-CITE-

38 USC CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR

DISABLED VETERANS 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-MISC1-

Sec.

2101. Veterans eligible for assistance.

2102. Limitations on assistance furnished.

2103. Furnishing of plans and specifications.

2104. Benefits additional to benefits under other laws.

2105. Nonliability of United States.

2106. Veterans' mortgage life insurance.

AMENDMENTS

1992 - Pub. L. 102-568, title II, Sec. 204(b), Oct. 29, 1992, 106

Stat. 4325, substituted "Veterans' " for "Veteran's" in item 2106.

1991 - Pub. L. 102-83, Sec. 5(b)(1), Aug. 6, 1991, 105 Stat. 406,

renumbered items 801 to 806 as 2101 to 2106, respectively.

1988 - Pub. L. 100-322, title III, Sec. 333(a)(2), May 20, 1988,

102 Stat. 539, substituted "Veteran's mortgage life insurance" for

"Mortgage Protection Life Insurance" in item 806.

1971 - Pub. L. 92-95, Sec. 2, Aug. 11, 1971, 85 Stat. 322, added

item 806.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 106, 113, 3711 of this

title; title 2 section 905; title 26 section 6334; title 31 section

3803.

-End-

-CITE-

38 USC Sec. 2101 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2101. Veterans eligible for assistance

-STATUTE-

(a) The Secretary is authorized, under such regulations as the

Secretary may prescribe, to assist any veteran who is entitled to

compensation under chapter 11 of this title for permanent and total

service-connected disability -

(1) due to the loss, or loss of use, of both lower extremities,

such as to preclude locomotion without the aid of braces,

crutches, canes, or a wheelchair, or

(2) which includes (A) blindness in both eyes, having only

light perception, plus (B) loss or loss of use of one lower

extremity, or

(3) due to the loss or loss of use of one lower extremity

together with (A) residuals of organic disease or injury, or (B)

the loss or loss of use of one upper extremity, which so affect

the functions of balance or propulsion as to preclude locomotion

without the aid of braces, crutches, canes, or a wheelchair,

in acquiring a suitable housing unit with special fixtures or

movable facilities made necessary by the nature of the veteran's

disability, and necessary land therefor. The regulations of the

Secretary shall include, but not be limited to, provisions

requiring findings that (1) it is medically feasible for such

veteran to reside in the proposed housing unit and in the proposed

locality; (2) the proposed housing unit bears a proper relation to

the veteran's present and anticipated income and expenses; and (3)

the nature and condition of the proposed housing unit are such as

to be suitable to the veteran's needs for dwelling purposes.

(b)(1) Subject to paragraph (2) of this subsection, the

Secretary, under regulations which the Secretary shall prescribe,

shall assist any veteran (other than a veteran who is eligible for

assistance under subsection (a) of this section) who is entitled to

compensation under chapter 11 of this title for a permanent and

total service-connected disability which -

(A) is due to blindness in both eyes with 5/200 visual acuity

or less, or

(B) includes the anatomical loss or loss of use of both hands,

in acquiring such adaptations to such veteran's residence as are

determined by the Secretary to be reasonably necessary because of

such disability or in acquiring a residence already adapted with

special features determined by the Secretary to be reasonably

necessary for the veteran because of such disability.

(2) Assistance under paragraph (1) of this subsection may be

provided only to a veteran who the Secretary determines is residing

in and reasonably intends to continue residing in a residence owned

by such veteran or by a member of such veteran's family or, if the

veteran's residence is to be constructed or purchased, will be

residing in and reasonably intends to continue residing in a

residence owned by such veteran or by a member of such veteran's

family.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 801; Pub. L.

86-239, Sept. 8, 1959, 73 Stat. 472; Pub. L. 88-401, Aug. 4, 1964,

78 Stat. 380; Pub. L. 91-22, Sec. 1, June 6, 1969, 83 Stat. 32;

Pub. L. 95-117, title IV, Sec. 401, Oct. 3, 1977, 91 Stat. 1065;

Pub. L. 96-385, title III, Sec. 301(a), Oct. 7, 1980, 94 Stat.

1531; Pub. L. 99-576, title IV, Sec. 401(a), title VII, Secs.

701(48), 702(7), Oct. 28, 1986, 100 Stat. 3280, 3295, 3302;

renumbered Sec. 2101 and amended Pub. L. 102-83, Secs. 4(b)(1),

(2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

PRIOR PROVISIONS

Prior section 2101, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1222,

related to eligibility for mustering-out payments, prior to repeal

by Pub. L. 89-50, Sec. 1(a), June 24, 1965, 79 Stat. 173, effective

July 1, 1966.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 801 of this title as

this section and substituted "Secretary" for "Administrator"

wherever appearing.

1986 - Subsec. (a). Pub. L. 99-576, Secs. 701(48), 702(7),

substituted "the Administrator" for "he" and "veteran who" for

"veteran, who", and struck out ", based on service after April 20,

1898," after "chapter 11 of this title".

Subsec. (b)(1). Pub. L. 99-576, Sec. 401(a), inserted at end "or

in acquiring a residence already adapted with special features

determined by the Administrator to be reasonably necessary for the

veteran because of such disability".

1980 - Pub. L. 96-385 designated existing provisions as subsec.

(a) and added subsec. (b).

1978 - Pub. L. 95-117 in cl. (3) inserted reference to loss or

loss of use of one upper extremity and reference to braces,

crutches, and canes.

1969 - Pub. L. 91-22 added cl. (3) which authorized the

Administrator to provide housing assistance to veterans whose

permanent and total disability consists of loss or loss of use of

one lower extremity when such loss precludes locomotion without a

wheelchair.

1964 - Pub. L. 88-401 struck out provisions from cl. (2)(B) which

required such permanent and total disability to be such as to

preclude locomotion without the aid of a wheelchair.

1959 - Pub. L. 86-239 designated existing provisions of first

sentence as cl. (1), struck out "by reason of amputation,

ankylosis, progressive muscular dystrophies, or paralysis" after

"loss of use", and added cl. (2).

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-385 effective Oct. 1, 1980, see section

601(b) of Pub. L. 96-385, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1977 AMENDMENT

Amendment by Pub. L. 95-117 effective Oct. 1, 1977, see section

501 of Pub. L. 95-117, set out as a note under section 1114 of this

title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2102, 2104 of this title.

-End-

-CITE-

38 USC Sec. 2102 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2102. Limitations on assistance furnished

-STATUTE-

(a) The assistance authorized by section 2101(a) of this title

shall be limited in the case of any veteran to one housing unit,

and necessary land therefor, and shall be afforded under one of the

following plans, at the option of the veteran but shall not exceed

$48,000 in any one case -

(1) where the veteran elects to construct a housing unit on

land to be acquired by such veteran, the Secretary shall pay not

to exceed 50 percent of the total cost to the veteran of (A) the

housing unit and (B) the necessary land upon which it is to be

situated;

(2) where the veteran elects to construct a housing unit on

land acquired by such veteran prior to application for assistance

under this chapter, the Secretary shall pay not to exceed the

smaller of the following sums: (A) 50 percent of the total cost

to the veteran of the housing unit and the land necessary for

such housing unit, or (B) 50 percent of the cost to the veteran

of the housing unit plus the full amount of the unpaid balance,

if any, of the cost to the veteran of the land necessary for such

housing unit;

(3) where the veteran elects to remodel a dwelling which is not

adapted to the requirements of such veteran's disability,

acquired by such veteran prior to application for assistance

under this chapter, the Secretary shall pay not to exceed (A) the

cost to the veteran of such remodeling; or (B) 50 percent of the

cost to the veteran of such remodeling; plus the smaller of the

following sums: (i) 50 percent of the cost to the veteran of such

dwelling and the necessary land upon which it is situated, or

(ii) the full amount of the unpaid balance, if any, of the cost

to the veteran of such dwelling and the necessary land upon which

it is situated; and

(4) where the veteran has acquired a suitable housing unit, the

Secretary shall pay not to exceed the smaller of the following

sums: (A) 50 percent of the cost to the veteran of such housing

unit and the necessary land upon which it is situated, or (B) the

full amount of the unpaid balance, if any, of the cost to the

veteran of such housing unit and the necessary land upon which it

is situated.

(b) Except as provided in section 2104(b) of this title, the

assistance authorized by section 2101(b) of this title shall be

limited to the lesser of -

(1) the actual cost, or, in the case of a veteran acquiring a

residence already adapted with special features, the fair market

value, of the adaptations determined by the Secretary under such

section 2101(b) to be reasonably necessary, or

(2) $9,250.

(c) The amount of assistance afforded under subsection (a) for a

veteran authorized assistance by section 2101(a) of this title

shall not be reduced by reason that title to the housing unit,

which is vested in the veteran, is also vested in any other person,

if the veteran resides in the housing unit.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 802; Pub. L.

91-22, Sec. 2, June 6, 1969, 83 Stat. 32; Pub. L. 91-506, Sec. 6,

Oct. 23, 1970, 84 Stat. 1113; Pub. L. 92-341, July 10, 1972, 86

Stat. 432; Pub. L. 93-569, Sec. 9, Dec. 31, 1974, 88 Stat. 1867;

Pub. L. 95-476, title I, Sec. 101, Oct. 18, 1978, 92 Stat. 1497;

Pub. L. 96-385, title III, Sec. 301(b), Oct. 7, 1980, 94 Stat.

1531; Pub. L. 97-66, title V, Sec. 502, Oct. 17, 1981, 95 Stat.

1032; Pub. L. 97-295, Sec. 4(33), Oct. 12, 1982, 96 Stat. 1307;

Pub. L. 98-543, title III, Sec. 304(a), Oct. 24, 1984, 98 Stat.

2748; Pub. L. 99-576, title IV, Sec. 401(b), Oct. 28, 1986, 100

Stat. 3280; Pub. L. 100-322, title III, Sec. 301, May 20, 1988, 102

Stat. 534; renumbered Sec. 2102 and amended Pub. L. 102-83, Secs.

4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404-406;

Pub. L. 105-178, title VIII, Sec. 8204(a), June 9, 1998, 112 Stat.

494; Pub. L. 106-419, title III, Sec. 321, Nov. 1, 2000, 114 Stat.

1855; Pub. L. 107-103, title IV, Sec. 404, Dec. 27, 2001, 115 Stat.

993.)

-MISC1-

PRIOR PROVISIONS

Prior section 2102, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1223,

related to determination of amount of mustering-out payments, prior

to repeal by Pub. L. 89-50, Sec. 1(a), June 24, 1965, 79 Stat. 173,

effective July 1, 1966.

AMENDMENTS

2001 - Subsec. (a). Pub. L. 107-103, Sec. 404(1), substituted

"$48,000" for "$43,000" in introductory provisions.

Subsec. (b)(2). Pub. L. 107-103, Sec. 404(2), substituted

"$9,250" for "$8,250".

2000 - Subsec. (c). Pub. L. 106-419 added subsec. (c).

1998 - Subsec. (a). Pub. L. 105-178, Sec. 8204(a)(1), substituted

"$43,000" for "$38,000" in introductory provisions.

Subsec. (b)(2). Pub. L. 105-178, Sec. 8204(a)(2), substituted

"$8,250" for "$6,500".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 802 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "2101(a)"

for "801(a)" in introductory provisions.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" wherever appearing.

Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted "2104(b)"

for "804(b)" and substituted "2101(b)" for "801(b)" in two places.

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator" in par. (1).

1988 - Subsec. (a). Pub. L. 100-322, Sec. 301(1), substituted

"$38,000" for "$35,500".

Subsec. (b)(2). Pub. L. 100-322, Sec. 301(2), substituted

"$6,500" for "$6,000".

1986 - Subsec. (b)(1). Pub. L. 99-576 substituted "cost, or, in

the case of a veteran acquiring a residence already adapted with

special features, the fair market value," for "cost".

1984 - Subsec. (a). Pub. L. 98-543, Sec. 304(a)(1), substituted

"$35,500" for "$32,500" in provisions before par. (1).

Subsec. (b)(2). Pub. L. 98-543, Sec. 304(a)(2), substituted

"$6,000" for "$5,000".

1982 - Subsec. (a). Pub. L. 97-295 substituted "percent" for "per

centum" wherever appearing.

1981 - Subsec. (a). Pub. L. 97-66, Sec. 502(1), substituted

"$32,500" for "$30,000" in provisions preceding par. (1), "such

veteran" for "him" in pars. (1), (2), and (3), and "such veteran's"

for "his" in par. (3).

Subsec. (b). Pub. L. 97-66, Sec. 502(2), substituted "section

804(b)" for "section 804(b)(2)".

1980 - Subsec. (a). Pub. L. 96-385, Sec. 301(b)(1), (2),

designated existing provisions as subsec. (a) and substituted

"section 801(a)" for "section 801".

Subsec. (b). Pub. L. 96-385, Sec. 301(b)(3), added subsec. (b).

1978 - Pub. L. 95-476 substituted "$30,000" for "$25,000".

1974 - Pub. L. 93-569 substituted "$25,000" for "$17,500".

1972 - Pub. L. 92-341 substituted "$17,500" for "$12,500".

1970 - Par. (3). Pub. L. 91-506 inserted provision authorizing

Administrator in the case of assistance to disabled veterans for

specially adapted housing, where the veteran elects to remodel a

dwelling not adapted to his disability, to pay the cost of

remodeling as an alternative to the present provisions still set

out in this par. which authorize the Administrator to pay the total

of 50 percent of the remodeling cost plus 50 percent of the

dwelling's cost or the full amount of the unpaid balance of the

cost of such dwelling, whichever sum is smaller.

1969 - Pub. L. 91-22 substituted "$12,500" for "$10,000".

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-178, title VIII, Sec. 8204(b), June 9, 1998, 112

Stat. 494, provided that: "The amendments made by subsection (a)

[amending this section] shall apply with respect to limitations

under section 2102 of such title on assistance furnished to a

veteran under section 2101 of such title on or after October 1,

1998."

EFFECTIVE DATE OF 1988 AMENDMENT

Section 304 of Pub. L. 100-322 provided that: "The amendments

made by sections 301, 302, and 303 [amending this section and

sections 907 and 1902 [now 2307 and 3902] of this title] shall take

effect on April 1, 1988."

EFFECTIVE DATE OF 1984 AMENDMENT

Section 304(b) of Pub. L. 98-543 provided that: "The amendments

made by subsection (a) [amending this section] shall take effect on

January 1, 1985."

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 OF 1980 AMENDMENT

Amendment by Pub. L. 96-385 effective Oct. 1, 1980, see section

601(b) of Pub. L. 96-385, set out as a note under section 1114 of

this title.

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by Pub. L. 95-476 effective Oct. 1, 1978, see section

108(a) of Pub. L. 95-476, set out as a note under section 3702 of

this title.

EFFECTIVE DATE OF 1974 AMENDMENT

Amendment by Pub. L. 93-569 effective Dec. 31, 1974, see section

10 of Pub. L. 93-569, set out as a note under section 3702 of this

title.

-End-

-CITE-

38 USC Sec. 2103 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2103. Furnishing of plans and specifications

-STATUTE-

The Secretary is authorized to furnish to veterans eligible for

assistance under this chapter, without cost to the veterans, model

plans and specifications of suitable housing units.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1168, Sec. 803; renumbered

Sec. 2103 and amended Pub. L. 102-83, Secs. 4(b)(1), (2)(E), 5(a),

Aug. 6, 1991, 105 Stat. 404-406.)

-MISC1-

PRIOR PROVISIONS

Prior section 2103, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1223,

related to payment of mustering-out payments to beneficiaries of

deceased members, prior to repeal by Pub. L. 89-50, Sec. 1(a), June

24, 1965, 79 Stat. 173, effective July 1, 1966.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 803 of this title as

this section and substituted "Secretary" for "Administrator".

-End-

-CITE-

38 USC Sec. 2104 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2104. Benefits additional to benefits under other laws

-STATUTE-

(a) Any veteran who accepts the benefits of this chapter shall

not by reason thereof be denied the benefits of chapter 37 of this

title; however, except as provided in subsection (b) of this

section, the assistance authorized by section 2101 of this title

shall not be available to any veteran more than once.

(b) A veteran eligible for assistance under section 2101(b) of

this title shall not by reason of such eligibility be denied

benefits for which such veteran becomes eligible under section

2101(a) of this title or benefits relating to home health services

under section 1717(a)(2) of this title. However, no particular type

of adaptation, improvement, or structural alteration provided to a

veteran under section 1717(a)(2) of this title may be provided to

such veteran under section 2101(b) of this title.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 804; Pub. L.

96-385, title III, Sec. 301(c), Oct. 7, 1980, 94 Stat. 1531;

renumbered Sec. 2104 and amended Pub. L. 102-83, Sec. 5(a), (c)(1),

Aug. 6, 1991, 105 Stat. 406; Pub. L. 104-262, title I, Sec.

101(e)(2), Oct. 9, 1996, 110 Stat. 3180.)

-MISC1-

PRIOR PROVISIONS

Prior section 2104, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1223,

related to time limitations, prior to repeal by Pub. L. 89-50, Sec.

1(a), June 24, 1965, 79 Stat. 173, effective July 1, 1966.

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-275 substituted "section

1717(a)(2)" for "section 1712(a)" in two places.

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 804 of this

title as this section.

Subsec. (a). Pub. L. 102-83, Sec. 5(c)(1), substituted "2101" for

"801".

Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted "2101(b)"

for "801(b)" in two places, "2101(a)" for "801(a)", and "1712(a)"

for "612(a)" in two places.

1980 - Pub. L. 96-385 designated existing provisions as subsec.

(a), substituted "except as provided in subsection (b) of this

section, the assistance authorized by section 801 of this title"

for "the assistance authorized by this chapter", and added subsec.

(b).

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-385 effective Oct. 1, 1980, see section

601(b) of Pub. L. 96-385, set out as a note under section 1114 of

this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2102 of this title.

-End-

-CITE-

38 USC Sec. 2105 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2105. Nonliability of United States

-STATUTE-

The Government of the United States shall have no liability in

connection with any housing unit, or necessary land therefor, or

adaptation acquired under the provisions of this chapter.

-SOURCE-

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1169, Sec. 805; Pub. L.

96-385, title III, Sec. 301(d), Oct. 7, 1980, 94 Stat. 1531;

renumbered Sec. 2105, Pub. L. 102-83, Sec. 5(a), Aug. 6, 1991, 105

Stat. 406.)

-MISC1-

PRIOR PROVISIONS

Prior section 2105, Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1224,

related to administration of mustering-out payments provisions,

prior to repeal by Pub. L. 89-50, Sec. 1(a), June 24, 1965, 79

Stat. 173, effective July 1, 1966.

AMENDMENTS

1991 - Pub. L. 102-83 renumbered section 805 of this title as

this section.

1980 - Pub. L. 96-385 made the United States not liable for any

adaptation in connection with any housing unit.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-385 effective Oct. 1, 1980, see section

601(b) of Pub. L. 96-385, set out as a note under section 1114 of

this title.

-End-

-CITE-

38 USC Sec. 2106 01/06/03

-EXPCITE-

TITLE 38 - VETERANS' BENEFITS

PART II - GENERAL BENEFITS

CHAPTER 21 - SPECIALLY ADAPTED HOUSING FOR DISABLED VETERANS

-HEAD-

Sec. 2106. Veterans' mortgage life insurance

-STATUTE-

(a) The United States shall automatically insure any eligible

veteran age 69 or younger who is or has been granted assistance in

securing a suitable housing unit under this chapter against the

death of the veteran unless the veteran (1) submits to the

Secretary in writing the veterans' election not to be insured under

this section, or (2) fails to respond in a timely manner to a

request from the Secretary for information on which the premium for

such insurance can be based.

(b) The amount of insurance provided a veteran under this section

may not exceed the lesser of $90,000 or the amount of the loan

outstanding on the housing unit. The amount of such insurance shall

be reduced according to the amortization schedule of the loan and

may not at any time exceed the amount of the outstanding loan with

interest. If there is no outstanding loan on the housing unit,

insurance is not payable under this section. If an eligible veteran

elects not to be insured under this section, the veteran may

thereafter be insured under this section, but only upon submission

of an application, payment of required premiums, and compliance

with such health requirements and other terms and conditions as may

be prescribed by the Secretary.

(c) The premiums charged a veteran for insurance under this

section shall be paid at such time and in such manner as the

Secretary prescribes. The rates for such premiums shall be based on

such mortality data as the Secretary considers appropriate to cover

only the mortality cost of insuring standard lives. In the case of

a veteran receiving compensation or other cash benefits paid to the

veteran by the Secretary, the Secretary shall deduct from such

compensation or other benefits the premiums charged the veteran

under this section.

(d)(1) The United States shall bear the costs of insurance under

this section to the extent that such costs exceed premiums

established by the Secretary. Premiums collected on insurance under

this section shall be credited to the "Veterans Insurance and

Indemnities" appropriation account, and all disbursements of

insurance proceeds under this section shall be made from that

account.

(2) There are authorized to be appropriated to the Secretary for

such account such amounts as may be necessary to carry out this

section.

(e) Any amount of insurance in force under this section on the

date of the death of an eligible veteran insured under this section

shall be paid to the holder of the mortgage loan, for payment of

which the insurance was granted, for credit on the loan

indebtedness. Any liability of the United States under such

insurance shall be satisfied when such payment is made. If the

Secretary is the holder of the mortgage loan, the insurance

proceeds shall be credited to the loan indebtedness and deposited

in the Veterans Housing Benefit Program Fund established by section

3722 of this title.

(f) The Secretary may prescribe such regulations relating to

eligibility for insurance under this section, the maximum amount of

insurance, the effective date of insurance, the maximum duration of

insurance, and other pertinent matters not specifically provided

for in this section as the Secretary determines are in the best

interest of veterans or the United States.

(g) The amount of the insurance in force at any time shall be the

amount necessary to pay the mortgage indebtedness in full, except

as otherwise limited by subsection (b) of this section or

regulations prescribed by the Secretary under this section.

(h) The Secretary shall issue to each veteran insured under this

section a certificate setting forth the benefits to which the

veteran is entitled under the insurance.

(i) Insurance under this section shall terminate upon whichever

of the following events first occurs:

(1) Satisfaction of the veteran's indebtedness under the loan

upon which the insurance is based.

(2) Termination of the veteran's ownership of the property

securing the loan.

(3) Discontinuance of payment of premiums by the veteran.

(j) Termination of life insurance under this section shall not

affect the guaranty or insurance of the loan by the Secretary.

-SOURCE-

(Added Pub. L. 92-95, Sec. 1, Aug. 11, 1971, 85 Stat. 320, Sec.

806; amended Pub. L. 94-433, title III, Sec. 302, Sept. 30, 1976,

90 Stat. 1377; Pub. L. 99-576, title VII, Sec. 701(49), Oct. 28,

1986, 100 Stat. 3295; Pub. L. 100-322, title III, Sec. 333(a)(1),

May 20, 1988, 102 Stat. 537; renumbered Sec. 2106 and amended Pub.

L. 102-83, Secs. 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105

Stat. 404-406; Pub. L. 102-568, title II, Sec. 204(a), Oct. 29,

1992, 106 Stat. 4325; Pub. L. 103-446, title XII, Sec. 1201(h)(2),

Nov. 2, 1994, 108 Stat. 4688; Pub. L. 105-368, title VI, Sec.

602(e)(2), Nov. 11, 1998, 112 Stat. 3347; Pub. L. 107-330, title

III, Sec. 302, Dec. 6, 2002, 116 Stat. 2824.)

-MISC1-

AMENDMENTS

2002 - Subsec. (a). Pub. L. 107-330, Sec. 302(1), inserted "age

69 or younger" after "any eligible veteran".

Subsec. (i)(2) to (4). Pub. L. 107-330, Sec. 302(2), redesignated

pars. (3) and (4) as (2) and (3), respectively, and struck out

former par. (2) which read as follows: "The veteran's seventieth

birthday."

1998 - Subsec. (e). Pub. L. 105-368 substituted "deposited in the

Veterans Housing Benefit Program Fund established by section 3722

of this title" for ", as appropriate, deposited in either the

direct loan or loan guaranty revolving fund established by section

3723 or 3724 of this title, respectively".

1994 - Pub. L. 103-446 substituted "Veterans' mortgage life

insurance" for "Veterans' Mortgage Life Insurance" as section

catchline.

1992 - Subsec. (b). Pub. L. 102-568 struck out "initial" after

"The" and substituted "$90,000" for "$40,000".

1991 - Pub. L. 102-83, Sec. 5(a), renumbered section 806 of this

title as this section.

Subsecs. (a) to (d). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator" wherever appearing.

Subsec. (e). Pub. L. 102-83, Sec. 5(c)(1), substituted "3723 or

3724" for "1823 or 1824".

Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted "Secretary" for

"Administrator".

Subsecs. (f) to (h), (j). Pub. L. 102-83, Sec. 4(b)(1), (2)(E),

substituted "Secretary" for "Administrator" wherever appearing.

1988 - Pub. L. 100-322 amended section generally, substituting

provisions relating to veterans' mortgage life insurance for former

provisions relating to mortgage protection life insurance.

1986 - Subsec. (b). Pub. L. 99-576, Sec. 701(49)(A), substituted

"the veteran's" for "his".

Subsec. (c). Pub. L. 99-576, Sec. 701(49)(B), substituted "the

veteran" for "he" before "may thereafter".

Subsec. (d). Pub. L. 99-576, Sec. 701(49)(C), substituted "the

veteran's" for "he" in last sentence.

Subsec. (g)(2). Pub. L. 99-576, Sec. 701(49)(D)(i), substituted

"the Administrator" for "he" in two places, "the Administrator's"

for "his", and "the Administrator" for "him" in two places.

Subsec. (g)(3). Pub. L. 99-576, Sec. 701(49)(D)(ii), substituted

"the veteran" for "he".

Subsec. (g)(5). Pub. L. 99-576, Sec. 701(49)(D)(iii), substituted

"the Administrator" for "him" in two places.

Subsec. (h). Pub. L. 99-576, Sec. 701(49)(E), substituted "the

Administrator's" for "his" in first sentence and "the veteran's"

for "his" in second sentence.

1976 - Subsec. (c). Pub. L. 94-433 substituted $40,000 for

$30,000.

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-368, title VI, Sec. 602(f), Nov. 11, 1998, 112 Stat.

3348, provided that: "This title [enacting sections 3722 and 3771

to 3775 of this title, amending this section and sections 3702,

3703, 3711, 3720, 3727, 3729, 3733 to 3735, and 3763 of this title,

repealing sections 3723 to 3725 of this title, and enacting

provisions set out as a note under section 3722 of this title] and

the amendments made by this title shall take effect on October 1,

1998."

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-568 effective Dec. 1, 1992, see section

205 of Pub. L. 102-568, set out as an Effective Date note under

section 1922A of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Section 333(b) of Pub. L. 100-322 provided that: "The amendment

made by subsection (a) [amending this section] shall take effect on

the first day of the fourth month beginning after the date of the

enactment of this Act [May 20, 1988]."

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-433 effective Oct. 1, 1976, see section

406 of Pub. L. 94-433, set out as a note under section 1101 of this

title.

SAVINGS PROVISION; DISCONTINUANCE OF CONTRACT PROGRAM; DEFINITION

Section 333(c)-(e) of Pub. L. 100-322 provided that:

"(c) Savings Provision. - Mortgage protection life insurance

granted to any veteran under the former section 806 shall continue

in force with the United States as insurer, subject to the terms of

subsection (d). Nothing in that subsection shall impair any rights

of any veteran or mortgage loan holder under the former section 806

that matured before the effective date specified in subsection (b)

[see Effective Date of 1988 Amendment note above].

"(d) Discontinuance of Contract Program. - (1) Effective as of

the effective date specified in subsection (b), the Administrator

shall discontinue the policy of insurance purchased in accordance

with the former section 806.

"(2) All premiums collected or received by the insurer on or

after such effective date under a policy purchased under the former

section 806 shall be promptly forwarded to the Administrator and

shall be credited to the 'Veterans Insurance and Indemnities'

appropriation account. Any positive balance of the contingency

reserve maintained by the insurer under such policy remaining after

all charges have been made shall be payable to the Administrator

and shall be deposited by the Administrator in such account, except

that such balance may, upon the election of the insurer, be paid by

the insurer in equal monthly installments over a period of not more

than two years beginning on the date, after such effective date,

that the Administrator specifies.

"(e) Former Section 806 Defined. - For the purpose of subsections

(c) and (d), the term 'former section 806' means section 806 [this

section] of title 38, United States Code, as in effect on the day

before the effective date specified in subsection (b)."

-End-