less than 250 sales per month, a three-month reporting period.\n\nThe listing should contain a brief address for each property, its county location, its sale price, the month and year of its sale, and whether it is new or existing. In areas where the ratio of existing sales to new sales is three-to-one or greater, an increase in the mortgage limit may be based on 95 percent of the average of the new and the existing median sales prices. In these areas, the documentation referred to in this paragraph may also include separate median sales prices for both the new and existing homes.\n\n(2) Requests for an increased mortgage limit based upon documentation of median house prices for the area should be sent to the appropriate HUD field office.\n\n(c) In the case of an area where the Commissioner determines that the median one-family house price does not reasonably reflect the sales prices of newly constructed homes because of an existing stock whose value is static or declining, the Commissioner may give greater weight to the sales prices of new homes in determining median house price in such area. Without limiting the discretion of the Commissioner in fashioning appropriate methods of implementing the foregoing authority in particular circumstances based upon a demonstration of good cause satisfactory to the Commissioner, in areas where evidence satisfactory to the Commissioner indicates that existing home sales outnumber new home sales by three-to-one or better, the  median sales price  will be calculated as the greater of (1) the average of the median sales price for new and existing homes, and (2) the composite median price of all sales."], ["24:24:2.1.1.2.4.1.81.19", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.18c One-time or up-front mortgage insurance premium excluded from limitations on maximum mortgage amounts.", "HUD", "", "", "[57 FR 15211, Apr. 24, 1992]", "After determining any maximum insurable mortgage amount under the provisions of this subpart, the maximum insurable amount of any mortgage may be increased by the amount of any one-time or up-front mortgage insurance premium that will be financed as part of the mortgage."], ["24:24:2.1.1.2.4.1.81.20", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.18d Minimum principal loan amount.", "HUD", "", "", "[53 FR 8880, Mar. 18, 1988]", "A mortgagee may not require, as a condition of providing a loan secured by a mortgage insured under this part, that the principal amount of the mortgage exceed a minimum amount established by the mortgagee."], ["24:24:2.1.1.2.4.1.81.21", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.19 Qualified mortgage.", "HUD", "", "", "[78 FR 75237, Dec. 11, 2013]", "(a)  Definitions.  As used in this section:\n\n(1)  Average prime offer rate  means an annual percentage rate that is derived from average interest rates, points, and other loan pricing terms currently offered to mortgagors by a representative sample of mortgagees for mortgage transactions that have low-risk pricing characteristics as published by the Consumer Financial Protection Bureau (CFPB) from time to time in accordance with the CFPB's regulations at 12 CFR 1026.35, pertaining to prohibited acts or practices in connection with higher-priced mortgage loans.\n\n(2)  Annual percentage rate  is the measure of the cost of credit, expressed as a yearly rate, that relates the amount and timing of value received by the mortgagor to the amount and timing of payments made and is the rate required to be disclosed by the mortgagee under 12 CFR 1026.18, pertaining to disclosure of finance charges for mortgages.\n\n(3)  Points and fees  has the meaning given to \u201cpoints and fees\u201d in 12 CFR 1026.32(b)(1) as of January 10, 2014. Any changes made by the CFPB to the points and fees definition may be adopted by HUD through publication of a notice and after providing FHA-approved mortgagees with time, as may be determined necessary, to implement.\n\n(b)  Qualified mortgage \u2014(1)  Limit.  For a single family mortgage to be insured under title II of the National Housing Act (12 U.S.C. 1701  et seq. ), except for mortgages for manufactured housing and mortgages under paragraph (c) of this section, the total points and fees payable in connection with a loan used to secure a dwelling shall not exceed the CFPB's limit on points and fees for qualified mortgage in its regulations at 12 CFR 1026.43(e)(3) as of January 10, 2014. Any changes made by the CFPB to the limit on points and fees may be adopted by HUD through publication of a notice and after providing FHA-approved mortgagees with time, as may be determined necessary, to implement.\n\n(2)  Rebuttable presumption qualified mortgage.  (i) A single family mortgage insured under title II of the National Housing Act (12 U.S.C. 1701  et seq. ), except for mortgages for manufactured housing and mortgages under paragraph (c) of this section, that has an annual percentage rate that exceeds the average prime offer rate for a comparable mortgage, as of the date the interest rate is set, by more than the combined annual mortgage insurance premium and 1.15 percentage points for a first-lien mortgage is a rebuttable presumption qualified mortgage that is presumed to comply with the ability to repay requirements in 15 U.S.C. 1639c(a).\n\n(ii) To rebut the presumption of compliance, it must be proven that the mortgage exceeded the points and fees limit in paragraph (b)(1) of this section or that, despite the mortgage having been endorsed for insurance under the National Housing Act, the mortgagee did not make a reasonable and good-faith determination of the mortgagor's repayment ability at the time of consummation, by failing to evaluate the mortgagor's income, credit, and assets in accordance with HUD underwriting requirements.\n\n(3)  Safe harbor qualified mortgage.  (i) A mortgage for manufactured housing that is insured under Title II of the National Housing Act (12 U.S.C. 1701  et seq. ) is a safe harbor qualified mortgage that meets the ability to repay requirements in 15 U.S.C. 1639c(a); and\n\n(ii) A single family mortgage insured under title II of the National Housing Act (12 U.S.C. 1701  et seq. ), except for mortgages under paragraph (c) of this section, that has an annual percentage rate that does not exceed the average prime offer rate for a comparable mortgage, as of the date the interest rate is set, by more than the combined annual mortgage insurance premium and 1.15 percentage points for a first-lien mortgage is a safe harbor qualified mortgage that meets the ability to repay requirements in 15 U.S.C. 1639c(a).\n\n(4)  Effect of indemnification on qualified mortgage status.  An indemnification demand or resolution of a demand that relates to whether the loan satisfied relevant eligibility and underwriting requirements at the time of consummation may result from facts that could allow a change to qualified mortgage status, but the existence of an indemnification does not per se remove qualified mortgage status.\n\n(c)  Exempted transactions.  The following transactions are exempted from the requirements in paragraph (b) of this section:\n\n(1) Home Equity Conversion Mortgages under section 255 of the National Housing Act (12 U.S.C. 1715z-20); and\n\n(2) Mortgage transactions exempted by the CFPB in its regulations at 12 CFR 1026.43(a)(3) as of January 10, 2014. Any changes made by CFPB to the list of exempted transactions may be adopted by HUD through publication of a notice and after providing FHA-approved mortgagees with time, as may be determined necessary, to implement.\n\n(d)  Ability to make adjustments to this section by notice.  The FHA Commissioner may make adjustments to this section, including the calculations of fees or the list of transactions excluded from compliance with the requirements of this section as the Commissioner determines necessary for purposes of meeting FHA's mission, after solicitation and consideration of public comments."], ["24:24:2.1.1.2.4.1.81.22", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.20 Agreed interest rate.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 49 FR 19457, May 8, 1984]", "(a) The mortgage shall bear interest at the rate agreed upon by the mortgagee and the mortgagor.\n\n(b) Interest shall be payable in monthly installments on the principal amount of the mortgage outstanding on the due date of each installment."], ["24:24:2.1.1.2.4.1.81.23", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.21 Amortization provisions.", "HUD", "", "", "", "The mortgage must contain complete amortization provisions satisfactory to the Commissioner, requiring monthly payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Commissioner. The sum of the principal and interest payments in each month shall be substantially the same."], ["24:24:2.1.1.2.4.1.81.24", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.22 Payment of insurance premiums or charges; prepayment privilege.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 37 FR 8661, Apr. 29, 1972; 48 FR 28804, June 23, 1983; 50 FR 25914, June 24, 1985; 61 FR 36263, July 9, 1996; 79 FR 50837, Aug. 26, 2014]", "(a)  Payment of periodic insurance premiums or charges.  Except with respect to mortgages for which a one-time mortgage insurance premium is paid pursuant to \u00a7 203.280, the mortgage may provide for monthly payments by the mortgagor to the mortgagee of an amount equal to one-twelfth of the annual mortgage insurance premium payable by the mortgagee to the Commissioner. Such payments continue only so long as the contract of insurance shall remain in effect or for such shorter period as mortgage insurance premiums are payable by the mortgagee to the Commissioner.\n\n(b)  Prepayment privilege.  The mortgage shall contain a provision permitting the mortgagor to prepay the mortgage in whole or in part at any time and in any amount. The mortgage shall not provide for the payment of any charge on account of such prepayment."], ["24:24:2.1.1.2.4.1.81.25", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.23 Mortgagor's payments to include other charges.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 37 FR 25231, Nov. 29, 1972; 41 FR 47934, Nov. 10, 1976; 59 FR 53901, Oct. 26, 1994]", "(a) The mortgage shall provide for such equal monthly payments by the mortgagor to the mortgagee as will amortize:\n\n(1) The ground rents, if any;\n\n(2) The estimated amount of all taxes;\n\n(3) Special assessments, if any;\n\n(4) Flood insurance premiums, if flood insurance is required by the Commissioner; and\n\n(5) Fire and other hazard insurance premiums, if any. The mortgage shall further provide that such payments shall be held by the mortgagee in a manner satisfactory to the Commissioner for the purpose of paying such ground rents, taxes, assessments, and insurance premiums before the same become delinquent, for the benefit and account of the mortgagor. The mortgage must also make provisions for adjustments in case the estimated amount of such taxes, assessments, and insurance premiums shall prove to be more, or less, than the actual amount thereof so paid by the mortgagor. Such payments shall be held in an escrow subject to \u00a7 203.550.\n\n(b) The mortgagor shall not be required to pay premiums for fire or other hazard insurance which protects only the interests of the mortgagee, or for life or disability income insurance, or fees charged for obtaining information necessary for the payment of property taxes. The foregoing does not apply to charges made or penalties exacted by the taxing authority, except that a penalty assessed or interest charged by a taxing authority for failure to timely pay taxes or assessments shall not be charged by the mortgagee to the mortgagor if the mortgagee had sufficient funds in escrow for the account of the mortgagor to pay such taxes or assessments prior to the date on which penalty or interest charges are imposed.\n\n(c) Mortgages involving a principal obligation not in excess of $9,000 may contain a provision requiring the mortgagor to pay to the mortgagee an annual service charge at such rate as may be agreed upon between the mortgagee and the mortgagor, but in no case shall such service charge exceed one-half of one percent per annum. Any such service charge shall be payable in monthly installments on the principal then outstanding. The provisions of this paragraph shall not apply to mortgages endorsed for insurance pursuant to applications received by the Commissioner on or after July 17, 1961."], ["24:24:2.1.1.2.4.1.81.26", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.24 Application of payments.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 37 FR 25231, Nov. 29, 1972; 50 FR 25914, June 24, 1985; 61 FR 36263, July 9, 1996]", "(a) All monthly payments to be made by the mortgagor to the mortgagee shall be added together and the aggregate amount thereof shall be paid by the mortgagor each month in a single payment. The mortgagee shall apply the same to the following items in the order set forth:\n\n(1) Premium charges under the contract of insurance (other than a one-time or up-front mortgage insurance premium paid in accordance with \u00a7\u00a7 203.280, 203.284 and 203.285), charges for ground rents, taxes, special assessments, flood insurance premiums, if required, and fire and other hazard insurance premiums;\n\n(2) Interest on the mortgage;\n\n(3) Amortization of the principal of the mortgage; and\n\n(4) Late charges, if permitted under the terms of the mortgage and subject to such conditions as the Commissioner may prescribe.\n\n(b) Any deficiency in the amount of any such aggregate monthly payment shall, unless made good by the mortgagor prior to, or on, the due date of the next such payment, constitute an event of default under the mortgage."], ["24:24:2.1.1.2.4.1.81.27", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.25 Late charge.", "HUD", "", "", "[41 FR 49734, Nov. 10, 1976]", "The mortgage may provide for the collection by the mortgagee of a late charge, not to exceed four per cent of the amount of each payment more than 15 days in arrears, to cover servicing and other costs attributable to the receipt of payments from mortgagors after the date upon which payment is due."], ["24:24:2.1.1.2.4.1.81.28", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.26 Mortgagor's payments when mortgage is executed.", "HUD", "", "", "[41 FR 49734, Nov. 10, 1976, as amended at 48 FR 28804, June 23, 1983]", "(a) The mortgagor must pay to the mortgagee, upon execution of the mortgage, a sum that will be sufficient to pay the ground rents, if any, the estimated taxes, special assessments, flood insurance premiums, if required, and fire and other hazard insurance premiums for the period beginning on the last date on which each such charge would have been paid under the normal lending practices of the lender and local custom (if each such date constitutes prudent lending practice), and ending on the due date of the first full installment payment under the mortgage, plus an amount sufficient to pay the mortgage insurance premium from the date of closing the loan to the date of the first monthly payment under the mortgage or, where applicable, the one-time mortgage insurance premium payable pursuant to \u00a7 203.280.\n\n(b) The mortgagee may also collect from the mortgagor a sum not exceeding one-sixth of the estimated total amount of such taxes, special assessments, insurance premiums and other charges to be paid during the ensuing 12-month period."], ["24:24:2.1.1.2.4.1.81.29", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.27 Charges, fees or discounts.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 43 FR 19846, May 9, 1978; 45 FR 30602, May 8, 1980; 45 FR 33966, May 21, 1980; 47 FR 29525, July 7, 1982; 48 FR 11940, Mar. 22, 1983; 48 FR 28804, June 23, 1983; 49 FR 19457, May 8, 1984; 57 FR 58347, Dec. 9, 1992; 58 FR 13537, Mar. 12, 1993; 73 FR 68239, Nov. 17, 2008]", "(a) The mortgagee may collect from the mortgagor the following charges, fees or discounts:\n\n(1) [Reserved]\n\n(2) A charge to compensate the mortgagee for expenses incurred in originating and closing the loan,  provided  that the Commissioner may establish limitations on the amount of any such charge.\n\n(3) Reasonable and customary amounts, but not more than the amount actually paid by the mortgagee, for any of the following items:\n\n(i) Recording fees and recording taxes or other charges incident to recordation;\n\n(ii) Credit Report;\n\n(iii) Survey, if required by mortgagee or mortgagor;\n\n(iv) Title examination; title insurance, if any;\n\n(v) Fees paid to an appraiser or inspector approved by the Commissioner for the appraisal and inspection, if required, of the property. Notwithstanding any limitations in this paragraph (a)(3) if the mortgagee is permitted by applicable regulations to use the services of staff appraisers and inspectors for processing mortgages, and does so, the mortgagee may collect from the mortgagor the reasonable and customary amounts for such appraisals and inspections.\n\n(vi) Such other reasonable and customary charges as may be authorized by the Commissioner.\n\n(4) Reasonable and customary charges in the nature of discounts.\n\n(5) Interest from the date of closing or the date on which the mortgagee disburses the mortgage proceeds to the account of the mortgagor or the mortgagor's creditors, whichever is later, to the date of the beginning of amortization.\n\n(b)-(c) [Reserved]\n\n(d) Before the insurance of any mortgage, the mortgagee shall furnish to the Secretary a signed statement in a form satisfactory to the Secretary listing any charge, fee or discount collected by the mortgagee from the mortgagor. All charges, fees or discounts are subject to review by the Secretary both before and after endorsement under \u00a7 203.255.\n\n(e) Nothing in this section will be construed as prohibiting the mortgagor from dealing through a broker who does not represent the mortgagee, if he prefers to do so, and paying such compensation as is satisfactory to the mortgagor in order to obtain mortgage financing."], ["24:24:2.1.1.2.4.1.81.30", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.28 Economic soundness of projects.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 42 FR 57434, Nov. 2, 1977; 45 FR 33966, May 21, 1980; 53 FR 8880, Mar. 18, 1988]", "The mortgage must be executed with respect to a project which, in the opinion of the Commissioner, is economically sound, except that this section shall not apply in each of the following instances:\n\n(a) To a mortgage of the character described in \u00a7 203.18(d) and with respect to such a mortgage, the Commissioner shall determine that the mortgage is an acceptable risk giving consideration to the need for providing adequate housing for families of low and moderate income, particularly in suburban and outlying areas or small communities.\n\n(b) To a mortgage of the character described in \u00a7 203.18 (e).\n\n(c) To a mortgage of the character described in \u00a7 203.43a.\n\n(d) To a mortgage in a federally impacted area described in \u00a7 203.43e.\n\n(e) To a rehabilitation loan of the character described in \u00a7 203.50."], ["24:24:2.1.1.2.4.1.81.31", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.29 Eligible mortgages in Alaska, Guam, Hawaii, or the Virgin Islands.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 49 FR 14338, Apr. 11, 1984; 55 FR 34804, Aug. 24, 1990; 56 FR 18948, Apr. 24, 1991; 64 FR 14569, Mar. 25, 1999]", "(a)  When is an increased mortgage limit permitted for these areas?  For Alaska, Guam, Hawaii or the Virgin Islands, the Commissioner may increase the maximum mortgage amount permitted by section 203(b)(2)(A) of the National Housing Act when authorized by section 214 of that Act, through the procedures described in \u00a7 203.18(h).\n\n(b) If a party believes that the otherwise applicable mortgage limit needs to be increased to reflect the extent to which high costs make it infeasible to construct dwellings without sacrificing sound standards of construction, design or livability, the party may submit documentation in support of an alternative mortgage limit. This documentation should include actual or estimated costs of such items as design, construction, materials, and labor. In addition, actual sales prices of new homes may be submitted, together with any other documentation requested by the Commissioner. Requests for alternative mortgage limits, together with supporting documentation should be sent to the appropriate HUD field office. The field office will forward the request and supporting material, with the field office's recommendation, to the Commissioner for determination.\n\n(c) If the Alaska Housing Authority, or the Government of Guam, Hawaii, or the Virgin Islands or any agency or instrumentality of those entities, is the mortgagor or the mortgagee, or the mortgagor is regulated or restricted as to rents or sales, charges, capital structure, rate of return, and methods of operation to such an extent and in such manner as the Commissioner determines advisable to provide reasonable rental and sales prices and a reasonable return on the investment, any mortgage otherwise eligible for insurance under this subpart may be insured:\n\n(1) In any case where the Alaska Housing Authority, or the government of Guam, Hawaii, the Virgin Islands, or any agency or instrumentality of those entities, is the mortgagor, without regard to any requirement that the mortgagor occupy the dwelling as a principal residence or a secondary residence (as these terms are defined in \u00a7 203.18(f)), or meet loan-to-value or comparable limitations based on the failure of the mortgagor to meet this occupancy requirement;\n\n(2) Without regard to any requirement that the mortgagor has paid on account of the property a prescribed percentage of the appraised value of the property; or\n\n(3) Without regard to any requirement that the mortgagor certify that the mortgaged property is free and clear of all liens other than the mortgage offered for insurance and that there will not be any unpaid obligations contracted in connection with the mortgage transaction or the purchase of the mortgaged property.\n\n(d) The provisions of \u00a7 203.28 requiring economic soundness shall not be applicable to mortgages covering property located in Alaska, in Guam, in Hawaii, or in the Virgin Islands, but the Commissioner shall find that the property or project is an acceptable risk, giving consideration to the acute housing shortage in Alaska, Guam, Hawaii, or the Virgin Islands."], ["24:24:2.1.1.2.4.1.81.32", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.30 Certificate of nondiscrimination by the mortgagor.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996]", "The mortgagor shall certify to the Commissioner as to each of the following points:\n\n(a) That neither he, nor anyone authorized to act for him, will refuse to sell or rent, after the making of a bonafide offer, or refuse to negotiate for the sale or rental of, or otherwise make unavailable or deny the dwelling or property covered by the mortgage to any person because of race, color, religion, national origin, familial status (except as provided by law), or handicap.\n\n(b) That any restrictive covenant on such property relating to race, color, religion, or national origin is recognized as being illegal and void and is hereby specifically disclaimed.\n\n(c) That civil action for preventative relief may be brought by the Attorney General in any appropriate U.S. District Court against any person responsible for a violation of this certification.\n\n(d) That buildings having four (4) or more units, which were built for first occupancy after March 13, 1991, were constructed in compliance with the Fair Housing Act new construction requirements in 24 CFR 100.205."], ["24:24:2.1.1.2.4.1.81.33", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.31 Mortgagor of a principal residence in military service cases.", "HUD", "", "", "[55 FR 34804, Aug. 24, 1990]", "(a) A mortgage that is otherwise eligible for insurance under any of the provisions of this part may be insured without regard to any requirement contained in this part that the mortgagor occupy the dwelling as a principal residence (as defined in \u00a7 203.18(f)(1)) at the time of insurance, or that the mortgagor meet loan-to-value or comparable limitations based on the failure of the mortgagor to meet an occupancy requirement, if:\n\n(1) The Commissioner is satisfied that the inability of the mortgagor to meet the occupancy requirement is by reason of his or her entry into military service after the filing of an application for insurance; and\n\n(2) The mortgagor expresses an intent (in such form as the Commissioner may prescribe), to meet the occupancy requirement upon his or her discharge from the service.\n\n(b) A serviceperson will also be considered to meet the occupancy requirement referred to in paragraph (a) of this section for mortgage insurance purposes, if the following conditions are satisfied:\n\n(1) The serviceperson and his or her family expect to meet the occupancy requirement referred to in paragraph (a) of this section for two or more years. The Commissioner may shorten this period to one year, if (i) the serviceperson's family will occupy the property for at least one year and (ii) the serviceperson is assigned to a combat zone or other hazardous duty area where the family cannot accompany him or her; and\n\n(2) The property is located in an area in which the prospects of resale are reasonable."], ["24:24:2.1.1.2.4.1.82.34", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.32 Mortgage lien.", "HUD", "", "", "[45 FR 19223, Mar. 25, 1980, as amended at 50 FR 20906, May 21, 1985; 56 FR 4477, Feb. 4, 1991; 58 FR 42647, Aug. 11, 1993]", "(a) Except as otherwise provided in this section, a mortgagor must establish that, after the mortgage offered for insurance has been recorded, the mortgaged property will be free and clear of all liens other than such mortgage, and that there will not be outstanding any other unpaid obligations contracted in connection with the mortgage transaction or the purchase of the mortgaged property, except obligations that are secured by property or collateral owned by the mortgagor independently of the mortgaged property.\n\n(b) With prior approval of the Secretary, the mortgaged property may be subject to a secondary mortgage or loan made or insured, or other secondary lien held, by a Federal, State, or local government agency or instrumentality, or an entity designated in the homeownership plan submitted by an applicant for an implementation grant under the Homeownership and Opportunity for People Everywhere (HOPE) program, or an eligible nonprofit organization as defined in \u00a7 203.41(a)(5) of this part, provided that the required monthly payments under the insured mortgage and the secondary mortgage or lien shall not exceed the mortgagor's reasonable ability to pay as determined by the Secretary.\n\n(c) With the prior approval of the Secretary, the mortgaged property may be subject to a second mortgage held by a mortgagee not described in paragraph (b) of this section. Unless the mortgage is for the purpose described in paragraph (d) of this section, it shall meet the following requirements:\n\n(1) The required monthly payments under the insured mortgage and the second mortgage shall not exceed the mortgagor's reasonable ability to pay, as determined by the Commissioner;\n\n(2) Periodic payments, if any, shall be collected monthly and be substantially the same;\n\n(3) The sum of the principal amount of the insured mortgage and the second mortgage shall not exceed the loan-to-value limitation applicable to the insured mortgage, and shall not exceed the maximum mortgage limit for the area;\n\n(4) The repayment terms shall not provide for a balloon payment before ten years, or for such other term as the Commissioner may approve, except that the mortgage may become due and payable on sale or refinancing of the secured property covered by the insured mortgage; and\n\n(5) The mortgage shall contain a provision permitting the mortgagor to prepay the mortgage in whole or in part at any time, and shall not provide for the payment of any charge on account of such prepayment.\n\n(d)(1) With the prior approval of the Commissioner, the mortgaged property may be subject to a junior (second or third) mortgage securing the repayment of funds advanced to reduce the mortgagor's monthly payments on the insured mortgage following the date it is insured, if the junior mortgage meets the following requirements:\n\n(i) The junior mortgage shall not provide for any payment of principal or interest until the property securing the junior mortgage is sold or the insured mortgage is refinanced, at which time the junior mortgage shall become due and payable;\n\n(ii) The total amount of repayments under the junior mortgage shall not exceed the least of:\n\n(A) One-half of the mortgagor's equity interest in the property at the time of sale or refinancing;\n\n(B) Three times the amount of funds advanced to effect the interest rate buy-down; or\n\n(C) The sum of the original loan amount plus the total accrued interest on the junior mortgage at the time of repayment; and\n\n(iii) The junior mortgage shall contain a provision permitting the mortgagor to prepay the mortgage in whole or in part at any time, and shall not provide for the payment of any charge on account of such prepayment. Any full or partial prepayment will not be recoverable by the mortgagor if, by application of paragraph (d)(1)(ii) on sale or refinancing of the property, a lesser amount than the amount prepaid would have been due.\n\n(2) The sum of the principal amount of the insured mortgage, any second mortgage made under paragraph (b) or (c) of this section, and the mortgage securing the repayment of funds advanced to reduce the borrower's monthly payments (whether a second or third mortgage) may exceed the loan-to-value limitation applicable to the insured mortgage, but such sum may not exceed the maximum mortgage limit for the area."], ["24:24:2.1.1.2.4.1.82.35", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.33 Relationship of income to mortgage payments.", "HUD", "", "", "[37 FR 16390, Aug. 12, 1972, as amended at 54 FR 38649, Sept. 20, 1989; 59 FR 59648, Nov. 18, 1994; 77 FR 5675, Feb. 3, 2012]", "(a) Adequacy of mortgagor's gross income. A mortgagor must establish, to the satisfaction of the Secretary, that his or her gross income is and will be adequate to meet (1) the periodic payments required by the mortgage submitted for insurance and (2) other long-term obligations.\n\n(b) Determinations of adequacy of mortgagor income under this section shall be made in a uniform manner without regard to race, color, religion, sex, national origin, familial status, handicap, marital status, actual or perceived sexual orientation, gender identity, source of income of the mortgagor, or location of the property."], ["24:24:2.1.1.2.4.1.82.36", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.34 Credit standing.", "HUD", "", "", "", "A mortgagor must have a general credit standing satisfactory to the Commissioner."], ["24:24:2.1.1.2.4.1.82.37", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.35 Disclosure and verification of Social Security and Employer Identification Numbers.", "HUD", "", "", "[54 FR 39693, Sept. 27, 1989]", "To be eligible for mortgage insurance under this part, the mortgagor must meet the requirements for the disclosure and verification of Social Security and Employer Identification Numbers, as provided by part 200, subpart U, of this chapter."], ["24:24:2.1.1.2.4.1.82.38", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.36 [Reserved]", "HUD", "", "", "", ""], ["24:24:2.1.1.2.4.1.83.39", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.37 Nature of title to realty.", "HUD", "", "", "[49 FR 21319, May 21, 1984]", "A mortgage, to be eligible for insurance, must be on real estate held in fee simple, or on leasehold under a lease for not less than 99 years which is renewable, or under a lease having a period of not less than 10 years to run beyond the maturity date of the mortgage."], ["24:24:2.1.1.2.4.1.83.40", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.37a Sale of property.", "HUD", "", "", "[68 FR 23375, May 1, 2003, as amended at 69 FR 77116, Dec. 23, 2004; 71 FR 33142, June 7, 2006]", "(a)  Sale by owner of record \u2014(1)  Owner of record requirement.  To be eligible for a mortgage insured by FHA, the property must be purchased from the owner of record and the transaction may not involve any sale or assignment of the sales contract.\n\n(2)  Supporting documentation.  The mortgagee shall obtain documentation verifying that the seller is the owner of record and must submit this documentation to HUD as part of the application for mortgage insurance, in accordance with \u00a7 203.255(b)(12). This documentation may include, but is not limited to, a property sales history report, a copy of the recorded deed from the seller, or other documentation (such as a copy of a property tax bill, title commitment, or binder) demonstrating the seller's ownership.\n\n(b)  Time restrictions on re-sales \u2014(1)  General.  The eligibility of a property for a mortgage insured by FHA is dependent on the time that has elapsed between the date the seller acquired the property (based upon the date of settlement) and the date of execution of the sales contract that will result in the FHA mortgage insurance (the re-sale date). The mortgagee shall obtain documentation verifying compliance with the time restrictions described in this paragraph and must submit this documentation to HUD as part of the application for mortgage insurance, in accordance with \u00a7 203.255(b).\n\n(2)  Re-sales occurring 90 days or less following acquisition.  If the re-sale date is 90 days or less following the date of acquisition by the seller, the property is not eligible for a mortgage to be insured by FHA.\n\n(3)  Re-sales occurring between 91 days and 180 days following acquisition.  (i) If the re-sale date is between 91 days and 180 days following acquisition by the seller, the property is generally eligible for a mortgage insured by FHA.\n\n(ii) However, HUD will require that the mortgagee obtain additional documentation if the re-sale price is 100 percent over the purchase price. Such documentation must include an appraisal from another appraiser. The mortgagee may also document its loan file to support the increased value by establishing that the increased value results from the rehabilitation of the property.\n\n(iii) HUD may revise the level at which additional documentation is required under \u00a7 203.37a(b)(3) at 50 to 150 percent over the original purchase price. HUD will revise this level by  Federal Register  notice with a 30 day delayed effective date.\n\n(4)  Authority to address property flipping for re-sales occurring between 91 days and 12 months following acquisition.  (i) If the re-sale date is more than 90 days after the date of acquisition by the seller, but before the end of the twelfth month after the date of acquisition, the property is eligible for a mortgage to be insured by FHA.\n\n(ii) However, HUD may require that the lender provide additional documentation to support the re-sale value of the property if the re-sale price is 5 percent or greater than the lowest sales price of the property during the preceding 12 months (as evidenced by the contract of sale). At HUD's discretion, such documentation must include, but is not limited to, an appraisal from another appraiser. HUD may exclude re-sales of less than a specific dollar amount from the additional value documentation requirements.\n\n(iii) If the additional value documentation supports a value of the property that is more than 5 percent lower than the value supported by the first appraisal, the lower value will be used to calculate the maximum mortgage amount under \u00a7 203.18. Otherwise, the value supported by the first appraisal will be used to calculate the maximum mortgage amount.\n\n(iv) HUD will announce its determination to require additional value documentation through issuance of a  Federal Register  notice. The requirement for additional value documentation may be established either on a nationwide or regional basis. Further, the  Federal Register  notice will specify the percentage increase in the re-sale price that will trigger the need for additional documentation, and will specify the acceptable types of documentation. The  Federal Register  notice may also exclude re-sales of less than a specific dollar amount from the additional value documentation requirements. Any such  Federal Register  notice, and any subsequent revisions, will be issued at least thirty days before taking effect.\n\n(v) The level at which additional documentation is required under \u00a7 203.37a(b)(4) shall supersede that under \u00a7 203.37a(b)(3).\n\n(5)  Re-sales occurring more than 12 months following acquisition.  If the re-sale date is more than 12 months following the date of acquisition by the seller, the property is eligible for a mortgage insured by FHA.\n\n(c)  Exceptions to the time restrictions on sales.  The time restrictions on sales described in paragraph (b) of this section do not apply to:\n\n(1) Sales by HUD of Real Estate-Owned (REO) properties under 24 CFR part 291 and of single family assets in revitalization areas pursuant to section 204 of the National Housing Act (12 U.S.C. 1710);\n\n(2) Sales by another agency of the United States Government of REO single family properties pursuant to programs operated by these agencies;\n\n(3) Sales of properties by nonprofit organizations approved to purchase HUD REO single family properties at a discount with resale restrictions;\n\n(4) Sales of properties that were acquired by the sellers by inheritance;\n\n(5) Sales of properties purchased by an employer or relocation agency in connection with the relocation of an employee;\n\n(6) Sales of properties by state- and federally-chartered financial institutions and government-sponsored enterprises (GSEs);\n\n(7) Sales of properties by local and state government agencies; and\n\n(8) Only upon announcement by HUD through issuance of a notice, sales of properties located in areas designated by the President as federal disaster areas. The notice will specify how long the exception will be in effect.\n\n(d)  Sanctions and indemnification.  Failure of a mortgagee to comply with the requirements of this section may result in HUD requesting indemnification of the mortgage loan, or seeking other appropriate remedies under 24 CFR part 25."], ["24:24:2.1.1.2.4.1.83.41", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.38 Location of dwelling.", "HUD", "", "", "[61 FR 36264, July 9, 1996]", "At the time a mortgage is insured there must be located on the mortgaged property one or more dwellings designed principally for residential use for not more than four families."], ["24:24:2.1.1.2.4.1.83.42", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.39 Standards for buildings.", "HUD", "", "", "", "The buildings on the mortgaged property must conform with the standards prescribed by the Commissioner."], ["24:24:2.1.1.2.4.1.83.43", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.40 Location of property.", "HUD", "", "", "[49 FR 12697, Mar. 30, 1984, as amended at 61 FR 36264, July 9, 1996]", "The mortgaged property shall be located within the United States, Puerto Rico, Guam, the Virgin Islands, the Commonwealth of the Northern Mariana Islands, and American Samoa. The mortgaged property, if otherwise acceptable to the Commissioner, may be located in any community where the housing standards meet the requirements of the Commissioner."], ["24:24:2.1.1.2.4.1.83.44", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.41 Free assumability; exceptions.", "HUD", "", "", "[58 FR 42648, Aug. 11, 1993; 59 FR 15112, Mar. 31, 1994]", "(a)  Definitions.  As used in this section:\n\n(1)  Low- or moderate-income housing  means housing which is designed to be affordable, taking into account available financing, to individuals or families whose household income does not exceed 115 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families. The Secretary may approve a higher percentage up to 140 percent.\n\n(2)  Eligible governmental or nonprofit program  means a program operated pursuant to a program established by Federal law, operated by a State or local government, or operated by an eligible nonprofit organization, if the program is designed to assist the purchase of low-or moderate-income housing including rental housing.\n\n(3)  Legal restrictions on conveyance  means any provision in any legal instrument, law or regulation applicable to the mortgagor or the mortgaged property, including but not limited to a lease, deed, sales contract, declaration of covenants, declaration of condominium, option, right of first refusal, will, or trust agreement, that attempts to cause a conveyance (including a lease) made by the mortgagor to:\n\n(i) Be void or voidable by a third party;\n\n(ii) Be the basis of contractual liability of the mortgagor for breach of an agreement not to convey, including rights of first refusal, pre-emptive rights or options related to mortgagor efforts to convey;\n\n(iii) Terminate or subject to termination all or a part of the interest held by the mortgagor in the mortgaged property if a conveyance is attempted;\n\n(iv) Be subject to the consent of a third party;\n\n(v) Be subject to limits on the amount of sales proceeds retainable by the seller; or\n\n(vi) Be grounds for acceleration of the insured mortgage or increase in the interest rate.\n\n(4)  Tax-exempt bond financing  means financing which is funded in whole or in part by the proceeds of qualified mortgage bonds described in section 143 of the Internal Revenue code of 1986, or any successor section, on which the interest is exempt from Federal income tax. The term does not include financing by qualified veterans' mortgage bonds as defined in section 143(b) of the Code.\n\n(5)  Eligible nonprofit organization  means an organization of the type described in section 501(c)(3) of the Internal Revenue Code of 1986 as an organization exempt under section 501(a) of the Code, which has:\n\n(i) Two years experience as a provider of low- or moderate-income housing;\n\n(ii) A voluntary board; and\n\n(iii) No part of its net earnings inuring to the benefit of any member, founder, contributor or individual.\n\n(b)  Policy of free assumability with no restrictions.  A mortgage shall not be eligible for insurance if the mortgaged property is subject to legal restrictions on conveyance, except as permitted by this part.\n\n(c)  Exception for eligible governmental or nonprofit programs.  Legal restrictions on conveyance are acceptable if:\n\n(1) The restrictions are part of an eligible governmental or nonprofit program and are permitted by paragraph (d) of this section; and\n\n(2) The restrictions will automatically terminate if title to the mortgaged property is transferred by foreclosure or deed-in-lieu of foreclosure, or if the mortgage is assigned to the Secretary.\n\n(d)  Exception for eligible governmental or nonprofit programs\u2014specific policies.  For purposes of paragraph (c) of this section, restrictions of the following types are permitted for eligible governmental or nonprofit programs, provided that a violation of legal restrictions on conveyance may not be grounds for acceleration of the insured mortgaged or for an increase in the interest rate, or for voiding a conveyance of the mortgagor's interest in the property, terminating the mortgagor's interest in the property, or subjecting the mortgagor to contractual liability other than requiring repayment (at a reasonable rate of interest) of assistance provided to make the property affordable as low- or moderate-income housing:\n\n(1) Except as otherwise provided in the HOME Investment Partnerships (HOME) and the Homeownership and Opportunity for People Everywhere (HOPE) programs, the mortgagor may be prohibited from selling the property at a price greater than the price permitted under the program, or the mortgagor may be required to pay a portion of the sales proceeds to a governmental body or an eligible nonprofit organization, as long as the mortgagor is not prohibited from recovering:\n\n(i) The sum of the mortgagor's original purchase price, the mortgagor's reasonable costs of sale, the reasonable costs of improvements made by the mortgagor, and any negative amortization on a graduated payment mortgage insured under \u00a7 203.45 of this part; and\n\n(ii) A reasonable share, as determined by the Secretary, of the appreciation in value which shall be the sales price reduced by the sum determined under paragraph (d)(1)(i) of this section.\n\n(2) Legal restrictions on conveyance may extend beyond the term of the mortgage, subject to paragraph (c)(2) of this section and any limitations applicable in the jurisdiction.\n\n(3) Except as otherwise required by the HOME and HOPE programs, rights under an option to purchase, pre-emptive rights to purchase or rights of first refusal shall only be held by a governmental body or eligible nonprofit organization, or another individual or organization approved by the Secretary, and shall be exercised by them (or an assignee who will purchase and occupy the property) only within a reasonable time after the event permitting exercise of the rights occurs, not to exceed a period of time determined by the Secretary. The Secretary may approve another individual or organization under the preceding sentence even if the restriction is not part of an eligible governmental or nonprofit program.\n\n(4) In addition to the restrictions stated in paragraph (d)(3) of this section, the purchase price under an option may not be less than the sum of the mortgagor's original purchase price, the mortgagor's reasonable costs of sale, the reasonable costs of improvements made by seller, and a reasonable share, as determined by the Secretary, of the appreciation in value.\n\n(5) The mortgagor may be required to continue to be an owner-occupant.\n\n(6) The mortgagor may be limited in his or her ability to choose a purchaser for the property, but only to the extent necessary to ensure that the property is preserved as low- or moderate-income housing.\n\n(7) The mortgagor for a rehabilitation loan insured under \u00a7 203.50 of this part may hold title subject to a condition subsequent, provided that the holder of the right of entry for condition broken also executes the mortgage, and that the right is exercisable only for failure by the mortgagor to complete the rehabilitation or occupy the property as agreed by the mortgagor.\n\n(8) Property may be subject to a legal restriction on conveyance to the extent approved in writing by an authorized representative of the Secretary prior to September 10, 1993.\n\n(e)  Exception for tax-exempt bond financing.  A mortgage may be funded through tax-exempt bond financing and may include a due-on-sale provision in a form approved by the Secretary which permits the mortgagee to accelerate a mortgage that no longer meets Federal requirements for tax-exempt bond financing or for other reasons acceptable to the Secretary. Except as provided in this paragraph (e), a mortgage funded through tax-exempt bond financing shall comply with all form requirements prescribed under \u00a7 203.17(a) of this part and shall contain no other provisions designed to enforce compliance with Federal or State requirements for tax-exempt bond financing. Other legal restrictions on conveyance are permitted as provided in other paragraphs of this section.\n\n(f)  Exception for protective covenants excluding non-elderly.  Mortgaged property may be subject to protective covenants which prohibit or restrict occupancy by, or transfer to, persons who are not elderly if:\n\n(1) The restrictions do not have an undue effect on marketability; and\n\n(2) The restrictions do not constitute illegal discrimination and are consistent with the Fair Housing Act and all other applicable nondiscrimination laws.\n\n(g)  Exceptions for specific jurisdictions.  Notwithstanding the provisions of paragraph (b) of this section, mortgages insured on certain Indian land or Hawaiian home lands under sections 247 and 248 of the National Housing Act and \u00a7\u00a7 203.43h and 203.43i of this part, or on property in the Northern Mariana Islands or American Samoa, shall not be ineligible for insurance under this section solely because applicable law does not permit free alienability of title to all persons."], ["24:24:2.1.1.2.4.1.83.45", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.42 Rental properties.", "HUD", "", "", "[56 FR 27692, June 17, 1991, as amended at 61 FR 36264, July 9, 1996]", "(a) A mortgage on property upon which there is a dwelling to be rented by the mortgagor shall not be eligible for insurance if the property is a part of, or adjacent or contiguous to, a project, or group of similar rental properties, in which the mortgagor has a financial interest in eight or more dwelling units.\n\n(b) Paragraph (a) of this section shall not apply where:\n\n(1) A mortgage qualifies as a rehabilitation loan under \u00a7 203.50 of this part;\n\n(2) The mortgage is to be used for the rehabilitation of property located in a specific area or neighborhood that has been targeted by a State or local government for redevelopment, in accordance with a specific program that involves substantial public or private commitments in support of neighborhood improvement or redevelopment; and\n\n(3) The State or local government has approved, and has submitted to the Commissioner a plan describing the program of neighborhood redevelopment and revitalization, including the geographic area targeted for redevelopment, and the nature and proportion of public or private commitments that have been made in support of the redevelopment program.\n\n(c) No two-, three-, or four-family dwelling, and no single-family dwelling, if it is part of a group of five or more single-family dwellings held by the same mortgagor, or any part or unit thereof, shall be rented or offered for rent for transient or hotel purposes, as defined in \u00a7 203.16, so long as the dwelling is subject to any insured mortgage."], ["24:24:2.1.1.2.4.1.83.46", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43 Eligibility of miscellaneous type mortgages.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 45 FR 30602, May 8, 1980; 47 FR 29525, July 7, 1982; 52 FR 4139, Feb. 10, 1987; 52 FR 37287, Oct. 6, 1987; 52 FR 44861, Nov. 23, 1987; 53 FR 8880, Mar. 18, 1988; 55 FR 34805, Aug. 24, 1990; 55 FR 38033, Sept. 14, 1990; 61 FR 36264, July 9, 1996]", "(a) A mortgage which meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section.\n\n(b) The mortgage may be accepted for insurance if:\n\n(1) Executed in connection with the sale by the Government, or any agency or official thereof, of any housing acquired or constructed under Public Law 849, Seventy-sixth Congress, as amended; Public Law 781, Seventy-sixth Congress, as amended; or Public Law 9, 73 or 353, Seventy-seventh Congress, as amended (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof); or\n\n(2) Executed in connection with the sale by the Public Housing Administration, or by any public housing agency with the approval of the said Administration, or any housing (including any property acquired, held or constructed in connection with such housing or to serve the inhabitants thereof) owned or financially assisted pursuant to the provisions of Public Law 671, Seventy-sixth Congress; or\n\n(3) Executed in connection with the sale by the Government, or any agency or official thereof, or any of the so-called Greenbelt towns, or parts thereof, including projects, or parts thereof, known as Greenhills, OH; Greenbelt, MD; and Greendale, WI, developed under the Emergency Relief Appropriation Act of 1935; or of any of the village properties or employee's housing under the jurisdiction of the Tennessee Valley Authority; or of any housing under the jurisdiction of the Department of the Interior located within the town area of Coulee Dam, WA, acquired by the United States for the construction, operation, and maintenance of Grand Coulee Dam and its appurtenant works or of any permanent housing under the jurisdiction of the Department of the Interior constructed under the Boulder Canyon Project Act of December 21, 1928, as amended and supplemented, located within the Boulder City municipal area; or\n\n(4) Executed in connection with the sale by the Government, or any agency or official thereof, of any housing (including any property acquired, held, or constructed in connection therewith or to serve the inhabitants thereof) pursuant to the Atomic Energy Community Act of 1955, as amended:  Provided,  That such insurance shall be issued without regard to any preferences or priorities except those prescribed by the National Housing Act or the Atomic Energy Community Act of 1955, as amended; or\n\n(5) Executed in connection with the sale by a State or municipality, or an agency, instrumentality, or political subdivision of either, of a project consisting of any permanent housing (including any property acquired, held or constructed in connection therewith or to serve the inhabitants thereof), constructed by or on behalf of such State, municipality, agency, instrumentality or political subdivision, for the occupancy of veterans (persons who have served in the active military or naval service of the United States at any time on or after September 16, 1940, and prior to July 26, 1947, or on or after June 27, 1950, and prior to February 1, 1955) their families and others:  Provided,  That the principal obligation of a mortgage referred to in this paragraph shall not exceed 90 percent of the appraised value of the mortgaged property; or\n\n(6) Executed in connection with the first resale, within two years from the date of its acquisition from the Government, of any portion of a project or property of the character described in paragraphs (b) (1), (2), (3), and (4) of this section.\n\n(c) The Commissioner may insure under this part, without regard to any limitation upon eligibility contained in the other provisions of this subpart, any mortgage given to refinance an existing mortgage insured under the National Housing Act. The refinancing mortgage must meet the following special requirements:\n\n(1)(i) Except as provided by paragraph (c)(1)(ii) of this section, the refinancing mortgage must be in an amount that does not exceed the least of (A) the original principal amount of the existing mortgage; (B) the sum of the outstanding principal balance of the existing mortgage, plus loan closing charges approved by the Commissioner; or (C) in the case of an eligible non-occupant mortgagor (as defined in \u00a7 203.18(f)), the outstanding balance of the existing mortgage.\n\n(ii) In the case of graduated payment mortgages insured under section 203 of the Act pursuant to section 245 (a) or (b) of the Act (\u00a7 203.45 or \u00a7 203.46 [as in effect immediately before its removal at 52 FR 32754, published August 28, 1987]), the refinancing mortgage must have a principal amount that does not exceed the outstanding balance of the existing mortgage.\n\n(iii) If a one-time mortgage insurance premium (MIP) was financed as part of the existing mortgage referred to in paragraphs (c)(1) (i) and (ii) of this section, the amount of the premium refund to which the mortgagor is entitled must be deducted in determining the original principal amount and the unpaid principal balance of the existing mortgage under paragraph (c)(1)(i) of this section and the outstanding balance of the existing mortgage under paragraph (c)(1)(ii) of this section. However, the maximum amount of the refinancing mortgage computed in accordance with this paragraph (c)(1) may be increased by the amount of the one-time MIP (if any) associated with the refinancing mortgage;\n\n(2) It must have a term which does not exceed the unexpired term of the existing mortgage, except that in any case where the Commissioner determines that an extension of the term of the mortgage will inure to the benefit of the applicable insurance fund, taking into consideration the outstanding insurance liability under the existing insured mortgage, the term may be extended to the lesser of (i) 30 years or (ii) the unexpired term of the existing mortgage, plus 12 years;\n\n(3) The mortgage must result in a reduction in regular monthly payments by the mortgagor, except:\n\n(i) When a fixed rate mortgage is given to refinance an adjustable rate mortgage held by a mortgagor who is to occupy the dwelling as a principal residence or secondary residence, as these terms are defined in \u00a7 203.18(f); or\n\n(ii) When refinancing a mortgage for a shorter term will result in an increase in the mortgagor's regular monthly payments of no more than $50. In the case of a graduated payment mortgage, the reduction in regular monthly payments means a reduction from the payment due under the existing mortgage for the month in which the refinancing mortgage is executed.\n\n(4) It must be made by a mortgagor whose record of payment on the existing mortgage meets standards established by the Commissioner; and\n\n(5) The mortgagee may not require a minimum principal amount to be outstanding on the loan secured by the existing mortgage.\n\n(d)-(f) [Reserved]\n\n(g) The provisions of \u00a7 203.28 shall not apply to mortgages insured under this section.\n\n(h) The provisions of \u00a7 203.38 shall not apply to mortgages of the character described in paragraph (b) of this section and at the time any such mortgage is insured there must be located on the mortgaged property a dwelling unit designed principally for residential use for not more than eight families.\n\n(i)-(j) [Reserved]\n\n(k) The Commissioner may insure under this part, without regard to any limitation upon eligibility contained in this subpart, any mortgage assigned to the Commissioner in connection with payment under a contract of mortgage insurance, or executed in connection with a sale by the Commissioner of any property acquired in the settlement of an insurance claim under any section or title of the National Housing Act."], ["24:24:2.1.1.2.4.1.83.47", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43a Eligibility of mortgages covering housing in certain neighborhoods.", "HUD", "", "", "[36 FR 24508, Dec. 22, 1971, as amended at 55 FR 18493, May 2, 1990]", "(a) A mortgage financing the repair, rehabilitation, construction, or purchase of property located in an older declining urban area shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section.\n\n(b) The mortgage shall meet all of the requirements of this subpart, except such requirements as are judged to be not applicable on the basis of the following determinations to be made by the Commissioner:\n\n(1) That the conditions of the area in which the property is located prevent the application of certain eligibility requirements of this subpart.\n\n(2) That the area is reasonably viable, and there is a need in the area for adequate housing for families of low and moderate income.\n\n(3) That the mortgage to be insured is an acceptable risk.\n\n(c) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 223(e) of the National Housing Act. Such mortgages shall be insured under and be the obligation of the Special Risk Insurance Fund.\n\n(d) For restrictions against approving mortgage insurance for a certain category of newly legalized alien, see 24 CFR part 49."], ["24:24:2.1.1.2.4.1.83.48", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43b Eligibility of mortgages on single-family condominium units.", "HUD", "", "", "[84 FR 41875, Aug. 15, 2019]", "(a)  Definitions.  As used in this part:\n\n(1)  Condominium Association (Association)  means the organization, regardless of its formal legal name that consists of homeowners within a Condominium Project for the purpose of managing the financial and common-area assets.\n\n(2)  Condominium Project  means the project in which one-family dwelling units are attached, semi-detached, detached, or manufactured housing units, and in which owners hold an undivided interest in the Common Elements.\n\n(3)  Condominium Unit  means real estate consisting of a one-family dwelling unit in a Condominium Project.\n\n(4)  Common Elements  means the Condominium Project's common areas and facilities including: Underlying land and buildings, driveways, parking areas, elevators, outside hallways, recreation and landscaped areas, and other elements described in the condominium declaration.\n\n(5)  Rental for Transient or Hotel Purposes  shall have the meaning given in section 513(e) of the National Housing Act (12 U.S.C. 1731b(e)).\n\n(6)  Single-Unit Approval  means approval of one unit in an unapproved Condominium Project under paragraph (i) of this section.\n\n(7)  Site Condominium  means:\n\n(i) A Condominium Project that consists entirely of single-family detached dwellings that have no shared garages or any other attached buildings; or\n\n(ii) A Condominium Project that:\n\n(A) Consists of single family detached or horizontally attached (townhouse) dwellings where the unit consists of the dwelling and land; and\n\n(B) Is encumbered by a declaration of condominium covenants or condominium form of ownership and does not contain any manufactured housing units.\n\n(b)  Eligibility.  A mortgage secured by a Condominium Unit shall be eligible for insurance under section 203 of the National Housing Act if it meets the requirements of this subpart, except as modified by this section.\n\n(c)  Approval required.  To be eligible for insurance under this section, a Condominium Unit must be located in a Condominium Project approved by HUD or a DELRAP mortgagee approved under \u00a7 203.8, or meet the additional requirements for approval as a Site Condominium or Single-Unit Approval.\n\n(d)  Condominium Project Approval: Eligibility Requirements.  To be eligible for Condominium Project approval, the Condominium Project must:\n\n(1) Be primarily residential in nature and not be intended for rental for Transient or Hotel Purposes;\n\n(2) Consist of units that are solely one-family units;\n\n(3) Be in full compliance with all applicable Federal, State, and local laws with respect to zoning, Fair Housing, and accessibility for persons with disabilities, including, but not limited to, the Fair Housing Act, 42 U.S.C. 3601  et seq.,  Section 504 of the Rehabilitation Act, 29 U.S.C. 794, and the Americans with Disabilities Act, 42 U.S.C. 12101  et seq.,  where relevant;\n\n(4) Be complete and ready for occupancy, including completion of all the common elements of the project, and not subject to further rehabilitation, construction, phasing, or annexation, except to the extent that approval is sought for legal phasing in compliance with the requirements of paragraph (e) of this section;\n\n(5) Be reviewed and approved by the local jurisdiction with respect to the condominium plat or similar development plan and any phases; if applicable, the approved plat or development plan must have been recorded in the land records of the jurisdiction; and\n\n(6) Meet such further approval requirements as provided by the Commissioner through notices with respect to:\n\n(i) Nature of title to realty or leasehold interests;\n\n(ii) Control over, and organization of, the Condominium Association;\n\n(iii) Minimum insurance coverage for the Condominium Project;\n\n(iv) Planned or actual special assessments;\n\n(v) Financial condition of the Condominium Project, including, but not limited to, the allowable percentage of units owned by a single owner or group of related owners;\n\n(vi) Existence of any pending legal action, or physical property condition;\n\n(vii) Acceptable maximum percentages of commercial/non-residential space, which must be within a range between 25 and 55 percent of the total floor area (which range may be changed following the procedures in paragraph (f) of this section), with the specific maximum and minimum percentages within that range to be established by HUD through notice, provided that such commercial/non-residential space does not negatively impact the residential use of the project or create adverse conditions to the occupants of individual condominium units.\n\n(viii) Acceptable maximum percentages of units with FHA-insured mortgages, which must be within a range between 25 and 75 percent of the total number of units in the project (which range may be changed following the procedures in paragraph (f) of this section), with the specific maximum percentage of units with FHA-insured mortgages within that range to be established by HUD through notice. HUD may suspend the issuance of new FHA case numbers for a mortgage on a property located in any project where the number of FHA-insured mortgages exceeds the maximum insurance concentration established by HUD.\n\n(ix) Acceptable minimum level of owner occupancy, which shall include units occupied as a principal or secondary residence or sold to an owner who intends to meet such occupancy requirements. Such acceptable minimum levels shall be within a range between 30 and 75 percent of the total number of units in the project (which range may be changed following the procedures in paragraph (f) of this section), with a specific minimum percentage to be established by HUD through notice. For the sole purpose of calculating the owner-occupancy percentage under this paragraph, any unit that is occupied by the owner as his or her place of abode for any portion of the calendar year other than as a principal residence and that is not rented for a majority of the calendar year shall count towards the total number of secondary residences.\n\n(x) Reserve requirements, provided the reserve account is funded with at least 10 percent of the monthly unit assessments, unless a lower amount is deemed acceptable by HUD based on a reserve study completed not more than 36 months before a request for a lower amount is received, or such greater amount of time as determined by the Secretary under the HUD review and approval process.\n\n(xi) Such other matters that may affect the viability or marketability of the project or its units.\n\n(e) Phases of a project are approvable, provided that only legal phasing is used. Individual phases must be separately sustainable as required by HUD, so that the insurance fund is not put at undue risk. In determining whether to accept legal phasing, HUD will assess the potential risk to the insurance fund and other factors that HUD may publish in notices. Phases must meet HUD's requirements for approval in paragraph (d) of this section and must at a minimum be:\n\n(1) In a vertical building, contiguous, with all units built out and having a certificate of occupancy; or\n\n(2) In a detached or semi-detached development, where all homes in the phase are built out and have a certificate of occupancy;\n\n(f) The Secretary will publish any generally applicable change in the upper and lower limits of the ranges of percentages in paragraphs (d)(6)(vii) through (ix) of this section in a notice published for 30 days of public comment. After considering the comments, the Department will publish a final notice announcing the new overall upper and lower limits of the range of percentages being implemented, and the date on which the new standard becomes effective.\n\n(g) The Secretary may grant an exception to any specifically prescribed requirements within paragraph (d)(6) of this section on a case-by-case basis in HUD's discretion, provided that:\n\n(1) In the case of an exception to the approval requirements for the commercial/nonresidential space percentage that HUD establishes under paragraph (d)(6)(vii) of this section, any request for such an exception and the determination of the disposition of such request may be made, at the option of the requester, under the Direct Endorsement Lender Review and Approval process or under the HUD review and approval process through the applicable field office of the Department; and\n\n(2) In determining whether to allow such an exception, factors relating to the economy for the locality in which the project is located or specific to the project, including the total number of family units in the project, shall be considered. A DELRAP lender, in determining whether to grant a requested exception, shall follow any procedures that HUD may establish.\n\n(h)  Application for Condominium Project approval and Renewal of Approval.  (1) In order to become approved, an application for Condominium Project approval, in accordance with the requirements of the Commissioner, must be submitted to either HUD or a DELRAP mortgagee, if consistent with the mortgagee's DELRAP approval.\n\n(2) The application will be reviewed and if all eligibility criteria have been met, the Condominium Project will be approved and placed on the list of HUD-approved Condominium Projects.\n\n(3) Unless otherwise specified in writing by HUD, Condominium Projects are approved for a period of 3 years from the date of placement on the list of approved condominiums. HUD may rescind a Condominium Project's approval at any time if the project fails to comply with any requirement for approval.\n\n(4) Eligible parties may request renewal of the approval of an approved Condominium Project by submitting a request for recertification no earlier than 6 months prior to expiration of the approval or no later than 6 months after expiration of the approval. HUD shall specify the format for the recertification request, which shall allow the request to be supported by updating previously submitted information, rather than resubmission of all information. However, if the request for recertification is not submitted within 6 months after the expiration of the Condominium Project's approval, a complete, new approval application is required.\n\n(i)  Single-Unit Approval \u2014(1)  Single-Unit Approvals.  Mortgagees must ensure that the Condominium Unit is located in a Condominium Project that meets the eligibility requirements for approval as set forth in paragraph (d) of this section as modified by this paragraph, except that HUD may provide that Single-Unit Approvals may be approved by meeting a subset of these standards, or less stringent standards, as stated by notice. In addition, a unit may be eligible for Single-Unit Approval if it:\n\n(i) Is not in a Condominium Project that is on the list of FHA-approved Condominium Projects; and\n\n(ii) Is not in a project that has been identified by HUD as subject to adverse determination for significant issues that affect the viability of the project; and\n\n(iii) Is in a project that is complete under paragraph (d)(4) of this section;\n\n(iv) Is not a manufactured home; and\n\n(v) Is in a project that has at least five (5) dwelling units.\n\n(2)  Limit on Single-Unit Approvals.  HUD may suspend the issuance of new FHA case numbers for mortgages in Condominium Projects with Single-Unit Approvals where the number of FHA-insured mortgages exceeds the maximum insurance concentration established by HUD. Such acceptable maximum insurance concentration shall be within a range between 0 to 20 percent of units with FHA-insured mortgages for Condominium Projects with 10 or more units, with the exact percentage within that range to be determined by HUD through notice; or shall not exceed two FHA-insured mortgages for Condominium Projects with fewer than 10 units.\n\n(j)  Site Condominium.  Site Condominiums must meet all of the requirements of paragraphs (d)(1) through (d)(5) of this section for approval, except that insurance and maintenance costs of the individual units must be the sole responsibility of the unit owner."], ["24:24:2.1.1.2.4.1.83.49", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43c Eligibility of mortgages involving a dwelling unit in a cooperative housing development.", "HUD", "", "", "[42 FR 40431, Aug. 10, 1977, as amended at 45 FR 29278, May 2, 1980; 45 FR 76377, Nov. 18, 1980; 48 FR 12085, Mar. 23, 1983; 48 FR 28804, June 23, 1983; 49 FR 23584, June 6, 1984; 52 FR 48201, Dec. 21, 1987; 53 FR 8881, Mar. 18, 1988; 53 FR 9869, Mar. 28, 1988; 53 FR 34282, Sept. 6, 1988; 56 FR 24631, May 30, 1991; 58 FR 41002, July 30, 1993]", "A mortgage involving a dwelling unit in a cooperative housing development which meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance under section 203(n) of the National Housing Act.\n\n(a) The provisions of \u00a7\u00a7 203.16a, 203.17, 203.18, 203.18a, 203.23, 203.24, 203.26, 203.37, 203.38, 203.43h, 203.43i, 203.43j, 203.44, 203.49, and 203.50 of this part do not apply to mortgages insured under section 203(n) of the National Housing Act.\n\n(b) As used in connection with the insurance of mortgages under this section and \u00a7 203.437 of this part: (1) The term  mortgage  shall mean a first lien given to secure a loan made to finance the unpaid purchase price of a Corporate Certificate together with the applicable Occupancy Certificate of a cooperative ownership housing corporation in which the permanent occupancy of the dwelling units is restricted to members of such corporation, and may refer both to a security instrument creating a lien, whether called a  mortgage, deed of trust, security deed  or another term used in a particular jurisdiction, as well as the credit instrument, or note, secured thereby.\n\n(2)  Corporation  shall mean an organization which holds title to a cooperative housing development which is covered by a blanket mortgage or mortgages insured by FHA under the National Housing Act.\n\n(3)  Corporate Certificate  shall mean such stock certificates, membership certificates, or other instruments which the laws of the jurisdictions in which the cooperative housing development is located require to evidence ownership of a specified interest in the corporation.\n\n(4)  Occupancy Certificate  shall mean a written instrument provided by the corporation to each holder of a Corporate Certificate which grants an exclusive right of possession of a specific dwelling unit in the cooperative housing development.\n\n(5) References in this subpart to a dwelling, residence or property which is sold, conveyed, covered by a mortgage or subject to a lien shall be construed to mean the Corporate Certificate together with the Occupancy Certificate, except that where such references when interpreted in light of section 203(n) of the National Housing Act clearly indicate the intent to be the dwelling unit, such reference shall mean the dwelling unit identified in the Occupancy Certificate.\n\n(c) The organizational documents of the cooperative corporation must provide that: (1) Either the Secretary or a mortgagee under a mortgage insured under this section shall be a member of the cooperative corporation for so long as either owns a Corporate Certificate;\n\n(2) A mortgage insured under this section shall be a first lien upon the property covered by the mortgage;\n\n(3) The Secretary may exercise the voting rights which are attributable to each Corporate Certificate owned by the Secretary;\n\n(4) The Secretary may designate as her proxy an agent for the purpose of exercising the voting rights of the Secretary which are attributable to the corporate Certificate or Certificates owned by the Secretary;\n\n(5) The Secretary may cease making monthly payments attributable to any dwelling unit for which the Secretary owns a Corporate Certificate six months after the Secretary notifies the corporation to sell the Corporate Certificate or upon default by the corporation on the blanket mortgage covering the dwelling unit;\n\n(6) The Secretary or a mortgagee shall not be obligated to make payments to the corporation for any amounts unpaid by a mortgagor under a mortgage insured under this section prior to the date the Secretary or the mortgagee becomes the owner of the Corporate Certificate.\n\n(d) The corporation shall have entered into an agreement with the Secretary and the mortgagee which: (1) Requires that the corporation shall furnish the Secretary with the most recent annual financial report certified to have been based on generally accepted accounting principles and the most recent monthly or quarterly financial report;\n\n(2) Waives any option or right of first refusal the corporation may have to purchase any Corporate Certificate covered by a mortgage insured under section 203(n) of the National Housing Act, unless the corporation pays the full amount due under such mortgage or pays the full amount of the Secretary's investment if the Secretary is the owner of the Corporate Certificate, whichever is greater.\n\n(3) Except with the approval of the Secretary, waives all authority the corporation may have to approve or reject the buyer of a Corporate Certificate owned by the Secretary or the buyer of a Corporate Certificate covered by a mortgage insured under Section 203(n) of the National Housing Act.\n\n(4) Requires the corporation on notice by the Secretary to act as her agent for a fee to be determined by the Secretary for the limited purposes of:\n\n(i) Selling all Corporate Certificates of the corporation owned by the Secretary;\n\n(ii) Renting and collecting rents on any dwelling unit for which the Secretary owns the Corporate Certificate.\n\n(5) Provides that the Secretary shall not be obligated to make payments to the corporation for outstanding debts of the mortgagor;\n\n(6) Requires the corporation to furnish to a mortgagee or to the Secretary, on request:\n\n(i) A statement, certified by the officer charged with maintenance of the Corporate Certificate Transfer Book, that such book currently shows that the mortgagee or the Secretary is the owner of any Corporate Certificate transferred to the mortgagee or the Secretary; and\n\n(ii) The Occupancy Certificate in the name of the mortgagee or the Secretary.\n\n(7) Requires the corporation to notify the mortgagee, whose name and address has been provided, of any default in corporation fee payments by the mortgagor within 15 days of such default;\n\n(8) Requires the mortgagee to notify the corporation of any default in mortgage payments by the mortgagor within 15 days of such default;\n\n(9) Requires the corporation upon notice by the Secretary or the mortgagee, when the Secretary or the mortgagee is the owner of the Corporate Certificate, and for a fee to be determined by the Secretary to evict any person or persons from a dwelling unit identified in the Occupancy Certificate.\n\n(10) Contains such other provisions as the Secretary may require.\n\n(e) The mortgagee shall obtain such security and other undertakings as may be required to establish a first lien on the Corporate Certificate and the Occupancy Certificate under the laws of the State where the Cooperative Housing Development is located.\n\n(f) The mortgage involves a one-family dwelling unit in a cooperative housing development which is covered by a blanket mortgage or mortgages insured under the National Housing Act.\n\n(g) The mortgage shall not exceed the balance remaining after subtracting, from the amount determined under \u00a7\u00a7 203.18(a), 203.18(g) and 203.18a of this part, an amount equal to the portion of the unpaid balance of the blanket mortgage covering the cooperative development which is attributable to the dwelling unit the mortgagor is entitled to occupy as of the date the mortgage is accepted for insurance.\n\n(h) The mortgage shall be executed upon a form conforming to the applicable provisions of this part and shall:\n\n(1) Involve a principal obligation in multiples of $50.\n\n(2) Come due on the first of the month.\n\n(3) Contain complete amortization provisions satisfactory to the Secretary and an amortization period not in excess of the term of the mortgage.\n\n(4) Be for a term not to exceed 30 years or the remaining term of the blanket mortgage covering the cooperative development or three-quarters of the remaining economic life of the building improvements, whichever is less.\n\n(5) Provide for payments to principal and interest to begin not later than the first day of the month following 60 days from the date the mortgagee's certificate on the commitment was executed.\n\n(6) Contain a provision stating that the failure of the mortgagor to pay the mortgagor's share of the common expenses or assessments and charges imposed by the corporation as provided in the instruments establishing the cooperative shall be considered a default.\n\n(i) The entire principal amount of the mortgage must have been disbursed to the mortgagor or to his creditors for his account and with his consent.\n\n(j) The mortgage must be executed by a mortgagor who intends to be an occupant of the unit.\n\n(k) The mortgagee shall collect from the mortgagor upon the execution of the mortgage: (1) A sum that will be sufficient to pay the mortgage insurance premium for the period beginning on the date of the closing of the loan and ending on the date of the first monthly payment under the mortgage or (2), where applicable, the one-time mortgage insurance premium payable pursuant to \u00a7 203.280.\n\n(l) The mortgagee shall upon application for a mortgage insurance commitment provide true copies of the following organizational documents of the cooperative corporation for examination and approval by the appropriate HUD Field Office:\n\n(1) Certificate of Incorporation;\n\n(2) Regulatory Agreement;\n\n(3) By-Laws as amended;\n\n(4) The financial statements required in paragraph (d)(1) of this section;\n\n(5) Proposed Occupancy Certificate;\n\n(6) Proposed Corporate Certificate;\n\nProvided that one or more of the requirements of this paragraph may be waived by the Secretary if the documents have been approved by the Secretary and the mortgagee submits with the application a statement certified by an officer of the cooperative corporation that no changes have been made in the documents since such approval."], ["24:24:2.1.1.2.4.1.83.50", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43d Eligibility of mortgages in certain communities.", "HUD", "", "", "[42 FR 57434, Nov. 2, 1977, as amended at 55 FR 34805, Aug. 24, 1990]", "Notwithstanding any other requirements of this subpart, a mortgage covering a one- to four-family dwelling occupied by the mortgagor as a principal residence (as defined in \u00a7 203.18(f)(1)) is eligible for insurance if the following requirements are met:\n\n(a) The property is located in a community where the Secretary determines that:\n\n(1) Temporary adverse economic conditions exist throughout the community as a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, or Nation;\n\n(2) Such ownership claims are reasonably likely to be settled, by court action or otherwise;\n\n(3) As a direct result of the community's temporarily impaired economic condition, owners of homes in the community occupied as principal residences (as defined in \u00a7 203.18(f)(1)) have been involuntarily unemployed or underemployed and have, thus, incurred substantial reductions in income that significantly impair their ability to continue timely payment of their mortgages;\n\n(4) As a result, widespread mortgage foreclosures and distress sales of homes are likely in the community; and\n\n(5) Fifty or more individuals were joined as parties defendant or were members of a defendant class prior to December 31, 1976 in litigation involving claims to ownership of land in the community by an American Indian tribe, band or Nation.\n\n(b) The mortgagor, as a direct result of the community's temporarily impaired economic condition, has been involuntarily unemployed or underemployed and has thus incurred a substantial reduction in income which significantly impairs the owners ability to continue timely payment of the mortgage.\n\n(c) The mortgagee certifies that the security instrument has been recorded and is a good and valid first lien on the property except for the claims specified in paragraph (a)(1) of this section.\n\n(d) The mortgagee agrees upon insurance of the mortgage to assign such mortgage to the Secretary within 30 days from the date of the issuance of the insurance certificate and if such assignment does not take place, the contract of insurance is terminated and becomes null and void.\n\n(e) Any individual, organization, institution or governmental agency shall be considered a mortgagee for the purposes of this section.\n\n(f) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 203(o) of the National Housing Act. Such mortgages shall be insured under and be the obligation of the Special Risk Insurance Fund.\n\n(g) The mortgage was executed and filed for record on or before October 12, 1977."], ["24:24:2.1.1.2.4.1.83.51", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43e [Reserved]", "HUD", "", "", "", ""], ["24:24:2.1.1.2.4.1.83.52", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43f Eligibility of mortgages covering manufactured homes.", "HUD", "", "", "[48 FR 7735, Feb. 24, 1983, as amended at 61 FR 36264, July 9, 1996]", "A mortgage covering a one-family manufactured home (as defined in 24 CFR 3280.2(a)(16)) that meets the requirements of this subpart, except as modified by this section, shall be eligible for insurance pursuant to this subpart.\n\n(a) The manufactured home, when erected on site, shall have floor space area of not less than four hundred square feet and shall have been constructed in conformance with the National Manufactured Home Construction and Safety Standards as evidenced by a certification label affixed thereto in accordance with 24 CFR 3280.8.\n\n(b) The mortgage shall cover the manufactured home and site, shall constitute a mortgage on a property classified and taxed as real estate, and shall have a term of not more than 30 years from the date of the beginning of amortization.\n\n(c) In the case of a manufactured home which has not been permanently erected on a site for more than one year prior to the date of the application for mortgage insurance:\n\n(i) The manufactured home shall be erected on a site-built permanent foundation that meets or exceeds applicable requirements of the Minimum Property Standards for One- and Two-Family Dwellings, 4900.1 (see 24 CFR 200.929(b)(1)) (MPS) and shall be permanently attached thereto by anchoring devices adequate for all loads identified in the MPS. The towing hitch or running gear, which includes axles, brakes, wheels and other parts of the chassis that operate only during transportation, shall have been removed. The finished grade level beneath the manufactured home shall be at or above the 100-year return frequency flood elevation. The site, site improvements, and all other features of the mortgaged property not addressed by the Manufactured Home Construction and Safety Standards shall meet or exceed applicable requirements of the MPS.\n\n(ii) The space beneath the manufactured home shall be enclosed by continuous foundation-type construction designed to resist all forces to which it is subject without transmitting forces to the building superstructure. The enclosure shall be adequately secured to the perimeter of the manufactured home and be constructed of materials that conform to MPS requirements for foundations.\n\n(iii) The manufactured home shall have an overall coefficient of heat transmission (\u201cU o \u201d value) calculated in accordance with the procedures of NFPA 501 BM-1976 (\u201cMobile Home Heating, Cooling Load Calculations\u201d) that does not exceed the following for all locations within the following climatic zones:\n\nNFPA\n   501 BM-1976 is incorporated by reference and is issued by and available from the National Fire Protection Association, Batterymarch Park, Quincy, MA 02269.\n\n1  Zone III includes Alaska, Montana, Wyoming, North and South Dakota, Minnesota, Wisconsin, Michigan, Maine, New Hampshire, and Vermont.\n\n(iv) The manufactured home shall be braced and stiffened before it leaves the factory to resist racking and potential damage during transportation.\n\n(v) The conditions of \u00a7 203.18(a)(2) (i) and (ii) of this subpart shall not apply to construction of the manufactured home but shall be applicable to improvement of the site, including construction of the site-built foundation.\n\n(vi) Section 203.14 of this subpart is modified to the extent provided in this paragraph. Applications relating to insurance of mortgages under this paragraph (c) must be accompanied by an agreement in form satisfactory to the Commissioner executed by the seller or builder or such other person as the Commissioner may require agreeing that in the event of any sale or conveyance of the dwelling within a period of one year beginning with the date of initial occupancy, the seller, builder, or such other person will at the time of such sale or conveyance deliver to the purchaser or owner of such property the manufacturer's warranty on a form prescribed by the Commissioner, which shall provide that the manufacturer's warranty is in addition to and not in derogation of all other rights and remedies the purchaser or owner may have, and a warranty in form satisfactory to the Commissioner warranting that the manufactured home, the foundation, positioning and anchoring of the manufactured home to its permanent foundation, and all site improvements are constructed in substantial conformity with the plans and specifications (including amendments thereof or changes and variations therein which have been approved in writing by the Commissioner) on which the Commissioner has based his valuation of the dwelling. The warranty shall also include provisions that the manufactured home sustained no hidden damage during transportation, and if the manufactured home is a double-wide, that the sections were properly joined and sealed. Such agreement must provide that upon the sale or conveyance of the dwelling and delivery of the warranty, the seller, builder or such other person will promptly furnish the Commissioner with a conformed copy of the warranty establishing by the purchaser's receipt thereon that the original warranty has been delivered to the purchaser in accordance with this section.\n\n(d) In the case of a manufactured home which has been permanently erected on a site for more than one year prior to the dae of the application for mortgage insurance:\n\n(i) The manufactured home shall be permanently anchored to and supported by permanent footings and shall have permanently installed utilities that are protected from freezing. The space beneath the manufactured home shall be a properly enclosed crawl space.\n\n(ii) The site, site improvements, and all other features of the mortgaged property not addressed by the Manufactured Home Construction and Safety Standards shall meet or exceed applicable requirements of the Requirements for Existing Housing\u2014One to Four Family Living Units (Handbook 4905.1). The finished grade level beneath the manufactured home shall be at or above the 100-year return frequency flood elevation.\n\n(iii) The manufactured home shall have been occupied only at the location subject to the mortgage sought to be insured."], ["24:24:2.1.1.2.4.1.83.53", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43g Eligibility of mortgages in certain communities.", "HUD", "", "", "[49 FR 21319, May 21, 1984, as amended at 55 FR 34805, Aug. 24, 1990]", "(a) A mortgage which meets the requirements of this subpart shall be eligible for insurance without regard to the limitation in this part relating to marketability of title under the following conditions:\n\n(1) The mortgagor is to occupy the dwelling as a principal residence (as defined in \u00a7 203.18(f)(1)).\n\n(2) The defect or potential defect in title is a direct and primary result of outstanding claims to ownership of land in the community by an American Indian tribe, band, group or Nation.\n\n(3) Fifty or more individual owners were joined as parties defendant or were members of a defendant class before April 1, 1980 in litigation involving claims to ownership of land in the community in which the property is located by an American Indian tribe, band, group or Nation pursuant to a dispute involving the Articles of Confederation, the Trade and Intercourse Act of 1790 or any similar State or Federal law.\n\n(4) Such ownership claims are reasonably likely to be settled by court action or otherwise.\n\n(5) Temporary adverse economic conditions exist throughout the community as a direct and primary result of such claims.\n\n(b) Mortgages complying with the requirements of this subpart as modified by this section shall be the obligation of the Special Risk Insurance Fund."], ["24:24:2.1.1.2.4.1.83.54", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43h Eligibility of mortgages on Indian land insured pursuant to section 248 of the National Housing Act.", "HUD", "", "", "[51 FR 21871, June 16, 1986, as amended at 53 FR 34282, Sept. 6, 1988; 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996]", "A mortgage covering a one- to four-family residence located on Indian land shall be eligible for insurance pursuant to section 248 of the National Housing Act (12 U.S.C. 1715z-13), notwithstanding otherwise applicable requirements related to marketability of title, if the mortgage meets the requirements of this subpart as modified by this section and is made by an Indian Tribe or on a leasehold estate, by an Indian who will occupy it as a principal residence. Mortgage insurance on cooperative shares is not authorized under this section.\n\n(a)  Exemptions.  (1) The provisions of subparts I, J, and M of part 200, and \u00a7 203.30, shall not apply to approval of mortgagors for mortgages insured under this section if the Indian tribe to which the prospective mortgagor belongs is subject to the Indian Civil Rights Act.\n\n(2) In the case of an Indian tribe which is not subject to the Indian Civil Rights Act, the authorities cited in paragraph (a)(1) of this section shall apply, but any preference in the tribe's approval of the sale or assumption of a lease and mortgage under this section in favor of an eligible Indian over a non-Indian shall not be considered to be a violation of subpart I, J or M.\n\n(b)  Eviction procedures.  Before HUD will insure a mortgage on Indian land, the tribe having jurisdiction over such property must certify to the HUD Field Office that it has adopted and will enforce procedures for eviction of defaulted mortgagors where the insured mortgage has been foreclosed.\n\n(c)  Approval of lease and mortgage.  The lease must be on a form prescribed by HUD.\n\nThe mortgage must be on a form which meets the requirements of \u00a7 203.17(a)(2). Before HUD will insure any mortgage under this section, the mortgagee must demonstrate that the Bureau of Indian Affairs, U.S. Department of Interior, has approved both the lease and mortgage.\n\n(d)  Construction advances.  The Commissioner may issue a commitment for the insurance of advances made during construction and a Direct Endorsement mortgagee may request insurance of a mortgage that will involve the insurance of advances made during construction. The Commissioner will insure advances made by the mortgagee during construction if all of the following conditions are satisfied:\n\n(1) The mortgage shall be a first lien on the leasehold;\n\n(2) The mortgagor and the mortgagee execute a building loan agreement, approved by the Commissioner, setting forth the terms and conditions under which advances will be made;\n\n(3) The advances are made only as provided in the commitment or the approval by the Direct Endorsement underwriter;\n\n(4) The principal amount of the mortgage is held by the mortgagee in an interest bearing account, trust, or escrow for the benefit of the mortgagor, pending advancement to the mortgagor or to his or her creditors as provided in the loan agreement;\n\n(5) The mortgage shall bear interest on the amount advanced to the mortgagor or to his or her creditors and on the amount held in an account or trust for the benefit of the mortgagor; and\n\n(6) The Secretary had determined that no feasible financing alternative is available.\n\n(e)  Assumption or sale of leasehold.  The form of lease must contain a provision requiring tribal consent before any assumption of an existing lease, except where title to the leasehold interest is obtained by the Secretary through foreclosure of the insured mortgage. A mortgagee other than the Secretary must obtain tribal consent before obtaining title through a foreclosure sale. Tribal consent must be obtained on any subsequent transfer from the purchaser, including the Secretary, at foreclosure sale. The lease may not be terminated by the lessor without HUD's approval while the mortgage is insured or held by the Secretary.\n\n(f)  First lien.  The first lien requirement under this part is implemented where the mortgage is filed in the State recording system and is a first lien under that system, even though the leasehold interest securing the mortgage is located on Indian land and filed with Bureau of Indian Affairs, U.S. Department of the Interior. Any tribal government whose courts have jurisdiction to hear foreclosures must also:\n\n(1) Enact a law satisfactory to the Commissioner providing for the satisfaction of FHA-insured and Secretary-held mortgages before other obligations (other than tribal leasehold taxes against the property assessed after the property is mortgaged) are satisfied; or\n\n(2) Enact a law providing that State law shall determine the priority of liens against the property.\n\n(g)  Definitions.  As used in this section and elsewhere in this part, the term:\n\n(1)  Indian  means and individual member of any Indian tribe and that member's family.\n\n(2)  Indian land  means trust or otherwise restricted land (i) as defined by the Secretary of the Interior, over which an Indian tribe is recognized by the United States as having governmental jurisdiction; (ii) held in trust for the benefit of any Indian tribe or individual or held by any Indian tribe or individual subject to a restriction by the United States against alienation; or (iii) acquired by Alaska natives under the Alaska Native Claims Settlement Act or any other land acquired by Alaska natives pursuant to statute by virtue of their unique status as Alaska natives.\n\n(3)  Indian tribe  means any Indian or Alaska native tribe, band, nation, or other organized group or community of Indians or Alaskan natives recognized as eligible for the services provided to Indians or Alaska natives by the Secretary of the Interior because of its status as such an entity, or that is an eligible recipient under chapter 67 of title 31, United States Code. For purposes of engaging in section 248 insured mortgage transactions under this section, an Indian tribe may act through its duly authorized representative."], ["24:24:2.1.1.2.4.1.83.55", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43i Eligibility of mortgages on Hawaiian Home Lands insured pursuant to section 247 of the National Housing Act.", "HUD", "", "", "[52 FR 8067, Mar. 16, 1987, and 52 FR 28470, July 30, 1987, as amended at 53 FR 8881, Mar. 18, 1988; 53 FR 34282, Sept. 6, 1988; 57 FR 58347, Dec. 9, 1992; 61 FR 36264, July 9, 1996; 62 FR 30226, June 2, 1997; 69 FR 33525, June 15, 2004]", "(a)  Eligibility.  A mortgage on a homestead lease granted by the Department of Hawaiian Home Lands covering a one- to four-family residence located on Hawaiian home lands is eligible for insurance pursuant to section 247 of the National Housing Act (12 U.S.C. 1715z-12) if the mortgagor is a native Hawaiian who will occupy it as a principal residence, and if the mortgage meets the requirements of this subpart as modified by this section. Mortgage insurance on cooperative shares under \u00a7 203.43c on homes in federally impacted areas under \u00a7 203.43e is not authorized under this section.\n\n(b)  Exemptions from other regulations.  The provisions of subparts I, J, and M of part 200, and \u00a7 203.30, to the extent that these provisions would otherwise prohibit preferences in favor of Native Hawaiians in the leasing, sale or other disposition of Hawaiian home lands, do not apply to mortgages insured pursuant to section 247 of the National Housing Act. The first lien requirement contained in \u00a7 203.17 also does not apply to mortgages insured pursuant to section 247 of the National Housing Act.\n\n(c)  Definitions.  (1)  Department of Hawaiian Home Lands  (DHHL) is a Department of the State of Hawaii responsible for management of Hawaiian home lands for the benefit of native Hawaiians.\n\n(2) Hawaiian home lands means all lands given the status of Hawaiian home lands under section 204 of the Hawaiian Homes Commission Act of 1920 (42 Stat. 110), or under the corresponding provision of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled \u201cAn Act to provide for the admission of the State of Hawaii into the Union,\u201d approved March 18, 1959 (73 Stat. 5).\n\n(3) Native Hawaiian means any descendant of not less than one-half part of the blood of the races inhabiting the Hawaiian islands before January 1, 1778, or, in the case of an individual who is awarded an interest in a lease of Hawaiian home lands through transfer or succession, such lower percentage as may be established for such transfer or succession under section 208 or 209 of the Hawaiian Homes Commission Act of 1920 (42 Stat.111), or under the corresponding provision of the Constitution of the State of Hawaii adopted under section 4 of the Act entitled \u201cAn Act to provide for the admission of the State of Hawaii into the Union,\u201d approved March 18, 1959 (73 Stat. 5).\n\n(d)  Conditions for insurance.  Mortgages will be eligible for insurance under this section, according to the procedures in \u00a7\u00a7 203.5, 203.6, or 203.7 (as applicable), only where the Department of Hawaiian Home Lands:\n\n(1) Will be a comortgagor;\n\n(2) Guarantees or reimburse the Secretary for any mortgage insurance claim paid in connection with a property on Hawaiian home lands; or\n\n(3) Offers other security acceptable to the Secretary.\n\n(e)  Acceptable security.  Any agreement by the Secretary to accept alternative security under paragraph (d)(3) of this section must contain provisions designed to ensure that the insurance of mortgages under this section has a neutral impact on the appropriate insurance funds. These provisions may require the Department of Hawaiian Home Lands to make an initial deposit of funds with HUD and to maintain additional funds in reserve for subsequent deposits with HUD. The initial and subsequent deposits shall be used to pay obligations incurred by HUD in connection with the insurance of mortgages under this section and any associated costs, including refunds of insurance premiums to mortgagors. If the Department of Hawaiian Home Lands agrees to make deposits in amounts acceptable to HUD, then the Secretary may agree to use a portion of the premiums received for insurance of mortgages under this section solely for payment of such obligations and associated costs.\n\n(f)  Recordation.  The mortgagee must certify that the mortgage has been recorded with the Department of Hawaiian Home Lands.\n\n(g)  Construction advances.  Advances made by the mortgagee during construction are eligible for insurance, according to the procedures in \u00a7\u00a7 203.5, 203.6, or 203.7 (as applicable), if the Secretary determines that no feasible financing alternative is available and if:\n\n(1) The mortgagor and the mortgagee execute a building loan agreement, approved by the Secretary, setting forth the terms and conditions under which advances will be made;\n\n(2) The advances are made only as provided in the commitment or the approval by the Direct Endorsement or Lender Insurance underwriter;\n\n(3) The principal amount of the mortgage is held by the mortgagee in an interest bearing account, trust, or escrow for the benefit of the mortgagor, pending advancement to the mortgagor or to his or her creditors as provided in the loan agreement; and\n\n(4) The mortgage bears interest on the amount advanced to the mortgagor or to his or her creditors and on the amount held in an account or trust for the benefit of the mortgagor.\n\n(h)  Form of lease.  The form of lease must be approved by both HUD and the Department of Hawaiian Home Lands (DHHL). The lease may not be terminated by DHHL without the approval of the Secretary while the mortgage is insured or held by the Secretary.\n\n(i)  Eligibility of mortgagor.  In addition to the eligibility requirements contained in this subpart, possession of a lease of Hawaiian home lands issued under section 207(a) of the Hawaiian Homes Commission Act of 1920 (42 Stat.110) that has been certified by the Department of Hawaiian Home Lands as being valid, current, and not in default, shall be sufficient to certify eligibility to receive a mortgage to be insured under this section."], ["24:24:2.1.1.2.4.1.83.56", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.43j Eligibility of mortgages on Allegany Reservation of Seneca Nation of Indians.", "HUD", "", "", "[52 FR 48201, Dec. 21, 1987, and 53 FR 9869, Mar. 28, 1988, as amended at 54 FR 32970, Aug. 11, 1989; 55 FR 34805, Aug. 24, 1990]", "A mortgage on a leasehold estate covering a one- to four-family residence located on the Allegany Reservation of the Seneca Nation of Indians in the State of New York is eligible for insurance if the mortgage meets the requirements of this subpart as modified by this section.\n\n(a)  Title.  This section applies only to a mortgage which:\n\n(1) Does not meet the requirements of \u00a7 203.37;\n\n(2) Is on a leasehold under a lease with a termination date in February 1991, which provides for renewal in accordance with the Act of February 19, 1875 (18 Stat. 330) and the Act of September 30, 1890 (26 Stat. 558).\n\nA mortgage may not be on a leasehold created by a lease which is executed after the effective date of this section as a renewal or replacement of a lease described in paragraph (a)(2) of this section. A mortgage may not be secured by any other right of occupancy created in lieu of a leasehold after the effective date of this section by agreement of the Seneca Nation, court order, law or any other means.\n\n(b)  Provisions of mortgage.  The Secretary will prescribe special mortgage provisions in the form of a mortgage rider in order better to secure the mortgagee, including:\n\n(1) Authorization for the mortgagee to exercise the option of lease renewal if the mortgagor fails to do so, and to recover from the mortgagor authorized expenses incurred to obtain lease renewal; and\n\n(2) Making a mortgagor failure to take steps necessary for less renewal an event of default under the mortgage.\n\n(c)  Secretary agreement with mortgagor.  The mortgagor must enter into an agreement with the Secretary and such other parties as the Secretary may require regarding actions to be taken to obtain either a renewal of the lease or a new lease.\n\n(d)  Certification.  The borrower must certify that it has received disclosures, in a form prescribed by the Secretary, explaining the status of the lease and the consequences of nonrenewal. The disclosure shall include a discussion of the fact that a mortgagor who does not obtain a lease renewal and loses the right of occupancy will remain liable for the outstanding balance of the mortgage.\n\n(e)  Purchase for principal residence.  The mortgagor must be a purchaser who intends to occupy the property as a principal residence (as defined in \u00a7 203.18(f)(1)), or a current owner-occupant refinancing a mortgage which is now due or which will become due before the lease termination date in February 1991.\n\n(f)  Relationship of income to housing expense.  For purposes of \u00a7 203.33(a), the total prospective housing expense shall include the Secretary's estimate of future lease payments during the term of the mortgage rather than lease payments in effect at the time of application.\n\n(g)  Suspension of commitments.  The Secretary may suspend the issuance of commitments to insure mortgages under this section, for the entire period during which commitments could otherwise be issued for insurance under this section (i.e., through February 18, 1991) or for such lesser period as the Secretary may specify, by providing thirty days notice of suspension in the  Federal Register.  Regardless of its duration, a suspension to be imposed prior to February 19, 1990, will be based on a determination by the Secretary that, for mortgages insured during a specified period, the rate of monetary defaults (as measured by 90 day delinquencies) for mortgages insured under this section exceeds the rate of such monetary defaults for all insured mortgages on one- to four-family properties in the State of New York. A suspension to be imposed after February 18, 1990, will be based on a consideration by the Secretary of the probable costs to the Special Risk Insurance Fund of further commitments to insure under this section, as measured by such factors as the current and projected rate and amount of claims payments, together with other significant current and projected costs as determined by the Secretary, including a review of the actual and projected monetary default rate (as measured by 90 day delinquencies) and the actual and projected rate of lease renewal through negotiation and arbitration."], ["24:24:2.1.1.2.4.1.83.57", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.44 Eligibility of advances.", "HUD", "", "", "[61 FR 36264, July 9, 1996]", "Mortgagees may not make open-end advances under section 225 of the National Housing Act (12 U.S.C. 1715p) in connection with the mortgages insured under this chapter."], ["24:24:2.1.1.2.4.1.83.58", 24, "Housing and Urban Development", "II", "B", "203", "PART 203\u2014SINGLE FAMILY MORTGAGE INSURANCE", "A", "Subpart A\u2014Eligibility Requirements and Underwriting Procedures", "", "\u00a7 203.45 Eligibility of graduated payment mortgages.", "HUD", "", "", "[41 FR 42949, Sept. 29, 1976, as amended at 45 FR 33966, May 21, 1980; 45 FR 56341, Aug. 24, 1980; 49 FR 19453, 19458, May 8, 1984; 49 FR 23584, June 6, 1984; 52 FR 48201, Dec. 21, 1987; 53 FR 8881, Mar. 18, 1988; 53 FR 9869, Mar. 28, 1988; 55 FR 34805, Aug. 24, 1990; 58 FR 41003, July 30, 1993]", "A mortgage containing provisions for varying rates of amortization corresponding to anticipated variations in family income shall be eligible for insurance under this subpart subject to compliance with the additional requirements of this section.\n\n(a) The mortgage may provide that any interest which accrues and which is unpaid pursuant to a financing plan approved by the Secretary, shall be added to the principal obligation of the mortgage.\n\n(b) The mortgage shall bear interest at the rate agreed upon by the mortgagee and the mortgagor.\n\n(c) The mortgage amount shall not exceed the lesser of:\n\n(1) The limits prescribed by \u00a7\u00a7 203.18, 203.18a, and 203.29; or,\n\n(2) An amount which, when added to all accrued mortgage interest which will be unpaid under a financing plan approved by the Secretary, shall not exceed 97 percent of the appraised value of the property covered by the mortgage as of the date the mortgage is accepted for insurance. However, if the mortgagor is a veteran, the mortgage amount, when added to all accrued mortgage interest which will be unpaid under a financing plan approved by the Secretary, shall not exceed the applicable limits prescribed for veterans in \u00a7 203.18(a).\n\n(d) The mortgage must contain complete amortization provisions satisfactory to the Secretary requiring monthly payments by the mortgagor not in excess of his reasonable ability to pay as determined by the Secretary. The sum of the payments to principal and/or interest may increase annually for a period of five years at a rate of 2\n 1/2  percent, 5 percent or 7\n 1/2  percent or for a period of ten years at a rate of 2 percent or 3 percent. Any required increase in payments shall occur on the anniversary date of the beginning of amortization. On the termination of the period of annual increases of payments, the sum of the payments to principal and interest in each month shall be substantially the same.\n\n(e) The mortgagee shall fully explain to the mortgagor the nature of the obligation undertaken and the mortgagor shall certify that he or she fully understands the obligation.\n\n(f) Sections 203.21 and 203.44 shall not apply to this section.\n\n(g) This section applies only to mortgagors who are to occupy the dwelling as a principal residence (as defined in \u00a7 203.18(f)(1)). It does not apply to a mortgage that meets the requirements of \u00a7\u00a7 203.18(a)(4), 203.18 (c) through (e), 203.43, 203.43a, 203.43j, or 203.49.\n\n(h) Mortgages complying with the requirements of this section shall be insured under this subpart pursuant to section 245 of the National Housing Act."]], "truncated": false, "filtered_table_rows_count": 353, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"part_number\" = :p0 order by 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