Title 38, Veterans' BenefitsRelease 119-102
§3721 Incontestability
Title 38 › PART III — READJUSTMENT AND RELATED BENEFITS › CHAPTER 37 — HOUSING AND SMALL BUSINESS LOANS › SUBCHAPTER III — ADMINISTRATIVE PROVISIONS › § 3721
Summary
A guaranty or insurance from the Secretary proves a loan qualified and shows the amount guaranteed. The Secretary can still use fraud by the original lender and rely on rules in effect on the earlier date (issuance or disbursement) to reduce payment.
Full Legal Text
Title 38, §3721
Veterans' Benefits, Source: USLM XML via OLRC
Any evidence of guaranty or insurance issued by the Secretary shall be conclusive evidence of the eligibility of the loan for guaranty or insurance under the provisions of this chapter and of the amount of such guaranty or insurance. Nothing in this section shall preclude the Secretary from establishing, as against the original lender, defenses based on fraud or material misrepresentation. The Secretary shall not, by reason of anything contained in this section, be barred from establishing, by regulations in force at the date of such issuance or disbursement, whichever is the earlier, partial defenses to the amount payable on the guaranty or insurance.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1991—Pub. L. 102–83 renumbered section 1821 of this title as this section. 1989—Pub. L. 101–237 substituted “Secretary” for “Administrator” wherever appearing.
Reference
Citations & Metadata
Citation
38 U.S.C. § 3721
Title 38, Veterans' Benefits
Last Updated
Aug 21, 2026
Release point: 119-102