United States Code (Last Updated: May 24, 2014) |
Title 38. VETERANS’ BENEFITS |
Part III. READJUSTMENT AND RELATED BENEFITS |
Chapter 37. HOUSING AND SMALL BUSINESS LOANS |
SubChapter III. ADMINISTRATIVE PROVISIONS |
§ 3720. Powers of Secretary
-
(a) Notwithstanding the provisions of any other law, with respect to matters arising by reason of this chapter, the Secretary may— (1) sue and be sued in the Secretary’s official capacity in any court of competent jurisdiction, State or Federal, but nothing in this clause shall be construed as authorizing garnishment or attachment against the Secretary, the Department of Veterans Affairs, or any of its employees; (2) subject to specific limitations in this chapter, consent to the modification, with respect to rate of interest, time of payment of principal or interest or any portion thereof, security or other provisions of any note, contract, mortgage or other instrument securing a loan which has been guaranteed, insured, made or acquired under this chapter; (3) pay, or compromise, any claim on, or arising because of, any such guaranty or insurance; (4) pay, compromise, waive or release any right, title, claim, lien or demand, however acquired, including any equity or any right of redemption; (5) purchase at any sale, public or private, upon such terms and for such prices as the Secretary determines to be reasonable, and take title to, property, real, personal or mixed; and similarly sell, at public or private sale, exchange, assign, convey, or otherwise dispose of any such property; and (6) complete, administer, operate, obtain and pay for insurance on, and maintain, renovate, repair, modernize, lease, or otherwise deal with any property acquired or held pursuant to this chapter. The acquisition of any such property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction of, on, or over such property (including power to tax) or impair the rights under the State or local law of any persons on such property. Without regard to section 3302(b) of title 31 or any other provision of law not expressly in limitation of this paragraph, the Secretary may permit brokers utilized by the Secretary in connection with such properties to deduct from rental collections amounts covering authorized fees, costs, and expenses incurred in connection with the management, repair, sale, or lease of any such properties and remit the net balances to the Secretary. (b) The powers granted by this section may be exercised by the Secretary without regard to any other provision of law not enacted expressly in limitation of this section, which otherwise would govern the expenditure of public funds, except that division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 shall apply to any contract for services or supplies on account of any property acquired pursuant to this section. (c) The financial transactions of the Secretary incident to, or arising out of, the guaranty or insurance of loans pursuant to this chapter, and the acquisition, management, and disposition of property, real, personal, or mixed, incident to such activities and pursuant to this section, shall be final and conclusive upon all officers of the Government. (d) The right to redeem provided for by section 2410(c) of title 28 shall not arise in any case in which the subordinate lien or interest of the United States derives from a guaranteed or insured loan. [(e) Repealed. Pub. L. 105–368, title VI, § 602(c)(1), Nov. 11, 1998 , 112 Stat. 3346.](f) Whenever loss, destruction, or damage to any residential property securing loans guaranteed, insured, made, or acquired by the Secretary under this chapter occurs as the result of a major disaster as determined by the President under the Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), the Secretary shall (1) provide counseling and such other service to the owner of such property as may be feasible and shall inform such owner concerning the disaster assistance available from other Federal agencies and from State or local agencies, and (2) pursuant to subsection (a)(2) of this section, extend on an individual case basis such forebearance or indulgence to such owner as the Secretary determines to be warranted by the facts of the case and the circumstances of such owner. (g) The Secretary shall, at the request of the Secretary of Housing and Urban Development and without reimbursement, certify to such Secretary whether an applicant for assistance under any law administered by the Department of Housing and Urban Development is a veteran. (h) (1) The Secretary may, upon such terms and conditions as the Secretary considers appropriate, issue or approve the issuance of, and guarantee the timely payment of principal and interest on, certificates or other securities evidencing an interest in a pool of mortgage loans made in connection with the sale of properties acquired under this chapter. (2) The Secretary may not under this subsection guarantee the payment of principal and interest on certificates or other securities issued or approved after December 31, 2016 .
References In Text
The Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), referred to in subsec. (f), is Pub. L. 93–288,
Amendments
2012—Subsec. (h)(2). Pub. L. 112–154 substituted “
2011—Subsec. (b). Pub. L. 111–350 substituted “division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” for “title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.)”.
2001—Subsec. (h)(2). Pub. L. 107–103 substituted “
2000—Subsec. (h)(2). Pub. L. 106–419 substituted “
1998—Subsec. (b). Pub. L. 105–368, § 604(a), substituted “, except that title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) shall apply to any contract for services or supplies on account of any property acquired pursuant to this section.” for “; however, section 3709 of the Revised Statutes (41 U.S.C. 5) shall apply to any contract for services or supplies on account of any property acquired pursuant to this section if the amount of such contract exceeds the amount prescribed in clause (1) of the first sentence of such section.”
Subsec. (e). Pub. L. 105–368, § 602(c)(1), struck out subsec. (e), which authorized Secretary to set aside first mortgage loans and installment sales contracts owned or held by Secretary under this chapter as basis for sale of participation certificates, authorized agreements, including trust agreements, for this purpose, and set forth provisions relating to allocation, deposit, and set aside of proceeds.
1997—Subsec. (h)(2). Pub. L. 105–33 substituted “
1996—Subsec. (h)(2). Pub. L. 104–275 substituted “
Pub. L. 104–110 substituted “
1992—Subsec. (h). Pub. L. 102–547 substituted “
Pub. L. 102–291 added subsec. (h).
1991—Pub. L. 102–83, § 5(a), renumbered section 1820 of this title as this section.
Subsec. (e)(2). Pub. L. 102–83, § 5(c)(1), substituted “3723 and 3724” for “1823 and 1824” in two places.
Subsec. (g). Pub. L. 102–54 added subsec. (g).
1989—Subsecs. (a) to (c), (e), (f). Pub. L. 101–237 substituted “Secretary”, “Secretary’s”, and “Department of Veterans Affairs” for “Administrator”, “Administrator’s”, and “Veterans’ Administration”, respectively, wherever appearing.
1988—Subsec. (f). Pub. L. 100–707 substituted “and Emergency Assistance Act” for “Act of 1974”.
1986—Subsec. (b). Pub. L. 99–576 substituted “the amount prescribed in clause (1) of the first sentence of such section” for “$1,000”.
1983—Subsec. (a)(6). Pub. L. 98–160 struck out comma after “title 31”.
Subsec. (b). Pub. L. 98–160 substituted “section 3709 of the Revised Statutes (41 U.S.C. 5)” for “section 5 of title 41”.
1982—Subsec. (a)(6). Pub. L. 97–258 substituted “section 3302(b) of title 31” for “section 3617, Revised Statutes (31 U.S.C. 484)”.
Subsec. (f). Pub. L. 97–295 inserted “(42 U.S.C. 5121 et seq.)” after “the Disaster Relief Act of 1974”.
1977—Subsec. (a)(1). Pub. L. 95–117 inserted prohibition relating to garnishment or attachment against the Administrator, etc.
1976—Subsec. (a)(1). Pub. L. 94–324, § 7(24), substituted “the Administrator’s” for “his”.
Subsec. (a)(5). Pub. L. 94–324, § 7(24), substituted “the Administrator” for “he”.
Subsec. (a)(6). Pub. L. 94–324, § 7(25), substituted “utilized by the Administrator” for “utilized by him”.
Subsec. (e)(1). Pub. L. 94–324, § 7(26), substituted “the Administrator determines” for “he determines”, “by the Administrator” for “by him”, “the Administrator shall periodically” for “he shall periodically”, “set aside by the Administrator” for “set aside by him”, “the Administrator’s commitment” for “his commitment”, and “to pay the Administrator’s” for “to pay his”.
Subsec. (e)(2). Pub. L. 94–324, § 7(26), substituted “as the Administrator determines” for “as he determines”.
1974—Subsec. (f). Pub. L. 93–288 substituted “Disaster Relief Act of 1974” for “Disaster Assistance Act of 1970.”
1972—Subsec. (a)(4). Pub. L. 92–328 struck out provisions relating to the authority to waive or release claims, including partial or total waiver of payment, following default and loss of property.
1970—Subsec. (a)(2). Pub. L. 91–606, § 233(1), substituted “a loan which has been guaranteed, insured, made or acquired under this chapter” for “a loan which has been guaranteed or insured under this chapter”.
Subsec. (f). Pub. L. 91–606, § 233(2), directed the Administrator in major disaster areas to provide the owner of property lost, destroyed, or damaged as the result of a major disaster with counseling and other services, to inform him of disaster assistance available from other Federal, state, or local agencies and to extend such forbearance on an individual case basis as he determines to be warranted by the facts of the case.
1968—Subsec. (e)(1). Pub. L. 90–448 substituted “Government National Mortgage Association” for “Federal National Mortgage Association” wherever appearing.
1966—Subsec. (a)(6). Pub. L. 89–625 authorized brokers utilized by Administrator in connection with properties acquired or held pursuant to this chapter to deduct from rental collections amounts covering authorized fees, costs, and expenses incurred in connection with management, repair, sale, or lease of properties and to remit the net balances to Administrator.
Subsec. (f). Pub. L. 89–769 added subsec. (f).
1964—Subsec. (e). Pub. L. 88–560 added subsec. (e).
1963—Subsec. (a)(4). Pub. L. 88–151 provided for waiver of indebtedness to the United States in certain cases arising out of default on loans guaranteed or made by the Veterans’ Administration.
Effective Date Of Amendment
Amendment by section 602(c)(1) of Pub. L. 105–368 effective
Pub. L. 105–368, title VI, § 604(b),
Pub. L. 95–117, title IV, § 403(b),
Amendment by Pub. L. 94–324 effective
Amendment by Pub. L. 93–288 effective
Amendment by Pub. L. 92–328 effective
Amendment by Pub. L. 91–606 effective
Amendment by Pub. L. 90–448 effective from and after a date, no more than 120 days following
Amendment by Pub. L. 89–769 applicable with respect to any major disaster occurring after
Miscellaneous
Any action taken by Secretary of Veterans Affairs before
Pub. L. 100–198, § 9,
Pub. L. 95–202, title III, § 311,
Pub. L. 88–151, § 2,
Provision for participation sales and administration of trusts by Federal National Mortgage Association not to be construed as a repeal or modification of the provisions of subsection (e) of this section respecting the authority of the Administrator of Veterans’ Affairs, see section 6(a) of Pub. L. 89–429, set out as a note under section 1717 of Title 12, Banks and Banking.