40.650 Veterans' Personal Loan Program.
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40.650 Veterans' Personal Loan Program.
(1) As used in this section:
(a) "Department" means the Department of Veterans' Affairs; and <br>(b) "Veteran" means a person who served in the active Armed Forces of the
United States, including the Coast Guard of the United States, and was <br>released, separated, discharged, or retired therefrom under honorable or <br>general conditions.
(2) A veterans' personal loan program trust fund is established to oversee and
administer funds under the Veterans' Personal Loan Program.
(3) (a) To be eligible for a loan under the Veterans' Personal Loan Program, an
applicant shall be a resident of, and living in, the Commonwealth on the date <br>of the application.
(b) 1.
As used in this paragraph, "qualified" means having met loan conditions <br>established by an administrative regulation promulgated by the <br>department. However, the term of a loan shall not exceed ten (10) years.
2.
The department shall cause the veterans' personal loan program trust <br>fund to lend a qualified veteran or deceased veteran's unremarried <br>spouse not more than ten thousand dollars ($10,000), or a lesser amount <br>established by an administrative regulation promulgated by the <br>department, for: <br>a.
The purchase of a home, business, or business property;
b.
The education of the loan applicant or the loan applicant's spouse;
c.
The payment of family medical or funeral expenses; or
d.
The consolidation of debt.
3.
The department shall cause the veterans' personal loan trust fund to lend <br>a qualified child of a veteran or parent or guardian of that child not more <br>than ten thousand dollars ($10,000), or a lesser amount established by an <br>administrative regulation promulgated by the department, for the <br>education of that child, who is under the age of twenty-seven (27), at a <br>university, junior college, vocational training institute, or nonpublic <br>school admitting children in preschool through grade twelve (12).
(c) No person shall receive a loan under this section in an amount that, when
added to the balance of the person's existing loan or loans under this section, <br>would result in a total indebtedness to the veterans' personal loan program <br>trust fund of more than ten thousand dollars ($10,000), or a lesser amount <br>established by an administrative regulation promulgated by the department.
(4) (a) The veterans' personal loan program trust fund shall:
1.
Execute necessary instruments; and
2.
Collect principal and interest.
(b) The veterans' personal loan program trust fund may:
1.
Compromise indebtedness;
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2.
Sue and be sued;
3.
Post bonds;
4.
Write off indebtedness that it considers uncollectible;
5.
Exercise the rights of an owner and mortgagee if a loan provided under <br>this section is secured by a real estate mortgage;
6.
Charge to a loan applicant loan expenses incurred under this section; and
7.
a.
Receive state appropriations, gifts, grants, federal funds, and any <br>other funds both public and private.
b.
Funds received, which are not necessary for the operation of the <br>veterans' personal loan program trust fund, shall remain with the <br>department to finance other department operations.
(5) The department shall promulgate administrative regulations necessary to carry out
the provisions of this section.
Effective: July 12, 2006 <br>History: Created 2006 Ky. Acts ch. 108, sec. 1, effective July 12, 2006.
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