Loans under Servicemen's Readjustment Act

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  1. (a) In applying to loans made under the Servicemen's Readjustment Act of 1944, any restrictions of any character imposed by the laws of the State of Arkansas upon loans which state-chartered lending institutions may make, purchase, or otherwise acquire, no consideration whatsoever shall be given:

    1. (1) Any loan or loan obligation which is wholly guaranteed or insured by the Secretary of Veterans Affairs, under Title III of the Servicemen’s Readjustment Act of 1944 or for the insurance or guaranty of which the administrator has issued his or her binding commitment; or

    2. (2) If any loan or loan obligation be guaranteed or insured only in part under the Servicemen’s Readjustment Act of 1944:

      1. (A) That portion of the loan or loan obligation so guaranteed or insured by the administrator; and

      2. (B) That portion of the loan or loan obligation that may be guaranteed or insured by the United States or by any department, bureau, or agency thereof, including any corporation which, or the capital stock of which, is owned by the United States Government.

  2. (b) As used in this section, “restrictions of any character” includes:

    1. (1) Restrictions on the aggregate amount of loans which any lending institution may lawfully make to any one (1) borrower; and

    2. (2) Restrictions on the duration of the loan or the time or manner of repayment.

  3. (c) As used in this section, “state-chartered lending institutions” includes building and loan associations, savings and loan associations, insurance companies, and other institutions and organizations authorized to make loans in this state.


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