Title 38, Veterans' BenefitsRelease 119-102

§8158 Deposit in Escrow

Title 38 › PART VI — ACQUISITION AND DISPOSITION OF PROPERTY › CHAPTER 81 — ACQUISITION AND OPERATION OF HOSPITAL AND DOMICILIARY FACILITIES; PROCUREMENT AND SUPPLY; ENHANCED-USE LEASES OF REAL PROPERTY › SUBCHAPTER IV — SHARING OF MEDICAL FACILITIES, EQUIPMENT, AND INFORMATION › § 8158

Last updated Aug 21, 2026|Official source

Summary

The Secretary can make escrow agreements with the institutions named in section 8153(a) to help buy medical equipment under section 8157. The institution must put into escrow the money needed for the payment required by section 8157(b)(4). The Secretary will hold and manage those funds, pay for the equipment when it is delivered or as the purchase contract requires, and return any interest earned to the institution. As escrow agent, the Secretary may invest the funds in federal or government‑backed securities, disburse funds under the agreement, return unused funds, and enter a procurement contract if one‑half of the purchase price is available in an appropriation or fund. Money held in escrow this way is not public funds.

Full Legal Text

Title 38, §8158

Veterans' Benefits, Source: USLM XML via OLRC

(a)To facilitate the procurement of medical equipment pursuant to section 8157 of this title, the Secretary may enter into escrow agreements with institutions described in section 8153(a) of this title. Any such agreement shall provide that—

(1)the institutions shall pay to the Secretary the funds necessary to make a payment under section 8157(b)(4) of this title;

(2)the Secretary, as escrow agent, shall administer those funds in an escrow account; and

(3)the Secretary shall disburse the escrowed funds to pay for such equipment upon its delivery or in accordance with the contract to procure the equipment and shall disburse all accrued interest or other earnings on the escrowed funds to the institution.

(b)As escrow agent for funds placed in escrow pursuant to an agreement under subsection (a), the Secretary may—

(1)invest the escrowed funds in obligations of the Federal Government or obligations which are insured or guaranteed by the Federal Government;

(2)retain in the escrow account interest or other earnings on such investments;

(3)disburse the funds pursuant to the escrow agreement; and

(4)return undisbursed funds to the institution.

(c)(1)If the Secretary enters into an escrow agreement under this section, the Secretary may enter into an agreement to procure medical equipment if one-half the purchase price of the equipment is available in an appropriation or fund for the expenditure or obligation.

(2)Funds held in an escrow account under this section shall not be considered to be public funds.

Reference

Citations & Metadata

Citation

38 U.S.C. § 8158

Title 38, Veterans' Benefits

Last Updated

Aug 21, 2026

Release point: 119-102