[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3413 Introduced in House (IH)]

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108th CONGRESS
  1st Session
                                H. R. 3413

  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.


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                    IN THE HOUSE OF REPRESENTATIVES

                            October 30, 2003

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

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                                 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 2003''.

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 tendered at a business location of a 
residential mortgage lender, a prepayment received on a calender day 
during any business hour of that business location shall be treated as 
being received on that day.
    ``(3) For purposes of this subsection, a business hour of a 
business location of a residential mortgage lender at which prepayment 
in full is tendered includes any business hour of that business 
location during which--
            ``(A) the business location offers any services to 
        customers or for the convenience of the public, and
            ``(B) any officer of the lender at that business location 
        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 at a business location of that lender 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 
at any business location of the 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)(A) The provisions of this subsection shall apply to 
prepayments in full that satisfy in full the obligation of the veteran 
under the loan guaranteed under this chapter through such means as 
cash, a cashier's check, a certified check, electronic transfer of 
funds, or such other means routinely accceptable for payment by the 
residential mortgage lender.''.
    (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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