I 

108TH CONGRESS 

1ST SESSION H. R. 3413

To amend title 38, United States Code, to prohibit additional daily interest 

charges following prepayment in full of housing loans guaranteed by 

the Department of Veterans Affairs. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 30, 2003

Mr. EVANS (for himself, Mr. TOM DAVIS of Virginia, and Mr. WAXMAN) introduced the following bill; which was referred to the Committee on Veterans’ Affairs 

A BILL

To amend title 38, United States Code, to prohibit additional 

daily interest charges following prepayment in full of 

housing loans guaranteed by the Department of Veterans 

Affairs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Veterans Home Loan 

5 Prepayment Protection Act of 2003’’. 
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1 SEC. 2. PROHIBITION OF ADDITIONAL DAILY INTEREST 

2 CHARGES FOLLOWING PREPAYMENT IN FULL 

3 OF HOUSING LOANS GUARANTEED BY THE 

4 SECRETARY OF VETERANS AFFAIRS. 

5 (a) IN GENERAL.—Section 3703 of title 38, United 

6 States Code, is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(g)(1) In the case of prepayment in full by a veteran 

9 of a loan guaranteed under this chapter, such prepayment 

10 shall be credited on the date of receipt of the prepayment 

11 at the business location of a residential mortgage lender, 

12 and no interest may be charged to the veteran with respect 

13 to that loan thereafter. 

14 ‘‘(2) For purposes of paragraph (1), in determining 

15 the date of receipt of a prepayment tendered at a business 

16 location of a residential mortgage lender, a prepayment 

17 received on a calender day during any business hour of 

18 that business location shall be treated as being received 

19 on that day. 

20 ‘‘(3) For purposes of this subsection, a business hour 

21 of a business location of a residential mortgage lender at 

22 which prepayment in full is tendered includes any business 

23 hour of that business location during which—

24 ‘‘(A) the business location offers any services to 

25 customers or for the convenience of the public, and 
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1 ‘‘(B) any officer of the lender at that business 

2 location is present in an official capacity. 

3 ‘‘(4) An officer of a residential mortgage lender that 

4 receives prepayment in full from a veteran of a loan guar5 anteed under this chapter at a business location of that 

6 lender during business hours shall, immediately upon re7 ceipt of the prepayment, stamp or otherwise record the 

8 date of receipt in the records of the lender. 

9 ‘‘(5) Any cutoff hour established by a residential 

10 mortgage lender at any business location of the lender for 

11 purposes of determining the date of receipt of prepayment 

12 in full of a loan shall not apply to prepayment in full by 

13 a veteran of a loan guaranteed under this chapter. 

14 ‘‘(6)(A) The provisions of this subsection shall apply 

15 to prepayments in full that satisfy in full the obligation 

16 of the veteran under the loan guaranteed under this chap17 ter through such means as cash, a cashier’s check, a cer18 tified check, electronic transfer of funds, or such other 

19 means routinely accceptable for payment by the residential 

20 mortgage lender.’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 subsection (a) shall apply to loans guaranteed by the Sec23 retary of Veterans Affairs on or after the date of the en24 actment of this Act.

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