PART 221—LOW COST AND MODERATE INCOME MORTGAGE INSURANCE—SAVINGS CLAUSE›Subpart B—Contract Rights and Obligations—Low Cost Homes
§ 221.275 Method of paying insurance benefits.
24 C.F.R. Parts 207 & 221 — FHA Multifamily Mortgage Insurance (Sec. 207 rental housing; Sec. 221(d) moderate-income housing) · 2026 edition · updated 2026-07-29 · United States
If the application for insurance benefits is acceptable to the Commissioner, all of the insurance claim shall be paid in cash unless the mortgagee files a written request with the application for payment in debentures. If such a request is made, all of the claim shall be paid by issuing debentures and by making a cash payment adjusting any differences between the total amount of the claim and the amount of the debentures issued.
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