An Act to amend chapter 37 of title 38, United States Code, to extend the veterans guaranteed and direct loan program for 2 years
PL 86-665 (H.R.7903), enacted 07/14/1960

74 S T A T . ] 
PUBLIC LAW 86-665-JULY 14, 1960 
531 
Beginning at a point, the coordinates of which are east 49,927.762 
meters, north 50,379.618 meters, Land and Claims Commission 1945 
triangulation system, said point being common to the boundary of 
Paseo de Susana and described as a point on the seaward side oi the 
Agana Boat Basin wall, said point also being on the mean lower low 
water line— 
thence along said wall, being also along said mean lower low 
water line, south 88 degrees 53 minutes west a distance of 4.09 
meters; 
thence north 04 degrees 13 minutes west a distance of 15.35 
meters; 
thence south 89 degrees 22 minutes west a distance of 17.38 
meters; 
thence leaving said wall and mean lower low water line south 
12 degrees 17 mmutes west a distance of 18.15 meters; 
thence south 00 degrees 21 minutes east a distance of 1.39 meters 
to a point on the northerly ri^ht-of-way line of Marine Drive; 
thence westerly along said right-of-way line north 88 degrees 
04 minutes west a distance of 207.11 meters; 
thence leaving said northerly right-of-way line north 01 degrees 
56 minutes east a distance of 126.95 meters; 
thence south 88 degrees 04 minutes east a distance of 309.36 
meters, more or less, to a point on the boundary of Paseo de 
Susana and being on the mean lower low water line; 
thence southerly and westerly along said mean lower low water 
line and Agana Boat Basin wall to the point of beginning; 
containing an area of 33,635.52 square meters, or 8.23 acres, more or 
less. 
SEC. 4. The property conveyed by section 3 of this Act shall be 
subject to the condition that the property shall be used solely for civic, 
park, and recreational purposes, and as a boat basin, and if it shall 
ever cease to be used for such purposes, or if the Government of Guam 
should ever sell or otherwise dispose of such land or any part thereof, 
title thereto shall revert to the United States, which shall have the 
right of immediate entry thereon. 
Approved July 14, 1960. 
Condition. 
Public Law 86-665 
AN ACT 
To amend chapter 37 of title 38, United States Code, to extend the veterans' 
guaranteed and direct loan program for two years. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 1803(a) 
of title 38, United States Code, is amended (1) by striking out 
"1960" each place it appears and inserting in lieu thereof "1962"; 
(2) by striking out "thirteen years" and inserting in lieu thereof 
"fifteen years"; and (3) by striking out "before July 26,1961" and in-
serting in lieu thereof "after such date". 
SEC. 2. Section 1811(h) of title 38, United States Code, is amended 
by striking out "1960" and inserting in lieu thereof "1962". 
SEC. 3. Section 1814(b)(3) of title 38, United States Code, is, 
amended (1) by striking out "1960" and inserting in lieu thereof 
"1962"; and (2) by striking out "thirteen years" and inserting in 
lieu thereof "fifteen years". 
July 14, I960 
[H. R. 7903] 
Veterans. 
Loan program. 
72 Stat. 1205. 
532 
PUBLIC LAW 86-665-JULY 14, 1960 
[74 S T A T . 
SEC. 4. (a) Section 1823(a) of title 38, United States Code, is 
amended by striking out "1960" each place it appears and inserting 
in lieu thereof "1962". 
(b) Section 1823(c) of title 38, United States Code, is amended 
by striking out "1961" and inserting in lieu thereof "1963". 
SEC. 5. Section 1804(c) of title 38, United States Code, is amended 
by adding the following at the end thereof: "Notwithstanding the 
foregoing requirements of this subsection, the provisions for certifi-
cation by the veteran at the time he applies for the loan and at the 
time the loan is closed shall be considered to be satisfied if the Ad-
ministrator finds that (1) in the case of a loan for repair, alteration, 
or improvement the veteran in fact did occupy the property at such 
times, or (2) in the case of a loan for construction or purchase the 
veteran intended to occupy the property as his home at such times 
and he did in fact so occupy it when, or within a reasonable time 
after, the loan was closed." 
SEO. 6. (a) Chapter 37 of title 38, United States Code, is amended 
by adding after section 1805 thereof a new section as follows: 
"§ 1806. Escrow of deposits and downpayments 
"(a) Any deposit or downpayment made by ^ 
eligible veteran 
in connection with the purchase of proposed or newly constructed 
and previously unoccupied residential property in a project on which 
the Administrator has issued a Certificate of Reasonable Value, which 
purchase is to be financed with a loan guaranteed, insured, or made 
under the provisions of this chapter, shall be deposited forthwith 
by the seller, or the agent of the seller, receiving such deposit or 
payment, in a trust account to safeguard such deposit or payment 
from the claims of creditors of the seller. The failure of the seller 
or his agent to create such trust account and to maintain it until the 
deposit or payment has been disbursed for the benefit of the veteran 
purchaser at settlement or, if the transaction does not materialize, 
is otherwise disposed of in accordance with the terms of the contract, 
may constitute an unfair marketing practice within the meaning of 
section 1804(b) of this chapter. 
"(b) If an eligible veteran contracts for the construction of a prop-
erty in a project on which the Administrator has issued a Certificate 
of Reasonable Value and such construction is to be financed with the 
assistance of a construction loan to be guaranteed, insured, or made 
under the provisions of this chapter, it may be considered an unfair 
marketing practice under section 1804 (b) of this chapter if any deposit 
or downpayment of the veteran is not maintained in a special trust 
account by the recipient until it is either (1) applied on behalf of 
the veteran to the cost of the land or to the cost of construction or 
(2), if the transaction does not materialize, is otherwise disposed of 
in accordance with the terms of the contract." 
(b) The analysis of chapter 37 of title 38, United States Code, is 
amended by adding after 
"1805. Warranties." 
the following: 
"1806. Escrow of deposits and downpayments." 
SEC. 7. (a) Chapter 37 of title 38, United States Code, is amended 
by renumbering section 1824 as section 1825 and inserting a new sec-
tion 1824 to read as follows: 
74 STAT.1 
PUBLIC LAW 86-666-JULY 14, 1960 
533 
"§ 1824. Loan guaranty revolving fund 
"(a) There is hereby established in the Treasurj^ of the United 
Staftes a revolving fund known as the Veterans' Administration Loan 
Guaranty .Revolving Fund (hereinafter called the Fund). 
" (b) The Fund shall ^be available to the Administrator when so 
provided in appropriation. Acts and within such limitations as may 
be included in such Acts, without fiscal year limitation, for all loan 
guaranty and insurance operations under this chapter, except adminis-
trative expenses. 
"(c) There shall be deposited in the Fund (1) by transfer from 
current and future appropr;iations for readjustment benefits such 
amounts as may be necessary to supplement the Fund in order to meet 
the requirements of the Fund, and (2) all amounts now held or here-
after received by the Administrator incident to loan guaranty and in-
surance operations under this chapter, including but not limited to all 
collections of principal and interest and the proceeds from the use of 
property held or the sale of property disposed of. 
"(d) The Administrator shall determine annually whether there has 
developed in such Fund a surplus which, in his judgment, is more 
than necessary to meet the needs of the Fund, and such surplus, if any, 
shall immediately be transferred into the general fund receipts of the 
Treasury." 
(b) The analysis of chapter 37 of title 38, United States Code, is 
amended by deleting 
"1824. Waiver of discharge requirements for hospitalized persons." 
and inserting in lieu thereof: 
"1824. Loan guaranty revolving fund. 
"1825. Waiver of discharge requirements for hospitalized persons." 
(c) This section shall become effective as of July 1,1961. 
Approved July 14, 1960. 
Effective date. 
Public Law 86-666 
AN ACT 
To permit the admission to registry and the use in the coastwise trade of certain 
foreign-built hydrofoil vessels. 
July 14, I960 
[H. R. 3900] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That, notwithstand-
ing any other provision of law to the contrary, that certain hydrofoil 
vessel now known as the Flying Fish, built in Messina, Italy, and now 
owned by Calderone Enterprises Corporation, Hempstead, New York, 
and one other hydrofoil vessel of similar origin and ownership of less 
than one hundred gross tons may, at any time within eighteen months 
after the date of enactment of this Act, be documented as vessels of 
the United States, upon compliance with the usual requirements, 
with the privilege of engaging in the coastwise trade only to the 
extent necessary to permit the carriage of passengers and merchan-
dise, whether for hire or otherwise, between and among points within 
the Commonwealth of Puerto Rico as long as the vessels shall con-
tinue to be owned by a citizen of the United States. 
SEC. 2. When used in this Act, the term "citizen of the United States" 
includes a corporation, partnership, or association only if it is a citizen 
otthe United States within the meaning of section 4132 of the Revised 
Statutes of the United States, as amended (46 U.S.C. 11), and section 
2 of the Shipping Act, 1916, as amended (46 U.S.C. 802). 
Approved July 14, 1960. 
Certain foreignr 
built 
h y d r o f o i l 
vessels. 
41 Stat. 1008; 73 
Stat. 597.