Page:United States Statutes at Large Volume 59 Part 1.djvu/645

 59 STAT.] 79THr CONG. , 1ST SESS.-CH. 588 -DEC. 28, 1945 loans; or a prorated portion thereof on loans of both types or com- bination thereof. "(b) Loans guaranteed under this title shall be payable under tiOTe r ms and condi. such terms and conditions as may be agreed upon by the parties thereto, subject to the conditions and limitations of this title and the regulations issued pursuant to section 504: Provided, That the lia- Liablity under bility under the guaranty within the limitations of this title shall guaranty decrease or increase pro rata with any decrease or increase of the amount of the unpaid portion of the obligation: Provided further, That loans guaranteed under this title shall bear interest at a rate Interest, maturity. not exceeding 4 per centum per annum and shall be payable in full in not more than twenty-five years, or in the case of loans on farm realty in not more than forty years: And provided further, That (1) the maturity on a non-real-estate loan shall not exceed ten years; (2) any loan for a term in excess of five years shall be amortized in accordance with established procedure; (3) except as provided mScrity require. in section 505 any real-estate loan, other than for repairs, alterations Post, p.629. or improvements, shall be secured by a first lien on the realty, and a non-real-estate loan, except as to working or other capital, merchan- dise, good-will and other intangible assets, shall be secured by person- alty to the extent legal and practicable. "(c) An honorable discharge shall be deemed a certificate of eligi- biCteificates of elgi- bility to apply for a guaranteed loan. Any veteran who does not have a discharge certificate, or who received a discharge other than honorable may apply to the Administrator for a certificate of eligi- bility. Upon making a loan as provided herein, the lender shall leSterment by forthwith transmit to the Administrator a statement setting forth the full name and serial number of the veteran, amount and terms of the loan, and the legal description of the property, together with the appraisal report made by the designated appraiser. Where the tiLo gtranty cer loan is automatically guaranteed, the Administrator shall provide the lender with a loan guaranty certificate or other evidence of the guar- anty. He shall also endorse on the veteran's discharge, or eligibility certificate, the amount and type of guaranty used, and the amount, if any, remaining. An amount equivalent to 4 per centum on the amount originally guaranteed shall be paid to the lender by the Administrator out of available appropriations, to be credited upon the loan. Nothing herein shall be deemed to preclude the assign- Assignment. ment of any guaranteed loan nor the assignment of the security therefor. "(d) Loans guaMlhteed hereunder may be made by any Federal tomakeloas.tho land bank, national bank, State bank, private bank, building and loan association insurance company, credit union, or mortgage and loan company, that is subject to examination and supervision by an agency of the United States or of any State or Territory, including the Dis- trict of Columbia. Any loan at least 20 per centum of which is guaranteed under this title may be made by any national bank, or Federal savings and loan association; or by any bank, trust com- pany, building and loan association or insurance company organized or authorized to do business in the District of Columbia; without Desgnmated limita- regard to the limitations and restrictions of any other statute with respect to- "(1) ratio of amount of loan to the value of the property; "(2) maturity of loan; "(3) requirement for mortgage or other security; "(4) dignity of lien; or "(5) percentage of assets which may be invested in real estate loans. "(e) Any loan proposed to be made to an eligible veteran by any mt. by Ad. 627

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