An Act to amend chapter 37 of title 38, United States Code, to authorize guaranteed and direct loans for mobile homes if used as permanent dwellings, to authorize the Administrator to pay certain closing costs for, and interest on, certain loans guaranteed and made under such chapter, to remove the time limitation on the use of entitlement to benefits under such chapter, and for other purposes
PL 91-506 (H.R.16710), enacted 10/23/1970

1108 
PUBLIC LAW 91-506-OCT. 23, 1970 
[84 STAT. 
Public Law 91-506 
October 23, 1970 
[H.R. 16710] 
AN ACT 
Veterans' Hous-
ing Act of 1970. 
75 Stat. 201. 
81 Stat. 190. 
Expired loan 
entitlement, res-
toration. 
72 Stat. 1205. 
Post, 
p. 1110. 
80 Stat. 25. 
72 Stat. 1207. 
To amend chapter 37 of title 38, United States Code, to authorize guaranteed 
and direct loans to eligible veterans for mobile homes and lots therefor if 
used as permanent dwellings, to remove the time limitation on the use of 
entitlement to benefits under such chapter, and to restore such entitlements 
which have lapsed prior to use or expiration, to eliminate the guaranteed and 
direct loan fee collected under such chapter, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled.) That this Act may 
be cited as the "Veterans' Housing Act of 1970". 
SEC. 2. (a) Section 1802(b) of title 38, United States Code, is 
amended b_^ striking out the last sentence thereof. 
(b) Section 1803 of such title is amended hy striking out subsec-
tion (a) and inserting in lieu thereof the following: 
"(a) (1) Any loan to a World War I I or Korean conflict veterah, 
if made for any of the purposes, and in complianqe with the provisions, 
specified in this chapter is automatically guaranteed by the United 
States in an amount not more than 60 per centum of the loan if the 
loan is made for any of the purposes specified in section 1810 of this 
title 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. 
"(2) Any unused entitlement of World War I I or Korean conflict 
veterans which expired under provisions of law in effect prior to the 
date of enactment of the Veterans' Housing Act of 1970 is hereby 
restored and shall not expire until used." 
(c) Section 1803 of such title is amended—• 
(1) by striking out "1810 and 1811" in subsection (b) and 
inserting in lieu thereof "1810, 1811, and 1819"; and 
(2) by inserting immediately after "years" in the first sentence 
of subsection (d) (1) the following: "except as provided in sec-
tion 1819 of this title". 
(d) Subsection (b) of section 1804 of such title is amended by 
striking out "The" and inserting in lieu thereof "Subject^to notice 
and opportunity for a hearing, the"; and subsection (d) of such sec-
tion is amended by striking out "Whenever" and inserting in lieu 
thereof "Subject to notice and opportunity for a hearing, whenever". 
(e) Section 1818 of such title is amended by striking out subsections 
(c), (d), and (e) and inserting in lieu thereof the following: 
"(c) Notwitnstanding the exception in subsection (a) of this sec-
tion, entitlement derived under such subsection (a) shall include eli-
gibility for any of the purposes specified in sections 1813 and 1815, and 
business loans under section 1814 of this title, if (1) the veteran previ-
ously derived entitlement to the benefits of this chapter based on 
service during World War I I or the Korean conflict, and (2) he has 
not used any of his entitlement derived from such service. 
"(d) Any entitlement to the benefits of this section which had not 
expired as of the date of enactment of the Veterans' Housing Act of 
1970 and any entitlement to such benefits accruing after such date 
shall not expire until used." 
SEC. 3. Section 1810 of title 38, United States Code, is amended 
b y -
(1) adding the foUowmg new clause after clause (4) of sub-
section (a) : 
" (5) To refinance existing mortgage loans or other liens which 
are secured of record on a dwelling or farm residence owned and 
occupied by him as his home. Nothing in this chapter shall pre-
clude a veteran from paying to a lender any discount required 
by such lender in connection with such refinancing."; and 
84 STAT. ] 
PUBLIC LAW 91-506-OCT. 23, 1970 
1109 
(2) adding at the end of that section the following new 
subsection: 
"(d) Nothing in this chapter shall be deemed to preclude the guar-
anty of a loan to an eligible veteran to purchase a one-family residen-
tial unit to be owned and occupied by him as a home in a condominium 
housing development or project as to which the Secretary of Housing 
and Urban Development has issued, under section 234 of the National 
Housing Act, as amended (12 U.S.C. 1715y), evidence of insurance yg^ltatrVso^-"' 
on at least one loan for the purchase of a one-family unit. The Admin- 83 stat! 334' 
istrator shall guarantee loans to veterans on such residential units 
when such loans meet those requirements of this chapter which he 
shall, by regulation, determine to be applicable to such loans." 
SEC. 4. Section 1811 of title 38, United States Code, is amended— 
^2 stat. 1208. 
(1) by striking out "1810" in subsection (a) and (b) inserting 
in lieu thereof: "1810 or 1819"; 
^°«'. P- "lo. 
(2) by striking out the second sentence of subsection (b) and 
inserting in lieu thereof the following: "He shall, with respect 
to any such area, make, or enter into commitments to make, to 
any veteran eligible under this title, a loan for any or all of the 
purposes described in section 1810(a) or 1819 of this title."; 
(3) by inserting after "guaranteed home loans" the phrase "or 
mobile home loans, as appropriate" in subsection (c) (1), and by 
striking out in such subsection "1810 of this title" and inserting 
in lieu thereof "1810 or 1819 of this title, as appropriate"; 
(4) by inserting after "guaranteed home loans" in subsection 
(d) (1) the phrase "or mobile home loans, as appropriate"; 
(5) by striking out "The" in subsection (d) (2) and inserting 
in lieu thereof "(A) Except for any loan made under this chap-
ter for the purposes described in section 1819 of this title, the"; 
(6) by inserting immediately after subsection (d) (2) 
(as 
amended by clause (4) above) the following new paragraph: 
"(B) The original principal amount of any loan made under this 
section for the purposes described in section 1819 of this title shall not 
exceed the amount specified by the Administrator pursuant to sub-
section (d) of such section."; 
(7) by striking out "1810 of this title" in subsection (g) and 
^^ stat. 330.= 
inserting in lieu thereof "1810 or 1819 of this title, as appro-
priate" ; and 
(8) by striking out subsections (h), (i), and (j) and inserting 
in lieu thereof the following: 
"(h) The Administrator may exempt dwellings constructed through 
M
i
n
i
m
u
m land 
assistance provided by this section from the minimum land planning me^i^Tsrexe^i^tion 
and subdivision requirements prescribed pursuant to subsection (a) authority. 
of section 1804 of this title, and with respect to such dwellings may 
prescribe special minimum land planning and subdivision require-
ments which shall be in keeping with the general housing facilities in 
the locality but shall require that such dwellings meet minimum 
requirements of structural soundness and general acceptability. 
"(i) The Administrator is authorized, without regard to the pro- di^aw^^d^ ^"^ 
visions of subsections (a), (b), and (c) of this section, to make or enter 
^° ^ ^* erans. 
into a commitment to make a loan to any veteran to assist the veteran 
in acquiring a specially adapted housing unit authorized under chapter 
21 of this title, if the veteran is determined to be eligible for the bene- ya^stauVyV-^posf 
fits of such chapter 21, and is eligible for loan guaranty benefits under p. ma*. 
this chapter. 
asuscsoi. 
" ( j ) ( l ) If any builder or sponsor proposes to construct one or 
more dwellings in a housing credit shortage area, or in any area for 
1110 
PUBLIC LAW 91-506-OCT. 23, 1970 
[84 STAT. 
a veteran who is determined to be eligible for assistance in acquiring a 
73^stft^*'7y-^^' 
specially adapted housing unit under chapter 21 of this title, the 
p. 1113*. 
' °^' Administrator may enter into commitment with such builder or spon-
38 use 801. 
sor, under which funds available for loans under this section will be 
reserved for a period not in excess of three months, or such longer 
period as the Administrator may authorize to meet the needs in any 
particular case, for the purpose of making loans to veterans to pur-
chase such dwellings. Such commitment may not be assigned or trans-
ferred except with the written approval of the Administrator. The 
Administrator shall not enter into any such commitment unless such 
builder or sponsor pays a nonrefundable commitment fee to the 
Administrator in an amount determined by the Administrator, not to 
exceed 2 per centum of the funds reserved for such builder or sponsor. 
"(2) Whenever the Administrator finds that a dwelling with respect 
to which funds are being reserved under this subsection has been 
sold, or contracted to be sold, to a veteran eligible for a direct loan 
under this section, the Administrator shall enter into a commitment 
to make the veteran a loan for the purchase of such dwelling. With 
respect to any loan made to an eligible veteran under this subsection, 
the Administrator may make advances during the construction of 
the dwelling, up to a maximum in advances of (A) the cost of the 
land plus (B) 80 per centum of the value of the construction in place." 
72 Stat, 1207; 
g^EC. 5. Subchapter I I of chapter 37 of title 38, United States Code, 
38 use 1
*
8
1
0
. 
IS amended by adding at the end thereof the following new section: 
*
*
§ 1819. Loans to purchase mobile homes and mobile home lots 
" (a) Notwithstanding any other provision of this chapter, any vet-
eran eligible for loan guaranty benefits under this chapter who has 
maximum home loan guaranty entitlement available for use shall be 
eligible for the mobile home loan guaranty benefit under this section. 
Use of the mobile home loan guaranty benefit provided by this sec-
tion shall preclude the use of any home loan guaranty entitlement 
under any other section of this chapter until the mobile home loan 
guaranteed under this section has been paid in full. 
"(b) Subject to the limitations in subsection (d) of this section, 
a loan to purchase a mobile home under this section may include (or 
be augmented by a separate loan for) (1) an amount to finance the 
acquisition of a lot on which to place such home, and (2) an additional 
amount to pay expenses reasonably necessary for the appropriate 
preparation of such a lot, including, but not limited to, the installa-
tion of utility connections, sanitary facilities and paving, and the 
construction of a suitable pad. 
"(c) (1) Any loan to a veteran eligible under subsection (a) shall 
be guaranteed by the Administrator if (1) the loan is for the purpose 
of purchasing a new mobile home or for the purchase of a used mobile 
home which is the security for a prior loan guaranteed or made under 
this section or for a loan guaranteed, insured or made by another 
Federal agency, and (2) the loan complies in all other respects with 
the requirements of this section. Loans for such purpose (including 
those which will also finance the acquisition of a lot or site preparation 
as authorized by subsection (b) of this section) shall be submitted to 
the Administrator for approval prior to loan closing except that the 
Administrator may exempt any lender of a class listed in section 
72 Stat. 1204; 
1802(d) of this title from compliance with such prior approval 
73 Stat. 156. 
requirement if he determines that the experience of such lender or 
class of lenders in mobile home financing warrants such exemption. 
"(2) Upon determining that a loan submitted for prior approval 
84 STAT. ] 
PUBLIC LAW 91-506-OCT. 23, 1970 
1111 
is eligible for guaranty under this section, the Administrator shall 
issue a commitment to guarantee such loan and shall thereafter guar-
antee the loan when made if such loan qualifies therefor in all respects. 
"(3) The Administrator's guaranty shall not exceed 30 per centum 
of the loan, including any amount for lot acquisition and site prepara-
tion, and payment of such guaranty shall be made only after liquida-
tion of the .security for the loan and the filing of an accounting with 
the Administrator. In any such accounting the Administrator shall 
permit to be included therein accrued unpaid interest from the date 
of the first uncured default to such cutoff date as the Administrator 
may establish, and he shall allow the holder of the loan to charge 
against the liquidation or resale proceeds, accrued interest from the 
cutoff date established to such further date as he may determine and 
such costs and expenses as he determines to be reasonable and proper. 
The liability of tne United States under the guaranty provided for 
by this section shall decrease or increase pro rata with any decrease or 
increase of the amount of the unpaid portion of the obligation. 
"(d)(1) The Administrator shall establish a loan maximum for 
each type of loan authorized by this section. In the case of a new 
mobile home, the Administrator may establish a maximum loan 
amount based on the manufacturer's invoice cost to the dealer and 
such other cost factors as the Administrator considers proper to take 
into account. In the case of a used mobile home, the Administrator 
shall establish a maximum loan amount based on his determination of 
the reasonable value of the property. In the case of any lot on which 
to place a mobile home financed through the assistance of this section 
and in the case of necessary site preparation, the loan amount shall not 
be increased by an amount in excess of the reasonable value of such lot 
or an amount appropriate to cover the cost of necessary site prepara-
tion or both, as determined by the Administrator. 
"(2) The maximum permissible loan amounts and the term for 
which the loans are made shall not exceed— 
"(A) $10,000 for twelve years and thirty-two days in the case 
of a loan covering the purchase of a mobile home only, and such 
additional amount as is determined by the Administrator to be 
appropriate to cover the cost of necessary site preparation where 
the veteran owns the lot, or 
"(B) $15,000 (but not to exceed $10,000 for the mobile home) 
for fifteen years and thirty-two days in the case of a loan covering 
the purchase of a mobile home and an undeveloped lot on which 
to place such home, and such additional amount as is determined 
by the Administrator to be appropriate to cover the cost of neces-
sary site preparation, or 
'^(C) $17,500 (but not to exceed $10,000 for the mobile home) 
for fifteen years and thirty-two days in the case of a loan covering 
the purchase of a mobile home and a suitably developed lot on 
which to place such home. 
"(3) Such limitations set forth in paragraph (2) of this subsection 
on the amount and term of any loan shall not be deemed to preclude 
the Administrator, under regulations which he shall prescribe, from 
consenting to necessary advances for the protection of the security 
or the holder's lien, or to a reasonable extension of the term or 
reamortization of such loan. 
"(e) No loan shall be guaranteed under this section unless— 
"(1) the loan is repayable in approximately equal monthly 
installments; 
Maximum loan 
amounts. 
Conditions. 
47-348 O - 72 - 74 (Pt. 1) 
1112 
PUBLIC LAW 91-506-OCT. 23, 1970 
[84 STAT. 
Interest rate. 
Regulations. 
Standards, com-
pliance. 
Written war-
ranty. 
"(2) the terms of repayment bear a proper relationship to the 
veteran's present and anticipated income and expenses, and the 
veteran is a satisfactory credit risk, taking into account the pur-
pose of this program to make available lower cost housing to 
low and lower income veterans, especially those who have been 
recently discharged or released from active military, naval, or air 
service, who may not have previously established credit ratings; 
"(3) the loan is secured by a first lien on the mobile home and 
any lot acquired or improved with the proceeds of the loan; 
"(4) the amount of the loan, subject to the maximums estab-
lished in subparagraph (d) of this section, is not in excess- of the 
maximum amount prescribed by the Administrator; 
"(5) the veteran certifies, in such form as the Administrator 
shall prescribe, that he will personally occupy the property as 
his home; 
" (6) the mobile home is or will be placed on a site which meets 
specifications which the Administrator shall establish by reg-
ulation ; and 
"(7) the interest rate to be charged on the loan does not exceed 
the permissible rate established by the Administrator. 
"(f) The Administrator shall establish such rate of interest for 
mobile home loans as he determines to be necessary in order to assure 
a reasonable supply of mobile home loan financing for veterans under 
this section. 
"(g) Entitlement to the loan guaranty benefit used under this 
section shall be restored a single time for any veteran by the Admin-
istrator provided the first loan has been repaid in full. 
"(h) The Administrator shall promulgate such regulations as he 
determines to be necessarjr or appropriate in order to fully implement 
the provisions of this section, and such regulations may specify which 
provisions in other sections of this chapter he determines should be 
applicable to loans guaranteed or made under this section. The Admin-
istrator shall have such powers and responsibilities in respect to mat-
ters arising under this section as he has in respect to loans made or 
guaranteed or under other sections of this chapter. 
"(i) No loan for the purchase of a mobile home shall be guaran-
teed under this section unless the mobile home and lot, if any, meet 
or exceed standards for planning, construction, and general accept-
ability as prescribed by the Administrator. Such standards shall be 
designed to encourage the maintenance and development of sites for 
mobile homes which will be attractive residential areas and which will 
be free from, and not substantially contribute to, adverse scenic or 
environmental conditions. For the purpose of assuring compliance 
with such standards, the Administrator shall from time to time inspect 
the manufacturing process of mobile homes to be sold to veterans and 
conduct random onsite inspections of mobile homes purchased with 
assistance under this chapter. 
"(j) The Administrator shall require the manufacturer to become 
a warrantor of any new mobile home which is approved for purchase 
with financing through the assistance of this chapter and to furnish 
to the purchaser a written warranty in such form as the Administra-
tor shall require. Such warranty shall include (1) a specific state-
ment that the mobile home meets the standards prescribed by the 
Administrator pursuant to the provisions of subsection (i) of this sec-
tion ; and (2) a provision that the warrantor's liability to the purchaser 
or owner is limited under the warranty to instances of substantial non-
o $n-n 
84 STAT. ] 
PUBLIC LAW 91-506-OCT. 23, 1970 
1113 
conformity to such standards which become evident within one j^ear 
from date of purchase and as to which the purchaser or owner gives 
written notice to the warrantor not later than ten days after the end 
of the warranty period. The warranty prescribed herein shall be in 
addition to, and not in derogation of, all other rights and privileges 
which such purchaser or owner may have under any other law or 
instrument and shall so provide in the warranty document. 
" (k) Subject to notice and opportunity for a hearing, the Admin-
istrator is authorized to deny guaranteed or direct loan financing in 
the case of mobile homes constructed by any manufacturer who 
refuses to permit the inspections provided for in subsection (i) of this 
section; or in the case of mobile homes which are determined by the 
Administrator not to conform to the aforesaid standards; or where 
the manufacturer of mobile homes fails or is unable to discharge his 
obligations under the warranty. 
" (1) Subject to notice and opportunity for a hearing, the Adminis-
trator may refuse to approve as acceptable any site in a mobile home 
park or subdivision owned or operated by any person whose rental 
or sale methods, procedures, requirements, or practices are determined 
by the Administrator to be unfair or prejudicial to veterans renting 
or purchasing such sites. The Administrator may also refuse to guar-
antee or make direct loans for veterans to purchase mobile homes 
offered for sale by any dealer if substantial deficiencies have been dis-
covered in such homes, or if he determines that there has been a 
failure or indicated inability of the dealer to discharge contractual 
liabilities to veterans, or that the type of contract of sale or methods, 
procedures, or practices pursued by the dealer in the marketing of such 
properties have been unfair or prejudicial to veteran purchasers. 
" (m) The Administrator's annual report to Congress shall, begin-
ning 12 months following the date of enactment of the Veterans' 
Housing Act of 1970, include a report on operations under this sec-
tion, including the results of inspections required by subsection (i) 
of this section, experience with compliance with the warranty required 
by subsection (j) of this section, and the experience regarding defaults 
and foreclosures. 
"(n) The provisions of section 1804(d) and section 1821 of this 
chapter shall be fully applicable to lenders making guaranteed mobile 
home loans and holders of such loans. 
"(o) No loans shall be guaranteed or made by the Administrator 
under the provisions of this section on and after July 1, 1975, except 
pursuant to commitments issued prior to such date." 
SEC. 6. Clause (3) of section 802 of title 38, United States Code, is 
amended to read as follows: 
"(3) where the veteran elects to remodel a dwelling which is 
not adapted to the requirements of his disability, acquired by him 
prior to application for assistance under this chapter, the Admin-
istrator shall pay not to exceed (A) the cost to the veteran 
of such remodeling; or (B) 50 per centum of the cost to the vet-
eran of such remodeling; plus the smaller of the following sums: 
(i) 50 per centum of the cost to the veteran of such dwelling and 
the necessary land upon which it is situated, or (ii) the full 
amount of the unpaid balance, if any, of the cost to the veteran 
of such dwelling and the necessary land upon which it is situated; 
and". 
Report to 
Congress. 
72 Stat. 1206; 
73 Stat. 156. 
Termination 
date. 
Assistance, 
limitation. 
72 Stat. 1168. 
1114 
PUBLIC LAW 91-507-OCT. 26, 1970 
[84 STAT. 
Effective date. 
SEC. 7. The table of sections at the beginning of chapter 37 of title 
38 is amended by inserting immediately after 
"1818. Veterans who serve after January 31,1955." 
the following: 
"1819. Loans to purchase mobile homes and mobile home lots." 
SEC. 8. Section 5 of this Act shall become effective sixty days follow-
ing the date of enactment. 
Approved October 23, 1970. 
Public Law 91-507 
October 26,1970 
JOINT RESOLUTION 
[s.j. Res. 223] 
To authorize and request the President to issue a proclamation designating 
January 1971 as "National Blood Donor Month". 
National Blood 
Donor Month. 
Proclamation. 
Resolved hy the Senate and House of Representatives 
of the United 
States of America in Congress assemhled^ That, in recognition of the 
vital contribution of the voluntary blood donor to medical care, the 
President is authorized and requested to issue a proclamation desig-
nating the month of January 1971 as "National Blood Donor Month", 
and calling upon the people of the United States and interested 
groups and organizations to observe such month with appropriate 
ceremonies and activities. 
Approved October 26, 1970. 
October 26, 1970 
[H. R. 15073] 
Public Law 91-508 
AN ACT 
To amend the Federal Deposit Insurance Act to require insured banks to main-
tain certain records, to require that certain transactions in United States 
currency be reported to the Department of the Treasury, and for other purposes. 
Federal Deposit 
Insurance Act, 
amendments. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ 
TITLE I—FINANCIAL EECORDKEEPING 
Chapter 
Sec. 
1. INSURED BANKS AND INSURED INSTITUTIONS 
101 
2. OTHER FINANCIAL INSTITUTIONS 
121 
Chapter 1.—INSURED BANKS AND INSURED 
INSTITUTIONS 
64 Stat. 893; 
81 Stat. 610. 
12 u s e 1830, 
1831. 
Sec. 
101. Retention of records by insured banks. 
102. Retention of records by insured institutions. 
§ 101. Retention of records by insured banks 
The Federal Deposit Insurance Act is amended (1) by redesignating 
sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the 
following new section immediately after section 20: 
"SEC. 21. (a)(1) The Congress finds that adequate records main-
tained by insured banks have a high degree of usefulness in criminal, 
tax, and regulatory investigations and proceedings. The Congress 
further finds that microfilm or other reproductions and other records 
made by banks of checks, as well as records kept by banks of the 
identity of persons maintaining or authorized to act with respect to 
accounts therein, have been of particular value in this respect.