Page:United States Statutes at Large Volume 72 Part 1.djvu/1250

 1208

PUBLIC LAW 85-857-SEPT. 2, 1958

[72 S T A T.

(5) the price paid or to be paid by the veteran for such property, or for the cost of construction, repairs, or alterations, does not exceed the reasonable value thereof as determined by the Administrator; and (6) if the loan is for repair, alteration, or improvement of property, such repair, alteration, or improvement substantially protects or improves the basic livability or utility of such property. (c) The amount of guaranty entitlement available to a veteran under this section shall not be more than $7,500 less such entitlement as may have been used previously under this section and other sections of this chapter. § 1811. Direct loans to veterans (a) The Congress finds that housing credit under section 1810 of this title is not and has not been generally available to veterans living in rural areas, or in small cities and towns not near large metropolitan areas. I t is therefore the purpose of this section to provide housing credit for veterans living in such rural areas and such small cities and towns. (b) "Whenever the Administrator finds that private capital is not generally available in any rural area or small city or town for the financing of loans guaranteed under section 1810 of this title, he shall designate such rural area or small city or town as a "housing credit shortage area". He shall make, or enter into commitments to make, to any veteran eligible under this title, a loan for any or all of the purposes listed in section 1810(a) in such area. (c) No loan may be made under this section to a veteran unless he shows to the satisfaction of the Administrator that— (1) he is unable to obtain from a private lender in such housing credit shortage area, at an interest rate not in excess of the rate authorized for guaranteed home loans, a loan for such purpose for which he is qualified under section 1810 of this title; and (2) he is unable to obtain a loan for such purpose from the 1029M2 USC i4°7iSecretary of Agriculture under sections 1000-1029 of title 7 or 1483.' ' under sections 1471-1483 of title 42. (d)(1) Loans made under this section shall bear interest at a rate determined by the Administrator, not to exceed the rate authorized for guaranteed home loans, and shall be subject to such requirements or limitations prescribed for loans guaranteed under this title as may be applicable. (2) The original principal amount of any loan made under this section shall not exceed an amount which bears the same ratio to $13,500 as the amount of guaranty to which the veteran is entitled under section 1810 of this title at the time the loan is made bears to $7,500; and the guaranty entitlement of any veteran who heretofore or hereafter has been granted a loan under this section shall be charged with an amount which bears the same ratio to $7,500 as the amount of the loan bears to $13,500. (3) No veteran may obtain loans under this section aggregating more than $13,500. (e) Loans made under this section shall be repaid in monthly installments, except that in the case of any such loan made for any of the purposes described in paragraphs (2), (3), or (4) of section 1810 (a) of this title, the Administrator may provide that such loan shall be repaid in quarterly, semiannual, or annual installments. (f) In connection with any loan under this section, the Administrator may make advances in cash to pay taxes and assessments on the real estate, to provide for repairs, alterations, and improvements, and to meet the incidental expenses of the transaction. The Adminis-

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