### Question
How is the term net appreciated value defined?


### Answer
The term **net appreciated value** is defined in *12 U.S.C. § 1715z* as the following:

> the amount by which the sales price of the property or stock (less the mortgagor's selling costs) exceeds the value of the property or stock at the time the commitment to insure is issued (with adjustments for capital improvements stipulated in the loan contract)

#### Citation:
  - *12 U.S.C. § 1715z*
  - Heading: **CHAPTER 12-SAVINGS ASSOCIATIONS > SUBCHAPTER II-MORTGAGE INSURANCE**

