An Act to amend section 723 of title 38 of the United States Code to provide for immediate payment of dividends on insurance heretofore issued under section 621 of the National Service Life Insurance Act of 1940 which has been converted or exchanged for new insurance under such section, and for other purposes
PL 87-223 (H.R.4539), enacted 09/13/1961

75 
S T A T . ] 
PUBLIC LAW 87-223-SEPT. 13, 1961 
495 
Public Law 87-223 
AN ACT 
To amend section 723 of title 38 of the United States Code to provide for im- . 
mediate payment of dividends on insurance heretofore issued under section 
621 of the National Service Life Insurance Act of 1940 which has been con-
verted or exchanged for new insurance under such section, and for other 
purposes. 
Be it eTuxcted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That section 723 
of title 38, United States Code, is amended by adding at the end 
thereof the following: 
"(d) The Administrator shall determine the amount in the revolv-
ing fund referred to in subsection (a) of this section which is in 
excess of the actuarial liabilities of such fund including contingency 
reserves. 
Such excess shall be paid in cash as a special dividend, 
Avithout interest, subject to the conditions provided in this subsection. 
The Administrator shall determine the administrative cost to the 
Veterans' Administration of paying such dividend, which cost shall 
be deducted from the excess and transferred to the appropriations 
"General operating expenses—Veterans' Administration". 
Insur-
ance issued under section 621 of the National Service Life Insurance 
Act of 1940 or converted or exchanged under subsection (b) of this 
section, which was in force by waiver or timelj^ payment of premiums 
or as paid-up or extended term insurance during one of the premium 
months beginning with the month of November 1960 and ending with 
the month of January 1961, may be eligible for the special dividend, 
subject to such conditions, other than specified in this subsection, as 
the Administrator shall determine to be reasonable and practicable. 
The dividend shall be paid as soon as practicable after whichever of 
the following dates is the latest: 
" (1) the date of enactment of this subsection in case of insur-
ance heretofore converted or exchanged under subsection (b) of 
this section; 
"(2) the date insurance issued under section 621 is converted 
or exchanged under subsection (b) of this section if such conver-
sion or exchange is made within two years after the date of enact-
ment of this subsection; or 
"(3) the date of death of the policyholder where insurance 
issued under section 621 is not converted or exchanged and such 
death occurs on or after the premium due date in November 1960 
and before the expiration of two years after the date of enactment 
of this subsection. 
"(e) After March 1, 1961, the Administrator shall from time to 
time transfer from the revolving fund referred to in subsection (a) of 
this section to general fund receipts in the Treasury such amounts as 
he determines are in excess of the actuarial liabilities of the fund 
including contingency reserves." 
Approved September 13, 1961. 
September 13, 1961 
[H. R. 4539] 
Nationall Service 
Life Insurance. 
Sp e c i a l 
d i v i -
dends. 
7 2 S t a t . 
115 7, 
1716. 
65 Stat. 37.