§ 5302. — Waiver of recovery of claims by the United States.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 38USC5302]
TITLE 38--VETERANS' BENEFITS
PART IV--GENERAL ADMINISTRATIVE PROVISIONS
CHAPTER 53--SPECIAL PROVISIONS RELATING TO BENEFITS
Sec. 5302. Waiver of recovery of claims by the United States
(a) There shall be no recovery of payments or overpayments (or any
interest thereon) of any benefits under any of the laws administered by
the Secretary whenever the Secretary determines that recovery would be
against equity and good conscience, if an application for relief is made
within 180 days from the date of notification of the indebtedness by the
Secretary to the payee, or within such longer period as the Secretary
determines is reasonable in a case in which the payee demonstrates to
the satisfaction of the Secretary that such notification was not
actually received by such payee within a reasonable period after such
date. The Secretary shall include in the notification to the payee a
statement of the right of the payee to submit an application for a
waiver under this subsection and a description of the procedures for
submitting the application.
(b) With respect to any loan guaranteed, insured, or made under
chapter 37 of this title, the Secretary shall, except as provided in
subsection (c) of this section, waive payment of an indebtedness to the
Department by the veteran (as defined in sections 101, 3701, and
3702(a)(2)(C)(ii) of this title), or the veteran's spouse, following
default and loss of the property, where the Secretary determines that
collection of such indebtedness would be against equity and good
conscience. An application for relief under this subsection must be made
within one year after the date on which the veteran receives notice by
certified mail with return receipt requested from the Secretary of the
indebtedness. The Secretary shall include in the notification a
statement of the right of the veteran to submit an application for a
waiver under this subsection and a description of the procedures for
submitting the application.
(c) The recovery of any payment or the collection of any
indebtedness (or any interest thereon) may not be waived under this
section if, in the Secretary's opinion, there exists in connection with
the claim for such waiver an indication of fraud, misrepresentation or
bad faith on the part of the person or persons having an interest in
obtaining a waiver of such recovery or the collection of such
indebtedness (or any interest thereon).
(d) No certifying or disbursing officer shall be liable for any
amount paid to any person where the recovery of such amount is waived
under subsection (a) or (b).
(e) Where the recovery of a payment or overpayment made from the
National Service Life Insurance Fund or United States Government Life
Insurance Fund is waived under this section, the fund from which the
payment was made shall be reimbursed from the National Service Life
Insurance appropriation or the military and naval insurance
appropriation, as applicable.
(Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1230, Sec. 3102; Pub. L. 92-
328, title II, Sec. 202(a), June 30, 1972, 86 Stat. 396; Pub. L. 96-466,
title VI, Sec. 605(c)(3), Oct. 17, 1980, 94 Stat. 2211; Pub. L. 97-306,
title IV, Sec. 407(a), Oct. 14, 1982, 96 Stat. 1445; Pub. L. 99-576,
title VII, Sec. 701(69), Oct. 28, 1986, 100 Stat. 3296; Pub. L. 101-237,
title III, Sec. 311, Dec. 18, 1989, 103 Stat. 2075; renumbered
Sec. 5302, Pub. L. 102-40, title IV, Sec. 402(b)(1), May 7, 1991, 105
Stat. 238; Pub. L. 102-54, Sec. 5, June 13, 1991, 105 Stat. 268; Pub. L.
102-83, Secs. 4(a)(1), (3), (4), (b)(1), (2)(E), 5(c)(1), Aug. 6, 1991,
105 Stat. 403-406; Pub. L. 102-547, Sec. 12, Oct. 28, 1992, 106 Stat.
3645; Pub. L. 105-33, title VIII, Sec. 8033(b), Aug. 5, 1997, 111 Stat.
669.)
Amendments
1997--Subsec. (b). Pub. L. 105-33 inserted ``with return receipt
requested'' after ``certified mail''.
1992--Subsecs. (a), (b). Pub. L. 102-547 made technical correction
to directory language of Pub. L. 102-54, Sec. 5. See 1991 Amendment note
below.
1991--Pub. L. 102-40 renumbered section 3102 of this title as this
section.
Subsec. (a). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
``Secretary'' for ``Administrator'' in four places.
Pub. L. 102-83, Sec. 4(a)(1), substituted ``administered by the
Secretary'' for ``administered by the Veterans' Administration''.
Pub. L. 102-54, Sec. 5(1), as amended by Pub. L. 102-547, inserted
at end ``The Secretary shall include in the notification to the payee a
statement of the right of the payee to submit an application for a
waiver under this subsection and a description of the procedures for
submitting the application.''
Subsec. (b). Pub. L. 102-83, Sec. 5(c)(1), substituted ``3701'' and
``3702(a)(2)(C)(ii)'' for ``1801'' and ``1802(a)(2)(C)(ii)'',
respectively.
Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted ``Secretary'' for
``Administrator'' in two places in first sentence.
Pub. L. 102-83, Sec. 4(a)(3), (4), substituted ``Department'' for
``Veterans' Administration''.
Pub. L. 102-54, Sec. 5(2), as amended by Pub. L. 102-547,
substituted ``101, 1801, and 1802(a)(2)(C)(ii) of this title'' for ``101
and 1801'' and inserted at end ``An application for relief under this
subsection must be made within one year after the date on which the
veteran receives notice by certified mail from the Secretary of the
indebtedness. The Secretary shall include in the notification a
statement of the right of the veteran to submit an application for a
waiver under this subsection and a description of the procedures for
submitting the application.''
Subsec. (c). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), substituted
``Secretary's'' for ``Administrator's''.
1989--Subsec. (b). Pub. L. 101-237, Sec. 311(1), substituted
``shall, except as provided in subsection (c) of this section,'' for
``may''.
Subsec. (c). Pub. L. 101-237, Sec. 311(2), substituted ``The
recovery of any payment or the collection of any indebtedness (or any
interest thereon) may not be waived under this section'' for ``The
Administrator may not exercise the Administrator's authority under
subsection (a) or (b) of this section to waive recovery of any payment
or the collection of any indebtedness (or any interest thereon)'' and
substituted ``or bad faith'' for ``, material fault, or lack of good
faith''.
1986--Subsec. (b). Pub. L. 99-576, Sec. 701(69)(A), substituted
``the veteran's'' for ``his'' before ``spouse''.
Subsec. (c). Pub. L. 99-576, Sec. 701(69)(B), substituted ``the
Administrator's'' for ``his'' in two places.
1982--Subsec. (a). Pub. L. 97-306 substituted ``180 days'' for ``two
years'', and inserted condition relating to such longer period as the
Administrator determines is reasonable in cases demonstrated to involve
actual failure of notification to payee.
1980--Subsec. (a). Pub. L. 96-466, Sec. 605(c)(3)(A), inserted ``(or
any interest thereon)'' after ``overpayments''.
Subsec. (c). Pub. L. 96-466, Sec. 605(c)(3)(B), inserted ``(or any
interest thereon)'' after ``indebtedness'' in two places.
1972--Pub. L. 92-328 substituted ``claims by the United States'' for
``overpayments'' in section catchline, struck out ``(except servicemen's
indemnity)'' after ``any benefits'' in subsec. (a), struck out
provisions relating to recovery of benefits from any person without
fault on his part, and inserted provisions relating to an application
for relief made within two years from the date of notification of the
indebtedness by the Administrator to the payee, added subsecs. (b) and
(c), redesignated former subsec. (b) as (d), and inserted reference to
subsec. (b), and redesignated former subsec. (c) as (e).
Effective Date of 1997 Amendment
Amendment by Pub. L. 105-33 applicable with respect to any
indebtedness to the United States arising pursuant to chapter 37 of this
title before, on, or after Aug. 5, 1997, see section 8033(c) of Pub. L.
105-33, set out as a note under section 3726 of this title.
Effective Date of 1982 Amendment
Section 407(b) of Pub. L. 97-306 provided that: ``The amendments
made by subsection (a) [amending this section] shall apply only with
respect to notifications of indebtedness that are made by the
Administrator of Veterans' Affairs after March 31, 1983.''
Effective Date of 1980 Amendment
Amendment by Pub. L. 96-466 effective Oct. 1, 1980, except as
otherwise specifically provided, see section 802(f) of Pub. L. 96-466,
set out as an Effective Date note under section 5314 of this title.
Effective Date of 1972 Amendment
Amendment by Pub. L. 92-328 effective June 30, 1972, see section
301(c) of Pub. L. 92-328, set out as a note under section 3713 of this
title.
Applicability of Waiver Authority to Improper Payments, Overpayments,
and Indebtedness Established by the Administrator Prior to Effective
Date of Pub. L. 92-328
Section 202(b) of Pub. L. 92-328 provided that the waiver authority
under subsec. (a) of this section is applicable to improper payments,
overpayments, and indebtedness established by the Administrator prior to
the effective date of Pub. L. 92-328 if application for relief was
pending on June 30, 1972, or such an application was made within two
years from June 30, 1972.
For effective date of Pub. L. 92-328, see Effective Date of 1972
Amendment notes set out under sections 1114, 1134, and 3713 of this
title.
Section Referred to in Other Sections
This section is referred to in sections 3680, 3685, 3713, 3726,
5314, 5315, 5701 of this title.
