§1961 — Title 38 Veterans' Benefits | U.S. Code

Summary

The Secretary may allow a higher interest rate for insurance proceeds paid to a beneficiary in equal monthly installments over a limited number of months, even if another rule sets a lower rate. The Secretary can do this only if it is practical to run and backed by actuarial (financial) analysis. Any higher interest is paid on the unpaid balance of those monthly installments.

Title 38, §1961

Veterans' Benefits — Source: USLM XML via OLRC

Notwithstanding section 1944(b) of this title, if the beneficiary of an insurance policy issued under the provisions of this subchapter 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 such section. 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. Any such higher interest rate shall be paid on the unpaid balance of such monthly installments.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 761 of this title as this section. Pub. L. 102–83, § 5(c)(1), substituted “1944(b)” for “744(b)”. 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.

§1961 Authority for Higher Interest Rates for Amounts Payable to Beneficiaries

Summary

Title 38, §1961

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Effective Date

Effective Date

Citations & Metadata