part of their apprentice or other training on the job at institutions, business or other establishments, shall be entitled to receive such lesser sums, if any, as subsistence or dependency allowances, as may be determined by the Administrator: Provided, That any such person eligible under this part, and within the limitations thereof, may pursue such full-time or part-time course or courses as he may elect, without subsistence allowance: And provided further, That in no event shall subsistence allowance be paid in an amount which in addition to pension or retirement pay would exceed the amount payable under part VII.

"7. Any person eligible for education or training under this part, who is also eligible for vocational rehabilitation under part VII, may elect either benefit or may be provided an approved combination of such courses: Provided, That the total period of any such combined coures shall not exceed the maximum period or limitations under the part elected."

SEC. 5. Paragraph 3, part VIII, Veterans Regulation Numbered 1 (a), is amended by inserting "(a)" after the paragraph number and by adding subparagraphs (b) and (c) to read as follows:

"(b) Any such eligible person may elect in lieu of the benefits provided in (a), a short intensive postgraduate or vocational training course: Provided, That except as to schools and institutions supported by public funds or exempt from taxation under section 101 (6) of the Internal Revenue Code, the Administrator shall have the authority to approve such courses and the schools offering same if he finds that the school is properly equipped for such purposes and that the agreed rates for material and instructions are reasonable and fair for the service rendered and exclusive of any overhead, advertising, or selling expenses: Provided further, That for purposes of paragraph 5 such course shall be deemed the equivalent of one ordinary school year of education or training.

"(c) Any such eligible person may elect, in lieu of the benefits provided in (a) or (b) of this paragraph, a course of instruction by correspondence without any maintenance allowance: Provided, (1) That the course is a continuation of one undertaken prior to or during service, or is approved by his employer, if any, or the Administrator; (2) that the course is one scheduled by an approved public institution or one exempt from taxation under section 101 (6) of the Internal Revenue Code; or (3) that the course is one given by a private or proprietary correspondence school approved by the Administrator as equipped to give vocational training courses, and that the rates for material and instruction are found by the Administrator to be reasonable and fair for service rendered and exclusive of any overhead, advertising, or selling expenses: Provided further, That for purposes of paragraph 5 an elapsed calendar year, regardless of the number of lessons completed, shall be deemed the equivalent of one-half ordinary school year of education or training: And provided further, That nothing herein shall be construed to preclude the use of approved correspondence courses as a minor part of institutional or job training, subject to regulations prescribed by the Administrator."

SEC. 6. That paragraph 5, part VIII, Veterans Regulation Numbered 1 (a), be amended to read as follows:

"5. (a) The Administrator shall pay to the educational or training institution for each person enrolled in full-time or part-time course of education or training the customary cost of tuition, and such laboratory, library, health, infirmary, and other similar fees as are customarily charged, and may pay for books, supplies, equipment, and other necessary expenses, exclusive of board, lodging, other living expenses and travel as are generally required for the successful pursuit and completion of the course by other students in the institution: Provided, That in no event shall such payments with respect to any person exceed $500 for an ordinary school year: Provided further, That no payments shall be made to institutions, business, or other establishments furnishing apprentice training on the job: And provided further, That any such institution may apply to the Administrator for an adjustment of fees and the Administrator, if he finds that the customary charges are insufficient to permit the institutions to furnish education or training to eligible veterans or inadequate compensation therefor, may provide by regulation or agreement for the payment of such fair and reasonable compensation as will not exceed the actual cost of teaching personnel and supplies for instruction, nor exceeding $500 for an ordinary school year, inclusive of all charges and supplies, and may in like manner readjust such payments from time to time in consideration of increased or decreased enrollment and available contributions to meet such cost, whether from public or private funds. No amount in excess of the customary fees shall be charged to

the veteran under the provisions of section 1505, Public Law Numbered 346, Seventy-eighth Congress, June 22, 1944.

"(b) For the purpose of paragraph 5, an ordinary school year shall mean an academic year of not less than thirty nor more than thirty-eight weeks of fulltime class instruction or the equivalent thereof: Provided, That for a short intensive postgraduate, vocational, or trade course there may be paid the regularly established rates therefor, if approved by the Administrator, subject to the limitations of said paragraph, and such course shall be deemed to constitute an ordinary school year.

SEC. 7. This Act shall be effective from the date of its approval: Provided, That the monthly rates of pension provided in paragraph 3 of part VII of Veterans Regulation Numbered (a), as amended by section 3 of this Act, shall be effective the first day of the second month following the month in which this Act is enacted.

[S. 1031, 79th Cong., 1st sess.]

A BILL To amend paragraph 3 of part VII of Veterans Regulation Numbered 1 (a), as amended, so as to increase the basic monthly allowance to handicapped veterans while receiving vocational training and to provide uniform increases of pension or compensation for veterans with service-connected disabilities who have dependents

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph 3 of part VII of Veterans Regulation Numbered 1 (a), as amended, is amended by striking out that part which precedes the colon and substituting in lieu thereof the following:

"3. While pursuing training prescribed herein, and for two months after his or her employability is determined, each veteran, if entitled to pension in an amount.less than the amount payable in accordance with the rate provided for total disability in paragraph 2, part I, of Veterans Regulation Numbered 1 (a), as now or hereafter amended, including additional pension for dependents otherwise authorized by law, shall be paid increased pension which, when added to the amount of pension to which he is otherwise entitled, will equal such higher amount."

SEC. 2. That any person entitled to pension or compensation for service-connected disability under laws administered by the Veterans' Administration shall be entitled to additional pension or compensation for dependents in the following monthly amounts:

(1) If and while rated totally disabled and(a) has a wife but no child living, $25;

(b) has a wife and one child living $40;

(c) has a wife and two children living, $52, and $10 for each additional

child;

(d) has no wife but one child living, $15;

(e) has no wife but two children living, $27, and $10 for each additional child;

(f) has a mother or father, either or both dependent upon him for support, then in addition to the above amounts, $10 for each parent so dependent. (2) If and while rated partially disabled, in an amount having the same ratio to the amount specified in subsection (1) hereof as the degree of his disability bears to total disability: Provided, That no person shall receive additional compensation or pension for dependents under any other law over the same period that any additional amount provided in (1) or (2) hereof is paid.

[S. 1324, 79th Cong., 1st sess.]

A BILL To amend title V of the Servicemen's Readjustment Act of 1944

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (b) of section 700 of the Servicemen's Readjustment Act of 1944 is amended by striking out clause (1) of such subsection, and by renumbering clauses (2), (3), and (4) thereof as clauses (1), (2), and (3), respectively.

SEC. 2. Subsection (a) of section 902 of such Act is amended to read as follows: "(a) Any person qualified under subsection (a) of section 700, who is selfemployed for profit in an independent establishment, trade, business, profession,

or other vocation and who either (1) is residing in the United States, or (2) is carrying on such establishment, trade, business, profession, or other vocation within the United States, shall be eligible for readjustment allowances under this title within the time periods applicable, and not in excess of the total amount provided in this title."

[S. 738, 79th Cong., 1st sess.]

A BILL To amend title III, Servicemen's Readjustment Act of 1944

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 500 of title III of the Servicemen's Readjustment Act of 1944 be amended by substituting "five" for "two" and "seven" for "five" in the second sentence, and by adding a subsection (d) as follows:

"(d) Notwithstanding the interest limitation a loan bearing a service charge of not to exceed 1% per centum per annum of the original principal amount may be guaranteed for any of the purposes, other than real-estate loans, specified in sections 502 or 503 hereof, provided it has a maturity of not more than five years.

SEC. 2. That the first clause of section 502 of the Servicemen's Readjustment Act of 1944 be amended to read as follows:

"SEC. 502. Any application made under this title for the guaranty of a loan to be used in purchasing any land, buildings, livestock, equipment, machinery, supplies, or implements, or in constructing, repairing, altering, or improving any buildings or equipment, to be used in farming operations conducted by the applicant, may be approved by the Administratof of Veterans' Affairs if he finds-." SEC. 3. That the first clause of section 503 of the Servicemen's Readjustment Act of 1944 and subsection (1) thereof be amended to read as follows: "SEC. 503. (a) Any application made under this title for the guaranty of a loan for

"(a) purchasing any business, land, buildings, supplies, equipment, machinery, merchandise, or tools,

"(b) constructing, altering, or repairing any property to be used in connection therewith,

to be used by the applicant in pursuing a gainful occupation may be approved by the Administrator of Veterans' Affairs if he finds

"(1) that the proceeds of the loan will be so used by him in the bona fide pursuit of such gainful occupation,”.

SEC. 4. That the following subsections be added to section 503:

"(b) Where an interest acquired by a veteran hereunder is represented by capital stock or a share in a partnership, such stock or partnership share shall be pledged as security for the loan or credit, whether or not the loan or credit has been secured by the reservation of rights in tangible property acquired hereunder.

"(c) And loans or credits which might be approved for a guaranty under this section may be insured by the Administrator. Such insurance may be issued direct to a lender, holder, or purchaser on a blanket basis. Losses on obligations so insured may be paid to any lender, holder, or purchaser up to an amount not in excess of 15 per centum of the total sum of the credits insured.

"(1) The veteran shall not be required to pay any insurance premiums which the Administrator shall see fit to levy on any class of cases. No such charge shall be in excess of 1 per centum of the obligation insured.

"(2) The provisions of section 500 of this title shall be applicable to any insurance to be issued pursuant thereto, except that no guaranty shall be issued with respect to any credit insured hereunder, and the limitation of 50 per centum shall not be applicable to credits insured hereunder, but for the purpose of computing the $2,000 maximum benefit to which each veteran may be entitled any obligations insured hereunder shall be included at 15 per centum of their principal amount."

SEC. 5. That sections 501 (3), 502 (4), and 503 (a) (4) of the Servicemen's Readjustment Act of 1944 be amended to read as follows:

"That the amount of a loan covering all or part of the purchase price paid or to be paid by the veteran for such property does not exceed the reasonable normal value thereof as determined by proper appraisal; and that the amount of a

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loan for construction, repairs, alterations, or improvements shall not exceed the reasonable cost thereof."

SEC. 6. That two new sections, numbered 506 and 507, be added to title III as follows:

"SEC. 506. The Administrator shall have authority to compromise or adjust any claim or other matter arising out of guaranties under this title, and to designate attorneys to accept or waive service of process and to take any necessary action in foreclosures and other legal proceedings.

"SEC. 507. The minority of a veteran, or the spouse of a veteran, shall not preclude the guaranty of a loan otherwise proper under this title: Provided, That no revocation, rescission, or other action or defense in connection with such contract, based upon minority shall be valid, as concerns the United States, unless asserted within six months after disability of infancy is removed."

[S. 795, 79th Cong., 1st sess.]

A BILL To amend section 500 (c), title III, Servicemen's Readjustment Act of 1944, so as to make more adequate provision for loans to veterans under the provisions of such title by removing certain statutory limitations on loans guaranteed thereunder made by national banks and certain other banking institutions

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the last sentence of section 500 (c) of the Servicemen's Readjustment Act of 1944 be amended to read as follows: "The Administrator is authorized and directed to guarantee loans to veterans subject to the provisions of this title on approved applications made to persons, firms, associations, and corporations and to governmental agencies and corporations, either State or Federal, and any loan guaranteed by the Administrator under this title may be made by any national bank, or a State bank or trust company located in the District of Columbia, without regard to the limitations and restrictions of any other statute with respect to the ratio of such loan to the appraised value of the property or with respect to the maturity of such loan."

[S. 1202, 79th Cong., 1st sess.]

A BILL To amend the Act entitled "An Act to provide Federal Government aid for the readjustment in civilian life of returning World War II veterans", known as the Servicemen's Readjustment Act of 1944", approved June 22, 1944

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the term "Federal agency" as used throughout this Act means Smaller War Plants Corporation, Reconstruction Finance Corporation, Department of Agriculture, and Federal Housing Administration.

That the term "Administrator" as used in this Act means the Administrator of Veterans' Affairs.

That the Congress finds that the loan guaranty provision of the Act herein amended to be wholly inadequate to meet the needs of veterans and hereby declares that the objective of this Act is to broaden and liberalize Government aid to veterans and to facilitate their orderly readjustment into civilian life, and to effect this, the Federal agencies, departments, and corporations hereinbefore defined are hereby authorized and directed to assume and perform the duties and responsibilities hereinafter set forth.

That title III, chapter V, sections 500, 501, 502, 503, 505 of the Act entitled "An Act to provide Federal Government aid for the readjustment in civilian life of returning World War II veterans", Public Law 346, Seventy-eighth Congress, chapter 268, second session, approved June 22, 1944, is amended to read as follows:

"TITLE III-LOANS FOR THE PURCHASE OR CONSTRUCTION OF HOMES, FARMS, AND BUSINESS PROPERTY

"CHAPTER V-GENERAL PROVISIONS FOR LOANS

"SEC. 500. (a) Any person who shall have served in the active military or naval service of the United States at any time on or after September 16, 1949, and prior to the termination of the present war and who shall have been dis

charged or released therefrom under conditions other than dishonorable after active service of ninety days or more, or by reason of an injury or disability incurred in service in line of duty, shall be eligible for the benefits of this title. Any such veteran may apply within five years after separation from the military or naval forces, or five years after termination of the war, whichever is the later date, but in no event more than five years after the termination of the war, to any Federal agency for a loan or the guaranty of a loan for any of the purposes specified in sections 501, 502, and 503: Provided, That the aggregate amount of such loan or guaranty shall not exceed $5,000.

"The Federal agencies cited in this Act are hereby designated as lenders and/or guarantors and are expressly authorized and directed to make loans to veterans and to guarantee loans made to veterans by others in conformity with the provisions hereof. Any loan up to the aggregate sum of $5,000 made to a veteran by a lender other than the Federal agencies named in the Act will be guaranteed 90 per centum. The liability for the 90 per centum guaranty shall be shared equally between the Administrator and the Federal agency guaranteeing the loan. Any loan made directly to a veteran by a Federal agency shall be guaranteed by the Administrator to the extent of 50 per centum.

"No loan shall be made direct to a veteran by any Federal agency except only after such application has been first offered to and declined by a bank or other lending institution.

"(b) Interest for the first year on any loans made under this title shall be paid by the Administrator and the Federal agency in proportion to their liability, as hereinbefore provided. No security for the guaranty of a loan shall be required except the right to be subrogated to the lien rights of the holder of the obligation which is guaranteed: Provided, That pursuant to regulations to be issued by the Administrator the mortgagor and mortgagee shall agree that before beginning foreclosure proceedings for default in payment of principal or interest due, the Administrator and the Federal agency shall have at least thirty days' notice with the option of bidding in the property on foreclosure or of refinancing the loan with any other agency or by any other means available.

"(c) Loans guaranteed by the Administrator and loans made or guaranteed by a Federal agency under this title shall be payable under such terms and conditions as may be approved by the Administrator: Provided, That the liability under the guaranty, within the limitations of this title, shall decrease or increase pro rata with any decrease or increase of the amount of the unpaid portion of the obligation: Provided further, That loans guaranteed by the Administrator or made or guaranteed by a Federal agency shall bear interest at the rate of 42 per centum per annum and shall be payable in full in not more than twenty years. A guaranty fee of one-half of 1 per centum per annum shall be paid by the lender receiving such guaranty, and the Administrator and the Federal agency issuing the guaranty shall receive one-fourth of 1 per centum per annum each.

"The Administrator and a Federal agency making or guaranteeing loans to veterans are authorized, subject to the provisions of this title, to approve applications made to persons, firms, associations, and corporations, and to governmental agencies and corporations, either State or Federal.

"Whenever an application is approved by any one of the Federal agencies, it shall be mandatory upon the Administrator to issue a guaranty as hereinbefore provided.

"PURCHASE OR CONSTRUCTION OF HOMES

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"SEC. 501. (a) Any application made by a veteran under this title for a loan or for the guaranty of a loan by a Federal agency designated herein to be used in purchasing residential property or in constructing a dwelling on unimproved property owned by him to be occupied as his home may be approved if the Federal agency finds

"(1) that the proceeds of such loans will be used for payment for such property to be purchased or constructed by the veteran;

"(2) that the contemplated terms of payment required in any mortgage to be given in part payment of the purchase price or the construction cost bear a proper relation to the veteran's present and anticipated income and expenses; and that the nature and condition of the property is such as to be suitable for dwelling purposes; and

"(3) that the purchase price paid or to be paid by the veteran for such property or the construction cost, including the value of the unimproved lot, does not exceed the reasonable normal value thereof as determined by proper appraisal.