38 C.F.R. § 36.4331

Capacity of parties to contract

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Nothing in §§ 36.4300 through 36.4380 shall be construed to relieve any lender of responsibility otherwise existing, for any loss caused by the lack of legal capacity of any person to contract, convey, or encumber, or caused by the existence of other legal disability or defects invalidating, or rendering unenforceable in whole or in part, either the loan obligation or the security therefor.

(Authority: 38 U.S.C. 3703(c)(1)) [73 FR 6310, Feb. 1, 2008. Redesignated at 75 FR 33705, June 15, 2010, as amended at 80 FR 34319, June 16, 2015]

Notes of Decisions

Cited in 1 case, 1975–1975 · leading case: Fed. Nat'l Mortg. Ass'n v. Ricks, 83 Misc. 2d 814 (N.Y. Sup. Ct. 1975).

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Fed. Nat'l Mortg. Ass'n v. Ricks, 83 Misc. 2d 814 (N.Y. Sup. Ct. 1975). “This provision is also incorporated in the regulations (38 CFR 36.4331[a]). It is the contention of defendants Ricks that the nature of this servicing is detailed in the Veterans Administration Lenders Handbook, Veterans Administration Pamphlet 26-7 revised, which contains…”

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