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40.650 Veterans' Personal Loan Program.
(1)
(2)
(3)
(4)
As used in this section:
(a) "Department" means the Department of Veterans' Affairs; and
(b) "Veteran" means a person who served in the active Armed Forces of the
United States, including the Coast Guard of the United States, and was
released, separated, discharged, or retired therefrom under honorable or
general conditions.
A veterans' personal loan program trust fund is established to oversee and
administer funds under the Veterans' Personal Loan Program.
(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 of the application.
(b) 1.
As used in this paragraph, "qualified" means having met loan
conditions established by an administrative regulation promulgated
by the department. However, the term of a loan shall not exceed ten
(10) years.
2.
The department shall cause the veterans' personal loan program
trust fund to lend a qualified veteran or deceased veteran's
unremarried spouse not more than ten thousand dollars ($10,000),
or a lesser amount established by an administrative regulation
promulgated by the department, for:
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 a qualified child of a veteran or parent or guardian of that child
not more than ten thousand dollars ($10,000), or a lesser amount
established by an administrative regulation promulgated by the
department, for the education of that child, who is under the age of
twenty-seven (27), at a university, junior college, vocational training
institute, or nonpublic 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, would result in a total indebtedness to the veterans' personal loan
program trust fund of more than ten thousand dollars ($10,000), or a
lesser amount established by an administrative regulation promulgated by
the department.
(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.
2.
3.
4.
5.
(5)
Compromise indebtedness;
Sue and be sued;
Post bonds;
Write off indebtedness that it considers uncollectible;
Exercise the rights of an owner and mortgagee if a loan provided
under 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 other funds both public and private.
b.
Funds received, which are not necessary for the operation of
the veterans' personal loan program trust fund, shall remain
with the department to finance other department operations.
The department shall promulgate administrative regulations necessary to carry
out the provisions of this section.
Effective:July 12, 2006
History: Created 2006 Ky. Acts ch. 108, sec. 1, effective July 12, 2006.
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