[Federal Register Volume 59, Number 244 (Wednesday, December 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-31266]


[[Page Unknown]]

[Federal Register: December 21, 1994]


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DEPARTMENT OF VETERANS AFFAIRS

38 CFR Part 8

RIN 2900-AH03

 

National Service Life Insurance

AGENCY: Department of Veterans Affairs.

ACTION: Final regulation.

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SUMMARY: This document amends the Department of Veterans Affairs (VA) 
regulations regarding National Service Life Insurance (NSLI) to provide 
that when an interest rate change is required on an NSLI variable rate 
loan the effective date of the new interest rate will be on or after 
the first day of October on which the rate change is made in the 
insurance automatic data processing system, and that such new rate 
shall remain in effect for not less than one year after the date of 
establishment. This action is being taken to allow sufficient time to 
make all necessary modifications to the Insurance ADP system without 
any adverse impact on NSLI policyholders and VA.

EFFECTIVE DATE: October 1, 1994.

FOR FURTHER INFORMATION CONTACT: Mr. Gregory Hosmer, Senior Insurance 
Specialist/Attorney, Department of Veterans Affairs Regional Office and 
Insurance Center, P.O. Box 8079, Philadelphia, Pennsylvania 19101, 
(215) 951-5710.

SUPPLEMENTARY INFORMATION: On page 45254 of the Federal Register of 
September 1, 1994, VA published a proposed regulatory amendment to 
provide that when an interest rate change is required on an NSLI 
variable rate loan the effective date of the new interest rate will be 
on or after the first day of October on which the rate change is made 
in the Insurance Automatic Data Processing system, and that such new 
rate shall remain in effect for not less than one year after the date 
of establishment.
    Interested parties were given 30 days in which to submit written 
comments, suggestions or objections regarding the proposed amendment. 
No written comments were received and the proposed amendment is hereby 
adopted without change as set forth below.
    The Secretary of Veterans Affairs hereby certifies that this final 
regulation will not have a significant economic impact on a substantial 
number of small entities as they are defined in the Regulatory 
Flexibility Act (RFA), 5 U.S.C. 601-612. Pursuant to 5 U.S.C. 605(b), 
this final regulation is, therefore, exempt from the initial and final 
regulatory analyses requirements in sections 603 and 604. The reason 
for this certification is that this final regulation will affect only 
certain Government life insurance policyholders. It will, therefore, 
have no significant direct impact on small entities in terms of 
compliance costs, paperwork requirements, or effects on competition.
    The Catalog of Federal Domestic Assistance program number for this 
regulation is 64.103.

List of Subjects in 38 CFR Part 8

    National Service Life Insurance.

    Approved: December 7, 1994.
Jesse Brown,
Secretary of Veterans Affairs.
    For the reasons set out in the preamble, 38 CFR part 8 is amended 
as set forth below.

PART 8--NATIONAL SERVICE LIFE INSURANCE

    1. The authority citation for Part 8 continues to read as follows:

    Authority: 38 U.S.C. 501, 1901-1924, 1981-1988, unless otherwise 
noted.

    2. In Sec. 8.28(c) the second sentence is removed and the following 
is added in place thereof:


Sec. 8.28  Policy loans.

* * * * *
    (c) * * * Such loan rate shall be effective on the date on or after 
the first day of October on which the rate change is made in the 
insurance automatic data processing system, and shall remain in effect 
for not less than one year after the date of establishment. * * *

[FR Doc. 94-31266 Filed 12-20-94; 8:45 am]
BILLING CODE 8320-01-P