California Senate Bill SB1383 Introduced / Bill

 BILL NUMBER: SB 1383INTRODUCED BILL TEXT INTRODUCED BY Committee on Veterans Affairs (Senators Denham (Chair), Cedillo, Correa, Maldonado, Negrete McLeod, Wiggins, and Wyland) FEBRUARY 19, 2010 An act to amend Section 987.17 of the Military and Veterans Code, relating to veterans. LEGISLATIVE COUNSEL'S DIGEST SB 1383, as introduced, Committee on Veterans Affairs. Veterans' loans. The Veterans' Farm and Home Purchase Act of 1943, among other things, requires the Department of Veterans Affairs to establish the interest rate to be paid with respect to certain veterans' purchase contracts. This bill would make technical, nonsubstantive changes to those provisions. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 987.17 of the Military and Veterans Code is amended to read: 987.17. The department shall establish the actual interest rate to be paid. To this end the department, by a two-thirds vote of California Veterans Board members and with the approval of the  Veterans'   Veterans'  Finance Committee of 1943, is empowered to establish a uniform rate of interest payable upon the amount remaining unpaid under any  veteran's   veteran's  purchase contract executed prior to the effective date of the amendments to this section enacted at the 1972 Regular Session of the Legislature. The California Veterans Board and the  Veterans'   Veterans'  Finance Committee shall periodically, at least once each year, make a finding as to the rate of interest to be charged, not to exceed 5 percent per annum on contracts for the purchase of farms or homes, and not to exceed 8 percent per annum on contracts for the purchase of mobilehomes, taking into consideration the current value of money, bond market conditions, and the solvency of the  Veterans'   Veterans'  Farm and Home Building Fund of 1943. The California Veterans Board may  raise or lower   increase or decrease  the rate of interest payable under  such   the  contracts for any given period as many times and as frequently as it deems to be for the best interests of the department, as well as the contract holders, if in so doing its action is made applicable alike to any and all contract holders and 90  days'   days'  advance notice be given of the time when the new rate of interest is to become effective. Any change in the interest rate shall not affect the total amount of any installment payment, but the difference shall be credited to interest or principal and accelerate or prolong the period of payment.