(a) In any legal or equitable proceeding to which the Secretary is a party (including probate and bankruptcy proceedings) arising from a loan guaranteed, insured, or made, or a property acquired by the Secretary pursuant to title 38, U.S.C. chapter 37, original process and any other process prior to appearance that may be served on the Secretary must be delivered to the VA Regional Counsel located in the jurisdiction in which the proceeding is docketed. Copies of such process will also be served on the Attorney General of the United States and the United States Attorney having jurisdiction over that area. Within the time required by applicable law, or rule of court, the Secretary will cause appropriate special or general appearance to be entered in the case by an authorized attorney.
(Authority: 38 U.S.C. 3703(c) and 3720(a))
(b) After appearance of the Secretary by attorney all process and notice otherwise proper to serve on the Secretary before or after judgment, if served on the attorney of record, shall have the same effect as if the Secretary were personally served within the jurisdiction of the court.
(Authority: 38 U.S.C. 3720, 3732)
Notes of Decisions
Cited in
9
cases, 1988–1996 · leading case:
Jones v. Turnage, 699 F. Supp. 795 (N.D. Cal. 1988).
Jones v. Turnage, 699 F. Supp. 795 (N.D. Cal. 1988).
· cites it 2× “38 C.F.R. § 36.4321 (a) (1987). Should the mortgaged property’s net value fall short of the total indebtedness, the United States becomes liable under the guaranty for the deficiency.”
Carter v. Derwinski, 987 F.2d 611 (9th Cir. 1993).
· cites it 2× “38 C.F.R. § 36.4321 . Second, the veteran promises to reimburse the VA for any amount the VA pays the lender.”
United States v. Davis, 961 F.2d 603 (7th Cir. 1992).
· cites it 2× “38 C.F.R. § 36.4321 . Veterans participating in the VA program sign a contract with the VA that establishes the VA’s right to seek reimbursement from the veteran for any payments the VA must make to private lenders pursuant to its guaranty of the veteran’s loan.”
Boley v. Brown, 10 F.3d 218 (4th Cir. 1993).
“38 C.F.R. § 36.4321 . The VA can recover the guaranty payment from the veteran in two ways: (1) as a subrogee the VA can pursue any causes of action the lender has against the defaulting party under the appropriate state’s laws, 38 C.”
Whitehead v. Derwinski, 904 F.2d 1362 (9th Cir. 1990).
“38 C.F.R. § 36.4321 . The VA may then recover from the borrower the amount the VA paid to the lender.”
Vail v. Brown, 841 F. Supp. 909 (D. Minnesota 1994).
“§ 3732 (c) (1993); 38 C.F.R. § 36.4321 (1993). The veteran, in turn, is obligated to reimburse the VA for any sum paid by the VA to the private lender.”
Carter v. Derwinski, 758 F. Supp. 603 (D. Idaho 1991).
“38 C.F.R. § 36.4321 . According to federal regulations, the VA may then recover from the veteran the amount the VA paid to the lender.”
United States v. Davis, 815 F. Supp. 1202 (E.D. Wis. 1993).
“See 38 C.F.R. § 36.4321 . The lenders in this action received reimbursements from the VA for deficiencies remaining after foreclosure.”
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