[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: 38CFR6.13]

[Page 494]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 6_UNITED STATES GOVERNMENT LIFE INSURANCE--Table of Contents
 
Sec.  6.13  Policy loans.

    At any time after the first policy year and upon the execution of a 
loan agreement satisfactory to the Secretary the United States will lend 
to the insured on the sole security of his/her United States Government 
Life Insurance policy any amount which shall not exceed 94 percent of 
the cash value, and any indebtedness shall be deducted from the amount 
advanced on such loan. The loan shall bear interest at a rate not to 
exceed 5 percent per annum, payable annually, and the loan may be repaid 
in full or in amounts of $5 or more. Failure to pay either the amount of 
the loan or the interest thereon shall not void the policy unless the 
total indebtedness shall equal or exceed the cash value thereof. When 
the amount of the indebtedness equals or exceeds the cash value, the 
policy shall cease and become void.

(Authority: 38 U.S.C. 1944)

[48 FR 1963, Jan. 17, 1983. Redesignated and amended at 61 FR 29025, 
June 7, 1996]

                               Cash Value