Insurability of Note Under Title I of National Housing Act

A decision was requested regarding payment of a claim for reimbursement of a loss sustained on a mortgage loan which had been submitted to the Department of Housing and Urban Development for insurance pursuant to title I of the National Housing Act. Since the note contained a projected maturity date 17 days in excess of the 7 years and 32 days maximum that was prescribed by statute when the loan was made, the claim submitted by the bank for reimbursement of its loss on the note was properly denied. Although the note was not assigned to the bank or funds disbursed thereby until 18 days after the date on the note, the statute specifically limited the term of obligation or note underlying the loan and made no provision for exceptions.