38 USC § 1961 - Authority for higher interest rates for amounts payable to beneficiaries

---
identifier: "/us/usc/t38/s1961"
source: "usc"
legal_status: "official_legal_evidence"
title: "38 USC § 1961 - Authority for higher interest rates for amounts payable to beneficiaries"
title_number: 38
title_name: "VETERANS’ BENEFITS"
section_number: "1961"
section_name: "Authority for higher interest rates for amounts payable to beneficiaries"
chapter_number: 19
chapter_name: "INSURANCE"
subchapter_number: "II"
subchapter_name: "UNITED STATES GOVERNMENT LIFE INSURANCE"
part_number: "II"
part_name: "GENERAL BENEFITS"
positive_law: true
currency: "119-84"
last_updated: "2026-04-21"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 96–128, title III, § 303(a), Nov. 28, 1979, 93 Stat. 986, § 761; renumbered § 1961 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.)"
---


# § 1961. Authority for higher interest rates for amounts payable to beneficiaries

section 1944(b) of this title

Notwithstanding , if the beneficiary of an insurance policy issued under the provisions of this subchapter receives the proceeds of such policy under a settlement option under which such proceeds are paid in equal monthly installments over a limited period of months, the interest that may be added to each such installment may be at a rate that is higher than the interest rate prescribed in such section. The Secretary may from time to time establish a higher interest rate under the preceding sentence only in accordance with a determination that such higher rate is administratively and actuarially sound. Any such higher interest rate shall be paid on the unpaid balance of such monthly installments.

---

**Source Credit**: (Added Pub. L. 96–128, title III, § 303(a), Nov. 28, 1979, 93 Stat. 986, § 761; renumbered § 1961 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.)

## Editorial Notes

### Amendments

1991—, renumbered  as this section.

, substituted “1944(b)” for “744(b)”.

, (2)(E), substituted “Secretary” for “Administrator”.

## Statutory Notes and Related Subsidiaries

### Effective Date

Section effective , see , set out as an Effective Date of 1979 Amendment note under .