Page:United States Statutes at Large Volume 66.djvu/729

 66

STAT.]

PUBLIC LAW

550-JULY

16, 1952

683

ADDITIONAL REQUIREMENT FOR GUARANTEED LOANS

SEC. 303. Section 501(a)(2) of the Servicemen's Readjustment Act of 1944, as amended, is amended by inserting after "expenses" the following: ", and the veteran is a satisfactory credit risk".

38 USC 694a.

STANDARDS OF P L A N N I N G A N D C O N S T R U C T I O N; SUBSTANTIAL D E F I C I E N C I E S I N HOUSING

SEC. 304. Section 504 of the Servicemen's Readjustment Act of 1944, as amended, is amended by striking out subsection (b) and inserting in lieu thereof the following new subsections: " (b) No loan for the purchase or construction of residential property on which construction is begun subsequent to sixty days from the date the Veterans' Readjustment Assistance Act of 1952 becomes effective shall be financed through the assistance of the provisions of this title unless the property meets or exceeds minimum requirements for planning, construction, and general acceptability prescribed by the Administrator: Provided, That subsection 504(b) as originally enacted shall continue to be applicable to construction begun prior to the end of such sixty-day period: Provided further, That this subsection shall not apply to a loan for the purchase of residential property the construction of which was completed more than one year prior to the making of such loan. "(c) The Administrator shall have the right to refuse to appraise any dwelling or housing project owned, sponsored, or to be constructed by any person identified with housing previously sold to veterans under this title as to which substantial deficiencies have been discovered, or as to which there has been a failure or indicated inability to discharge contractual liabilities to veterans, or as to which it is ascertained that the type of contract of sale or the methods or practices pursued in relation to the marketing of such properties were unfair or unduly prejudicial to veteran purchasers."

38 USC 694d.

E L I G I B I L I T Y FOR LOANS TO R E F I N A N C E E X I S T I N G L I A B I L I T Y

SEC. 305. Section 507(1) of the Servicemen's Readjustment Act of 1944, as amended, is amended by inserting before the semicolon at the end thereof the following: "or, in the case of a veteran eligible by virtue of active service on or after June 27, 1950, not later than ten years after such date as shall be determined by Presidential proclamation or concurrent resolution of the Congress".

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EXPIRATION OF AUTHORITY TO M A K E DIRECT LOANS

SEC. 306. Section 512(b) of the Servicemen's Readjustment Act of 1944, as amended, is amended by striking out " (D) " and inserting in lieu thereof " (C) " and by inserting before the period at the end thereof the following: ", except that if a commitment to make such a loan was issued by the Administrator prior to that date the loan may be completed subsequent to such date".

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REFUSAL TO GUARANTEE OR INSURE LOANS IN CERTAIN CASES

SEC. 307. Title III of the Servicemen's Readjustment Act of 1944, 5 / 4 ! " ^ ^ ^^^• as amended, is amended by adding at the end thereof the following new section: "SEC. 514. Whenever the Administrator finds with respect to loans, guaranteed or insured under this title that any lender or holder has failed to maintain adequate loan accounting records, or to demonstrate

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