§ 1731a. — Penalties.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1731a]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
SUBCHAPTER V--MISCELLANEOUS
Sec. 1731a. Penalties
Notwithstanding any other provision of law, the Secretary is
authorized to refuse the benefits of participation (either directly as
an insured lender or as a borrower, or indirectly as a builder,
contractor, or dealer, or salesman or sales agent for a builder,
contractor or dealer) under subchapter I, II, VI, VII, VIII, IX-B, or X
of this chapter to any person or firm (including but not limited to any
individual, partnership, association, trust, or corporation) if the
Secretary has determined that such person or firm (1) has knowingly or
willfully violated any provision of this chapter or of title III of the
Servicemen's Readjustment Act of 1944, as amended, or of chapter 37 of
title 38, or of any regulation issued by the Secretary under this
chapter or by the Secretary of Veterans Affairs under said title III, or
chapter 37, or (2) has, in connection with any construction, alteration,
repair or improvement work financed with assistance under this chapter
or under said title III, or chapter 37, or in connection with contracts
or financing relating to such work, violated any Federal or State penal
statute, or (3) has failed materially to properly carry out contractual
obligations with respect to the completion of construction, alteration,
repair, or improvement work financed with assistance under this chapter
or under title III of the Servicemen's Readjustment Act of 1944, as
amended, or of chapter 37 of title 38. Before any such determination is
made any person or firm with respect to whom such a determination is
proposed shall be notified in writing by the Secretary and shall be
entitled, upon making a written request to the Secretary, to a written
notice specifying charges in reasonable detail and an opportunity to be
heard and to be represented by counsel. Determinations made by the
Secretary under this section shall be based on the preponderance of the
evidence. For the purposes of compliance with this section the
Secretary's notice of a proposed determination under this section shall
be considered to have been received by the interested person or firm if
the notice is properly mailed to the last known address of such person
or firm.
(June 27, 1934, ch. 847, title V, Sec. 512, as added Aug. 2, 1954, ch.
649, title I, Sec. 132, 68 Stat. 610; amended Pub. L. 85-857,
Sec. 13(h), Sept. 2, 1958, 72 Stat. 1265; Pub. L. 86-372, title I,
Sec. 119, Sept. 23, 1959, 73 Stat. 665; Pub. L. 89-754, title X,
Sec. 1020(e), Nov. 3, 1966, 80 Stat. 1296; Pub. L. 90-19, Sec. 1(a)(3),
(4), May 25, 1967, 81 Stat. 17; Pub. L. 98-479, title II,
Sec. 204(a)(17), Oct. 17, 1984, 98 Stat. 2232; Pub. L. 101-235, title I,
Sec. 133(d)(3), Dec. 15, 1989, 103 Stat. 2027; Pub. L. 102-54,
Sec. 13(d)(2)(B), June 13, 1991, 105 Stat. 274.)
References in Text
The Servicemen's Readjustment Act of 1944, as amended, referred to
in text, is act June 22, 1944, ch. 268, 58 Stat. 284, as amended. Title
III of the Servicemen's Readjustment Act of 1944 was classified
generally to subchapter II (Sec. 694 et seq.) of chapter 11C of former
Title 38, Pensions, Bonuses, and Veterans' Relief, and was repealed by
section 14(87) of Pub. L. 85-857, Sept. 2, 1958, 72 Stat. 1273, the
first section of which reenacted title III of such Act as chapter 37
(Sec. 1801 [now 3701] et seq.) of Title 38, Veterans' Benefits.
Prior Provisions
A prior section 512 of act of June 27, 1934, related to offenses and
penalties, and was classified to section 1731 of this title, prior to
repeal by act June 25, 1948, ch. 645, Sec. 21, 62 Stat. 862, eff. Sept.
1, 1948. See note under section 1731.
Amendments
1991--Pub. L. 102-54 substituted ``Secretary of Veterans Affairs''
for ``Administrator of Veterans' Affairs''.
1989--Pub. L. 101-235 struck out reference to subchapter IX-A after
reference to subchapter VIII.
1984--Pub. L. 98-479 substituted ``Penalties'' for ``Denial of
benefits in cases of abuses; determination by Secretary; notice and
hearing'' in section catchline.
1967--Pub. L. 90-16 substituted ``Secretary'' for ``Commissioner''
wherever appearing, and ``Secretary's'' for ``Commissioner's''.
1966--Pub. L. 89-754 inserted references to subchapters IX-A and IX-
B of this chapter.
1959--Pub. L. 86-372 provided that for purposes of compliance with
this section the Commissioner's notice of a proposed determination under
this section shall be considered to have been received by the interested
person or firm if the notice is properly mailed to the last known
address of such person or firm.
1958--Pub. L. 85-857 inserted references to chapter 37 of title 38.
Effective Date of 1958 Amendment
Amendment by Pub. L. 85-857 effective Jan. 1, 1959, see section 2 of
Pub. L. 85-857, set out as an Effective Date note preceding part I of
Title 38, Veterans' Benefits.
