Page:United States Statutes at Large Volume 101 Part 2.djvu/335

This page needs to be proofread.
PUBLIC LAW 100-000—MMMM. DD, 1987

PUBLIC LAW 100-198—DEC. 21, 1987

101 STAT. 1321

conditions as the Administrator determines to be appropriate and necessary to carry out the purpose of such agreement. (b) JOB TRAINING PROGRAM.^1) TO assist veterans to obtain training pursuant to the Veterans' Job Training Act (29 U.S.C. 1721 note), the Administrator of Veterans' Affairs may convey to persons described in paragraph (2) of this subsection real property and improvements described in subsection (a)(2) of this section for an amount not less than 75 percent of the fair market value of such real property and improvements. (2) The Administrator may convey such property to persons who enter into an agreement with the Administrator to— (A) use veterans in a program of job training under the Veterans' Job Training Act in the rehabilitation of residences on such real property; and (B) provide a priority to veterans in the sale of such rehabilitated residences. (3) The Administrator may include appropriate enforcement provisions in any agreement aescribed in paragraph (2), including provision for reasonable liquidated damages. (4) The Administrator shall reduce the amount of any liability that a veteran has with respect to any property conveyed under this section by an amount equal to the reduction in the sale price of the property below the fair market value of the property. (c) TERMINATION.—The authority provided in subsections (a) and (b) shall terminate on October 1, 1990. (d) REPORT.—The Administrator of Veterans' Affairs shall, by March 1, 1990, transmit to the Congress a report of the activities carried out, through December 31, 1989, under this section. SEC. 10. LOAN ASSUMPTIONS. (a) IN GENERAL.—(1) Chapter 37 is amended by inserting after section 1817 the following new section: "§ 1817A. Assumptions; release from liability 38 USC 1817A. "(a)(1) If a veteran or any other person disposes of residential propjBrty securing a guaranteed, insured, or direct housing loan obtained by a veteran under this chapter and the veteran or other person notifies the holder of the loan in writing before the property IS disposed of, the veteran or other person, as the case may be, shall be relieved of all further liability to the Administrator with respect to the loan (including liability for any loss resulting from any default of the purchaser or any subsequent owner of the property) and the application for assumption shall be approved if the holder determines that— "(A) the loan is current; and "(B) the purchaser of the property from such veteran or other Contracts. person— "(i) is obligated by contract to purchase such property and to assume full liability for the repayment of the balance of the loan remaining unpaid and has assumed by contract all of the obligations of the veteran under the terms of the instruments creating and securing the loan; and "(ii) qualifies from a credit standpoint, to the same extent as if the purchaser were a veteran eligible under section 1810 of this title, for a guaranteed or insured or direct loan in an amount equal to the unpaid balance of the obligation for which the purchaser is to assume liability.