Title 38, Veterans' BenefitsRelease 119-102
§3728 Exemption From State Anti-usury Provisions
Title 38 › PART III — READJUSTMENT AND RELATED BENEFITS › CHAPTER 37 — HOUSING AND SMALL BUSINESS LOANS › SUBCHAPTER III — ADMINISTRATIVE PROVISIONS › § 3728
Summary
If loans insured under Title I or Title II of the National Housing Act are not covered by state rules that limit interest rates, discount points, or other charges; that limit how interest is figured (including bans on charging interest on interest); or that require a minimum principal payment, then loans guaranteed or insured under this chapter are treated the same.
Full Legal Text
Title 38, §3728
Veterans' Benefits, Source: USLM XML via OLRC
If, under any law of the United States, loans and mortgages insured under title I or title II of the National Housing Act are exempt from the application of the provisions of any State constitution or law (1) limiting the rate or amount of interest, discount points, or other charges which may be charged, taken, received, or reserved by lenders, (2) restricting the manner of calculating such interest (including prohibition of the charging of interest on interest), or (3) requiring a minimum amortization of principal, then loans guaranteed or insured under this chapter are also exempt from the application of such provisions.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
The National Housing Act, referred to in text, is act June 27, 1934, ch. 847, 48 Stat. 1246. Titles I and II of the Act are classified generally to subchapters I (§ 1702 et seq.) and II (§ 1707 et seq.), respectively, of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see section 1701 of Title 12 and Tables.
Amendments
1991—Pub. L. 102–83 renumbered section 1828 of this title as this section. 1981—Pub. L. 97–66 designated as cl. (1) existing provisions relating to the limiting of rates or amounts of interest, discount points, or other charges which may be charged, taken, received, or reserved by lenders, and added cls. (2) and (3).
Statutory Notes and Related Subsidiaries
Effective Date
of 1981 AmendmentAmendment by Pub. L. 97–66 effective Oct. 17, 1981, see section 701(b)(1) of Pub. L. 97–66, set out as a note under section 1114 of this title.
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. § 3728
Title 38, Veterans' Benefits
Last Updated
Aug 21, 2026
Release point: 119-102