Public Law 71–318

That section 502

World War Adjusted Compensation Act, amendment.

Vol. 43, p. 128; Vol. 44, p. 1339; VoL 45, p. 1561, amended.

U. S. C., p. 1231; Supp. IV, p. 540.

Loan basis.

Calculation of; interest rate.

of the World War Adjusted Compensation Act, as amended, is amended by adding at the end thereof two new subdivisions to read as follows:

“(l)“(l)

For the purpose of this section the loan basis provided in subdivision (g) shall at no time be less than 50 per centum of the face value of the certificate, and in no event shall the rate of interest on any loan made after this subdivision takes effect exceed 4½ per centum per annum, compounded annually. If at the time of application

Adjustment of unpaid prior loans, etc.

to the Administrator of Veterans’ Affairs for a loan the principal and interest on or in respect of any prior loan under this section have not been paid in full by the veteran (whether or not the loan has matured), then, on request of the veteran, the Administrator shall (1) pay or otherwise discharge such unpaid principal and so much of such unpaid interest (accrued or to accrue) as is necessary to make the certificate available for use as security for the new loan and (2) deduct the same from the then existing loan basis of the certificate.

#

“(m)“(m)

Loans made by the Administrator of Veterans’. Affairs under

Funds available for loans.

this section may at his option be made out of the United States Government life insurance fund, or out of the Adjusted Service

Vol. 43, p. 128.

Certificate Fund created under section 505.”

#

Sec. 2.

Section 507 of such Act, as amended, is amended to read as follows:

“Sec. 507.

All amounts in the fund shall be available for payment,

Payments.

Vol. 43, p. 123, amended.

U. S. C., p. 1233.

Vol. 45, p. 1581.

by the Administrator, of adjusted service certificates upon their maturity or the prior death of the veteran, for payments under section 502 to banks on account of notes of veterans, and for making loans authorized by section 502, as amended.”

#

Sec. 3.

There is authorized to be appropriated such amounts as may be necessary to provide for the making of loans to veterans by the Administrator of Veterans’ Affairs under the World War Adjusted Compensation Act, as amended.

Sec. 4.

This Act may be cited as the “ Emergency Adjusted Compensation Act, 1931.”