38 U.S.C. § 3721 — Incontestability

Page 917 TITLE 38—VETERANS’ BENEFITS § 3722 first section of this Act [amending subsec. (a)(4) of this section]. Such report shall include, together with such other information as the Administrator deems appro- priate, the name and address of each person with re- spect to which a waiver of indebtedness has been made and the total amount of such waiver.’’ ADMINISTRATION OF TRUSTS BY FEDERAL NATIONAL MORTGAGE ASSOCIATION Provision for participation sales and administration of trusts by Federal National Mortgage Association not to be construed as a repeal or modification of the provi- sions of subsection (e) of this section respecting the au- thority of the Administrator of Veterans’ Affairs, see section 6(a) of Pub. L. 89–429, set out as a note under section 1717 of Title 12, Banks and Banking. § 3721. Incontestability Any evidence of guaranty or insurance issued by the Secretary shall be conclusive evidence of the eligibility of the loan for guaranty or insur- ance under the provisions of this chapter and of the amount of such guaranty or insurance. Nothing in this section shall preclude the Sec- retary from establishing, as against the original lender, defenses based on fraud or material mis- representation. The Secretary shall not, by rea- son of anything contained in this section, be barred from establishing, by regulations in force at the date of such issuance or disbursement, whichever is the earlier, partial defenses to the amount payable on the guaranty or insurance. (Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1213, § 1821; Pub. L. 101–237, title III, § 313(b)(1), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3721, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes AMENDMENTS 1991—Pub. L. 102–83 renumbered section 1821 of this title as this section. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’ for ‘‘Ad- ministrator’’ wherever appearing. § 3722. Veterans Housing Benefit Program Fund (a) There is hereby established in the Treasury of the United States a fund known as the Vet- erans Housing Benefit Program Fund (herein- after in this section referred to as the ‘‘Fund’’). (b) The Fund shall be available to the Sec- retary, without fiscal year limitation, for all housing loan operations under this chapter, other than administrative expenses, consistent with the Federal Credit Reform Act of 1990. (c) There shall be deposited into the Fund the following, which shall constitute the assets of the Fund: (1) Any amount appropriated to the Fund. (2) Amounts paid into the Fund under sec- tion 3729 of this title or any other provision of law or regulation established by the Secretary imposing fees on persons or other entities par- ticipating in the housing loan programs under this chapter. (3) All other amounts received by the Sec- retary on or after October 1, 1998, incident to housing loan operations under this chapter, in- cluding— (A) collections of principal and interest on housing loans made by the Secretary under this chapter; (B) proceeds from the sale, rental, use, or other disposition of property acquired under this chapter; (C) proceeds from the sale of loans pursu- ant to sections 3720(h) and 3733(a)(3) of this title; and (D) penalties collected pursuant to section 3710(g)(4)(B) of this title. (d) Amounts deposited into the Fund under paragraphs (2) and (3) of subsection (c) shall be deposited in the appropriate financing or liqui- dating account of the Fund. (e) For purposes of this section, the term ‘‘housing loan’’ shall not include a loan made pursuant to subchapter V of this chapter. (Added Pub. L. 105–368, title VI, § 602(a)(2), Nov. 11, 1998, 112 Stat. 3345; amended Pub. L. 107–14, § 8(a)(16), June 5, 2001, 115 Stat. 35.) Editorial Notes REFERENCES IN TEXT The Federal Credit Reform Act of 1990, referred to in subsec. (b), is title V of Pub. L. 93–344, as added by Pub. L. 101–508, title XIII, § 13201(a), Nov. 5, 1990, 104 Stat. 1388–609, which is classified generally to subchapter III (§ 661 et seq.) of chapter 17A of Title 2, The Congress. For complete classification of this Act to the Code, see Short Title note set out under section 621 of Title 2 and Tables. PRIOR PROVISIONS Prior to renumbering of sections 1801 to 1851 of this chapter as sections 3701 to 3751 by Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406, section 1822 of this chapter, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1214; Pub. L. 89–358, § 5(c), Mar. 3, 1966, 88 Stat. 26; Pub. L. 89–623, § 1, Oct. 4, 1966, 80 Stat. 873; Pub. L. 90–301, § 2(b), May 7, 1968, 82 Stat. 113, which provided for bringing of an action in district court, by veteran or Attorney General, against one who knowingly participated in sale of property to a veteran for consideration in excess of reasonable value of property, was repealed by Pub. L. 93–569, §§ 7(a), 10, Dec. 31, 1974, 88 Stat. 1866, 1867, effective Dec. 31, 1974. AMENDMENTS 2001—Subsec. (a). Pub. L. 107–14 substituted ‘‘herein- after’’ for ‘‘hereafter’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as an Effective Date of 1998 Amend- ment note under section 2106 of this title. TRANSFERS OF AMOUNTS INTO VETERANS HOUSING BENEFIT PROGRAM FUND Pub. L. 105–368, title VI, § 602(b), Nov. 11, 1998, 112 Stat. 3346, provided that: ‘‘All amounts in the following funds are hereby transferred to the Veterans Housing Benefit Program Fund: ‘‘(1) The Direct Loan Revolving Fund, as such fund was continued under section 3723 of title 38, United States Code (as such section was in effect on the day before the effective date of this title [Nov. 11, 1998]). ‘‘(2) The Department of Veterans Affairs Loan Guaranty Revolving Fund, as established by section 3724 of such title (as such section was in effect on the day before the effective date of this title). ‘‘(3) The Guaranty and Indemnity Fund, as estab- lished by section 3725 of such title (as such section was in effect on the day before the effective date of this title).’’