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APPENDIX 
United States Veterans’ Bureau at which the loan is made 
but in no event shall the rate of interest exceed 6 Pf 
centum per annum. 
(1) For the purpose of enabling the director to make 
such loans out of the United States Government life 
insurance fund the Secretary of the Treasury is author 
ized to loan not exceeding $25,000,000 to such fund with 
interest at the rate of 4 per centum per annum (begin 
ning on the date the check for each amount loaned to # 
veteran is paid by the Treasurer of the United States) 
compounded annually, on the security of bonds held in 
such fund. 
(k) The disbursing officers of the United States Vet 
erans’ Bureau shall be allowed credit in their accounts 
for all loans made in accordance with regulations and 
instructions of the director. 
(1) For the purpose of this section the loan basis pro- 
vided in subdivision (g) shall at no time be less than 50 
per centum of the face value of the certificate, and in no 
event shall the rate of interest on any loan made after 
this subdivision takes effect exceed 4} per centum per 
annum, compounded annually. If at the time of appli- 
cation to the Administrator of Veterans’ Affairs for 8 
loan the principal and interest on or in respect of any 
prior loan under this section have not been paid in full 
by the veteran (whether or not the loan has matured), 
then, on request of the veteran, the Administrator shall 
(1) pay or otherwise discharge such unpaid principal 
and so much of such unpaid interest (accrued or to accrue) 
as is necessary to make the certificate available for use as 
security for the new loan and (2) deduct the same from 
the then existing loan basis of the certificate. 
(m) Loans made by the Administrator of Veterans 
Affairs under this section may at his option be made out 
of the United States Government life insurance fund, or 
out of the Adjusted Service Certificate Fund created 
under section 505. 
Sec. 503. No certificate issued or right conferred under 
the provisions of this title shall, except as provided in 
section 502, be negotiable or assignable or serve as 
security for a loan. Any negotiation, assignment, or 
loan made in violation of any provision of this section 
shall be held void. If any person is named as beneficiary 
by the veteran as a consideration for the making of a