Approved Percentage [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 1715r (2) [Title 12. Banks and Banking; Chapter 13. National Housing; Mortgage Insurance], the term approved percentage means “the percentage figure which, under applicable provisions of Mortgage Insurance Act, the Secretary is authorized to apply to his estimate of value, cost, or replacement cost, as the case may be, of the property or project in determining the maximum insurable mortgage amount; except that if the mortgage is to assist the financing of repair of rehabilitation and no part of the proceeds will be used to finance the purchase of the land or structure involved, the approved percentage shall be 100 per centum.”