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38 U.S.C. § 3737 — Partial Claim Program
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment.—** The Secretary shall carry out a program, to be known as the “Partial Claim Program”, under which the Secretary may make a partial claim, described in subsection (b), with respect to a loan—
(1) guaranteed under this chapter;
(2) regarding the primary residence of the borrower; and
(3) that the Secretary determines is in default or at imminent risk of default.
**(b) Partial Claim Described.—** A partial claim described in this subsection, with respect to a loan described in subsection (a), is the purchase by the Secretary of a portion of indebtedness under the loan, through a transaction under which the Secretary—
(1) pays to the holder of the loan the amount of indebtedness, subject to subsection (c), that the Secretary determines necessary to help prevent or resolve a default; and
(2) receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the amount of indebtedness under the guaranteed loan that the Secretary does not purchase.
**(c) Administration of Partial Claim.—**
(1)
(A) Subject to subparagraph (B), the amount of a partial claim under this section with respect to a loan guaranteed described in subsection (a) may not exceed 25 percent of the unpaid principal balance of the loan on the date on which the partial claim is made.
(B) In the case of an individual who failed to make a payment on a loan guaranteed under this chapter during the period beginning on March 1, 2020 and ending on May 1, 2025, the amount of a partial claim under this section may not exceed 30 percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made.
(2)
(A) Subject to subparagraph (B), the Secretary may make only one partial claim p
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Source location: Title 38, Chapter 37, § 3737; chapter-037-housing-and-small-business-loans.md
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**(a) Establishment.—** The Secretary shall carry out a program, to be known as the “Partial Claim Program”, under which the Secretary may make a partial claim, described in subsection (b), with respect to a loan—
(1) guaranteed under this chapter;
(2) regarding the primary residence of the borrower; and
(3) that the Secretary determines is in default or at imminent risk of default.
**(b) Partial Claim Described.—** A partial claim described in this subsection, with respect to a loan described in subsection (a), is the purchase by the Secretary of a portion of indebtedness under the loan, through a transaction under which the Secretary—
(1) pays to the holder of the loan the amount of indebtedness, subject to subsection (c), that the Secretary determines necessary to help prevent or resolve a default; and
(2) receives a secured interest in the property that serves as collateral for the guaranteed loan, which is subordinate to the amount of indebtedness under the guaranteed loan that the Secretary does not purchase.
**(c) Administration of Partial Claim.—**
(1)
(A) Subject to subparagraph (B), the amount of a partial claim under this section with respect to a loan guaranteed described in subsection (a) may not exceed 25 percent of the unpaid principal balance of the loan on the date on which the partial claim is made.
(B) In the case of an individual who failed to make a payment on a loan guaranteed under this chapter during the period beginning on March 1, 2020 and ending on May 1, 2025, the amount of a partial claim under this section may not exceed 30 percent of the unpaid principal balance of the guaranteed loan as of the date that the initial partial claim is made.
(2)
(A) Subject to subparagraph (B), the Secretary may make only one partial claim per loan.
(B) The Secretary may make an additional partial claim on a loan guaranteed under this chapter in the case of an individual who failed to make a payment on such loan during—
(i) a major disaster declared by the President under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ([42 U.S.C. 5170](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section5170&num=0&edition=prelim)); or
(ii) the period of 180 days following such a major disaster.
(3) An amount paid to the holder of a loan as a partial claim—
(A) shall not alter the guaranty calculation specified by [section 3703 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3703&num=0&edition=prelim);
(B) shall be included, for the purpose of a liquidation sale, in the same manner as any other advance allowed by the Secretary; and
(C) shall not be claimed under the guaranty or increase the Secretary’s cost of acquisition of the property securing the defaulted loan.
(4) A holder of a loan guaranteed under such chapter for which the Secretary makes a partial claim under this section shall apply the amount paid by the Secretary for the partial claim first to arrearages, if any, on the guaranteed loan. Such arrearages may include any additional costs (such as taxes, insurance premiums, or homeowner’s dues) the Secretary determines necessary to prevent or resolve a default.
(5) The Secretary may enter into a contract with an appropriate entity for the service of a partial claim made by the Secretary under this section. Any such contract shall provide that such entity shall provide quarterly statements to the holder of the loan for which the Secretary makes the partial claim.
**(d) Requirements of Loan Holder.—**
(1) The Secretary may require the holder of a loan for which the Secretary makes a partial claim under this section to take any actions necessary to establish the partial claim, including preparing, executing, transmitting, receiving, and recording loan documents and servicing the loan.
(2) The Secretary shall compensate the holder of such a loan appropriately, as determined by the Secretary, for the services required of such holder under this subsection.
(3) The Secretary may exercise the authority of the Secretary under this subsection without regard to any other provision of law not enacted expressly in limitation of this section that would otherwise govern the expenditure of public funds.
**(e) Default and Foreclosure.—**
(1)
(A) Notwithstanding [section 3703(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3703/e&num=0&edition=prelim), a borrower who defaults on a partial claim shall be liable to the Secretary for any loss suffered by the Secretary with respect to such default, and such loss may be recovered in the same manner as any other debt due the United States. The Secretary shall not restore housing loan entitlement under [section 3702(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3702/b&num=0&edition=prelim) until such loss is repaid in full.
(B) The Secretary may charge administrative costs, fees, and interest, as appropriate, with respect to any default under a partial claim in a manner similar to the interest and administrative costs charged under [section 5315 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section5315&num=0&edition=prelim).
(2) Notwithstanding [section 2410 of title 28](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section2410&num=0&edition=prelim), a non-judicial sale of real property to satisfy a loan guaranteed under this chapter shall discharge the property from a partial claim interest held by the Secretary, provided that the holder of the guaranteed loan conducts the non-judicial sale and distributes the sale proceeds, if any, in accordance with the State or local law where such property is situated.
**(f) Decisions by the Secretary.—**
(1) Any partial claim made under this section shall be made in the sole discretion of the Secretary and on terms and conditions acceptable to the Secretary that are consistent with this section.
(2) Any decision by the Secretary under this section is final and conclusive and is not subject to judicial review.
(3) For purposes of [section 511 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section511&num=0&edition=prelim), any decision under this section shall not be treated as a decision under a law that affects the provision of benefits.
**(g) Compliance.—**
(1) The Secretary may establish standards for processing payments under this section based on a certification by a holder of a loan guaranteed under such chapter that the holder has complied with all applicable requirements established by the Secretary.
(2) The Secretary shall carry out, on a random-sampling basis, post-payment audits to ensure compliance with all requirements under paragraph (1).
**(h) Guidance in Advance of Regulations.—** Notwithstanding any other provision of law, the Secretary may, before prescribing regulations, issue administrative guidance with respect to the Partial Claim Program under this section and the loss mitigation options prescribed under [section 3732(d) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3732/d&num=0&edition=prelim), including any additional terms, conditions, and requirements the Secretary determines necessary.
**(i) Rule of Construction.—** Nothing in this section shall be construed to limit the authority of the Secretary under subsections (a) and (d) of [section 3732 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3732&num=0&edition=prelim).
**(j) Termination.—** The Secretary may not make a partial claim under this section after the date that is five years after the date of the enactment of this section.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Under the conditions prescribed in this section and [section 1444 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title28-section1444&num=0&edition=prelim) for the protection of the United States, the United States may be named a party in any civil action or suit in any district court, or in any State court having jurisdiction of the subject matter—
(1) to quiet title to,
(2) to foreclose a mortgage or other lien upon,
(3) to partition,
(4) to condemn, or
(5) of interpleader or in the nature of interpleader with respect to,
real or personal property on which the United States has or claims a mortgage or other lien.
**(b)** The complaint or pleading shall set forth with particularity the nature of the interest or lien of the United States. In actions or suits involving liens arising under the internal revenue laws, the complaint or pleading shall include the name and address of the taxpayer whose liability created the lien and, if a notice of the tax lien was filed, the identity of the internal revenue office which filed the notice, and the date and place such notice of lien was filed. In actions in the State courts service upon the United States shall be made by serving the process of the court with a copy of the complaint upon the United States attorney for the district in which the action is brought or upon an assistant United States attorney or clerical employee designated by the United States attorney in writing filed with the clerk of the court in which the action is brought and by sending copies of the process and complaint, by registered mail, or by certified mail, to the Attorney General of the United States at Washington, District of Columbia. In such actions the United States may appear and answer, plead or demur withi
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1)
(A) Any loan to a veteran eligible for benefits under this chapter, if made for any of the purposes specified in [section 3710 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3710&num=0&edition=prelim) and in compliance with the provisions of this chapter, is automatically guaranteed by the United States in an amount not to exceed the lesser of—
(i)
(I) in the case of any loan of not more than $45,000, 50 percent of the loan;
(II) in the case of any loan of more than $45,000, but not more than $56,250, $22,500;
(III) except as provided in subclause (IV) of this clause, in the case of any loan of more than $56,250, the lesser of $36,000 or 40 percent of the loan; or
(IV) in the case of any loan of more than $144,000 for a purpose specified in clause (1), (2), (3), (5), (6), or (8) of [section 3710(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3710/a&num=0&edition=prelim), 25 percent of the loan; or
(ii) the maximum amount of guaranty entitlement available to the veteran as specified in subparagraph (B) or (C).
(B) With respect to loans described in subclauses (I), (II), or (III) of subparagraph (A)(i), the maximum amount of guaranty entitlement available to a veteran for purposes specified in [section 3710 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3710&num=0&edition=prelim) shall be $36,000, reduced by the amount of entitlement previously used by the veteran under this chapter and not restored as a result of the exclusion in [section 3702(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3702/b&num=0&edition=prelim).
(C)
(i) W
Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3703
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** The Secretary shall decide all questions of law and fact necessary to a decision by the Secretary under a law that affects the provision of benefits by the Secretary to veterans or the dependents or survivors of veterans. Subject to subsection (b), the decision of the Secretary as to any such question shall be final and conclusive and may not be reviewed by any other official or by any court, whether by an action in the nature of mandamus or otherwise.
**(b)** The second sentence of subsection (a) does not apply to—
(1) matters subject to [section 502 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section502&num=0&edition=prelim);
(2) matters covered by sections 1975 and 1984 of this title;
(3) matters arising under chapter 37 of this title; and
(4) matters covered by chapter 72 of this title.
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Federal law — U.S. Code and appendices · legal_authorities
**(a)** Notwithstanding any other provision of this title or of any other law and subject to sections 3485(e) and 5302 of this title, interest and administrative costs (as described in subsections (b) and (c) of this section) shall be charged, under regulations which the Secretary shall prescribe, on any amount owed to the United States—
(1) for an indebtedness resulting from a person’s participation in a benefits program administered by the Secretary other than—
(A) a loan, loan-guaranty, or loan-insurance program;
(B) a disability compensation program;
(C) a pension program; or
(D) an educational assistance program.
(2) for an indebtedness resulting from the provision of care or services under chapter 17 of this title; or
(3) to the extent not precluded by the terms of the loan instruments concerned, for an indebtedness resulting from a person’s participation in a program of loans, loan guaranties, or loan insurance administered by the Secretary under this title.
**(b)**
(1) Interest on the amount of any indebtedness described in subsection (a) of this section shall accrue from the day on which the initial notification of the amount due is mailed to the person who owes such amount (using the most current address of such person that is available to the Secretary), but interest under this section shall not be charged (A) for any period before October 17, 1980, or (B) if the amount due is paid within a reasonable period of time. The Secretary shall, in the regulations prescribed pursuant to subsection (a) of this section, prescribe what constitutes a reasonable period of time for payment of an indebtedness after the initial notification of indebtedness has been mailed.
(2) The rate of interest to be charged under this section shall be based on the rate
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Federal law — U.S. Code and appendices · legal_authorities
**(a)**
(1) In the event of default in the payment of any loan guaranteed under this chapter, the holder of the loan shall notify the Secretary of such default. Upon receipt of such notice, the Secretary may, subject to subsection (c) of this section, pay to such holder the guaranty not in excess of the pro rata portion of the amount originally guaranteed. Except as provided in [section 3703(e) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3703/e&num=0&edition=prelim), if the Secretary makes such a payment, the Secretary shall be subrogated to the rights of the holder of the loan to the extent of the amount paid on the guaranty.
(2)
(A) The Secretary may, under terms and conditions determined by the Secretary—
(i) pay the holder of a loan guaranteed under this chapter an amount necessary to avoid the foreclosure of such loan;
(ii) require the holder of the loan and the veteran obligated on the loan to execute all documents necessary to ensure the Secretary obtains a secured interest in the property covered by the loan; and
(iii) require the holder of the loan to take any actions necessary to carry out this paragraph, including preparing, executing, transmitting, receiving, and recording documents, and requiring the holder of the loan to place the loan in forbearance.
(B) In the event that a housing loan guaranteed under this chapter is modified under the authority provided under [section 1322(b) of title 11](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title11-section1322/b&num=0&edition=prelim), the Secretary may pay the holder of the housing loan the unpaid principal balance of the housing loan due, plus accrued interest, as of the date of the filing of the petition under title 11, but
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Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** All requests for a declaration by the President that a major disaster exists shall be made by the Governor of the affected State. Such a request shall be based on a finding that the disaster is of such severity and magnitude that effective response is beyond the capabilities of the State and the affected local governments and that Federal assistance is necessary. As part of such request, and as a prerequisite to major disaster assistance under this chapter, the Governor shall take appropriate response action under State law and direct execution of the State’s emergency plan. The Governor shall furnish information on the nature and amount of State and local resources which have been or will be committed to alleviating the results of the disaster, and shall certify that, for the current disaster, State and local government obligations and expenditures (of which State commitments must be a significant proportion) will comply with all applicable cost-sharing requirements of this chapter. Based on the request of a Governor under this section, the President may declare under this chapter that a major disaster or emergency exists.
**(b) Indian tribal government requests**
(1) **In general** — The Chief Executive of an affected Indian tribal government may submit a request for a declaration by the President that a major disaster exists consistent with the requirements of subsection (a).
(2) **References** — In implementing assistance authorized by the President under this chapter in response to a request of the Chief Executive of an affected Indian tribal government for a major disaster declaration, any reference in this subchapter or subchapter III (except sections 5153 and 5165d of this title) to a State or the Governor of a State is deemed to refer to a
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Federal law — U.S. Code and appendices · legal_authorities
For the purposes of this title—
(1) The terms “Secretary” and “Department” mean the Secretary of Veterans Affairs and the Department of Veterans Affairs, respectively.
(2) The term “veteran” means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable.
(3) The term “surviving spouse” means (except for purposes of chapter 19 of this title) a person who was the spouse of a veteran at the time of the veteran’s death, and who lived with the veteran continuously from the date of marriage to the date of the veteran’s death (except where there was a separation which was due to the misconduct of, or procured by, the veteran without the fault of the spouse) and who has not remarried.
(4)
(A) The term “child” means (except for purposes of chapter 19 of this title (other than with respect to a child who is an insurable dependent under subparagraph (B) or (C) of section 1965(10) of such chapter) and [section 8502(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section8502/b&num=0&edition=prelim)) a person who is unmarried and—
(i) who is under the age of eighteen years;
(ii) who, before attaining the age of eighteen years, became permanently incapable of self-support; or
(iii) who, after attaining the age of eighteen years and until completion of education or training (but not after attaining the age of twenty-three years), is pursuing a course of instruction at an approved educational institution;
and who is a legitimate child, a legally adopted child, a stepchild who is a member of a veteran’s household or was a member at the time of the veteran’s death, or an illegitimate child but, as to the alleged father, onl
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Federal law — U.S. Code and appendices · legal_authorities
Page 6389
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 5170
(2) Acquisition and maintenance of equip-
ment, including interoperable communica-
tions and personal protective equipment.
(3) Medical monitoring required for re-
sponder safety and health in anticipation of
and following a major disaster, emergency, or
other hazard, as determined by the Adminis-
trator.
(m) Response cooperative agreements
The Administrator shall enter into a response
cooperative agreement with each sponsoring
agency, as appropriate, under which the Admin-
istrator agrees to reimburse the sponsoring
agency for costs incurred by the sponsoring
agency in responding to a major disaster or
emergency.
(n) Obligations
The Administrator may incur all necessary
obligations consistent with this section in order
to ensure the effectiveness of the System.
(o) Equipment maintenance and replacement
Not later than 180 days after December 16,
2016, the Administrator shall submit to the ap-
propriate congressional committees (as defined
in section 101 of title 6) a report on the develop-
ment of a plan, including implementation steps
and timeframes, to finance, maintain, and re-
place System equipment.
(p) Federal employees
Nothing in this section shall be construed to
mean that a task force may not include Federal
employees. In the case of a Federal employee de-
tailed to a task force, the sponsoring agency
shall enter into an agreement with the relevant
employing Federal agency.
(Pub. L. 93–288, title III, § 327, as added Pub. L.
114–326, § 2(a), Dec. 16, 2016, 130 Stat. 1968; amend-
ed Pub. L. 116–48, § 1, Aug. 22, 2019, 133 Stat. 1071.)
Editorial Notes
REFERENCES IN TEXT
This chapter, referred to in subsec. (f)(3), was in the
original ‘‘this Act’’, meaning Pub. L. 93–288, May 22,
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