38 U.S.C. § 3727 — Expenditures to correct or compensate for

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 Repealed.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- Page 919 TITLE 38—VETERANS’ BENEFITS § 3729 ily dwelling inspected during construction by the Department of Veterans Affairs or the Fed- eral Housing Administration which the Sec- retary finds to have structural defects seriously affecting the livability of the property, to make expenditures for (1) correcting such defects, (2) paying the claims of the owner of the property arising from such defects, or (3) acquiring title to the property; except that such authority of the Secretary shall exist only (A) if the owner requests assistance under this section not later than four years (or such shorter time as the Sec- retary may prescribe) after the mortgage loan was made, guaranteed, or insured, and (B) if the property is encumbered by a mortgage which is made, guaranteed, or insured under this chapter after May 7, 1968. (b) The Secretary shall by regulation prescribe the terms and conditions under which expendi- tures and payments may be made under the pro- visions of this section, and the Secretary’s deci- sions regarding such expenditures or payments, and the terms and conditions under which the same are approved or disapproved, shall be final and conclusive, and shall not be subject to judi- cial review. (c) The Secretary is authorized to make ex- penditures for the purposes of this section from the fund established pursuant to section 3722 of this title. (Added Pub. L. 90–301, § 5(a), May 7, 1968, 82 Stat. 116, § 1827; amended Pub. L. 94–324, § 7(31), June 30, 1976, 90 Stat. 722; Pub. L. 101–237, title III, § 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; renum- bered § 3727 and amended Pub. L. 102–83, § 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; Pub. L. 105–368, title VI, § 602(e)(1)(C), title X, § 1005(b)(11), Nov. 11, 1998, 112 Stat. 3346, 3365.) Editorial Notes AMENDMENTS 1998—Subsec. (a). Pub. L. 105–368, § 1005(b)(11), sub- stituted ‘‘May 7, 1968’’ for ‘‘the date of enactment of this section’’. Subsec. (c). Pub. L. 105–368, § 602(e)(1)(C), substituted ‘‘fund established pursuant to section 3722 of this title’’ for ‘‘funds established pursuant to sections 3723 and 3724 of this title, as applicable’’. 1991—Pub. L. 102–83, § 5(a), renumbered section 1827 of this title as this section. Subsec. (c). Pub. L. 102–83, § 5(c)(1), substituted ‘‘3723 and 3724’’ for ‘‘1823 and 1824’’. 1989—Pub. L. 101–237 substituted ‘‘Secretary’’, ‘‘Sec- retary’s’’, and ‘‘Department of Veterans Affairs’’ for ‘‘Administrator’’, ‘‘Administrator’s’’, and ‘‘Veterans’ Administration’’, respectively, wherever appearing. 1976—Subsec. (a). Pub. L. 94–324 substituted ‘‘the Ad- ministrator finds’’ for ‘‘he finds’’. Subsec. (b). Pub. L. 94–324 substituted ‘‘the Adminis- trator’s’’ for ‘‘his’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by section 602 of Pub. L. 105–368 effective Oct. 1, 1998, see section 602(f) of Pub. L. 105–368, set out as a note under section 2106 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. § 3728. Exemption from State anti-usury provi- sions If, under any law of the United States, loans and mortgages insured under title I or title II of the National Housing Act are exempt from the application of the provisions of any State con- stitution or law (1) limiting the rate or amount of interest, discount points, or other charges which may be charged, taken, received, or re- served by lenders, (2) restricting the manner of calculating such interest (including prohibition of the charging of interest on interest), or (3) re- quiring a minimum amortization of principal, then loans guaranteed or insured under this chapter are also exempt from the application of such provisions. (Added Pub. L. 96–128, title IV, § 401(a), Nov. 28, 1979, 93 Stat. 986, § 1828; amended Pub. L. 97–66, title V, § 501(b), Oct. 17, 1981, 95 Stat. 1032; re- numbered § 3728, Pub. L. 102–83, § 5(a), Aug. 6, 1991, 105 Stat. 406.) Editorial Notes REFERENCES IN TEXT The National Housing Act, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246. Titles I and II of the Act are classified generally to subchapters I (§ 1702 et seq.) and II (§ 1707 et seq.), respectively, of chapter 13 of Title 12, Banks and Banking. For complete classifica- tion of this Act to the Code, see section 1701 of Title 12 and Tables. AMENDMENTS 1991—Pub. L. 102–83 renumbered section 1828 of this title as this section. 1981—Pub. L. 97–66 designated as cl. (1) existing provi- sions relating to the limiting of rates or amounts of in- terest, discount points, or other charges which may be charged, taken, received, or reserved by lenders, and added cls. (2) and (3). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–66 effective Oct. 17, 1981, see section 701(b)(1) of Pub. L. 97–66, set out as a note under section 1114 of this title. EFFECTIVE DATE Section effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as an Effective Date of 1979 Amendment note under section 1114 of this title. § 3729. Loan fee (a) REQUIREMENT OF FEE.—(1) Except as pro- vided in subsection (c), a fee shall be collected from each person obtaining a housing loan guar- anteed, insured, or made under this chapter, and each person assuming a loan to which section 3714 of this title applies. No such loan may be guaranteed, insured, made, or assumed until the fee payable under this section has been remitted to the Secretary. (2) The fee may be included in the loan and paid from the proceeds thereof. (b) DETERMINATION OF FEE.—(1) The amount of the fee shall be determined from the loan fee table in paragraph (2). The fee is expressed as a percentage of the total amount of the loan guar- anteed, insured, or made, or, in the case of a loan assumption, the unpaid principal balance of