"(2) If a loan report or application for loan guaranty is received by the Administrator before the date of expiration of the veteran's entitlement, the loan may be guaranteed under this chapter after such date.

“(d) A fee shall be collected from each veteran obtaining a loan guaranteed or made under this section, and no loan shall be guaranteed or made under this section until the fee payable with respect to such loan has been collected and remitted to the Administrator. The amount of the fee shall be established from time to time by the Administrator, but shall in no event exceed one-half of 1 per centum of the total loan amount. The amount of the fee may be included in the loan to the veteran and paid from the proceeds thereof. The Administrator shall deposit all fees collected hereunder in the revolving fund established under the provisions of section 1824 of this title.

"(e) Notwithstanding any of the provisions of this section, a veteran deriving entitlement under this section shall not be required to pay the fee prescribed by subsection (d) and such entitlement shall include eligibility for any of the purposes specified in sections 1813 and 1815, and business loans under section 1814 of this title, if (1) the period of his entitlement to the benefits of this chapter based on service during World War II or the Korean conflict has not expired under section 1803 (a)(3), and (2) he has not used any of his entitlement derived from such service."

(b) The table of sections at the beginning of chapter 37 of such title is amended by inserting immediately below

"1817. Release from liability under guaranty."

the following:

"1818. Veterans who serve after January 31, 1955."

(c) Section 1822 (a) of such title is amended by striking out "or 1813", and inserting in lieu thereof "1813, or 1818".

(d) Section 1803 (c) (1) of title 38, United States Code, is amended by striking out ", with the approval of the Secretary" and all that follows through the end thereof and inserting in lieu thereof the following: "may from time to time find the loan market demands; except that such rate shall in no event exceed that in effect under the provisions of section 203 (b) (5) of the National Housing Act."

(e) Section 1811(d) of such title is amended by striking out "$15,000" each place where it appears therein and inserting in lieu thereof in each such place "$17,500".

(f) (1) Subchapter III of chapter 37 of such title is amended by adding at the end thereof the following new section:

"§ 1826. Withholding of payments, benefits, etc.

"(a) The Administrator shall not, unless he first obtains the consent in writing of an individual, set off against, or otherwise withhold from, such individual any benefits payable to such individual under any law administered by the Veterans' Administration because of liability allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such individual under this chapter.

"(b) No officer, employee, department, or agency of the United States shall set off against, or otherwise withhold from, any veteran or the widow of any veteran any payments (other than benefit payments under any law administered by the Veterans' Administration)

which such veteran or widow would otherwise be entitled to receive because of any liability to the Administrator allegedly arising out of any loan made to, assumed by, or guaranteed or insured on account of, such veteran or widow under this chapter, unless (1) there is first received the consent in writing of such veteran or widow, as the case may be, or (2) such liability and the amount thereof was determined by a court of competent jurisdiction in a proceeding to which such veteran or widow was a party."

(2) The analysis of subchapter III of such chapter 37 is amended by adding at the end thereof the following:

"1826. Withholding of payments, benefits, etc."

JOB COUNSELING

SEC. 6. (a) The heading of chapter 41 of title 38, United States Code, is amended by deleting:

"CHAPTER 41-UNEMPLOYMENT BENEFITS FOR
VETERANS"

and inserting therefore:

"CHAPTER 41-JOB COUNSELING AND EMPLOYMENT PLACEMENT SERVICE FOR VETERANS"

(b) The analyses of title 38, United States Code, and of part III thereof, are amended by deleting:

"41. Unemployment Benefits for Veterans___

and inserting therefor:

"41. Job counseling and Employment Placement Service for Veterans

2001"

2001”

(c) (1) Section 2001 of title 38, United States Code, clauses (3) and (5) of section 2002 of such title, and sections 2003 and 2004 of such title are amended by inserting the phrase "or of service after January 31, 1955" immediately after the phrase "veterans of any war" each time such phrase appears therein.

(2) The first sentence of section 2002 of such title 38 is amended by inserting the phrase "or of service after January 31, 1955” immediately after the phrase "veteran of any war".

(3) Clauses (1) and (4) of section 2002 of such title 38 are amended by inserting the phrase "or of service after January 31, 1955," immediately after the phase "veterans of any war" each time such phrase appears in such clauses.

WARTIME PRESUMPTIONS FOR VETERANS SERVING AFTER JANUARY 31, 1933

SEC. 7. (a) Subchapter IV of chapter 11 of title 38, United States Code, is amended by adding at the end thereof the following new section:

"§ 337. Wartime presumptions for certain veterans

"For the purposes of this subchapter and subchapter V of this chapter and notwithstanding the provisions of sections 332 and 333 of this subchapter, the provisions of sections 311, 312, and 313 of this

chapter shall be applicable in the case of any veteran who served in the active military, naval, or air service after January 31, 1955."

(b) The analysis of such subchapter which appears in such chapter is amended by adding at the end therof the following:

"337. Wartime presumptions for certain veterans."

MEDICAL CARE

SEC. 8. Section 610(a)(1) (B) and section 610(b) (2) of title 38, United States Code, are each amended by inserting "or of service after January 31, 1955," immediately after "veteran of any war".

DECEASED VETERANS-FLAGS

SEC. 9. Section 901 (a) (1) of title 38, United States Code, is amended by striking out "or of Mexican border service" and inserting in lieu thereof ", of Mexican border service, or of service after January 31, 1955".

SOLDIERS' AND SAILORS' CIVIL RELIEF ACT

SEC. 10. Subsection (1) of section 300 of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (50 App. U.S.C. 530), is amended by striking out "$80" and inserting in lieu thereof "$150".

VETERANS' PREFERENCE

SEC. 11. Section 2 of the Veterans' Preference Act of 1944, as amended (5 U.S.C. 851), is amended by striking out "and" at the end of clause (5) and by striking out the period at the end of such section and inserting in lieu thereof a semicolon and the following: "and (7) those ex-service men and women who have served on active duty (as defined in section 101 (21) of title 38, United States Code) at any time in any branch of the Armed Forces of the United States for a period of more than one hundred and eighty consecutive days after January 31, 1955, not including service under the provisions of section 511 (d) of title 10, United States Code, pursuant to an enlistment in the Army National Guard or the Air National Guard or as a Reserve for service in the Army Reserve, Naval Reserve, Air Force Reserve, Marine Corps Reserve, or Coast Guard Reserve, and who have been separated from such Armed Forces under honorable conditions."

EFFECTIVE DATES

SEC. 12. (a) Except as otherwise specifically provided, the provisions of this Act shall take effect on the date of its enactment, but no educational assistance allowance shall be payable under chapter 34 of title 38, United States Code, as added by section 2 of this Act, for any period before June 1, 1966, nor for the month of June 1966, unless (1) the eligible veteran commenced the pursuit of the course of education on or after June 1, 1966, or (2) the pursuit of such course continued through June 30, 1966.

(b) The provisions of section 1765 (b) of title 38, United States Code, as in effect immediately before the enactment of this Act, shall remain in effect through May 31, 1966.

Approved March 3, 1966.

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