Title 38 — Veterans' BenefitsRelease 119-73
§1926 Authority for higher interest rates for amounts payable to beneficiaries
Title 38 › Part PART II— - GENERAL BENEFITS › Chapter CHAPTER 19— - INSURANCE › Subchapter SUBCHAPTER I— - NATIONAL SERVICE LIFE INSURANCE › § 1926
Summary
Even if other rules set a lower rate, a beneficiary who gets insurance proceeds in equal monthly payments for a limited time may receive a higher interest rate. The Secretary may set it only if administratively and actuarially sound for that insurance program, and it must be paid on the unpaid balance.
Full Legal Text
Title 38, §1926
Veterans' Benefits — Source: USLM XML via OLRC
Notwithstanding section 1902, 1923, and 1925 of this title, if the beneficiary of an insurance policy receives the proceeds of such policy under a settlement option under which such proceeds are paid in equal monthly installments over a limited period of months, the interest that may be added to each such installment may be at a rate that is higher than the interest rate prescribed in the appropriate section of this subchapter. The Secretary may from time to time establish a higher interest rate under the preceding sentence only in accordance with a determination that such higher rate is administratively and actuarially sound for the program of insurance concerned. Any such higher interest rate shall be paid on the unpaid balance of such monthly installments.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1991—Pub. L. 102–83, § 5(a), renumbered section 726 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted “1902, 1923, and 1925” for “702, 723, and 725”. Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.
Statutory Notes and Related Subsidiaries
Effective Date
Section effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as an
Effective Date
of 1979 Amendment note under section 1114 of this title.
Reference
Citations & Metadata
Citation
38 U.S.C. § 1926
Title 38 — Veterans' Benefits
Last Updated
Apr 6, 2026
Release point: 119-73