US Code

Public Law 119-73 (01/23/2026)

38 U.S.C. § 3720

Powers of Secretary

(a)
Except as provided in subsection (h), notwithstanding the provisions of any other law, with respect to matters arising by reason of this chapter, the Secretary may—
(1)
sue and be sued in the Secretary’s official capacity in any court of competent jurisdiction, State or Federal, but nothing in this clause shall be construed as authorizing garnishment or attachment against the Secretary, the Department of Veterans Affairs, or any of its employees;
(2)
subject to specific limitations in this chapter, consent to the modification, with respect to rate of interest, time of payment of principal or interest or any portion thereof, security or other provisions of any note, contract, mortgage or other instrument securing a loan which has been guaranteed, insured, made or acquired under this chapter;
(3)
pay, or compromise, any claim on, or arising because of, any such guaranty or insurance;
(4)
pay, compromise, waive or release any right, title, claim, lien or demand, however acquired, including any equity or any right of redemption;
(5)
purchase at any sale, public or private, upon such terms and for such prices as the Secretary determines to be reasonable, and take title to, property, real, personal or mixed; and similarly sell, at public or private sale, exchange, assign, convey, or otherwise dispose of any such property; and
(6)
section 3302(b) of title 31 complete, administer, operate, obtain and pay for insurance on, and maintain, renovate, repair, modernize, lease, or otherwise deal with any property acquired or held pursuant to this chapter. The acquisition of any such property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction of, on, or over such property (including power to tax) or impair the rights under the State or local law of any persons on such property. Without regard to or any other provision of law not expressly in limitation of this paragraph, the Secretary may permit brokers utilized by the Secretary in connection with such properties to deduct from rental collections amounts covering authorized fees, costs, and expenses incurred in connection with the management, repair, sale, or lease of any such properties and remit the net balances to the Secretary.
(b)
The powers granted by this section may be exercised by the Secretary without regard to any other provision of law not enacted expressly in limitation of this section, which otherwise would govern the expenditure of public funds, except that division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41 shall apply to any contract for services or supplies on account of any property acquired pursuant to this section.
(c)
The financial transactions of the Secretary incident to, or arising out of, the guaranty or insurance of loans pursuant to this chapter, and the acquisition, management, and disposition of property, real, personal, or mixed, incident to such activities and pursuant to this section, shall be final and conclusive upon all officers of the Government.
(d)
section 2410(c) of title 28 The right to redeem provided for by shall not arise in any case in which the subordinate lien or interest of the United States derives from a guaranteed or insured loan.
(e)
42 U.S.C. 5121 Whenever loss, destruction, or damage to any residential property securing loans guaranteed, insured, made, or acquired by the Secretary under this chapter occurs as the result of a major disaster as determined by the President under the Disaster Relief and Emergency Assistance Act ( et seq.), the Secretary shall (1) provide counseling and such other service to the owner of such property as may be feasible and shall inform such owner concerning the disaster assistance available from other Federal agencies and from State or local agencies, and (2) pursuant to subsection (a)(2) of this section, extend on an individual case basis such forebearance or indulgence to such owner as the Secretary determines to be warranted by the facts of the case and the circumstances of such owner.
(f)
The Secretary shall, at the request of the Secretary of Housing and Urban Development and without reimbursement, certify to such Secretary whether an applicant for assistance under any law administered by the Department of Housing and Urban Development is a veteran.
(g)
The Secretary may, upon such terms and conditions as the Secretary considers appropriate, issue or approve the issuance of, and guarantee the timely payment of principal and interest on, certificates or other securities evidencing an interest in a pool of mortgage loans made in connection with the sale of properties acquired under this chapter.
(h)
section 3732(a)(2) of this titlesection 3732(d) of this title The Secretary may not take any action under paragraph (2), (3), (4), or (5) of subsection (a) in conjunction with the purchase of a loan under unless the Secretary determines the purchase would be made consistent with .

Pub. L. 85–85772 Stat. 1213Pub. L. 88–151, § 177 Stat. 271Pub. L. 88–560, title VII, § 701(e)(1)78 Stat. 800Pub. L. 89–62580 Stat. 874Pub. L. 89–769, § 3(c)80 Stat. 1316Pub. L. 90–448, title VIII, § 807(h)82 Stat. 545Pub. L. 91–606, title II, § 23384 Stat. 1753Pub. L. 92–328, title II, § 20586 Stat. 397Pub. L. 93–288, title VII, § 702ll88 Stat. 164lPub. L. 103–337, div. C, title XXXIV, § 3411(a)(1)108 Stat. 3100Pub. L. 94–324, § 7(24)90 Stat. 722Pub. L. 95–117, title IV, § 403(a)91 Stat. 1066Pub. L. 97–258, § 3(k)(3)96 Stat. 1065Pub. L. 97–295, § 4(67)96 Stat. 1310Pub. L. 98–160, title VII, § 702(14)97 Stat. 1009Pub. L. 99–576, title IV, § 404100 Stat. 3281Pub. L. 100–707, title I, § 109(n)102 Stat. 4709Pub. L. 101–237, title III, § 313(b)(1)103 Stat. 2077Pub. L. 102–54, § 4(a)105 Stat. 268Pub. L. 102–83, § 5(a)105 Stat. 406Pub. L. 102–291, § 5(a)106 Stat. 179Pub. L. 102–547, § 4106 Stat. 3636Pub. L. 104–110, title I, § 101(f)110 Stat. 768Pub. L. 104–275, title II, § 201110 Stat. 3330Pub. L. 105–33, title VIII, § 8011111 Stat. 664Pub. L. 105–368, title VI112 Stat. 3346Pub. L. 106–419, title IV, § 402(a)114 Stat. 1861Pub. L. 107–103, title IV, § 405(b)115 Stat. 994Pub. L. 111–350, § 5(j)(3)124 Stat. 3850Pub. L. 112–154, title VII, § 702(a)126 Stat. 1205Pub. L. 114–228, title IV, § 410130 Stat. 940Pub. L. 115–62, title IV, § 409131 Stat. 1165Pub. L. 115–251, title I, § 123132 Stat. 3169Pub. L. 119–31, § 2(b)139 Stat. 476Pub. L. 119–37, div. G, title III, § 7307(a)139 Stat. 651(, , , § 1820; , , ; , , ; , , ; , , ; , , ; , , ; , , ; (), formerly title VI, § 602(), , , renumbered title VII, § 702(), , (2), , ; –(26), , ; , , ; , , ; , , ; , , ; , , ; , , ; , (2), , ; , , ; renumbered § 3720 and amended , (c)(1), , ; , , ; , , ; , , ; , , ; , , ; , §§ 602(c)(1), 604(a), , , 3348; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , ; , , .)

Editorial Notes

References in Text

42 U.S.C. 5121Pub. L. 93–28888 Stat. 143section 5121 of Title 42The Disaster Relief and Emergency Assistance Act ( et seq.), referred to in subsec. (e), is , , , known as the Robert T. Stafford Disaster Relief and Emergency Assistance Act, which is classified principally to chapter 68 (§ 5121 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under and Tables.

Amendments

Pub. L. 119–31, § 2(b)(1)2025—Subsec. (a). , substituted “Except as provided in subsection (h), notwithstanding” for “Notwithstanding” in introductory provisions.

Pub. L. 119–31, § 2(b)(2)Pub. L. 105–368, § 602(c)(1)Subsecs. (e) to (g). , redesignated subsecs. (f) to (h) as (e) to (g), respectively. Former subsec. (e) had been struck out by .

Pub. L. 119–37section 3732(a)(2) of this titlesection 3732(d) of this titlesection 3732(d) of this titleSubsec. (h). substituted “of subsection (a) in conjunction with the purchase of a loan under unless the Secretary determines the purchase would be made consistent with .” for “of subsection (a) with respect to a loan guaranteed under this chapter before the completion of the sequence of mitigation options offered to the veteran to whom the loan is made under .”

Pub. L. 119–31, § 2(b)(3), added subsec. (h). Former subsec. (h) redesignated (g).

Pub. L. 115–2512018—Subsec. (h). struck out par. (1) designation before “The Secretary may, upon” and struck out par. (2) which read as follows: “The Secretary may not under this subsection guarantee the payment of principal and interest on certificates or other securities issued or approved after .”

Pub. L. 115–622017—Subsec. (h)(2). substituted “” for “”.

Pub. L. 114–2282016—Subsec. (h)(2). substituted “” for “”.

Pub. L. 112–1542012—Subsec. (h)(2). substituted “” for “”.

Pub. L. 111–35041 U.S.C. 2512011—Subsec. (b). substituted “division C (except sections 3302, 3501(b), 3509, 3906, 4710, and 4711) of subtitle I of title 41” for “title III of the Federal Property and Administrative Services Act of 1949 ( et seq.)”.

Pub. L. 107–1032001—Subsec. (h)(2). substituted “” for “”.

Pub. L. 106–4192000—Subsec. (h)(2). substituted “” for “”.

Pub. L. 105–368, § 604(a)41 U.S.C. 25141 U.S.C. 51998—Subsec. (b). , substituted “, except that title III of the Federal Property and Administrative Services Act of 1949 ( et seq.) shall apply to any contract for services or supplies on account of any property acquired pursuant to this section.” for “; however, section 3709 of the Revised Statutes () shall apply to any contract for services or supplies on account of any property acquired pursuant to this section if the amount of such contract exceeds the amount prescribed in clause (1) of the first sentence of such section.”

Pub. L. 105–368, § 602(c)(1)Subsec. (e). , struck out subsec. (e), which authorized Secretary to set aside first mortgage loans and installment sales contracts owned or held by Secretary under this chapter as basis for sale of participation certificates, authorized agreements, including trust agreements, for this purpose, and set forth provisions relating to allocation, deposit, and set aside of proceeds.

Pub. L. 105–331997—Subsec. (h)(2). substituted “” for “”.

Pub. L. 104–2751996—Subsec. (h)(2). substituted “” for “”.

Pub. L. 104–110 substituted “” for “”.

Pub. L. 102–5471992—Subsec. (h). substituted “” for “” in par. (2).

Pub. L. 102–291 added subsec. (h).

Pub. L. 102–83, § 5(a)section 1820 of this title1991—, renumbered as this section.

Pub. L. 102–83, § 5(c)(1)Subsec. (e)(2). , substituted “3723 and 3724” for “1823 and 1824” in two places.

Pub. L. 102–54Subsec. (g). added subsec. (g).

Pub. L. 101–2371989—Subsecs. (a) to (c), (e), (f). substituted “Secretary”, “Secretary’s”, and “Department of Veterans Affairs” for “Administrator”, “Administrator’s”, and “Veterans’ Administration”, respectively, wherever appearing.

Pub. L. 100–7071988—Subsec. (f). substituted “and Emergency Assistance Act” for “Act of 1974”.

Pub. L. 99–5761986—Subsec. (b). substituted “the amount prescribed in clause (1) of the first sentence of such section” for “$1,000”.

Pub. L. 98–1601983—Subsec. (a)(6). struck out comma after “title 31”.

Pub. L. 98–16041 U.S.C. 5section 5 of title 41Subsec. (b). substituted “section 3709 of the Revised Statutes ()” for “”.

Pub. L. 97–258section 3302(b) of title 3131 U.S.C. 4841982—Subsec. (a)(6). substituted “” for “section 3617, Revised Statutes ()”.

Pub. L. 97–29542 U.S.C. 5121Subsec. (f). inserted “( et seq.)” after “the Disaster Relief Act of 1974”.

Pub. L. 95–1171977—Subsec. (a)(1). inserted prohibition relating to garnishment or attachment against the Administrator, etc.

Pub. L. 94–324, § 7(24)1976—Subsec. (a)(1). , substituted “the Administrator’s” for “his”.

Pub. L. 94–324, § 7(24)Subsec. (a)(5). , substituted “the Administrator” for “he”.

Pub. L. 94–324, § 7(25)Subsec. (a)(6). , substituted “utilized by the Administrator” for “utilized by him”.

Pub. L. 94–324, § 7(26)Subsec. (e)(1). , substituted “the Administrator determines” for “he determines”, “by the Administrator” for “by him”, “the Administrator shall periodically” for “he shall periodically”, “set aside by the Administrator” for “set aside by him”, “the Administrator’s commitment” for “his commitment”, and “to pay the Administrator’s” for “to pay his”.

Pub. L. 94–324, § 7(26)Subsec. (e)(2). , substituted “as the Administrator determines” for “as he determines”.

Pub. L. 93–2881974—Subsec. (f). substituted “Disaster Relief Act of 1974” for “Disaster Assistance Act of 1970.”

Pub. L. 92–3281972—Subsec. (a)(4). struck out provisions relating to the authority to waive or release claims, including partial or total waiver of payment, following default and loss of property.

Pub. L. 91–606, § 233(1)1970—Subsec. (a)(2). , substituted “a loan which has been guaranteed, insured, made or acquired under this chapter” for “a loan which has been guaranteed or insured under this chapter”.

Pub. L. 91–606, § 233(2)Subsec. (f). , directed the Administrator in major disaster areas to provide the owner of property lost, destroyed, or damaged as the result of a major disaster with counseling and other services, to inform him of disaster assistance available from other Federal, state, or local agencies and to extend such forbearance on an individual case basis as he determines to be warranted by the facts of the case.

Pub. L. 90–4481968—Subsec. (e)(1). substituted “Government National Mortgage Association” for “Federal National Mortgage Association” wherever appearing.

Pub. L. 89–6251966—Subsec. (a)(6). authorized brokers utilized by Administrator in connection with properties acquired or held pursuant to this chapter to deduct from rental collections amounts covering authorized fees, costs, and expenses incurred in connection with management, repair, sale, or lease of properties and to remit the net balances to Administrator.

Pub. L. 89–769Subsec. (f). added subsec. (f).

Pub. L. 88–5601964—Subsec. (e). added subsec. (e).

Pub. L. 88–1511963—Subsec. (a)(4). provided for waiver of indebtedness to the United States in certain cases arising out of default on loans guaranteed or made by the Veterans’ Administration.

Statutory Notes and Related Subsidiaries

Effective Date of 1998 Amendment

section 602(c)(1) of Pub. L. 105–368section 602(f) of Pub. L. 105–368section 2106 of this titleAmendment by effective , see , set out as a note under .

Pub. L. 105–368, title VI, § 604(b)112 Stat. 3348

section 3720 of title 38“The amendment made by subsection (a) [amending this section] shall apply with respect to contracts entered into under , United States Code, after the end of the 60-day period beginning on the date of the enactment of this Act [].”
, , , provided that:

Effective Date of 1977 Amendment

Pub. L. 95–117, title IV, § 403(b)91 Stat. 1066

“The amendment made by subsection (a) of this section [amending this section] shall be effective on the date of enactment of this Act [].”
, , , provided that:

Effective Date of 1976 Amendment

Pub. L. 94–324section 9(a) of Pub. L. 94–324section 3701 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1974 Amendment

Pub. L. 93–288section 605 of Pub. L. 93–288section 5121 of Title 42Amendment by effective , see , formerly set out as an Effective Date note under , The Public Health and Welfare.

Effective Date of 1972 Amendment

Pub. L. 92–328section 301(c) of Pub. L. 92–328section 3713 of this titleAmendment by effective , see , set out as a note under .

Effective Date of 1970 Amendment

Pub. L. 91–606section 304 of Pub. L. 91–606section 165 of Title 26Amendment by effective , see , set out as a note under , Internal Revenue Code.

Effective Date of 1968 Amendment

Pub. L. 90–448section 808 of Pub. L. 90–448section 1716b of Title 12Amendment by effective from and after a date, no more than 120 days following , as established by the Secretary of Housing and Urban Development, see , set out as an Effective Date note under , Banks and Banking.

Effective Date of 1966 Amendment

Pub. L. 89–769section 14 of Pub. L. 89–769Amendment by applicable with respect to any major disaster occurring after , see .

Ratification of Actions During Period of Expired Authority

Pub. L. 104–110section 103 of Pub. L. 104–110section 1710 of this titleAny action taken by Secretary of Veterans Affairs before , under provision of law amended by title I of that was taken during period beginning on date on which authority of Secretary under such provision of law expired and ending on , considered to have same force and effect as if such amendment had been in effect at time of that action, see , set out as a note under .

Property Management

Pub. L. 100–198, § 9101 Stat. 1320Pub. L. 102–40, title IV, § 402(d)(2)105 Stat. 239Pub. L. 102–83, § 6(i)105 Stat. 408, , , as amended by , , ; , , , provided for programs under which the Secretary could (1) convey to nonprofit entities or to States or political subdivisions of States real property or improvements to real property acquired by the Secretary as the result of a default of a loan made under this chapter to use the properties to provide shelter for homeless veterans and their families, or (2) convey such properties to entities for use in job training programs for property rehabilitation and later sale to homeless veterans. Authority to carry out the programs terminated on .

Housing Solar Energy and Weatherization Study; Report Not Later Than

Pub. L. 95–202, title III, § 31191 Stat. 1449, , , directed Administrator of Veterans’ Affairs, in consultation with Secretary of Energy and Secretary of Housing and Urban Development, to conduct a study to determine the most effective methods of using the programs carried out under, or amending provisions of, this chapter in order to aid and encourage present and prospective veteran homeowners to install solar heating and cooling in their homes and to apply residential energy conservation measures and that a report on such study be submitted to Congress not later than .

Waiver of Indebtedness; Report to Congress

Pub. L. 88–151, § 277 Stat. 271

“The Administrator of Veterans’ Affairs shall submit to the Committee on Labor and Public Welfare of the Senate and the Committee on Veterans’ Affairs of the House of Representatives, not later than December 31 of each year, a written report concerning each case in which a waiver of indebtedness has been made under the authority of the amendment made by the first section of this Act [amending subsec. (a)(4) of this section]. Such report shall include, together with such other information as the Administrator deems appropriate, the name and address of each person with respect to which a waiver of indebtedness has been made and the total amount of such waiver.”
, , , provided that:

Administration of Trusts by Federal National Mortgage Association

section 6(a) of Pub. L. 89–429section 1717 of Title 12Provision for participation sales and administration of trusts by Federal National Mortgage Association not to be construed as a repeal or modification of the provisions of former subsection (e) of this section respecting the authority of the Administrator of Veterans’ Affairs, see , set out as a note under , Banks and Banking.