12 CCR s 310.2

Cal. Admin. Code tit. 12, s 310.2

CALIFORNIA CODE OF REGULATIONS
TITLE 12. MILITARY AND VETERANS AFFAIRS
DIVISION 2. DEPARTMENT OF VETERANS' AFFAIRS
CHAPTER 2. VETERANS' FARM AND HOME PURCHASES
SUBCHAPTER 1. ELIGIBILITY AND QUALIFICATIONS
This database is current through 12/22/06, Register 2006, No. 51.
s 310.2. Restrictions.

The following restrictions apply to the Deferred Principal Payment
Program:
(a) Applications for the Department's consent to encumber or improve, or
home improvement loans as described in Section 341 shall not be granted
while a veteran is participating in the Program, unless the encumbrance or
improvement is necessary to protect the Department's interest in the
property or where the property is participating in a recognized
redevelopment program.

(b) Loan term extensions shall not be granted while a veteran is
participating in the Program except in cases where the veteran needs the
extension to afford staying in the home. Veterans shall submit a letter to
the Department requesting an extension. The Department shall review the
case and the veteran's current financial status in making the decision to
approve or disapprove the extension.

(c) Disability insurance payments shall be limited to the initial amount
of the monthly installment under the Program. If the veteran is on
disability when the deferment period expires and the Department adjusts
the monthly installment to the full principal and interest payment, the
additional amount must be paid by the veteran.

(d) Veterans who become married shall not be allowed to remain in the
Program if the spouse is employed and the combined monthly incomes are
sufficient to meet principal plus interest loan payments.

(e) Loan transfers shall not be permitted while the veteran is
participating in the Program.

(f) Occupancy waivers or permission to rent shall not be granted except in
those cases where the veteran is in an active military service position
which requires the veteran and the veteran's family to temporarily
relocate.

(g) Non-veteran spouses to whom the Cal-Vet property is awarded in
dissolution of marriage or legal separation proceedings, shall be allowed
to continue in the Program so long as they meet the criteria set forth in
Section 310(a)(1) and (2). However, if the spouse is not qualified for the
non-veteran spouse benefit as described in Section 987.721 of the Military
and Veterans Code, then the interest-only payment shall be increased to
reflect the non-veteran rate of interest as set forth in Section 342(c).
The interest rate shall be placed in effect as of the date the property is
awarded to the non-veteran spouse.

(h) A subsequent opportunity to purchase another farm or home using
Cal-Vet financing shall not be granted while the veteran is participating
in the Program. A subsequent opportunity for a loan may be granted under
Section 987.86 of the Military and Veterans Code if the veteran elects to
withdraw from the Program or when the five-year term has expired.

(i) Canceled loan contracts shall not be reinstated by the Department
unless the amount of delinquency is paid in full.

Note: Authority cited: Section 700, Military and Veterans Code.
Reference: Sections 987.56, 987.71, 987.721 and 987.73, Military and
Veterans Code.

HISTORY

1. New section filed 11-12-91; operative 12-12-91 (Register 92, No. 7).

12 CCR s 310.2, 12 CA ADC s 310.2
1CAC

12 CA ADC s 310.2

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