[Code of Federal Regulations]
[Title 38, Volume 1]
[Revised as of January 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 38CFR11.77]

[Page 541-542]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 11_LOANS BY BANKS ON AND PAYMENT OF ADJUSTED SERVICE 
 
Sec.  11.77  By whom loans may be made.

    Any national bank or any bank or trust company incorporated under 
the laws of any State, Territory, possession, or the District of 
Columbia, hereinafter referred to as any bank, is authorized to loan to 
any veteran upon his promissory note secured by his Adjusted Service 
Certificate any amount not in excess of the loan value of the 
certificate at the date the loan is made. Each certificate contains on 
its face a table for determining the loan value of the certificate, but 
it is provided by amendment to the World War Adjusted Compensation Act 
dated February 27, 1931, that the loan value of any certificate shall at 
no time be less than 50 percent of the face value. Upon the making of 
such loan, the lending bank shall promptly notify the Department of 
Veterans Affairs of the name of the veteran, the A-number shown

[[Page 542]]

immediately after the name, the number of the certificate, the amount, 
the rate of interest, and date of loan: However, this requirement may be 
waived by the Secretary of Veterans Affairs.