I
107TH CONGRESS
1ST SESSION
H. R. 2359
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.
IN THE HOUSE OF REPRESENTATIVES
JUNE 28, 2001
Mr. SMITH of New Jersey (for himself and Mr. EVANS) introduced the
following bill; which was referred to the Committee on Veterans’ Affairs
A BILL
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 alter-
nate 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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. PAYMENT OF INSURANCE PROCEEDS TO AN AL-
TERNATE BENEFICIARY WHEN FIRST BENE-
FICIARY 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 in-
sured, in the order of precedence as designated by
the insured, as if the first beneficiary had pre-
deceased the insured; and
‘‘(B) if within four years after the death of the
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that
any such claim will be made, payment of the insur-
ance proceeds may (notwithstanding any other provi-
sion 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 sub-
section:
‘‘(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 in-
sured, in the order of precedence as designated by
the insured, as if the first beneficiary had pre-
deceased the insured; and
‘‘(B) if within four years after the death of the
insured, no claim has been filed by a person des-
ignated by the insured as a beneficiary and the Sec-
retary has not received any notice in writing that
any such claim will be made, payment of the insur-
ance proceeds may (notwithstanding any other provi-
sion 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 sub-
section (b)(1) of section 1951 of such title, as added by
subsection (b), shall for purposes of the applicable sub-
section be treated as being the two-year and four-year pe-
riods, 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 FED-
ERAL
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 jurisdic-
tion over the veteran has entered into a memo-
randum of understanding with any department or
agency of the United States with respect to direct
housing loans to Native Americans that the Sec-
retary determines—
‘‘(i) contemplates loans made under this
subchapter; and
‘‘(ii) substantially complies with the re-
quirements 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 Depart-
ment of Veterans Affairs or its authorized agent’.’’.
SEC. 3. ELIMINATION OF REQUIREMENT FOR PROVIDING A
COPY OF NOTICE OF APPEAL TO THE SEC-
RETARY.
(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 sub-
section (b);
(3) by redesignating paragraph (3) as sub-
section (c) and redesignating subparagraphs (A) and
(B) thereof as paragraphs (1) and (2); and
(4) by redesignating paragraph (4) as sub-
section (d) and by striking ‘‘paragraph (3)(B)’’
therein and inserting ‘‘subsection (c)(2)’’.
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