# Federal Housing Administration (FHA) Multifamily Mortgage Insurance; Capturing Excess Bond Proceeds
> **US Department of Housing and Urban Development** · Final rule. · Published 2014-07-29 · Effective 2014-08-28 · 79 FR 43929
## Document
- **Document number:** 2014-17742
- **Category:** hud-housing-vouchers
- **Agency:** US Department of Housing and Urban Development
- **Federal Register citation:** 79 FR 43929
- **CFR reference:** 24 CFR 207
- **Publication date:** 2014-07-29
- **Effective date:** 2014-08-28
- **Docket:** Docket No. FR-5583-F-02
## Abstract

This final rule amends HUD's regulations covering the contract rights and obligations of mortgagees participating in FHA multifamily mortgage insurance programs, to address reimbursement to FHA of excess bond proceeds. When a mortgagee finances mortgages through the issuance and sale of bonds or through bond anticipation notes, the mortgagee uses the funds from the payment of a mortgage insurance claim under HUD regulations addressing FHA multifamily insurance claim payment to pay off the remaining bond debts. At times, the amount paid by the FHA multifamily insurance claim is greater than the remaining bond debts. This final rule requires mortgagees that finance a project using a project-specific trust indenture agreement to include language in the trust indenture to require that excess bond funds that remain after FHA's multifamily insurance claim payment is used to satisfy the bonds are returned to FHA. HUD requires similar payments of excess bond funds on obligations of public housing agencies and, thus, the final rule provides consistency in the administration of HUD's bond-financed mortgages.

## Source
- [Federal Register document](https://www.federalregister.gov/documents/2014/07/29/2014-17742/federal-housing-administration-fha-multifamily-mortgage-insurance-capturing-excess-bond-proceeds)
---
*MORVS · CC0 1.0*