To amend title 38, United States Code, to authorize the payment of National Service Life Insurance and United States Government Life Insurance proceeds to an alternate beneficiary when the first beneficiary cannot be identified, to improve and extend the Native American veteran housing loan pilot program, and to eliminate the requirement to provide the Secretary of Veterans Affairs a copy of a notice of appeal to the Court of Appeals for Veterans Claims.

SECTION 1. PAYMENT OF INSURANCE PROCEEDS TO AN ALTERNATE BENEFICIARY 
              WHEN FIRST BENEFICIARY CANNOT BE IDENTIFIED.

    (a) NSLI.--Section 1917 of title 38, United States Code, is amended 
by adding at the end the following new subsection:
    ``(f)(1) Following the death of the insured--
            ``(A) if the first beneficiary otherwise entitled to 
        payment of the insurance proceeds does not make a claim for 
        such payment within two years after the death of the insured, 
        payment of the proceeds may be made to another beneficiary 
        designated by the insured, in the order of precedence as 
        designated by the insured, as if the first beneficiary had 
        predeceased the insured; and
            ``(B) if within four years after the death of the insured, 
        no claim has been filed by a person designated by the insured 
        as a beneficiary and the Secretary has not received any notice 
        in writing that any such claim will be made, payment of the 
        insurance proceeds may (notwithstanding any other provision of 
        law) be made to such person as may in the judgment of the 
        Secretary be equitably entitled to the proceeds of the policy.
    ``(2) Payment of insurance proceeds under paragraph (1) shall be a 
bar to recovery by any other person.''.
    (b) USGLI.--Section 1951 of such title is amended--
            (1) by inserting ``(a)'' before ``United States 
        Government''; and
            (2) by adding at the end the following new subsection:
    ``(b)(1) Following the death of the insured--
            ``(A) if the first beneficiary otherwise entitled to 
        payment of the insurance proceeds does not make a claim for 
        such payment within two years after the death of the insured, 
        payment of the proceeds may be made to another beneficiary 
        designated by the insured, in the order of precedence as 
        designated by the insured, as if the first beneficiary had 
        predeceased the insured; and
            ``(B) if within four years after the death of the insured, 
        no claim has been filed by a person designated by the insured 
        as a beneficiary and the Secretary has not received any notice 
        in writing that any such claim will be made, payment of the 
        insurance proceeds may (notwithstanding any other provision of 
        law) be made to such person as may in the judgment of the 
        Secretary be equitably entitled to the proceeds of the policy.
    ``(2) Payment of insurance proceeds under paragraph (1) shall be a 
bar to recovery by any other person.''.
    (c) Transition Provision.--In the case of a person insured under 
subchapter I or II of chapter 19 of title 38, United States Code, who 
dies before the date of the enactment of this Act, the two-year and 
four-year periods specified in subsection (f)(1) of section 1917 of 
title 38, United States Code, as added by subsection (a), and 
subsection (b)(1) of section 1951 of such title, as added by subsection 
(b), shall for purposes of the applicable subsection be treated as 
being the two-year and four-year periods, respectively, beginning on 
the date of the enactment of this Act.

SEC. 2. NATIVE AMERICAN VETERAN HOUSING LOAN PILOT PROGRAM.

    (a) Extension of Native American Veteran Housing Loan Pilot 
Program.--Section 3761(c) of title 38, United States Code, is amended 
by striking ``2001'' and inserting ``2005''.
    (b) Authorization of the Use of Certain Federal Memorandums of 
Understanding.--Section 3762(a)(1) of such title is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by striking ``and'' after the semicolon and inserting 
        ``or''; and
            (3) by adding at the end the following:
            ``(B) the tribal organization that has jurisdiction over 
        the veteran has entered into a memorandum of understanding with 
        any department or agency of the United States with respect to 
        direct housing loans to Native Americans that the Secretary 
        determines--
                    ``(i) contemplates loans made under this 
                subchapter; and
                    ``(ii) substantially complies with the requirements 
                of subsection (b); and''.
    (c) Modification of Loan Assumption Notice Requirement.--Section 
3714(d) of such title is amended to read as follows:
    ``(d) With respect to a loan guaranteed, insured, or made under 
this chapter, the Secretary shall provide, by regulation, that at least 
one instrument evidencing either the loan or the mortgage or deed of 
trust therefor, shall conspicuously contain, in such form as the 
Secretary shall specify, a notice in substantially the following form: 
`This loan is not assumable without the approval of the Department of 
Veterans Affairs or its authorized agent'.''.

SEC. 3. ELIMINATION OF REQUIREMENT FOR PROVIDING A COPY OF NOTICE OF 
              APPEAL TO THE SECRETARY.

    (a) Repeal.--Section 7266 of title 38, United States Code, is 
amended by striking subsection (b).
    (b) Conforming Amendments.--Such section is further amended--
            (1) by striking ``(1)'' after ``(a)'';
            (2) by redesignating paragraph (2) as subsection (b);
            (3) by redesignating paragraph (3) as subsection (c) and 
        redesignating subparagraphs (A) and (B) thereof as paragraphs 
        (1) and (2); and
            (4) by redesignating paragraph (4) as subsection (d) and by 
        striking ``paragraph (3)(B)'' therein and inserting 
        ``subsection (c)(2)''.

Summary: Authorizes the payment of proceeds following the death of the insured under the National Life Insurance Program and the United States Government Life Insurance Program: (1) to another beneficiary designated by the insured, if the first beneficiary does not make a claim for such insurance within two years. Or (2) to any person designated by the Secretary of Veterans Affairs to be equitably entitled to such proceeds, if no claim has been filed by any designated beneficiary within four years. Extends through December 31, 2005, the Native American Veteran housing loan pilot program. Authorizes the Secretary to make a direct housing loan to such a veteran if the tribal organization having jurisdiction over such veteran has entered into a memorandum of understanding with any Federal department or agency with respect to such loans. Revises the loan assumption notice requirement. Eliminates the requirement of providing the Secretary with a copy of a notice of appeal of a decision by the Court of Veterans Appeals.