Title 38 — Veterans' BenefitsRelease 119-73

§8158 Deposit in escrow

Title 38 › Part PART VI— - ACQUISITION AND DISPOSITION OF PROPERTY › Chapter CHAPTER 81— - ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY › Subchapter SUBCHAPTER IV— - SHARING OF MEDICAL FACILITIES, EQUIPMENT, AND INFORMATION › § 8158

Last updated Apr 6, 2026|Official source

Summary

The Secretary can make escrow agreements with the institutions described in section 8153(a) to help buy medical equipment. Under those deals, the institution must give the money needed to cover the payment called for in section 8157(b)(4). The Secretary holds the money in an escrow account, pays for the equipment when it is delivered or as the purchase contract says, and gives any earned interest back to the institution. As the escrow agent, the Secretary may invest the money in U.S. government or government‑guaranteed securities, keep any earnings in the account, disburse funds under the agreement, and return any unused money to the institution. Money in the escrow account is not treated as public funds. The Secretary may buy equipment only if one-half of the purchase price is available from an appropriation or fund.

Full Legal Text

Title 38, §8158

Veterans' Benefits — Source: USLM XML via OLRC

(a)To facilitate the procurement of medical equipment pursuant to section 8157 of this title, the Secretary may enter into escrow agreements with institutions described in section 8153(a) of this title. Any such agreement shall provide that—

(1)the institutions shall pay to the Secretary the funds necessary to make a payment under section 8157(b)(4) of this title;

(2)the Secretary, as escrow agent, shall administer those funds in an escrow account; and

(3)the Secretary shall disburse the escrowed funds to pay for such equipment upon its delivery or in accordance with the contract to procure the equipment and shall disburse all accrued interest or other earnings on the escrowed funds to the institution.

(b)As escrow agent for funds placed in escrow pursuant to an agreement under subsection (a), the Secretary may—

(1)invest the escrowed funds in obligations of the Federal Government or obligations which are insured or guaranteed by the Federal Government;

(2)retain in the escrow account interest or other earnings on such investments;

(3)disburse the funds pursuant to the escrow agreement; and

(4)return undisbursed funds to the institution.

(c)(1)If the Secretary enters into an escrow agreement under this section, the Secretary may enter into an agreement to procure medical equipment if one-half the purchase price of the equipment is available in an appropriation or fund for the expenditure or obligation.

(2)Funds held in an escrow account under this section shall not be considered to be public funds.

Reference

Citations & Metadata

Citation

38 U.S.C. § 8158

Title 38 — Veterans' Benefits

Last Updated

Apr 6, 2026

Release point: 119-73