§1494 Evidence of Eligibility of Loan for and Amount of Guaranty or Insurance; Defenses and Partial Defenses Against Original Lender

Summary

If the Secretary issues a paper saying a loan is guaranteed or insured, that paper is final proof that the loan qualified and shows how much is guaranteed or insured. The Secretary can still defend against the original lender if the lender committed fraud or gave a major false statement. The Secretary can also use rules that were in effect on the date the guarantee was issued or the date money was paid, whichever came first, to reduce the amount that must be paid.