An Act to amend section 742 of title 38, United States Code, to permit the exchange of flve-year term policies of United States Government life insurance to a special endowment at age ninety-six plan
PL 87-549 (H.R.10068), enacted 07/25/1962

76 STAT. ] 
PUBLIC LAW 87-549-JULY 25, 1962 
219 
Public Law 87-549 
AN ACT 
July 25,1962 
To amend section 742 of title 38, United States Code, to permit the exchange 
[H. R. 10068] 
of flve-year term policies of United States Government life insurance to a 
special endowment at age ninety-six plan. 
Be it enaMed hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That section 742 of 
veterans. 
title 38, United States Code, is amended (1) by inserting " ( a ) " u. s. Gov«m-
immediately before "Regulations"; and (2) by adding at the end^^^"^/Sf^do'J^^^fent 
thereof the following: 
policies. 
"(b) An insured who on or after his sixty-fifth birthday has a five- ^^ ^
*
^
*
" ^'^*' 
year level premium term policy of insurance in force by payment of 
premiums may exchange such policy for insurance on a special endow-
ment at age ninety-six plan upon written application; payment of the 
required premium; and surrender of the five-year level premium term 
policy and any total disability provision attached thereto with all 
rights, title, and interests thereunder. 
However, if it is found by the 
Administrator subsequent to the exchange that prior thereto the term 
policy matured because of total permanent disability of the insured 
or that he was entitled to total disability benefits under the total 
disability provision attached to such policy, the insured, upon sur-
render of the special endowment at age ninety-six policj' and any 
provision for waiver of premiums issued under subsection (c) of this 
section with all rights, title, and interest thereunder, will be entitled 
to benefits payable under the prior contract. In such case, the cash 
value less any indebtedness on the endowment policy shall be refunded 
together with any premiums paid on a provision for waiver of 
premiums. 
Insurance on the special endowment at age ninety-six 
plan shall be issued at the attained age of the insured upon the same 
terms and conditions as are contained in standard policies of United 
States Government Life Insurance except: 
"(1) the insurance shall not mature and no benefits shall be 
Exceptions, 
paid thereunder because of total permanent disability; 
"(2) the premiums for such insurance shall be as prescribed 
by the Administrator; 
"(3) such insurance cannot be exchanged, converted, or recon-
verted to any other plan of insurance; 
" (4) all cash, loan, paid-up, and extended term insurance values 
shall De as j)rescribed by the Administrator; and 
"(5) the insurance shall be subject to such other changes in 
terms and conditions as the Administrator determines to be 
reasonable and practicable. 
" (c) The Administrator shall, upon application made by the insured 
waiver o
f pre-
at the same time as he exchanges his term policy for an endowment "li^ms. 
policy issued under the provisions of subsection (b) of this section, 
and upon payment of such extra premium as the Administrator shall 
prescribe, include in such endowment policjr a provision for waiver 
of premiums on the policy and on the provision during the total per-
manent disability or the insured, if such disability began after the 
date of such application and while the policy and the provision are in 
force by payment of premiums. The Administrator shall not grant 
waiver of any premium becoming due more than one year before 
receipt in the Veterans' Administration of claim for the same, except 
as provided in this subsection. Any premiums paid for months dur-
ing which waiver is effective shall oe refunded. 
The Administrator 
shall provide by regulations for examination or reexamination of an 
insured claiming waiver of premiums under this subsection, and may 
deny waiver for failure to cooperate. If it is found that an insured 
220 
PUBLIC L
A
W 87-550-JULY 25, 1962 
[76 STAT. 
is no longer totally and permanently disabled, the waiver of premiums 
shall cease as of the date of such finding and the policy and provision 
may be continued by payment of premiums as provided therein. 
In 
any case in which the Administrator finds that the insured's failure 
to make timely claim for waiver of premiums, or his failure to submit 
satisfactory evidence of the existence or continuance of total per-
manent disability was due to circumstances beyond his control, the 
Administrator may grant waiver or continuance of waiver of pre-
miums. If the insured dies without filing claim for waiver, the bene-
ficiary, within one year after the death of the insured, or, if the 
beneficiary is insane or a minor, within one year after removal of such 
legal disability, may file claim for waiver with evidence of the insured's 
right to waiver under this subsection. Policies containing a provision 
for waiver of premiums issued under this subsection may be separately 
classified for the purpose of dividend distribution from otherwise 
similar policies not containing such provision." 
Approved July 25, 1962. 
July 25,1962 
[S. 2970] 
Small Business 
Act, amendment. 
75 Stat. 666. 
15 u s e 633. 
72 Stat. 387, 
389, 689. 
15 u s e 636, 
637, 661 note. 
15 u s e 636. 
15 u s e 637. 
Public Law 87-550 
AN ACT 
To amend the Small Business Act. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That (a) subsec-
tion (c) of section 4 of the Small Business Act is amended to read as 
follows: 
"(c) There is hereby established in the Treasury a revolving fund, 
referred to in this section as 'the fund', for the Administration's use 
in financing the functions performed under sections 7(a), 7(b), and 
8(a) and under the Small Business Investment Act of 1958, including 
the payment of administrative expenses in connection with such func-
tions. All repayments of loans and debentures, payments of interest, 
and other receipts arising out of transactions financed from the fund 
shall be paid into the fund. 
As capital thereof, appropriations not 
to exceed $1,666,000,000 are hereby authorized to be made to the fund, 
which appropriations shall remain available until expended. Not to 
exceed an aggregate of $1,325,000,000 shall be outstanding at any one 
time for the purposes enumerated in the following sections of this 
Act: 7(a) (relating to regular business loans), 7(b) (relating to dis-
aster loans), and 8(a) (relating to prime contract authority) : Pro-
vided^ That the Administration shall report promptly to the Com-
mittees on Appropriations and the Committees on Banking and Cur-
rency of the Senate and House of Representatives whenever (1) the 
aggregate amount outstanding for the purposes enumerated in sec-
tions 7(a) and 8(a) exceeds $1,222,000,000, or (2) the aggregate 
amount outstanding for the purpose enumerated in section 7(b) ex-
ceeds $103,000,000. Not to exceed an aggregate of $341,000,000 shall 
be outstanding from the fund at any one time for the exercise of the 
functions of the Administration under the Small Business Investment 
Act of 1958. The Administration shall pay into miscellaneous receipts 
of the Treasury, following the close of each fiscal year, interest on the 
outstanding cash disbursements from the fund, at rates determined by 
the Secretary of the Treasury, taking into consideration the current 
average yields on outstanding interest-bearing marketable public 
debt obligations of the United States of comparable maturities as cal-
culated for the month of June preceding such fiscal year."