[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.4]

[Page 519]
 
            TITLE 38--PENSIONS, BONUSES, AND VETERANS' RELIEF
 
                CHAPTER I--DEPARTMENT OF VETERANS AFFAIRS
 
PART 8a_VETERANS MORTGAGE LIFE INSURANCE--Table of Contents
 
Sec. 8a.4  Coverage.

    (a) The amount of VMLI in force on his or her life at any one time 
shall be reduced simultaneously (1) with the reduction in the principal 
of the mortgage loan, whether or not the mortgage loan is amortized, and 
(2) in addition, if the mortgage loan is amortized, according to the 
schedule for the reduction of the principal of the mortgage loan whether 
or not the schedule payments are timely made.
    (b) If the amount of the mortgage loan exceeds $90,000, or the 
reduced maximum amount of insurance available to an eligible veteran, 
whichever amount is the lesser, the amount of insurance in force on the 
life of the veteran shall remain at a constant level until the principal 
amount of the mortgage loan which is basis for establishing the amount 
of insurance is reduced to $90,000, or to the amount of the reduced 
maximum amount of insurance available to the veteran, at which time the 
amount of insurance in force on his or her life shall be reduced in 
accordance with the schedule for the reduction of the principal of the 
mortgage loan, and whether or not the scheduled payments are timely 
made.
    (c) Subject to the $90,000 maximum amount of insurance, and to the 
reduced maximum amount of insurance available to the eligible veteran, 
he or she is entitled to be insured under VMLI or to apply for such 
insurance as often as he or she becomes obligated under a mortgage loan 
or a refinanced mortgage loan on a housing unit or a successor housing 
unit owned and occupied by the eligible veteran. Where a veteran who is 
not automatically insured under VMLI applies for such insurance, he or 
she shall be required to meet the health standards and other conditions 
established by the Secretary for such insureds.

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

[37 FR 282, Jan. 8, 1972, as amended at 42 FR 43836, Aug. 31, 1977; 52 
FR 48682, Dec. 24, 1987; 59 FR 59921, Nov. 21, 1994; 61 FR 29027, June 
7, 1996]