[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: 38CFR36.4281]

[Page 584]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
          CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS (CONTINUED)
 
PART 36--LOAN GUARANTY--Table of Contents
 
Sec. 36.4281  Refunding of loans in default.

    Upon receiving a notice of default the Secretary may at any time 
prior to the termination of the borrower's interest in the property 
require the holder upon penalty of otherwise losing the guaranty to 
transfer and assign the loan and the security therefor to the Secretary 
or to another designated by him or her upon receipt of payment of the 
balance of the indebtedness remaining unpaid to the date of such 
assignment. Such assignment may be made without recourse but the 
transferor shall not thereby be relieved from the provisions of 
Sec. 36.4286.

[36 FR 1253, Jan. 27, 1971, as amended at 55 FR 37474, Sept. 12, 1990]