Reinsurance Agreement [Banks & Banking] Law and Legal Definition

Pursuant to 12 USCS § 1715z-22a (3) [Title 12. Banks and Banking; Chapter 13. National Housing; Mortgage Insurance], the term reinsurance agreement means “a contractual obligation under which the Secretary, in exchange for appropriate compensation, agrees to assume a specified portion of the risk of loss that a lender or other party has previously assumed with respect to a mortgage on a multifamily housing property.”