Page:United States Statutes at Large Volume 72 Part 1.djvu/1253

 72 S T A T. ]

PUBLIC LAW 8 5 - 8 5 7 - S E P T. 2, 1958

(4) 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, (c) For the purpose of encouraging the construction and improvement of farm housing, the Administrator may guarantee a loan for the construction or improvement of a farmhouse which loan is secured by a first lien on a portion of the farm suitable in size and location as an independent home site, and may permit payment out of the proceeds of such loan any sum required to obtain the release of such site from existing indebtedness. The Administrator may, in his discretion, except any loan for the construction or improvement of a farmhouse from the first lien requirement imposed by section 1803(d)(3) of this title. § 1813. Purchase of business property (a) Any loan to a veteran, if made pursuant to the provisions of this chapter, is automatically guaranteed if such loan is for one or more of the following purposes: (1) To be used for the purpose of engaging m business or pursuing a gainful occupation. (2) For the cost of acquiring for such purpose land, buildings, supplies, equipment, machinery, tools, inventory, or stock in trade. (3) For the cost of the construction, repair, alteration, or improvement of any realty or personalty used for such purpose. (4) To provide the funds needed for working capital for such purpose. (b) No loan may be guaranteed under this section unless— (1) the proceeds of such loan will be used by the veteran for any of the specified purposes in connection with bona fide pursuit of a gainful occupation by the veteran; (2) such property will be useful in and reasonably necessary for the efficient and successful pursuit of such business or occupation; (3) the ability and experience of the veteran, and the conditions under which he proposes to pursue such business or occupation, are such that there is a reasonable likelihood that he will be successful in the pursuit of such business or occupation; and (4) 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. § 1814. Loans to refinance delinquent indebtedness (a) Any loan to a veteran, if made pursuant to the provisions of this chapter, is automatically guaranteed if such loan is for one or more of the following purposes: (1) To refinance any indebtedness of the veteran which is secured of record on property to be used or occupied by him as a home or for farming purposes. (2) To refinance any indebtedness incurred by him in the pursuit of a gainful occupation which he is pursuing or which he proposes in good faith to pursue. (3) To pay any delinquent taxes or assessments on such property or business. (b) No loan may be guaranteed under this section unless— (1) such refinancing will aid the veteran in his economic readjustment;

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