Source: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3703&num=0&edition=prelim
Timestamp: 2019-12-14 23:14:24
Document Index: 367510278

Matched Legal Cases: ['§ 3703', '§1803', '§2', '§1', '§1', '§5', '§403', '§4', '§2', '§2', '§7', '§103', '§401', '§501', '§303', '§4', '§406', '§205', '§3', '§3', '§415', '§304', '§4', '§3703', '§5', '§10', '§6', '§7', '§101', '§602', '§401', '§308', '§403', '§504', '§102', '§701', '§6', '§693', '§5121', '§6', '§403', '§10', '§5', '§306', '§415', '§205', '§4', '§406', '§1815', '§303', '§103', '§1815', '§7', '§8', '§2', '§6', '§308', '§306', '§3', '§3', '§6', '§102', '§501', '§702', '§10', '§1202', '§201', '§403']

[USC02] 38 USC 3703: Basic provisions relating to loan guaranty and insurance
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38 USC 3703: Basic provisions relating to loan guaranty and insurance Text contains those laws in effect on December 13, 2019
(a)(1) 1 (A) Any loan to a veteran eligible for benefits under this chapter, if made for any of the purposes specified in section 3710 of this title and in compliance with the provisions of this chapter, is automatically guaranteed by the United States in an amount not to exceed the lesser of-
(4)(A) In guaranteeing or insuring loans under this chapter, the Secretary may elect whether to require that such loans bear interest at a rate that is-
(2) The exemption from liability provided by paragraph (1) of this subsection shall not apply to-
( Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1205 , 1212, §1803; Pub. L. 86–73, §2, June 30, 1959, 73 Stat. 156 ; Pub. L. 86–665, §1, July 14, 1960, 74 Stat. 531 ; Pub. L. 87–84, §1(a), July 6, 1961, 75 Stat. 201 ; Pub. L. 89–358, §5(d), Mar. 3, 1966, 80 Stat. 26 ; Pub. L. 90–77, title IV, §403(b), Aug. 31, 1967, 81 Stat. 190 ; Pub. L. 91–22, §4, June 6, 1969, 83 Stat. 32 ; Pub. L. 91–506, §2(b), (c), Oct. 23, 1970, 84 Stat. 1108 ; Pub. L. 93–75, July 26, 1973, 87 Stat. 176 ; Pub. L. 93–569, §§2(c), 8(1)–(5), Dec. 31, 1974, 88 Stat. 1863 , 1866; Pub. L. 94–324, §7(6), (16), June 30, 1976, 90 Stat. 721 ; Pub. L. 95–476, title I, §103, Oct. 18, 1978, 92 Stat. 1498 ; Pub. L. 96–385, title IV, §401(c)(1), Oct. 7, 1980, 94 Stat. 1533 ; Pub. L. 97–66, title V, §501(a), Oct. 17, 1981, 95 Stat. 1031 ; Pub. L. 97–72, title III, §303(c), (e), Nov. 3, 1981, 95 Stat. 1060 ; Pub. L. 97–295, §4(61), (63), Oct. 12, 1982, 96 Stat. 1309 ; Pub. L. 97–306, title IV, §406(b), Oct. 14, 1982, 96 Stat. 1444 ; Pub. L. 98–223, title II, §205(c), Mar. 2, 1984, 98 Stat. 43 ; Pub. L. 100–198, §3(a)(1), Dec. 21, 1987, 101 Stat. 1315 ; Pub. L. 100–253, §3(a), Feb. 29, 1988, 102 Stat. 20 ; Pub. L. 100–322, title IV, §415(a)(3), (c)(2), (d)(1), May 20, 1988, 102 Stat. 550–552 ; Pub. L. 101–237, title III, §§304(a), 306(a), 313(b)(1), (6), Dec. 18, 1989, 103 Stat. 2073 , 2074, 2077; Pub. L. 102–54, §§4(b), 6, June 13, 1991, 105 Stat. 268 ; renumbered §3703 and amended Pub. L. 102–83, §5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406 ; Pub. L. 102–547, §10(a), Oct. 28, 1992, 106 Stat. 3643 ; Pub. L. 103–78, §6, Aug. 13, 1993, 107 Stat. 769 ; Pub. L. 103–353, §7, Oct. 13, 1994, 108 Stat. 3175 ; Pub. L. 104–110, title I, §101(d), Feb. 13, 1996, 110 Stat. 768 ; Pub. L. 105–368, title VI, §602(e)(1)(A), Nov. 11, 1998, 112 Stat. 3346 ; Pub. L. 107–103, title IV, §401, Dec. 27, 2001, 115 Stat. 993 ; Pub. L. 107–330, title III, §308(f)(1), Dec. 6, 2002, 116 Stat. 2828 ; Pub. L. 108–454, title IV, §403, Dec. 10, 2004, 118 Stat. 3616 ; Pub. L. 110–389, title V, §504(a), Oct. 10, 2008, 122 Stat. 4176 ; Pub. L. 111–22, div. A, title I, §102(a), May 20, 2009, 123 Stat. 1636 ; Pub. L. 112–154, title VII, §701(d), Aug. 6, 2012, 126 Stat. 1204 ; Pub. L. 116–23, §6(a)(1), June 25, 2019, 133 Stat. 973 .)
The Servicemen's Readjustment Act of 1944, referred to in subsec. (c)(2), is act June 22, 1944, ch. 268, 58 Stat. 284 , as amended, which was classified generally to chapter 11C (§§693 to 697g) of former Title 38, Pensions, Bonuses, and Veterans' Relief, which was repealed upon the enactment of Title 38, Veterans' Benefits, by Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1105 . For distribution of sections 693 to 697g of former Title 38 in this title, see Table preceding section 101 of this title.
The Robert T. Stafford Disaster Relief and Emergency Assistance Act, referred to in subsec. (d)(3)(A)(i), is Pub. L. 93–288, May 22, 1974, 88 Stat. 143 , which is classified principally to chapter 68 (§5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 5121 of Title 42 and Tables.
2019-Subsec. (a)(1)(A)(i)(IV). Pub. L. 116–23, §6(a)(1)(A)(i), struck out "the lesser of the maximum guaranty amount (as defined in subparagraph (C)) or" before "25 percent".
2012-Subsec. (d)(3). Pub. L. 112–154 amended par. (3) generally. Prior to amendment, par. (3) read as follows: "Any real estate housing loan (other than for repairs, alterations, or improvements) shall be secured by a first lien on the realty. In determining whether a loan for the purchase or construction of a home is so secured, the Secretary may disregard a superior lien created by a duly recorded covenant running with the realty in favor of a private entity to secure an obligation to such entity for the homeowner's share of the costs of the management, operation, or maintenance of property, services or programs within and for the benefit of the development or community in which the veteran's realty is located, if the Secretary determines that the interests of the veteran borrower and of the Government will not be prejudiced by the operation of such covenant. In respect to any such superior lien to be created after June 6, 1969, the Secretary's determination must have been made prior to the recordation of the covenant."
2009-Subsec. (d)(1). Pub. L. 111–22 inserted "at the time of origination" after "loan".
2008-Subsec. (a)(1)(A)(i)(IV). Pub. L. 110–389 inserted "(5)," after "(3),".
2004-Subsec. (a)(1)(A)(i)(IV), (B). Pub. L. 108–454, §403(a), substituted "the maximum guaranty amount (as defined in subparagraph (C))" for "$60,000".
2002-Subsec. (e)(2)(A). Pub. L. 107–330 substituted "3729(b)(2)(I)" for "3729(b)".
2001-Subsec. (a)(1)(A)(i)(IV), (B). Pub. L. 107–103 substituted "$60,000" for "$50,750".
1998-Subsec. (e)(1). Pub. L. 105–368 substituted "3729(c)" for "3729(c)(1)".
1996-Subsec. (c)(4)(D). Pub. L. 104–110 struck out subpar. (D) which read as follows: "This paragraph shall expire on December 31, 1995."
1994-Subsec. (a)(1)(A)(i)(IV), (B). Pub. L. 103–353 substituted "$50,750" for "$46,000".
1993-Subsec. (c)(4)(B). Pub. L. 103–78 in second sentence substituted "Except in the case of a loan for the purpose specified in section 3710(a)(8), 3710(b)(7), or 3712(a)(1)(F) of this title, discount" for "Discount".
1992-Subsec. (c)(1). Pub. L. 102–547, §10(a)(1), in first sentence substituted "applicable to" for "the Secretary of Housing and Urban Development considers necessary to meet the mortgage market for" and struck out ", and, to the maximum extent practicable, carry out a coordinated policy on interest rates on loans insured under such section 203(b) and on loans guaranteed or insured under this chapter" after "(12 U.S.C. 1709(b))".
1991-Pub. L. 102–83, §5(a), renumbered section 1803 of this title as this section.
1989-Subsec. (a)(1)(A)(i). Pub. L. 101–237, §306(a)(1), added subcls. (II) to (IV) and struck out former subcl. (II) which read as follows: "in the case of any loan of more than $45,000, the lesser of $36,000 or 40 percent of the loan, except that the amount of such guaranty for any such loan shall not be less than $22,500; or".
1988-Pub. L. 100–322, §415(a)(3)(B), inserted "and insurance" in section catchline.
Pub. L. 100–253 amended par. (1) generally. Prior to amendment, par. (1) read as follows: "Any loan to a veteran eligible for benefits under this chapter, if made for any of the purposes specified in section 1810 of this title and in compliance with the provisions of this chapter, is automatically guaranteed by the United States in an amount not to exceed-
1987-Subsec. (a)(1). Pub. L. 100–198 amended par. (1) generally. Prior to amendment, par. (1) read as follows: "Any loan to a veteran eligible for benefits under this chapter, if made for any of the purposes, and in compliance with the provisions, specified in this chapter is automatically guaranteed by the United States in an amount not more than 60 percent of the loan if the loan is made for any of the purposes specified in section 1810 of this title."
1984-Subsec. (c)(3)(A). Pub. L. 98–223, §205(c)(1), substituted ", (8), or (9)(B)(i)" for "or (8)".
1982-Subsec. (a)(1). Pub. L. 97–295, §4(61), substituted "percent" for "per centum".
Subsec. (c)(3). Pub. L. 97–306, §406(b)(1), substituted "used-" for "used:". Notwithstanding that Pub. L. 97–306 directed amendment be made in provisions preceding cl. (1), amendment was executed in provisions preceding cl. (A) as the probable intent of Congress in view of the absence of a cl. (1) in subsec. (c)(3).
1981-Subsec. (a)(2)(A) [formerly §1815(a)]. Pub. L. 97–72, §303(e), substituted "Any housing loan" for "Any loan". See 1988 Amendment note above.
1980-Subsec. (c)(3)(A). Pub. L. 96–385 substituted "clause (5) or (8) of section 1810(a) of this title or section 1819(a)(1)(F) of this title" for "section 1810(a)(5)".
1978-Subsec. (a)(1). Pub. L. 95–476, §103(a), substituted provision extending loan guarantees under this section to veterans eligible for benefits under this chapter for provision limiting such guarantees to World War II or Korean conflict veterans.
1976-Subsec. (a)(2)(A) [formerly §1815(a)]. Pub. L. 94–324, §7(16), substituted "the Administrator will" for "he will". See 1988 Amendment note above.
1974-Subsec. (a)(1). Pub. L. 93–569, §8(1), struck out "and not more than 50 per centum of the loan if the loan is for any of the purposes specified in section 1812, 1813, or 1814 of this title" after "section 1810 of this title".
1973-Subsec. (c)(1). Pub. L. 93–75 substituted provisions requiring the Administrator to consult with the Secretary of Housing and Urban Development regarding the establishment of the rate of interest the Secretary considers necessary to meet the mortgage market for home loans insured under section 203(b) of the National Housing Act, and to carry out a coordinated policy on interest rates on loans insured under such section 203(b) and on loans guaranteed or insured under this chapter, for former provision limiting rate of interest to rate in effect under section 203(b)(5) of the National Housing Act.
1970-Subsec. (a). Pub. L. 91–506, §2(b), struck out loan eligibility expiration dates for World War II and Korean conflict veterans and inserted provision restoring expired entitlements of World War II and Korean conflict veterans and providing that such entitlements shall not expire until used.
1969-Subsec. (d)(3). Pub. L. 91–22 authorized the Administrator, in determining whether a Government loan is secured by a first lien on realty, to disregard a superior lien created by a duly recorded covenant which secures a veteran homeowner's share of the costs of managing, operating or maintaining property, services or programs common to the community in which the veteran's home is located, provided the interests of the Government and the veteran borrower are not prejudiced.
1967-Subsec. (a)(3)(A). Pub. L. 90–77 extended in cls. (i) and (ii) loan program for certain World War II veterans from July 25, 1967 to July 25, 1970.
1966-Subsec. (c)(1). Pub. L. 89–358 struck out provision for approval of rate of interest by the Secretary of the Treasury and substituted provision for a rate not in excess of that in effect under section 203(b)(5) of the National Housing Act, section 1709(b)(5) of Title 12, for former limitation of 5¼ per centum per annum.
1961-Subsec. (a). Pub. L. 87–84 substituted "to a World War II or Korean conflict veteran, if made within the applicable period prescribed in paragraph (3) of this subsection" for "made to a World War II veteran, if made before July 26, 1962 (or, in the case of a veteran described in section 1801(a)(1)(B) of this title, before the expiration of fifteen years after World War II is deemed to have ended with respect to him), or to a Korean conflict veteran, if made before February 1, 1965," in par. (1), and "is received by the Administrator before the date of the expiration of the veteran's entitlement, the loan" for "to a World War II veteran, whose entitlement would otherwise expire on July 25, 1962, has been received by the Administrator before July 26, 1962, such loan" in par. (2), and added par. (3).
1960-Subsec. (a). Pub. L. 86–665 substituted "1962" for "1960" in three places, "fifteen" for "thirteen" years, and "after such date" for "before July 26, 1961".
1959-Subsec. (c)(1). Pub. L. 86–73 struck out requirement that the interest rate on a Veterans' Administration guarantee for direct loan be at least one-half of one percent below the prevailing rate on FHA-insured sales housing loans and increased the interest rate ceiling from 4¾ to 5¼ percent.
Pub. L. 116–23, §6(d), June 25, 2019, 133 Stat. 976 , provided that: "The amendments made by this section [amending this section and sections 3710, 3729, and 3762 of this title] shall apply with respect to a loan guaranteed under section 3710 of title 38, United States Code, on or after January 1, 2020."
Pub. L. 107–330, title III, §308(f)(2), Dec. 6, 2002, 116 Stat. 2828 , provided that: "The amendment made by paragraph (1) [amending this section] shall take effect as if included in the enactment of section 402 of the Veterans Benefits and Health Care Improvement Act of 2000 (Public Law 106–419; 114 Stat. 1861)."
Pub. L. 101–237, title III, §306(b), Dec. 18, 1989, 103 Stat. 2074 , provided that: "The amendments made by subsection (a) [amending this section] shall take effect on the date of the enactment of this Act [Dec. 18, 1989] and shall apply only with respect to loans closed after such date."
Pub. L. 100–253, §3(c), Feb. 29, 1988, 102 Stat. 21 , provided that: "The amendments made by this section [amending this section and section 1819 [now 3712] of this title] shall apply to loans which are closed on or after February 1, 1988, except that they shall not apply to any loan for which a guaranty commitment is made on or before December 31, 1987."
Pub. L. 100–198, §3(d), Dec. 21, 1987, 101 Stat. 1316 , provided that: "The amendments made by this section [amending this section and sections 1810, 1811, and 1819 [now 3710, 3711, and 3712] of this title] shall apply to loans which are closed on or after February 1, 1988, except that they shall not apply to any loan for which a guaranty commitment is made on or before December 31, 1987."
Pub. L. 116–23, §6(e), June 25, 2019, 133 Stat. 976 , provided that: "Notwithstanding section 501 of title 38, United States Code, the Secretary of Veterans Affairs may issue guidance to implement this section [amending this section and sections 3710, 3729, and 3762 of this title and enacting provisions set out as a note under this section] before prescribing new regulations under sections 3703, 3729, and 3762 of such title, as amended by this section."
Pub. L. 111–22, div. A, title I, §102(b), May 20, 2009, 123 Stat. 1636 , provided that: "The Secretary of Veterans Affairs may implement the amendments made by this section [amending this section] through notice, procedure notice, or administrative notice."
Pub. L. 110–389, title V, §501, Oct. 10, 2008, 122 Stat. 4175 , as amended by Pub. L. 112–154, title VII, §702(c), Aug. 6, 2012, 126 Stat. 1205 , provided that: "Notwithstanding subparagraph (C) of section 3703(a)(1) of title 38, United States Code, for purposes of any loan described in subparagraph (A)(i)(IV) of such section that is originated during the period beginning on the date of the enactment of this Act [Oct. 10, 2008] and ending on December 31, 2014, the term 'maximum guaranty amount' shall mean an amount equal to 25 percent of the higher of-
Pub. L. 102–547, §10(b), Oct. 28, 1992, 106 Stat. 3643 , as amended by Pub. L. 103–446, title XII, §1202(d), Nov. 2, 1994, 108 Stat. 4689 , directed Secretary of Veterans Affairs to transmit report on guarantee and insurance of loans bearing negotiated interest rates and points to Committees on Veterans' Affairs of Senate and House of Representatives no later than Dec. 31, 1993, and annually thereafter, prior to repeal by Pub. L. 104–110, title II, §201(b), Feb. 13, 1996, 110 Stat. 770 .
Pub. L. 90–77, title IV, §403(c), Aug. 31, 1967, 81 Stat. 190 , provided that the World War II loan benefit entitlement of any veteran whose period of entitlement as computed under former subsec. (a)(3)(A) of this section extended beyond July 25, 1967, was not to be deemed to expire earlier than ninety days after the effective date of section 403 of Pub. L. 90–77 [see section 405(a) of Pub. L. 90–77, set out as an Effective Date of 1967 Amendment note under section 101 of this title].