‘‘(A) provide for complete amortization by 
periodic payments under such terms as the Sec-
retary shall prescribe; 
‘‘(B) have a maturity satisfactory to the 
Secretary, but in no event longer than 25 years; 
and 
‘‘(C) bear interest at such rate as may be 
agreed upon by the mortgagor and the mort-
gagee, and the Secretary shall not issue any 
regulations or establish any terms or conditions 
that interfere with the ability of the mortgagor 
and mortgagee to determine the interest rate. 
‘‘(d) CERTIFICATION BY CHILDREN’S DEVELOPMENT 
COMMISSION.—The Secretary may not insure a mortgage 
under this section unless the Children’s Development 
Commission established under section 258 certifies that 
the facility is in compliance, or will be in compliance not 
later than 12 months after such certification, with— 
‘‘(1) any laws, standards, and requirements ap-
plicable to such facilities under the laws of the 
State, municipality, or other unit of general local 
government in which the facility is or is to be lo-
cated; and 
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‘‘(2) after the effective date of the standards 
and 
requirements 
established 
under 
section 
258(c)(2), such standards and requirements. 
‘‘(e) LOW-INCOME CLIENTELE.—The Secretary may 
not insure a mortgage under this section unless the mort-
gage certifies, to the satisfaction of the Secretary, that not 
less than 20 percent of the children served by the facility 
during the period that the mortgage is outstanding shall 
be children of families having incomes less than the me-
dian income for the metropolitan statistical area in which 
the facility is located. 
‘‘(f) RELEASE.—The Secretary may consent to the 
release of a part or parts of the mortgaged property or 
project from the lien of any mortgage insured under this 
section upon such terms and conditions as the Secretary 
may prescribe. 
‘‘(g) MORTGAGE INSURANCE TERMS.—The provi-
sions of subsections (d), (e), (g), (h), (i), (j), (k), (l), and 
(n) of section 207 shall apply to mortgages insured under 
this section, except that all references in such subsections 
to section 207 shall be considered, for purposes of mort-
gage insurance under this section, to refer to this section. 
‘‘(h) MORTGAGE INSURANCE
FOR FIRE SAFETY 
EQUIPMENT LOANS.— 
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‘‘(1) AUTHORITY.—The Secretary may, upon 
such terms and condition as the Secretary may pre-
scribe, make commitments to insure and insure 
loans made by financial institutions or other ap-
proved mortgagees to child care and development fa-
cilities to provide for the purchase and installation 
of fire safety equipment necessary for compliance 
with the 1967 edition of the Life Safety Code of the 
National Fire Protection Association (or any subse-
quent edition specified by the Secretary of Health 
and Human Services). 
‘‘(2) LOAN REQUIREMENTS.—To be eligible for 
insurance under this subsection a loan shall— 
‘‘(A) not exceed the Secretary’s estimate of 
the reasonable cost of the equipment fully in-
stalled; 
‘‘(B) bear interest at such rate as may be 
agreed upon by the mortgagor and the mort-
gagee; 
‘‘(C) have a maturity satisfactory to the 
Secretary; 
‘‘(D) be made by a financial institution or 
other mortgagee approved by the Secretary as 
eligible for insurance under section 2 or a mort-
gagee approved under section 203(b)(1); 
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‘‘(E) comply with other such terms, condi-
tions, and restrictions as the Secretary may 
prescribe; and 
‘‘(F) be made with respect to a child care 
and development facility that complies with the 
requirement under subsection (d). 
‘‘(3) INSURANCE REQUIREMENTS.—The provi-
sions of paragraphs (5), (6), (7), (9), and (10) of 
section 220(h) shall apply to loans insured under 
this subsection, except that all references in such 
paragraphs to home improvement loans shall be con-
sidered, for purposes of this subsection, to refer to 
loans under this subsection. The provisions of sub-
sections (c), (d), and (h) of section 2 shall apply to 
loans insured under this subsection, except that all 
references in such subsections to ‘this section’ or 
‘this title’ shall be considered, for purposes of this 
subsection, to refer to this subsection. 
‘‘(i) SCHEDULES AND DEADLINES.—The Secretary 
shall establish schedules and deadlines for the processing 
and approval (or provision of notice of disapproval) of ap-
plications for mortgage insurance under this section. 
‘‘(j) DEFINITIONS.—For the purposes of this section, 
the following definitions shall apply: 
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