Page:United States Statutes at Large Volume 88 Part 2.djvu/547

 88 STAT. 3

PUBLIC LAW 93-569-DEC. 31, 1974

1863

Public Law 93-569 AN ACT

December 31, 1974

To amend chapter 37 of title 38, United States Code, to improve the basic provisions of the veterans home loan programs and to eliminate those provisions pertaining to the dormant farm and business loans, and for other purposes.

[H. R. 15912]

Be it enacted by the Senate and House of Representatives of the Veterans HousUnited States of America in Congress assembled, That this Act may be ing Act of 1974. cited as the "Veterans Housing Act of 1974". "'38 USC'i'802 SEC. 2. (a) Section 1802(b) of title 38, United States Code, is note amended to read as follows: "(b) In computing the aggregate amount of guaranty or insurance ^^^^^'^ entitientitlement available to a veteran under this chapter, ih& Adminis- ment. trator may exclude the amount of guaranty or insurance entitlement used for any guaranteed, insured, or direct loan, if— " (1) the property which secured the loan has been disposed of by the veteran or has been destroyed by fire or other natural hazard; and "(2) the loan has been repaid in full, or the Administrator has been released from liability as to the loan, or if the Administrator has suffered a loss on such loan, the loss has been paid in full; or "(3) an immediate veteran-transferee has agreed to assume the outstanding balance on the loan and consented to the use of his entitlement, to the extent that the entitlement of the veteran-transferor had been used originally, in place of the veteran-transferor's for the guaranteed, insured, or direct loan, and the veteran-transferee otherwise meets the requirements of this chapter. Waiver The Administrator may, in any case involving circumstances he deems t i o n s. of condiappropriate, waive one or more of the conditions prescribed in clauses (1) and (2) above.". (b) Clause (3) of section 1802(d) of title 38, United States Code, is amended to read as follows: "(3) by any lender approved by the Administrator pursuant to standards established by him.". (c) Section 1803(c) of title 38, United States Code, is amended by adding at the end thereof a new paragraph as follows: "(3) This section shall not be construed to prohibit a veteran from paying to a lender any reasonable discount required by such lender, when the proceeds from the loan are to be used: " (A) to refinance indebtedness pursuant to section 1810(a)(5); " (B) to repair, alter, or improve a farm residence or other dwelling pursuant to section 1810(a)(4); " (C) to construct a dwelling or farm residence on land already owned or to be acquired by the veteran except where the land is directly or indirectly acquired from a builder or developer who has contracted to construct such dwelling for the veteran; or " (D) to purchase a dwelling from a class of sellers which the Administrator determines are legally precluded under all circumstances from paying such a discount if the best interest of the veteran would be so served.". (d) Section 1804(c) of title 38, United States Code, is amended by inserting immediately after the second sentence a new sentence as follows: "Notwithstanding the foregoing provisions of this subsection, in the case of a loan automatically guaranteed under this chapter, the veteran shall be required to make the certification only at the time the loan is closed.".

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