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N\ THE COMPTPOLLEP GENEFlAL
DECISI~l~N . /. OF THE UNITED STATES
AS' WASHINGTON. D.C. 20548
FILE: B-191660 DATE:
MATTER OF:
DIGEST:
Twin City Federal Savings and Loan
Association - National Housing Act Claim
Original note submitted by lender for
insurance pursuant to Title I of National
Housing Act had projected maturity date 2
days in excess of 12 year, 32 day maximum
term provided by statute at time loan was
made. All available evidence, including
borrower's payment record and other infor-
mation in record supports lender's claim
that due to inadvertence note as written
did not reflect intention of parties at time
loan was made. Claim can therefore be
paid since term of note would not have
exceeded statutory maximum had inad-
vertent mistake not been made.
An authorized certifying officer, Department of Housing and Urban
Development (HUD), asks whether he may certify for payment a voucher
in the amount of S5, 609. 16, payable to the Twin City Federal Savings and
Loan Association of St. Louis, Missouri (Bank). The voucher covers
a claim by the Bank for its loss on a property improvement loan to
Frank J. and Betty J. Thera. We conclude that the voucher may be
certified for payment.
The note was submitted to HUD for insurance, pursuant to Title I of
the National Housing Act, as amended, 12 U. S. C. 5 1701 et seq. The
Bank's claim was initially denied by HUD because the ter71the note
was in excess of the maximum statutory term for such loans in effect
when the loan was made.
The note as originally written was dated October 17, 1974, and
provided for payment in 144 installments of S35. 37. The note, as
written and as executed on October 17, 1974, further provided that the
first installment [was] to be paid on the 20th day of December 1974, and
subsequent installments on the same day of each and every month there-
after until paid in full. Under this repayment schedule, the maturity
date of the note would be November 20, 1986, making the term of the
note 12 years and 34 days.
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