[Code of Federal Regulations]
[Title 38, Volume 2]
[Revised as of July 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR36.4202]

[Page 543-545]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4202  Definitions.

    Wherever used in 38 U.S.C. 3712 or the Sec. 36.4200 series, unless 
the context otherwise requires, the terms defined in this section shall 
have the meaning herein stated.
    Automatic lender. A lender that may process a loan or assumption 
without submitting the credit package to the Department of Veterans 
Affairs for underwriting review. Pursuant to 38 U.S.C. 3702(d) there are 
two categories of lenders who may process loans automatically: (1) 
Entities such as banks, savings and loan associations, and mortgage and 
loan companies that are subject to examinations by an agency of the 
United States or any State and (2) lenders approved by the Department of 
Veterans Affairs pursuant to standards established by the Department of 
Veterans Affairs.


(Authority: 38 U.S.C. 3702(d))

    Credit package. Any information, report of verifications used by a 
lender, holder or authorized servicing agent to determine the 
creditworthiness of an applicant for a Department of Veterans Affairs 
guaranteed loan or the assumer of such a loan.


(Authority: 38 U.S.C. 3710 and 3714)

    Date of first uncured default. The due date of the earliest payment 
not fully satisfied by the proper application or available credits or 
deposits.
    Default. Failure of a borrower to comply with the terms of a loan 
agreement.
    Guaranty. The obligation of the United States, assumed by virtue of 
38 U.S.C. 3712, to repay a specified percentage of a loan upon default 
of the primary debtor, which guaranty payment shall be made after 
liquidation of the security for the loan and an accounting with the 
Secretary.
    Holder. The lender or any subsequent assignee or transferee of the 
guaranteed obligation or the authorized servicing agent of the lender or 
of the assignee or transferee if the obligation has been assigned or 
transferred.
    Indebtedness. The unpaid principal and interest plus any other 
amounts allowable under the terms of a loan including those authorized 
by statute

[[Page 544]]

and consistent with the Sec. 36.4200 series, which have been paid and 
debited to the loan account. Unpaid late charges may not be included in 
the indebtedness.
    Lender. The payee or assignee or transferee of an obligation at the 
time it is guaranteed. This term also includes any sole proprietorship, 
partnership, or corporation and the owners, officers, and employees of a 
sole proprietorship, partnership, or corporation engaged in the 
origination, procurement, transfer, servicing, or funding of a loan 
which is guaranteed by VA.


(Authority: 38 U.S.C. 3704(d), 3712(g))

    Lien. Any interest in, or power over, real or personal property, 
reserved by the vendor, or created by the parties or by operation of 
law, chiefly or solely for the purpose of assuring the payment of the 
purchase price, or a debt, and irrespective of the identity of the party 
in whom title to the property is vested, including but not limited to 
mortgages, deeds with a defeasance therein or collaterally, deeds of 
trust, security deeds, security instruments, mechanics' liens, lease-
purchase contracts, conditional sales contracts, consignments.
    Loan. Unpaid principal balance plus unpaid earned interest due under 
the terms of the obligation.
    Lot. A parcel of land acceptable to the Secretary as a manufactured 
home site.
    Manufactured home. A movable dwelling unit designed and constructed 
for year-round occupancy on land by a single family, which dwelling unit 
contains permanent eating, cooking, sleeping, and sanitary facilities. A 
double-wide manufactured home is a movable dwelling designed for 
occupancy by one family consisting of (1) two or more units intended to 
be joined together horizontally when located on a site, but capable of 
independent movement or (2) a unit having a section or sections which 
unfold along the entire length of the unit.
    Manufacturer's invoice. A document, issued by a manufacturer and 
provided with a manufactured home to a retail dealer, acceptable in form 
and content to the Secretary which indicates the wholesale (base) price 
at the factory of the manufactured home model or series including any 
furnishings, equipment and accessories installed by the manufacturer, 
net of all rebates to the dealer. The following certification or a 
reasonable facsimile thereof, signed by an authorized representative of 
the manufacturer, must appear on the invoice:
    ``The undersigned certifies that the manufacturer's invoice price 
shown on this invoice reflects the dealer's cost at point of 
manufacture, exclusive of any and all freight or transportation charges, 
net of any and all discounts, bonuses, refunds, rebates (including 
volume rebates), prizes or anything of value which will inure to the 
benefit of the dealer at the time of purchase or at any future date.''
    Necessary site preparation. Those improvements essential to render a 
manufactured home site acceptable to the Secretary including, but not 
limited to, the installation of utility connections, sanitary facilities 
and paving, and the construction of a suitable pad.
    New manufactured home. A manufactured home which, at the time of 
purchase by the veteran-borrower, has not been previously occupied and 
was manufactured less than 1 year prior to the date of application to 
the Department of Veterans Affairs for loan guaranty.


(Authority: Sec. 406, Pub. L. 97-306)

    Reasonable value means that figure which represents the amount a 
reputable and qualified appraiser, unaffected by personal interest, 
bias, or prejudice, would recommend to a prospective purchaser as a 
proper price or cost in the light of prevailing conditions.
    Repossession--repossessed means recovery or acquisition of such 
physical control of property (pursuant to the provisions of the security 
instrument or as otherwise provided by law) as to make further legal or 
other action unnecessary in order to obtain actual possession of the 
property or to dispose of the same by sale or otherwise.
    Resale means sale of the property by the holder to a third party for 
the purpose of liquidating the security for the loan after having 
acquired the property by repossession, public or private sale, or by any 
other means.

[[Page 545]]

    Secretary. The Secretary of Veterans Affairs, or any employee of the 
Department of Veterans Affairs authorized to act in the Secretary's 
stead.
    Servicing agent. An agent designated by the loan holder as the 
entity to collect installments on the loan and/or perform other 
functions as necessary to protect the interests of the holder.


(Authority: 38 U.S.C. 3714)


Used manufactured home. A manufactured home which has been previously 
occupied or which was manufactured more than 1 year prior to date of 
loan application.
    Wholesale (base) price list. The price list(s) as periodically 
amended, published and distributed by a home manufacturer to all retail 
dealers in a given marketing area, quoting the actual wholesale (base) 
price at the factory for specific models or series of manufactured 
homes, itemized options, itemized furniture, and specialty items offered 
for sale to such dealers during a specified period of time. All such 
wholesale (base) prices shall exclude any costs of trade association 
fees or charges, discounts, refunds, rebates, prizes, loan discount 
points or other financing charges, or anything else of more than a 
nominal value of $10 which will inure to the benefit of a dealer and/or 
home purchaser at any date, as required to be disclosed in the 
manufacturer's invoice. Each price list and amendment shall be retained 
by the manufacturer for a minimum period of six years from the date of 
publication to be available to VA and other Federal agencies upon 
request.

[36 FR 1253, Jan. 27, 1971, as amended at 40 FR 13212, Mar. 25, 1975; 43 
FR 37197, Aug. 22, 1978; 44 FR 22723, Apr. 17, 1979; 48 FR 40227, Sept. 
6, 1983; 50 FR 13193, Apr. 3, 1985; 54 FR 34988, Aug. 23, 1989; 55 FR 
37471, Sept. 12, 1990; 58 FR 29114, May 19, 1993; 58 FR 37858, July 14, 
1993]

                           general provisions