Bill Text: CA SB1383 | 2009-2010 | Regular Session | Introduced

California Senate Bill 1383 (Prior Session Legislation)

Introduced

Bill Title: Veterans' loans.

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2010-03-04 - To Com. on RLS. [SB1383 Detail]

Download: California-2009-SB1383-Introduced.html

BILL NUMBER: SB 1383	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Veterans Affairs (Senators Denham
(Chair), Cedillo, Correa, Maldonado, Negrete McLeod, Wiggins, and
Wyland)

                        FEBRUARY 19, 2010

   An act to amend Section 987.17 of the Military and Veterans Code,
relating to veterans.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1383, as introduced, Committee on Veterans Affairs. Veterans'
loans.
   The Veterans' Farm and Home Purchase Act of 1943, among other
things, requires the Department of Veterans Affairs to establish the
interest rate to be paid with respect to certain veterans' purchase
contracts.
   This bill would make technical, nonsubstantive changes to those
provisions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 987.17 of the Military and Veterans Code is
amended to read:
   987.17.  The department shall establish the actual interest rate
to be paid. To this end the department, by a two-thirds vote of
California Veterans Board members and with the approval of the
 Veterans'   Veterans'  Finance Committee
of 1943, is empowered to establish a uniform rate of interest payable
upon the amount remaining unpaid under any  veteran's
  veteran's  purchase contract executed prior to
the effective date of the amendments to this section enacted at the
1972 Regular Session of the Legislature. The California Veterans
Board and the  Veterans'   Veterans' 
Finance Committee shall periodically, at least once each year, make a
finding as to the rate of interest to be charged, not to exceed 5
percent per annum on contracts for the purchase of farms or homes,
and not to exceed 8 percent per annum on contracts for the purchase
of mobilehomes, taking into consideration the current value of money,
bond market conditions, and the solvency of the  Veterans'
  Veterans'  Farm and Home Building Fund of 1943.
The California Veterans Board may  raise or lower 
 increase or decrease  the rate of interest payable under
 such   the  contracts for any given period
as many times and as frequently as it deems to be for the best
interests of the department, as well as the contract holders, if in
so doing its action is made applicable alike to any and all contract
holders and 90  days'   days'  advance
notice be given of the time when the new rate of interest is to
become effective. Any change in the interest rate shall not affect
the total amount of any installment payment, but the difference shall
be credited to interest or principal and accelerate or prolong the
period of payment.