58 STAT.] 78TH CONG. , 2D SESS.-CH. 268-JUNE 22, 1944 because of fault on his part to complete the course of training or education afforded thereunder, he may be required, in the discretion of the Administrator, to return any or all of such books, supplies, or equipment not actually expended or to repay the reasonable value thereof." SEC. 403. Paragraph 1, part VII, Veterans Regulation Numbered 1 (a) (Public Law Numbered 16, Seventy-eighth Congress), is hereby amended by inserting after the word "time" the words "on or" and deleting the date "December 6, 1941" and substituting therefor the date "September 16, 1940". TITLE III-LOANS FOR THE PURCHASE OR CONSTRUC- TION OF HOMES, FARMS, AND BUSINESS PROPERTY CHAPTrE V-GENERAL PROVISIoNS FOR LOANS SEC. 500. (a) Any person who shall have served in the active military or naval service of the United States at any time on or after September 16, 1940, and prior to the termination of the present war and who shall have been discharged or released therefrom under conditions other than dishonorable after active service of ninety days or more, or by reason of an injury or disability incurred in service in line of duty, shall be eligible for the benefits of this title. Any such veteran may apply within two years after separation from the military or naval forces, or two years after termination of the war, whichever is the later date, but in no event more than five years after the termination of the war, to the Administrator of Veterans' Affairs for the guaranty by the Administrator of not to exceed 50 per centum of a loan or loans for any of the purposes specified in sections 501, 502 and 503: Provided, That the aggregate amount guaranteed shall not exceed $2,000. If the Administrator finds that the veteran is eligible for the benefits of this title and that the loan applied for appears practicable, the Administrator shall guarantee the payment of the part thereof as set forth in this title. (b) Interest for the first year on that part of the loan guaranteed by the Administrator shall be paid by the Administrator out of available appropriations. No security for the guaranty of a loan shall be required except the right to be subrogated to the lien rights of the holder of the obligation which is guaranteed: Provided, That pursuant to regulations to be issued by the Administrator the mort- gagor and mortgagee shall agree that before beginning foreclosure proceedings for default in payment of principal or interest due, the Administrator shall have at least thirty days'notice with the option of bidding in the property on foreclosure or of refinancing the loan with any other agency or by any other means available. (c) Loans guaranteed by the Administrator under this title shall be payable under such terms and conditions as may be approved by the Administrator: Provided, That the liability under the guaranty, within the limitations of this title, shall decrease or increase pro rata with any decrease or increase of the amount of the unpaid por- tion of the obligation: Provided further, That loans guaranteed by the Administrator shall bear interest at a rate not exceeding 4 per centum per annum and shall be payable in full in not more than twenty years. The Administrator is authorized and directed to guarantee loans to veterans subject to the provisions of this title on approved applications made to persons, firms, associations, and cor- porations and to governmental agencies and corporations, either State or Federal 291 57 Stat. 43. 38 U. 8. 0., Supp. III, note foll. 732. Persons eligible. Period for making application. Guaranty of amount, limitation. Interest for first year. Right to subroga- tion. Notice of intended foreclosure proceed- ings. Option to bid or refinance. Repayments. Relative liability under guaranty. Interest Guaranty of loans on approved applica- tions.
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