Bank Claim for Loss on Loan Made Under National Housing Act

B-191660: Mar 5, 1979

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An authorized certifying officer asked whether he may certify for payment a voucher to the Twin City Federal Savings and Loan Association which had been initially rejected because the loan in question failed to fall within the 12 year, 32 day statutory maturity period for such loans in effect when the loan was made. The voucher covered a claim by the bank for its loss on a property improvement loan when the recipients of the loan defaulted. The lender's claimed that due to inadvertence, the note as written did not reflect the intention of the parties at the time the loan was made. All available evidence supported this claim which may be certified for payment.