
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC3699]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
           CHAPTER 36--ADMINISTRATION OF EDUCATIONAL BENEFITS
 
                     SUBCHAPTER III--EDUCATION LOANS
 
Sec. 3699. Revolving fund; insurance

    (a) There is hereby established in the Treasury of the United States 
a revolving fund to be known as the ``Department of Veterans Affairs 
Education Loan Fund'' (hereinafter in this section referred to as the 
``Fund'').
    (b) The Fund shall be available to the Secretary, without fiscal 
year limitation, for the making of loans under this subchapter.
    (c) There shall be deposited in the Fund (1) by transfer from 
current and future appropriations for readjustment benefits such amounts 
as may be necessary to establish and supplement the Fund in order to 
meet the requirements of the Fund, and (2) all collections of fees and 
principal and interest (including overpayments declared under section 
3698(e) of this title) on loans made under this subchapter.
    (d) The Secretary shall determine annually whether there has 
developed in the Fund a surplus which, in the Secretary's judgment, is 
more than necessary to meet the needs of the Fund, and such surplus, if 
any, shall be deemed to have been appropriated for readjustment 
benefits.
    (e) A fee shall be collected from each veteran or person obtaining a 
loan made under this subchapter for the purpose of insuring against 
defaults on loans made under this subchapter; and no loan shall be made 
under this subchapter until the fee payable with respect to such loan 
has been collected and remitted to the Secretary. The amount of the fee 
shall be established from time to time by the Secretary, but shall in no 
event exceed 3 percent of the total loan amount. The amount of the fee 
may be included in the loan to the veteran or person and paid from the 
proceeds thereof.

(Added Pub. L. 93-508, title III, Sec. 301(a), Dec. 3, 1974, 88 Stat. 
1591, Sec. 1799; amended Pub. L. 94-502, title V, Sec. 513(a)(24), Oct. 
15, 1976, 90 Stat. 2404; Pub. L. 97-295, Sec. 4(61), Oct. 12, 1982, 96 
Stat. 1309; Pub. L. 101-237, title IV, Sec. 423(b)(1), (2), Dec. 18, 
1989, 103 Stat. 2092; renumbered Sec. 3699 and amended Pub. L. 102-83, 
Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406.)


                               Amendments

    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1799 of this 
title as this section.
    Subsec. (c). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3698(e)'' 
for ``1798(e)''.
    1989--Subsecs. (a), (b), (d), (e). Pub. L. 101-237 substituted 
``Department of Veterans Affairs'' for ``Veterans' Administration'' in 
subsec. (a), ``Secretary'' for ``Administrator'' wherever appearing in 
subsecs. (b), (d), and (e), and ``Secretary's'' for ``Administrator's'' 
in subsec. (d).
    1982--Subsec. (e). Pub. L. 97-295 substituted ``percent'' for ``per 
centum''.
    1976--Subsec. (d). Pub. L. 94-502 substituted ``the 
Administrator's'' for ``his''.


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-502 effective Oct. 15, 1976, see section 
703(b) of Pub. L. 94-502, set out as an Effective Date note under 
section 3693 of this title.


                             Effective Date

    Section effective Jan. 1, 1975, except that eligible persons shall, 
upon application, be entitled to a loan under this subchapter, the terms 
of which take into account the full amount of the actual cost of 
attendance as defined in section 1798(b)(2)(C) [now 3698(b)(2)(C)] of 
this title, which such persons incurred for the academic year beginning 
on or about Sept. 1, 1974, see section 502 of Pub. L. 93-508, set out as 
an Effective Date of 1974 Amendment note under section 3698 of this 
title.
