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38 U.S.C. § 3713 — Release from liability under guaranty

Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3713 — Release from liability under guaranty

**(a)** Whenever any veteran disposes of residential property securing a guaranteed, insured, or direct housing loan obtained by the veteran, the Secretary, 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 the veteran of all further liability to the Secretary 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 Secretary has determined, after such investigation as the Secretary may deem appropriate, that (1) the loan is current, and (2) the purchaser of such property from such veteran (A) is obligated 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 the transferee were a veteran eligible 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), for a guaranteed or insured or direct loan in an amount equal to the unpaid balance of the obligation for which the transferee has assumed liability. **(b)** If any veteran disposes of residential property securing a guaranteed, insured, or direct housing loan obtained by the veteran under this chapter without receiving a release from liability with respect to such loan under subsection (a), and a default subsequently occurs which results in liability of the veteran to the Secretary on account of the loan, the Secretary may relieve th

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Source file: Laws/federal/codes/united-states-code/title-38/section-3713-release-from-liability-under-guaranty--19592281fa.md
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Source location: Title 38, Chapter 37, § 3713; chapter-037-housing-and-small-business-loans.md

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**(a)** Whenever any veteran disposes of residential property securing a guaranteed, insured, or direct housing loan obtained by the veteran, the Secretary, 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 the veteran of all further liability to the Secretary 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 Secretary has determined, after such investigation as the Secretary may deem appropriate, that (1) the loan is current, and (2) the purchaser of such property from such veteran (A) is obligated 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 the transferee were a veteran eligible 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), for a guaranteed or insured or direct loan in an amount equal to the unpaid balance of the obligation for which the transferee has assumed liability. **(b)** If any veteran disposes of residential property securing a guaranteed, insured, or direct housing loan obtained by the veteran under this chapter without receiving a release from liability with respect to such loan under subsection (a), and a default subsequently occurs which results in liability of the veteran to the Secretary on account of the loan, the Secretary may relieve the veteran of such liability if the Secretary determines, after such investigation as the Secretary deems appropriate, that the property was disposed of by the veteran in such a manner, and subject to such conditions, that the Secretary would have issued the veteran a release from liability under subsection (a) with respect to the loan if the veteran had made application therefor incident to such disposal. Failure of a transferee to assume by contract all of the liabilities of the original veteran-borrower shall bar such release of liability only in cases in which no acceptable transferee, either immediate or remote, is legally liable to the Secretary for the indebtedness of the original veteran-borrower arising from termination of the loan. The failure of a veteran to qualify for release from liability under this subsection does not preclude relief from being granted under [section 5302(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section5302/b&num=0&edition=prelim), if the veteran is eligible for relief under that section. **(c)** This section shall apply only to loans for which commitments are made before March 1, 1988.

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3701 — Definitions

**(a)** For the purpose of this chapter, the term “housing loan” means a loan for any of the purposes specified by sections 3710(a) and 3712(a)(1) of this title. **(b)** For the purposes of housing loans under this chapter— (1) The term “World War II” (A) means the period beginning on September 16, 1940, and ending on July 25, 1947, and (B) includes, in the case of any veteran who enlisted or reenlisted in a Regular component of the Armed Forces after October 6, 1945, and before October 7, 1946, the period of the first such enlistment or reenlistment. (2) The term “veteran” includes the surviving spouse of any veteran (including a person who died in the active military, naval, air, or space service) who died from a service-connected disability, but only if such surviving spouse is not eligible for benefits under this chapter on the basis of the spouse’s own active duty. The active duty or service in the Selected Reserve of the deceased spouse shall be deemed to have been active duty or service in the Selected Reserve by such surviving spouse for the purposes of this chapter. (3) The term “veteran” also includes, for purposes of home loans, the spouse of any member of the Armed Forces serving on active duty who is listed, pursuant to [section 556 of title 37](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title37-section556&num=0&edition=prelim), United States Code, and regulations issued thereunder, by the Secretary concerned in one or more of the following categories and has been so listed for a total of more than ninety days: (A) missing in action, (B) captured in line of duty by a hostile force, or (C) forcibly detained or interned in line of duty by a foreign government or power. The active duty of the member shall be deemed to have been active dut

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3701

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3741 — Definitions

For the purposes of this subchapter— (1) The term “disabled veteran” means (A) a veteran who is entitled to compensation under laws administered by the Secretary for a disability rated at 30 percent or more, or (B) a veteran whose discharge or release from active duty was for a disability incurred or aggravated in line of duty. (2) The term “veteran of the Vietnam era” means a person (A) who served on active duty for a period of more than 180 days, any part of which occurred during the Vietnam era, and who was discharged or released therefrom with other than a dishonorable discharge, or (B) who was discharged or released from active duty for a service-connected disability if any part of such active duty was performed during the Vietnam era.

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3741

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3710 — Purchase or construction of homes

**(a)** Except as provided in [section 3704(c)(2) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section3704/c/2&num=0&edition=prelim), 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 purchase or construct a dwelling to be owned and occupied by the veteran as a home. (2) To purchase a farm on which there is a farm residence to be owned and occupied by the veteran as the veteran’s home. (3) To construct on land owned by the veteran a farm residence to be occupied by the veteran as the veteran’s home. (4) To repair, alter, or improve a farm residence or other dwelling owned by the veteran and occupied by the veteran as the veteran’s home. (5) To refinance existing mortgage loans or other liens which are secured of record on a dwelling or farm residence owned and occupied by the veteran as the veteran’s home. (6) To purchase a one-family residential unit in a condominium housing development or project, if such development or project is approved by the Secretary under criteria which the Secretary shall prescribe in regulations. (7) To improve a dwelling or farm residence owned by the veteran and occupied by the veteran as the veteran’s home through energy efficiency improvements, as provided in subsection (d). (8) To refinance in accordance with subsection (e) of this section an existing loan guaranteed, insured, or made under this chapter. (9) (A) (i) To purchase a manufactured home to be permanently affixed to a lot that is owned by the veteran. (ii) To purchase a manufactured home and a lot to which the home will be permanently affixed. (B) (i) To refinance, in accordance with the terms

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3710

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 5302 — Waiver of recovery of claims by the United States

**(a)** (1) There shall be no recovery of payments or overpayments (or any interest thereon) of any benefits under any of the laws administered by the Secretary whenever the Secretary determines that recovery would be against equity and good conscience, if an application for relief is made within one year from the date of notification of the indebtedness by the Secretary to the payee, or within such longer period as the Secretary determines is reasonable in a case in which the payee demonstrates to the satisfaction of the Secretary that such notification was not actually received by such payee within a reasonable period after such date. The Secretary shall include in the notification to the payee a statement of the right of the payee to submit an application for a waiver under this subsection and a description of the procedures for submitting the application. (2) The Secretary may not seek to recover an indebtedness described in paragraph (1) if the Secretary determines that the cost to the Department to recover such indebtedness, as determined when the debt is established, would exceed the amount of the indebtedness. **(b)** With respect to any loan guaranteed, insured, or made under chapter 37 of this title, the Secretary shall, except as provided in subsection (c) of this section, waive payment of an indebtedness to the Department by the veteran (as defined in sections 101, 3701, and 3702(a)(2)(C)(ii) of this title), or the veteran’s spouse, following default and loss of the property, where the Secretary determines that collection of such indebtedness would be against equity and good conscience. An application for relief under this subsection must be made within one year after the date on which the veteran receives notice by certified mail with return receipt requ

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 5302

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1813 — Covered birth defects

**(a) Identification.—** The Secretary shall identify the birth defects of children of women Vietnam veterans that— (1) are associated with the service of those veterans in the Republic of Vietnam during the Vietnam era; and (2) result in permanent physical or mental disability. **(b) Limitations.—** (1) The birth defects identified under subsection (a) may not include birth defects resulting from the following: (A) A familial disorder. (B) A birth-related injury. (C) A fetal or neonatal infirmity with well-established causes. (2) In any case where affirmative evidence establishes that a covered birth defect of a child of a woman Vietnam veteran results from a cause other than the active military, naval, or air service of that veteran in the Republic of Vietnam during the Vietnam era, no benefits or assistance may be provided the child under this subchapter.

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 1813

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 1814 — Health care

**(a) Needed Care.—** The Secretary shall provide an eligible child such health care as the Secretary determines is needed by the child for that child’s covered birth defects or any disability that is associated with those birth defects. **(b) Authority for Care To Be Provided Directly or by Contract.—** The Secretary may provide health care under this section directly or by contract or other arrangement with a health care provider. **(c) Definitions.—** For purposes of this section, the definitions in [section 1803(c) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1803/c&num=0&edition=prelim) shall apply with respect to the provision of health care under this section, except that for such purposes— (1) the reference to “specialized spina bifida clinic” in paragraph (2) of that section shall be treated as a reference to a specialized clinic treating the birth defect concerned under this section; and (2) the reference to “vocational training under [section 1804 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1804&num=0&edition=prelim)” in paragraph (8) of that section shall be treated as a reference to vocational training under [section 1814 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section1814&num=0&edition=prelim).

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 1814

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3720 — Powers of Secretary

**(a)** Except as provided in subsection (h), notwithstanding the provisions of any other law, with respect to matters arising by reason of this chapter, the Secretary may— (1) sue and be sued in the Secretary’s official capacity in any court of competent jurisdiction, State or Federal, but nothing in this clause shall be construed as authorizing garnishment or attachment against the Secretary, the Department of Veterans Affairs, or any of its employees; (2) subject to specific limitations in this chapter, consent to the modification, with respect to rate of interest, time of payment of principal or interest or any portion thereof, security or other provisions of any note, contract, mortgage or other instrument securing a loan which has been guaranteed, insured, made or acquired under this chapter; (3) pay, or compromise, any claim on, or arising because of, any such guaranty or insurance; (4) pay, compromise, waive or release any right, title, claim, lien or demand, however acquired, including any equity or any right of redemption; (5) purchase at any sale, public or private, upon such terms and for such prices as the Secretary determines to be reasonable, and take title to, property, real, personal or mixed; and similarly sell, at public or private sale, exchange, assign, convey, or otherwise dispose of any such property; and (6) complete, administer, operate, obtain and pay for insurance on, and maintain, renovate, repair, modernize, lease, or otherwise deal with any property acquired or held pursuant to this chapter. The acquisition of any such property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction of, on, or over such property (including power to tax) or impair the rights under the State or local law of any

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 3720

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 6103 — Forfeiture for fraud

**(a)** Whoever knowingly makes or causes to be made or conspires, combines, aids, or assists in, agrees to, arranges for, or in any way procures the making or presentation of a false or fraudulent affidavit, declaration, certificate, statement, voucher, or paper, concerning any claim for benefits under any of the laws administered by the Secretary (except laws pertaining to insurance benefits) shall forfeit all rights, claims, and benefits under all laws administered by the Secretary (except laws pertaining to insurance benefits). **(b)** Whenever a veteran entitled to disability compensation has forfeited the right to such compensation under this section, the compensation payable but for the forfeiture shall thereafter be paid to the veteran’s spouse, children, and parents. Payments made to a spouse, children, and parents under the preceding sentence shall not exceed the amounts payable to each if the veteran had died from service-connected disability. No spouse, child, or parent who participated in the fraud for which forfeiture was imposed shall receive any payment by reason of this subsection. An apportionment award under this subsection may not be made in any case after September 1, 1959. **(c)** Forfeiture of benefits by a veteran shall not prohibit payment of the burial allowance, death compensation, dependency and indemnity compensation, or death pension in the event of the veteran’s death. **(d)** (1) After September 1, 1959, no forfeiture of benefits may be imposed under this section or [section 6104 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title38-section6104&num=0&edition=prelim) upon any individual who was a resident of, or domiciled in, a State at the time the act or acts occurred on account of which benefits would,

Source: Supplied U.S. Code snapshot — release unconfirmed · 38 U.S.C. § 6103

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Federal law — U.S. Code and appendices · legal_authorities

38 U.S.C. § 3713 — Release from liability under guaranty

Page 911 TITLE 38—VETERANS’ BENEFITS § 3713 for ‘‘financed through the assistance of this section and in the case of necessary site preparation, the loan amount shall not be increased by an amount in excess of the reasonable value of such lot’’. Subsec. (d)(2)(A). Pub. L. 93–569, § 5(6), substituted ‘‘$12,500’’ for ‘‘$10,000,’’ and ‘‘single wide mobile home only’’ for ‘‘mobile home only,’’. Subsec. (d)(2)(B). Pub. L. 93–569, § 5(6), increased from $15,000 to $20,000, and from fifteen years and thirty-two days to twenty years and thirty-two days the amount and period of the loan, struck out the $10,000 maximum allowable amount for the mobile home, and restricted the amount of the loan to the purchase of a double-wide mobile home instead of a mobile home and undeveloped lot. Subsec. (d)(2)(C). Pub. L. 93–569, § 5(6), substituted ‘‘$20,000’’ for ‘‘$17,500,’’ ‘‘$12,500’’ for ‘‘$10,000,’’ ‘‘single- wide mobile home’’ for ‘‘mobile home’’ and ‘‘an unde- veloped lot’’ for ‘‘a suitably developed lot,’’ and in- serted provision including such amount as is appro- priate to cover cost of site preparation. Subsec. (d)(2)(D) to (H). Pub. L. 93–569, § 5(6), added subpars. (D) to (H). Subsec. (e)(3). Pub. L. 93–569, § 5(7), inserted ‘‘pur- chased with the proceeds of the loan and on’’ after ‘‘mobile home’’. Subsec. (f). Pub. L. 93–569, § 5(8), inserted ‘‘and mobile home lot loans’’ after ‘‘loans’’. Subsec. (i). Pub. L. 93–569, § 5(9), inserted provision prohibiting the guarantee of a loan for the purchase of a lot on which to place a mobile home unless the lot meets prescribed standards. Subsec. (n). Pub. L. 93–569, § 5(10), inserted ‘‘and mo- bile home lot loans’’ after ‘‘mobile home loans’’. Subsec. (o). Pub. L. 93–569, § 5(11), struck out subsec. (o) whi

Source: Supplied 2024 U.S. Code historical extraction · 38 U.S.C. § 3713

Stored review status: historical_2024_not_currentness_verified. Same stored citation; legal effect and authority still require review.