40.650 Veterans' Personal Loan Program.

Download pdf

Loading PDF...


Page 1 of 2 40.650 Veterans' Personal Loan Program. (1) As used in this section: (a) &quot;Department&quot; means the Department of Veterans' Affairs; and <br>(b) &quot;Veteran&quot; means a person who served in the active Armed Forces of the United States, including the Coast Guard of the United States, and was <br>released, separated, discharged, or retired therefrom under honorable or <br>general conditions. (2) A veterans' personal loan program trust fund is established to oversee and administer funds under the Veterans' Personal Loan Program. (3) (a) To be eligible for a loan under the Veterans' Personal Loan Program, an applicant shall be a resident of, and living in, the Commonwealth on the date <br>of the application. (b) 1. As used in this paragraph, &quot;qualified&quot; means having met loan conditions <br>established by an administrative regulation promulgated by the <br>department. However, the term of a loan shall not exceed ten (10) years. 2. The department shall cause the veterans' personal loan program trust <br>fund to lend a qualified veteran or deceased veteran's unremarried <br>spouse not more than ten thousand dollars (&#36;10,000), or a lesser amount <br>established by an administrative regulation promulgated by the <br>department, for: <br>a. The purchase of a home, business, or business property; b. The education of the loan applicant or the loan applicant's spouse; c. The payment of family medical or funeral expenses; or d. The consolidation of debt. 3. The department shall cause the veterans' personal loan trust fund to lend <br>a qualified child of a veteran or parent or guardian of that child not more <br>than ten thousand dollars (&#36;10,000), or a lesser amount established by an <br>administrative regulation promulgated by the department, for the <br>education of that child, who is under the age of twenty-seven (27), at a <br>university, junior college, vocational training institute, or nonpublic <br>school admitting children in preschool through grade twelve (12). (c) No person shall receive a loan under this section in an amount that, when added to the balance of the person's existing loan or loans under this section, <br>would result in a total indebtedness to the veterans' personal loan program <br>trust fund of more than ten thousand dollars (&#36;10,000), or a lesser amount <br>established by an administrative regulation promulgated by the department. (4) (a) The veterans' personal loan program trust fund shall: 1. Execute necessary instruments; and 2. Collect principal and interest. (b) The veterans' personal loan program trust fund may: 1. Compromise indebtedness; Page 2 of 2 2. Sue and be sued; 3. Post bonds; 4. Write off indebtedness that it considers uncollectible; 5. Exercise the rights of an owner and mortgagee if a loan provided under <br>this section is secured by a real estate mortgage; 6. Charge to a loan applicant loan expenses incurred under this section; and 7. a. Receive state appropriations, gifts, grants, federal funds, and any <br>other funds both public and private. b. Funds received, which are not necessary for the operation of the <br>veterans' personal loan program trust fund, shall remain with the <br>department to finance other department operations. (5) The department shall promulgate administrative regulations necessary to carry out the provisions of this section. Effective: July 12, 2006 <br>History: Created 2006 Ky. Acts ch. 108, sec. 1, effective July 12, 2006.