Page:United States Statutes at Large Volume 70.djvu/970

 914 38 USC 6 9 4 a. 694c. 38 USC 694d.

38 USC 694g.

38 USC 694h.

38 USC 694.

PUBLIC LAW 898-AUG. 1, 1956

[70 ST A T.

by the Veterans' Administration under section 501, 502, or 503 of this title, be liable for three times the amount of such excess consideration irrespective of whether such person has received any part thereof." (7) Section 504 is amended by adding a new subsection (d) to read as follows:" (d) No loan for the purchase or construction of residential property shall be financed through the assistance of the provisions of this title unless the veteran applicant, at the time that he applies for the loan, and also at the time that the loan is closed, certifies, in such form as may be required by the Administrator, that he intends to occupy the property as his home. No loan for the repair, alteration, or improvement of residential property shall be financed through the assistance of the provisions of this title unless the veteran applicant, at the time that he applies to the lender for the loan, and also at the time that the loan is closed, certifies, in such form as may be required by the Administrator, that he occupies the property as his home. For the purpose of this title the requirement that the veteran recipient of a guaranteed or direct home loan must occupy or intend to occupy the property as his home shall be construed to mean that the veteran as of the date of his certification actually lives in the property personally as his residence or actually intends upon completion of the loan and acquisition of the dwelling unit to move into the property personally within a reasonable time and to utilize such property as his residence." (8) Section 506 is amended by designating the existing provisions therein as subsection (a) and by adding a new subsection (b) to read as follows: "(b) Whenever any veteran disposes of residential property securing a guaranteed, insured, or direct loan obtained by him under this title, the Administrator, upon application made by such veteran and by the transferee incident to such disposal, shall issue to such veteran in connection with such disposal a release relieving him of all further liability to the Administrator on account of such loan (including liability for any loss resulting from any default of the transferee or any subsequent purchaser of such property) if the Administrator has determined, after such investigation as he may deem appropriate, that (1) the loan is current, and (2) the purchaser of such property from such veteran (a) has obligated himself by contract to purchase such property and to assume full liability for the repayment of the balance of the loan remaining unpaid, and has assumed by contract all of the obligations of the veteran under the terms of the instruments creating and securing the loan, and (b) qualifies from a credit standpoint, to the same extent as if he were a veteran eligible under section 501 (a), for a guaranteed or insured or direct loan in an amount equal to the unpaid balance of the obligation for which he has assumed liability." (9) Section 507 is amended (A) by striking out "ten" the first time it appears in subsection (1) and inserting in lieu thereof "eleven", and (B) by striking out subsection (3) and inserting in lieu thereof the following: "(3) The amount of the guaranteed loan does not exceed the reasonable value of the property or business, as determined by the Administrator." (10) Section 500 is amended by adding at the end thereof the following: " (g) Notwithstanding any other provision of this title, if a loan report or an application for loan guaranty relating to a loan under this title has been received by the Administrator on or before July 25, 1958, such loan may be guaranteed or insured under the provisions of this title on or before July 25, 1959." Approved August 1, 1956.

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