86 STAT. ]
397
PUBLIC LAW 92-328-JUNE 30, 1972
Service Life Insurance appropriation or the military and naval insurance appropriation, as applicable." (b) The waiver authority provided by section 3102(a) of title 38, United States Code, as amended by subsection (a) of this section shall apply to improper payments, overpayments, and indebtedness established by the Administrator prior to the effective date of this Act if application for relief was pending on the date of enactment of this Act, or such an application is made within two years from the date of enactment of this Act. SEC. 203. The analysis of chapter 53 of title 38, United States Code, is amended by striking therefrom "3102. Waiver of recovery of overpayments." and inserting in lieu thereof the following:
Ante,
p. 3 96.
"3102. Waiver of recovery of claims by the United States.".
SEC. 204. Section 1817 of title 38, United States Code, is amended by inserting " (a) " immediately before "Whenever any veteran" and by adding a new subsection (b) as follows: "(b) If any veteran disposes of residential property securing a guaranteed, insured, or direct loan obtained by him under this chapter without receiving a release from liability with respect to such loan under subsection (a), and a default subsequently occurs which results in liability of the veteran to the Administrator on account of the loan, the Administrator may relieve the veteran of such liability if he determines, after such investigation as he deems appropriate, that the property was disposed of by the veteran in such a manner, and subject to such conditions, that the Administrator would have issued the veteran a release from liability under subsection (a) with respect to the loan if the veteran had made application therefor incident to such disposal. Failure of a transferee to assume by contract all of the liabilities of the original veteran-borrower shall bar such release of liability only in cases in which no acceptable transferee, either immediate or remote, is legally liable to the Administrator for the indebtedness of the original veteran-borrower arising from termination of the loan. The failure of a veteran to qualify for release from liability under this subsection does not preclude relief from being granted under subsection 3102(b) of this title, if eligible thereunder." SEC. 205. Section 1820(a)(4) of title 38, United States Code, is amended by striking out that part of the section beginning with "and the authority to waive" and ending with "a severe hardship upon the veteran;". SEC. 206. Subsection (d) of section 3503 of title 38, United States Code, is amended by inserting " (1) " after " (d) " and adding at the end thereof the following: " (2) The Administrator is hereby authorized and directed to review all cases in which, because of a false or fraudulent affidavit, declaration, certificate, statement, voucher, or paper, a forfeiture of gratuitous benefits under laws administered by the Veterans' Administration was imposed, pursuant to this section or prior provisions of law, on or before September 1, 1959. I n any such case in which he determines that the forfeiture would not have been imposed under the provisions of this section in effect after September 1, 1959, he shall remit the forfeiture, effective the date of enactment of this amendatory Act. Benefits to which the individual concerned becomes eligible by virtue of any such remission may be awarded, upon application therefor, and the effective date of any award of compensation, dependency and indemnity compensation, or pension made in such a case shall be fixed in accordance with the provisions of section 3010(g) of this title."
72 Stat. 1212.
Liability, r e lease.
77 Stat. 2 71.
73 Stat. 452. Forfeiture of b e n e f i t s, remission.
76 Stat. 948.
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