
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-419 Section 402(a)]
[Document affected by Public Law 107-103 Section 405(b)]
[CITE: 38USC3720]

 
                      TITLE 38--VETERANS' BENEFITS
 
               PART III--READJUSTMENT AND RELATED BENEFITS
 
              CHAPTER 37--HOUSING AND SMALL BUSINESS LOANS
 
                SUBCHAPTER III--ADMINISTRATIVE PROVISIONS
 
Sec. 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 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.
    (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, Sec. 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, 2002.

(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1213, Sec. 1820; Pub. L. 88-
151, Sec. 1, Oct. 17, 1963, 77 Stat. 271; Pub. L. 88-560, title VII, 
Sec. 701(e)(1), Sept. 2, 1964, 78 Stat. 800; Pub. L. 89-625, Oct. 4, 
1966, 80 Stat. 874; Pub. L. 89-769, Sec. 3(c), Nov. 6, 1966, 80 Stat. 
1316; Pub. L. 90-448, title VIII, Sec. 807(h), Aug. 1, 1968, 82 Stat. 
545; Pub. L. 91-606, title II, Sec. 233, Dec. 31, 1970, 84 Stat. 1753; 
Pub. L. 92-328, title II, Sec. 205, June 30, 1972, 86 Stat. 397; Pub. L. 
93-288, title VII, Sec. 702(l), formerly title VI, Sec. 602(l), May 22, 
1974, 88 Stat. 164, renumbered title VII, Sec. 702(l), Pub. L. 103-337, 
div. C, title XXXIV, Sec. 3411(a)(1), (2), Oct. 5, 1994, 108 Stat. 3100; 
Pub. L. 94-324, Sec. 7(24)-(26), June 30, 1976, 90 Stat. 722; Pub. L. 
95-117, title IV, Sec. 403(a), Oct. 3, 1977, 91 Stat. 1066; Pub. L. 97-
258, Sec. 3(k)(3), Sept. 13, 1982, 96 Stat. 1065; Pub. L. 97-295, 
Sec. 4(67), Oct. 12, 1982, 96 Stat. 1310; Pub. L. 98-160, title VII, 
Sec. 702(14), Nov. 21, 1983, 97 Stat. 1009; Pub. L. 99-576, title IV, 
Sec. 404, Oct. 28, 1986, 100 Stat. 3281; Pub. L. 100-707, title I, 
Sec. 109(n), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 101-237, title III, 
Sec. 313(b)(1), (2), Dec. 18, 1989, 103 Stat. 2077; Pub. L. 102-54, 
Sec. 4(a), June 13, 1991, 105 Stat. 268; renumbered Sec. 3720 and 
amended Pub. L. 102-83, Sec. 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 406; 
Pub. L. 102-291, Sec. 5(a), May 20, 1992, 106 Stat. 179; Pub. L. 102-
547, Sec. 4, Oct. 28, 1992, 106 Stat. 3636; Pub. L. 104-110, title I, 
Sec. 101(f), Feb. 13, 1996, 110 Stat. 768; Pub. L. 104-275, title II, 
Sec. 201, Oct. 9, 1996, 110 Stat. 3330; Pub. L. 105-33, title VIII, 
Sec. 8011, Aug. 5, 1997, 111 Stat. 664; Pub. L. 105-368, title VI, 
Secs. 602(c)(1), 604(a), Nov. 11, 1998, 112 Stat. 3346, 3348.)

                       References in Text

    The Federal Property and Administrative Services Act of 1949, 
referred to in subsec. (b), is act June 30, 1949, ch. 288, 63 Stat. 377, 
as amended. Title III of the Act is classified generally to subchapter 
IV (Sec. 251 et seq.) of chapter 4 of Title 41, Public Contracts. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 471 of Title 40, Public Buildings, Property, and 
Works, and Tables.
    The Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et 
seq.), referred to in subsec. (f), is Pub. L. 93-288, May 22, 1974, 88 
Stat. 143, as amended, known as the Robert T. Stafford Disaster Relief 
and Emergency Assistance Act, which is classified principally to chapter 
68 (Sec. 5121 et seq.) of Title 42, The Public Health and Welfare. For 
complete classification of this Act to the Code, see Short Title note 
set out under section 5121 of Title 42 and Tables.


                               Amendments

    1998--Subsec. (b). Pub. L. 105-368, Sec. 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, Sec. 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 ``December 31, 
2002'' for ``December 31, 1997''.
    1996--Subsec. (h)(2). Pub. L. 104-275 substituted ``December 31, 
1997'' for ``December 31, 1996''.
    Pub. L. 104-110 substituted ``December 31, 1996'' for ``December 31, 
1995''.
    1992--Subsec. (h). Pub. L. 102-547 substituted ``December 31, 1995'' 
for ``December 31, 1992'' in par. (2).
    Pub. L. 102-291 added subsec. (h).
    1991--Pub. L. 102-83, Sec. 5(a), renumbered section 1820 of this 
title as this section.
    Subsec. (e)(2). Pub. L. 102-83, Sec. 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, Sec. 7(24), substituted ``the 
Administrator's'' for ``his''.
    Subsec. (a)(5). Pub. L. 94-324, Sec. 7(24), substituted ``the 
Administrator'' for ``he''.
    Subsec. (a)(6). Pub. L. 94-324, Sec. 7(25), substituted ``utilized 
by the Administrator'' for ``utilized by him''.
    Subsec. (e)(1). Pub. L. 94-324, Sec. 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, Sec. 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, Sec. 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, Sec. 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 1998 Amendment

    Amendment by section 602(c)(1) of Pub. L. 105-368 effective Oct. 1, 
1998, see section 602(f) of Pub. L. 105-368, set out as a note under 
section 2106 of this title.
    Pub. L. 105-368, title VI, Sec. 604(b), Nov. 11, 1998, 112 Stat. 
3348, provided that: ``The amendment made by subsection (a) [amending 
this section] shall apply with respect to contracts entered into under 
section 3720 of title 38, United States Code, after the end of the 60-
day period beginning on the date of the enactment of this Act [Nov. 11, 
1998].''


                    Effective Date of 1977 Amendment

    Section 403(b) of Pub. L. 95-117 provided that: ``The amendment made 
by subsection (a) of this section [amending this section] shall be 
effective on the date of enactment of this Act [Oct. 3, 1977].''


                    Effective Date of 1976 Amendment

    Amendment by Pub. L. 94-324 effective June 30, 1976, see section 
9(a) of Pub. L. 94-324, set out as a note under section 3701 of this 
title.


                    Effective Date of 1974 Amendment

    Amendment by Pub. L. 93-288 effective Apr. 1, 1974, see section 605 
of Pub. L. 93-288, set out as an Effective Date note under section 5121 
of Title 42, The Public Health and Welfare.


                    Effective Date of 1972 Amendment

    Amendment by Pub. L. 92-328 effective June 30, 1972, see section 
301(c) of Pub. L. 92-328, set out as a note under section 3713 of this 
title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-606 effective Dec. 31, 1970, see section 304 
of Pub. L. 91-606, set out as a note under section 165 of Title 26, 
Internal Revenue Code.


                    Effective Date of 1968 Amendment

    Amendment by Pub. L. 90-448 effective from and after a date, no more 
than 120 days following Aug. 1, 1968, as established by the Secretary of 
Housing and Urban Development, see section 808 of Pub. L. 90-448, set 
out as an Effective Date note under section 1716b of Title 12, Banks and 
Banking.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-769 applicable with respect to any major 
disaster occurring after Oct. 3, 1964, see section 14 of Pub. L. 89-769.


       Ratification of Actions During Period of Expired Authority

    Any action taken by Secretary of Veterans Affairs before Feb. 13, 
1996, under provision of law amended by title I of Pub. L. 104-110 that 
was taken during period beginning on date on which authority of 
Secretary under such provision of law expired and ending on Feb. 13, 
1996, considered to have same force and effect as if such amendment had 
been in effect at time of that action, see section 103 of Pub. L. 104-
110, set out as a note under section 1710 of this title.


                           Property Management

    Pub. L. 100-198, Sec. 9, Dec. 21, 1987, 101 Stat. 1320, as amended 
by Pub. L. 102-40, title IV, Sec. 402(d)(2), May 7, 1991, 105 Stat. 239; 
Pub. L. 102-83, Sec. 6(i), Aug. 6, 1991, 105 Stat. 408, provided for 
programs under which the Secretary could (1) convey to nonprofit 
entities or to States or political subdivisions of States real property 
or improvements to real property acquired by the Secretary as the result 
of a default of a loan made under this chapter to use the properties to 
provide shelter for homeless veterans and their families, or (2) convey 
such properties to entities for use in job training programs for 
property rehabilitation and later sale to homeless veterans. Authority 
to carry out the programs terminated on Oct. 1, 1990.


  Housing Solar Energy and Weatherization Study; Report Not Later Than 
                              March 1, 1978

    Pub. L. 95-202, title III, Sec. 311, Nov. 23, 1977, 91 Stat. 1449, 
directed Administrator of Veterans' Affairs, in consultation with 
Secretary of Energy and Secretary of Housing and Urban Development, to 
conduct a study to determine the most effective methods of using the 
programs carried out under, or amending provisions of, this chapter in 
order to aid and encourage present and prospective veteran homeowners to 
install solar heating and cooling in their homes and to apply 
residential energy conservation measures and that a report on such study 
be submitted to Congress not later than Mar. 1, 1978.


               Waiver of Indebtedness; Report to Congress

    Section 2 of Pub. L. 88-151 provided that: ``The Administrator of 
Veterans' Affairs shall submit to the Committee on Labor and Public 
Welfare of the Senate and the Committee on Veterans' Affairs of the 
House of Representatives, not later than December 31 of each year, a 
written report concerning each case in which a waiver of indebtedness 
has been made under the authority of the amendment made by the first 
section of this Act [amending subsec. (a)(4) of this section]. Such 
report shall include, together with such other information as the 
Administrator deems appropriate, the name and address of each person 
with respect to which a waiver of indebtedness has been made and the 
total amount of such waiver.''


    Administration of Trusts by Federal National Mortgage Association

    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.

                  Section Referred to in Other Sections

    This section is referred to in sections 3722, 5701 of this title; 
title 28 section 2410.
