PUBLIC LAW 101-237—DEC. 18, 1989 103 STAT. 2073 except for paragraph (1) of this subsection, would be collected from such veteran or surviving spouse. "(3) Credits to the Guaranty and Indemnity Fund under para- graph (2) of this subsection with respect to loans guaranteed, in- sured, or made under this chapter that are closed during fiscal year 1990 shall be made in October 1990.". (b) EFFECTIVE DATE. —The amendments made by this section shall take effect on January 1, 1990. (c) FEE COLLECTION THROUGH 1989. — Notwithstanding any other provision of law, the Secretary of Veterans Affairs shall collect fees under section 1829 of title 38, United States Code, through Decem- ber 31, 1989. SEC. 304. INDEMNIFICATION AFTER DEFAULT. (a) IN GENERAL.— Section 1803 is amended by adding at the end the following new subsection: "(e)(1) Except as provided in paragraph (2) of this subsection, an individual who pa3rs a fee under section 1829 of this title, or who is exempted under section 1829(c)(l) of this title from pa)ring such fee, with respect to a housing loan guaranteed or insured under this chapter that is closed after December 31, 1989, shall have no liabil- ity to the Secretary with respect to the loan for any loss resulting from any default of such individual except in the case of fraud, misrepresentation, or bad faith by such individual in obtaining the loan or in connection with the loan default. "(2) The exemption from liability provided by paragraph (1) of this subsection shall not apply to— "(A) an individual from whom a fee is collected (or who is exempted from such fee) under section 1829G)) of this title; or "(B) a loan made for any purpose specified in section 1812 of this title.". (b) CONFORMING AMENDMENT. —The last sentence of section 1832(a)(l) is amended by striking out "If and inserting in lieu thereof "Except as provided in section 1803(e) of this title, if. SEC. 305. SALE OF VENDEE LOANS. (a) IN GENERAL. —Section 1833 is amended— (1) in subsection (a)(3)— (A) in subparagraph (A), by striking out "Before Octo- ber 1, 1990, and inserting in lieu thereof "Subject to subparagraph (C) of this paragraph,"; (B) in subparagraph (B), by striking out "occurring before October 1, 1990"; and (C) in subparagraph (C), by striking out "October 1, 1990," and inserting in lieu thereof "October 1, 1989,"; (2) in subsection (a)(6), by striking out "October 1" and insert- ing in lieu thereof "E)ecember 31"; and (3) by adding at the end the following new subsection: "(e) Notwithstanding any other provision of law, the amount received from the sale of any note evidencing a loan secured by reed property described in subsection (a)(1) of this section shall be cred- ited, without any reduction and for the fiscal year in which the amount is received, as offsetting collections of— "(1) the revolving fund for which a fee under section 1829 of this title was collected (or was exempted from being collected) at the time of the original guaranty of the loan that was secured by the same property; or 38 USC 1829 note. 38 USC 1829 note. Fraud. Real property.
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