[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: 38CFR8a.2]

[Page 517-518]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8a_VETERANS MORTGAGE LIFE INSURANCE--Table of Contents
 
Sec.  8a.2  Maximum amount of insurance.

    (a) Each eligible veteran is authorized up to a maximum of $90,000 
in VMLI to insure his or her life during periods he or she is obligated 
under a mortgage loan, except that, as to an individual housing unit, 
whenever there is a reduction in the actual amount of insurance in force 
as provided for in Sec.  8a.4(a) the amount of VMLI thereafter available 
to insure the life of the same veteran on the same housing unit is 
permanently reduced by a like amount.
    (b) The maximum amount of insurance in force on any one life at one 
time shall not exceed the lesser of the following amounts:
    (1) $90,000.
    (2) For insurance issued prior to December 24, 1987, the reduced 
maximum amount of insurance then available to an eligible veteran.
    (3) The amount of the unpaid principal of the mortgage loan 
outstanding on the date of approval of the grant on a housing unit then 
owned and occupied by the eligible veteran, or on a housing unit being 
or to be constructed or remodeled for the eligible veteran, and such 
initial amount of insurance may be adjusted upward, subject to the 
maximum insurance available to the eligible veteran, or downward, 
depending upon the amount of the mortgage loans outstanding on the date 
of full disbursement of the grant, or on the date of final settlement of 
the purchase, construction, or remodeling agreement, whichever date is 
the later date.

[[Page 518]]

    (4) Where an eligible veteran ceases to own the housing unit which 
was subject to a mortgage loan that resulted in his or her life being 
insured under VMLI, and becomes obligated under a mortgate loan on 
another housing unit occupied or to be occupied by the eligible veteran, 
the amount of the unpaid principal outstanding on the mortgage loan on 
the newly acquired housing unit on the date insurance hereunder is 
placed in effect.
    (5) Where an eligible veteran incurs or refinances a mortgage loan, 
subject to the provisions of paragraph (a) of this section, the amount 
of the incurred or refinanced mortgage loan.
    (6) If title to an undivided interest in a housing unit is or will 
be vested in a person other than the spouse of an eligible veteran, the 
amount of VMLI or his or her life shall be computed to be such part of 
the total of the unpaid principal of the loan outstanding on the housing 
unit as is proportionate to the undivided interest of the veteran in the 
entire property.
    (7) All claims, arising out of the deaths of insured veterans 
occurring prior to October 1, 1976, shall be subject to the $30,000 
lifetime maximum amount of insurance then in effect. All claims, arising 
out of the deaths of insured veterans occurring on or after October 1, 
1976, but prior to December 1, 1992, shall be subject to the $40,000 
lifetime maximum amount of insurance then in effect.
    (8) All claims, arising out of the deaths of insured veterans 
occurring prior to (date of final publication), shall be subject to the 
provisions of paragraph (a) of this section then in effect which limited 
the amount of VMLI coverage to a lifetime maximum per eligible veteran.
    (c) Any eligible veteran who prior to October 1, 1976, was covered 
by $30,000 VMLI and who on that date became eligible to have his or her 
coverage increased may elect to retain the lesser amount of coverage he 
or she had in effect prior to that date.

(Authority: 38 U.S.C. 501, 2106)

[52 FR 48682, Dec. 24, 1987, as amended at 59 FR 59921, Nov. 21, 1994; 
61 FR 29027, June 7, 1996]