The "not in advance" part means that the mortgage lender cannot charge the borrower interest at the start of the month, or prior to their having use of the funds.
Semi Annually
Semi Annual compounding means that the mortgage lender cannot compound the agreed on annual interest rate more than twice a year, ie. semi annually.
10% per annum compounded Semi Annually results in an effective yield of 10.25%. As such, for every $100 of mortgage at a 10% stated annual interest rate the lender can ask for no more than $10.25 of interest each year.
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