40.650 Veterans' Personal Loan Program.
506 words·~2 min read·
/ky/chapter-40/40-650A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)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.
(2)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. Compromise indebtedness;
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
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.
(5)The department shall promulgate administrative regulations necessary to carry out
the provisions of this section.