Title 38, Veterans' BenefitsRelease 119-102
§1961 Authority for Higher Interest Rates for Amounts Payable to Beneficiaries
Title 38 › PART II — GENERAL BENEFITS › CHAPTER 19 — INSURANCE › SUBCHAPTER II — UNITED STATES GOVERNMENT LIFE INSURANCE › § 1961
Summary
The Secretary may set a higher interest rate than the usual rate for insurance money paid in equal monthly payments over a limited time, but only if the change is practical for the agency and backed by sound insurance calculations; the higher interest is charged on the unpaid balance.
Full Legal Text
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.
Legislative History
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.
Reference
Citations & Metadata
Citation
38 U.S.C. § 1961
Title 38, Veterans' Benefits
Last Updated
Aug 21, 2026
Release point: 119-102