38 U.S.C. § 3726 — Withholding of payments, benefits, etc

Page 918 TITLE 38—VETERANS’ BENEFITS [§§ 3723 to 3725 [§§ 3723 to 3725. Repealed. Pub. L. 105–368, title VI, § 602(a)(1), Nov. 11, 1998, 112 Stat. 3345] Section 3723, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1214, § 1823; Pub. L. 86–73, § 4, June 30, 1959, 73 Stat. 156; Pub. L. 86–665, § 4, July 14, 1960, 74 Stat. 532; Pub. L. 87–84, § 3, July 6, 1961, 75 Stat. 202; Pub. L. 88–274, Feb. 29, 1964, 78 Stat. 147; Pub. L. 88–560, title VII, § 701(e)(2), Sept. 2, 1964, 78 Stat. 801; Pub. L. 94–324, §§ 6, 7(27), June 30, 1976, 90 Stat. 721, 722; Pub. L. 97–295, § 4(68), Oct. 12, 1982, 96 Stat. 1310; Pub. L. 97–452, § 2(e)(2), Jan. 12, 1983, 96 Stat. 2479; Pub. L. 99–576, title IV, § 405, Oct. 28, 1986, 100 Stat. 3281; Pub. L. 101–237, title III, § 313(b)(1), (8), (9), Dec. 18, 1989, 103 Stat. 2077, 2078; renumbered § 3723 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406, re- lated to direct loan revolving fund. See section 3722 of this title. Section 3724, added Pub. L. 86–665, § 7(a), July 14, 1960, 74 Stat. 532, § 1824; amended Pub. L. 94–324, § 7(28), June 30, 1976, 90 Stat. 722; Pub. L. 97–72, title III, § 303(j), Nov. 3, 1981, 95 Stat. 1060; Pub. L. 98–369, div. B, title V, § 2511(b), July 18, 1984, 98 Stat. 1117; Pub. L. 99–322, § 2(a), May 23, 1986, 100 Stat. 494; Pub. L. 100–689, title III, § 303, Nov. 18, 1988, 102 Stat. 4177; Pub. L. 101–237, title III, §§ 302(a)(2), (3)(A), (c), 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2070, 2071, 2077; renumbered § 3724 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406, re- lated to Loan Guaranty Revolving Fund. See section 3722 of this title. Section 3725, Pub. L. 85–857, Sept. 2, 1958, 72 Stat. 1215, § 1824; renumbered § 1825, Pub. L. 86–665, § 7(a), July 14, 1960, 74 Stat. 532; amended Pub. L. 94–324, § 7(29), June 30, 1976, 90 Stat. 722; Pub. L. 101–237, title III, § 302(a)(1), Dec. 18, 1989, 103 Stat. 2069; Pub. L. 102–54, § 15(a)(2), June 13, 1991, 105 Stat. 289; renumbered § 3725 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 102–547, § 2(b)(2), Oct. 28, 1992, 106 Stat. 3634, related to Guaranty and Indemnity Fund. See sec- tion 3722 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal 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. § 3726. Withholding of payments, benefits, etc. (a) No officer, employee, department, or agen- cy of the United States shall set off against, or otherwise withhold from, any veteran or the sur- viving spouse of any veteran any payments (other than benefit payments under any law ad- ministered by the Department of Veterans Af- fairs) which such veteran or surviving spouse would otherwise be entitled to receive because of any liability to the Secretary allegedly aris- ing out of any loan made to, assumed by, or guaranteed or insured on account of, such vet- eran or surviving spouse under this chapter, un- less the Secretary provides such veteran or sur- viving spouse with notice by certified mail with return receipt requested of the authority of the Secretary to waive the payment of indebtedness under section 5302(b) of this title. (b) If the Secretary does not waive the entire amount of the liability, the Secretary shall then determine whether the veteran or surviving spouse should be released from liability under section 3713(b) of this title. (c) If the Secretary determines that the vet- eran or surviving spouse should not be released from liability, the Secretary shall notify the veteran or surviving spouse of that determina- tion and provide a notice of the procedure for appealing that determination, unless the Sec- retary has previously made such determination and notified the veteran or surviving spouse of the procedure for appealing the determination. (Added Pub. L. 89–358, § 5(f)(1), Mar. 3, 1966, 80 Stat. 26, § 1826; amended Pub. L. 94–324, § 7(30), June 30, 1976, 90 Stat. 722; Pub. L. 97–66, title V, § 504, Oct. 17, 1981, 95 Stat. 1033; Pub. L. 101–237, title III, § 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renumbered § 3726, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105–33, title VIII, § 8033(a), Aug. 5, 1997, 111 Stat. 669.) Editorial Notes AMENDMENTS 1997—Pub. L. 105–33 designated existing provisions as subsec. (a), substituted ‘‘unless the Secretary provides such veteran or surviving spouse with notice by cer- tified mail with return receipt requested of the author- ity of the Secretary to waive the payment of indebted- ness under section 5302(b) of this title.’’ for ‘‘unless (1) there is first received the consent in writing of such veteran or surviving spouse, as the case may be, or (2) such liability and the amount thereof was determined by a court of competent jurisdiction in a proceeding to which such veteran or surviving spouse was a party.’’, and added subsecs. (b) and (c). 1991—Pub. L. 102–83 renumbered section 1826 of this title as this section. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’ and ‘‘Department of Veterans Affairs’’ for ‘‘Administrator’’ and ‘‘Veterans’ Administration’’, respectively. 1981—Pub. L. 97–66 struck out subsec. (a) which pro- vided that the Administrator could not, unless the Ad- ministrator had first obtained the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such indi- vidual under any law administered by the Veterans’ Administration because of liability allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such individual under this chap- ter, and struck out designation ‘‘(b)’’ before ‘‘No offi- cer, employee, department, or agency of the United States’’. 1976—Subsec. (a). Pub. L. 94–324 substituted ‘‘the Ad- ministrator’’ for ‘‘he’’. Subsec. (b). Pub. L. 94–324 substituted ‘‘surviving spouse’’ for ‘‘widow’’ wherever appearing. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Pub. L. 105–33, title VIII, § 8033(c), Aug. 5, 1997, 111 Stat. 669, provided that: ‘‘The amendments made by this section [amending this section and section 5302 of this title] shall apply with respect to any indebtedness to the United States arising pursuant to chapter 37 of title 38, United States Code, before, on, or after the date of enactment of this Act [Aug. 5, 1997].’’ EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–66 effective Oct. 17, 1980, see section 701(b)(3) of Pub. L. 97–66, set out as a note under section 1114 of this title. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–324 effective June 30, 1976, see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of this title. § 3727. Expenditures to correct or compensate for structural defects in mortgaged homes (a) The Secretary is authorized, with respect to any property improved by a one- to four-fam-