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Title 38 — Veterans’ Benefits

Part III · Chapter 37 — Housing and Small Business Loans

§ 3726. Withholding of payments, benefits, etc.

Statutory text

(a)

No officer, employee, department, or agency of the United States shall set off against, or otherwise withhold from, any veteran or the surviving spouse of any veteran any payments (other than benefit payments under any law administered by the Department of Veterans Affairs) which such veteran or surviving spouse would otherwise be entitled to receive because of any liability to the Secretary allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such veteran or surviving spouse under this chapter, unless the Secretary provides such veteran or surviving 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 veteran or surviving spouse should not be released from liability, the Secretary shall notify the veteran or surviving spouse of that determination and provide a notice of the procedure for appealing that determination, unless the Secretary has previously made such determination and notified the veteran or surviving spouse of the procedure for appealing the determination.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

  1. Veterans

    Pub. L. 89–358 § 5(f)(1) · 80 Stat. 12

    Enacted · 38 U.S.C. § 3726

    Added Pub. L. 89–358, § 5(f)(1), Mar. 3, 1966, 80 Stat. 26, § 1826

    Source evidence

    Code source credit
    Added Pub. L. 89–358, § 5(f)(1), Mar. 3, 1966, 80 Stat. 26, § 1826

    Enacted provision · exact public law section
    (1) Subchapter III of chapter 37 of such title is amended by adding at the end thereof the following new section: “§1826. Withholding of payments, benefits, etc. “(a) The Administrator shall not, unless he first obtains the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual 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 chapter. “(b) No officer, employee, department, or agency of the United States shall set off against, or otherwise withhold from, any veteran or the widow of any veteran any payments (other than benefit payments under any law administered by the Veterans’ Administration) which such veteran or widow would otherwise be entitled to receive because of any liability to the Administrator allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such veteran or widow under this chapter, unless (1) there is first received the consent in writing of such veteran or widow, 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 widow was a party.”

  2. Veterans Housing Amendments Act of 1976

    Pub. L. 94–324 § 7(30) · 90 Stat. 720

    Substituted · 38 U.S.C. § 3726(a)

    Pub. L. 94–324 substituted “the Administrator” for “he”

    Source evidence

    Code amendment note
    Subsec. (a). Pub. L. 94–324 substituted “the Administrator” for “he”.

    Enacted provision · exact public law section
    (30) by striking out in section 1826 “he” and “ widow” wherever they appear and inserting in lieu thereof “the Administrator” and “surviving spouse”, respectively; and

  3. Veterans Housing Amendments Act of 1976

    Pub. L. 94–324 § 7(30) · 90 Stat. 720

    Substituted · 38 U.S.C. § 3726(b)

    Pub. L. 94–324 substituted “surviving spouse” for “widow” wherever appearing

    Source evidence

    Code amendment note
    Subsec. (b). Pub. L. 94–324 substituted “surviving spouse” for “widow” wherever appearing.

    Enacted provision · exact public law section
    (30) by striking out in section 1826 “he” and “ widow” wherever they appear and inserting in lieu thereof “the Administrator” and “surviving spouse”, respectively; and

  4. Veterans’ Disability Compensation, Housing, and Memorial Benefits Amendments of 1981

    Pub. L. 97–66 title V § 504 · 95 Stat. 1026

    1. Struck · 38 U.S.C. § 3726

      Pub. L. 97–66 struck out subsec. (a) which provided that the Administrator could not, unless the Administrator had first obtained the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual 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 chapter

    2. Struck · 38 U.S.C. § 3726

      Pub. L. 97–66 struck out designation “(b)” before “No officer, employee, department, or agency of the United States”

    Source evidence

    Code amendment note
    Pub. L. 97–66 struck out subsec. (a) which provided that the Administrator could not, unless the Administrator had first obtained the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual 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 chapter, and struck out designation “(b)” before “No officer, employee, department, or agency of the United States”.

    Enacted provision · exact public law section
    Sec. 504. technical amendments Section 1826 is amended— 38 USC 1826. (1) by striking out subsection (a); and (2) by striking out “(b)”.

  5. Veterans Home Loan Indemnity and Restructuring Act of 1989

    Pub. L. 101–237 title III § 313(b)(1) · 103 Stat. 2062

    Substituted · 38 U.S.C. § 3726

    Pub. L. 101–237 substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively

    Source evidence

    Code amendment note
    Pub. L. 101–237 substituted “Secretary” and “Department of Veterans Affairs” for “Administrator” and “Veterans’ Administration”, respectively.

    Enacted provision · exact public law section
    (1) Chapters 23, 24, and 37 are amended by striking out “Administrator” and “Administrator’s” each place such terms appear (other than in sections 906(e)(2) and 1812(h)(2)(B) and in section 1845(a) the third place “Administrator” appears) and inserting in lieu thereof “Secretary” and “Secretary’s”, respectively.

  6. Pub. L. 102–83 § 5(a) · 105 Stat. 378

    Changed · 38 U.S.C. § 3726

    Pub. L. 102–83 renumbered section 1826 of this title as this section

    Source evidence

    Code amendment note
    Pub. L. 102–83 renumbered section 1826 of this title as this section.

    Enacted provision · exact public law section
    (a) Redesignation of Sections to Conform to Chapter Numbers.— Each section contained in any of chapters 11 through 23 is redesignated by replacing the first digit of the section number with the number of the chapter containing that section. Each section contained in any of chapters 24 through 42 is redesignated so that the first two digits of the section number of that section are the same as the chapter number of the chapter containing that section.

  7. Balanced Budget Act of 1997

    Pub. L. 105–33 title VIII § 8033(a) · 111 Stat. 251

    1. Amended · 38 U.S.C. § 3726

      Pub. L. 105–33 designated existing provisions as subsec. (a)

    2. Substituted · 38 U.S.C. § 3726

      Pub. L. 105–33 substituted “unless the Secretary provides such veteran or surviving 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.” 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.”

    3. Added · 38 U.S.C. § 3726

      Pub. L. 105–33 added subsecs. (b) and (c)

    Source evidence

    Code amendment note
    Pub. L. 105–33 designated existing provisions as subsec. (a), substituted “unless the Secretary provides such veteran or surviving 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.” 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).

    Enacted provision · exact public law section
    (a) Notice Required in Lieu of Consent or Court Order.— Section 3726 of title 38, United States Code, is amended— (1) by inserting “(a)” before “No officer”; and (2) by striking out “unless” and all that follows and inserting in lieu thereof the following: “unless the Secretary provides such veteran or surviving 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.”; and (3) by adding at the end the following new subsections: “(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 veteran or surviving spouse should not be released from liability, the Secretary shall notify the veteran or surviving spouse of that determination and provide a notice of the procedure for appealing that determination, unless the Secretary has previously made such determination and notified the veteran or surviving spouse of the procedure for appealing the determination.”.

    Effective date note
    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].”

10 of 10 references resolved to an enrolled provision

Editorial Notes

Amendments1976–1997 · 5 rounds

1997

Pub. L. 105–33 designated existing provisions as subsec. (a), substituted “unless the Secretary provides such veteran or surviving 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.” 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 provided that the Administrator could not, unless the Administrator had first obtained the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual 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 chapter, and struck out designation “(b)” before “No officer, employee, department, or agency of the United States”.

1976

Subsec. (a). Pub. L. 94–324 substituted “the Administrator” 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), , 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 [].”

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–66 effective , 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 , see section 9(a) of Pub. L. 94–324, set out as a note under section 3701 of this title.

Credits

1966–1997 · 6 acts
  1. 1966Added Pub. L. 89–358, § 5(f)(1), , 80 Stat. 26, § 1826
  2. 1976amended Pub. L. 94–324, § 7(30), , 90 Stat. 722
  3. 1981Pub. L. 97–66, title V, § 504, , 95 Stat. 1033
  4. 1989Pub. L. 101–237, title III, § 313(b)(1), (2), , 103 Stat. 2077
  5. 1991renumbered § 3726, Pub. L. 102–83, § 5(a), , 105 Stat. 406
  6. 1997Pub. L. 105–33, title VIII, § 8033(a), , 111 Stat. 669.
Show as published

(Added Pub. L. 89–358, § 5(f)(1), , 80 Stat. 26, § 1826; amended Pub. L. 94–324, § 7(30), , 90 Stat. 722; Pub. L. 97–66, title V, § 504, , 95 Stat. 1033; Pub. L. 101–237, title III, § 313(b)(1), (2), , 103 Stat. 2077; renumbered § 3726, Pub. L. 102–83, § 5(a), , 105 Stat. 406; Pub. L. 105–33, title VIII, § 8033(a), , 111 Stat. 669.)

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