PUBLIC LAW 105-33—AUG. 5, 1997 111 STAT. 669 (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 1302 the following new item: "1303. Cost-of-living adjustments. ". SEC. 8032. INCREASE IN AMOUNT OF HOME LOAN FEES FOR THE PUR- CHASE OF REPOSSESSED HOMES FROM THE DEPART- MENT OF VETERANS AFFAIRS. Section 3729(a) of title 38, United States Code, is amended— (1) in paragraph (2)— (A) in subparagraph (A), by striking out "or 3733(a)"; (B) in subparagraph (D), by striking out "and" at the end; (C) in subparagraph (E), by striking out the period at the end and inserting in lieu thereof "; and"; and (D) by adding at the end the following: "(F) in the case of a loan made under section 3733(a) of this title, the amount of such fee shall be 2.25 percent of the total loan amount."; and (2) in paragraph (4), as amended by section 8012(1) of this Act, by striking out "or (E)" and inserting in lieu thereof "(E), or (F)". SEC. 8033. WITHHOLDING OF PAYMENTS AND BENEFITS. (a) NOTICE REQUIRED IN LIEU OF CONSENT OR COURT ORDER.— Section 3726 of title 38, United States Code, is amended— (1) by inserting "(a)" before "No officer"; and (2) by striking out "unless" and all that follows and inserting in lieu thereof the following: "unless the Secretary provides such veteran or surviving spouse with notice by certified mail with return receipt requested of the authority of the Secretary to waive the payment of indebtedness under section 5302(b) of this title."; and (3) by adding at the end the following new subsections: "(b) If the Secretary does not waive the entire amount of the liability, the Secretary shall then determine whether the veteran or surviving spouse should be released from liability under section 3713(b) of this title. "(c) If the Secretary determines that the veteran or surviving spouse should not be released from liability, the Secretary shall notify the veteran or surviving spouse of that determination and provide a notice of the procedure for appealing that determination, unless the Secretary has previously made such determination and notified the veteran or surviving spouse of the procedure for appealing the determination.". (b) CONFORMING AMENDMENT.— Section 5302(b) of such title is amended by inserting "with return receipt requested" after "certified mail". (c) EFFECTIVE DATE. —The amendments made by this section 38 USC 3726 shall apply with respect to any indebtedness to the United States "o**. arising pursuant to chapter 37 of title 38, United States Code, before, on, or after the date of enactment of this Act.
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