[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4042 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 4042

  To amend title 38, United States Code, to prohibit additional daily 
    interest charges following prepayment in full of housing loans 
           guaranteed by the Department of Veterans Affairs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 20, 2002

    Mr. Evans (for himself, Ms. Carson of Indiana, Mr. Tom Davis of 
  Virginia, and Mr. Simpson) introduced the following bill; which was 
             referred to the Committee on Veterans' Affairs

_______________________________________________________________________

                                 A BILL


 
  To amend title 38, United States Code, to prohibit additional daily 
    interest charges following prepayment in full of housing loans 
           guaranteed by the Department of Veterans Affairs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Veterans Home Loan Prepayment 
Protection Act of 2002''.

SEC. 2. PROHIBITION OF ADDITIONAL DAILY INTEREST CHARGES FOLLOWING 
              PREPAYMENT IN FULL OF HOUSING LOANS GUARANTEED BY THE 
              SECRETARY OF VETERANS AFFAIRS.

    (a) In General.--Section 3703 of title 38, United States Code, is 
amended by adding at the end the following new subsection:
    ``(g)(1) In the case of prepayment in full by a veteran of a loan 
guaranteed under this chapter, such prepayment shall be credited on the 
date of receipt of the prepayment at the business location of a 
residential mortgage lender, and no interest may be charged to the 
veteran with respect to that loan thereafter.
    ``(2) For purposes of paragraph (1), in determining the date of 
receipt of a prepayment, a prepayment received on a calender day during 
any business hour of a residential mortgage lender shall be treated as 
being received on that day.
    ``(3) For purposes of this subsection, a business hour of a 
residential mortgage lender includes any business hour during which--
            ``(A) the lender offers any services to customers or for 
        the convenience of the public, and
            ``(B) any officer of the lender is present in an official 
        capacity.
    ``(4) An officer of a residential mortgage lender that receives 
prepayment in full from a veteran of a loan guaranteed under this 
chapter during business hours shall, immediately upon receipt of the 
prepayment, stamp or otherwise record the date of receipt in the 
records of the lender.
    ``(5) Any cutoff hour established by a residential mortgage lender 
for purposes of determining the date of receipt of prepayment in full 
of a loan shall not apply to prepayment in full by a veteran of a loan 
guaranteed under this chapter.
    ``(6) The manner in which a prepayment may be received by a 
residential mortgage lender shall include electronic transfer of 
funds.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to loans guaranteed by the Secretary of Veterans Affairs on or 
after the date of the enactment of this Act.
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