seal, or a diplomatic or consular officer of the United States, under his official seal. DISPOSITION OF NOTES SECURED BY ADJUSTED CERTIFICATES REDEEMED FROM BANKS BY THE VETERANS' ADMINISTRATION UNDER SECTION 502 OF THE WORLD WAR ADJUSTED COMPENSATION ACT, AS AMENDED (PUB. LAW 120, 68TH CONG.) SOURCE: 11.88 to 11.93 appear at 13 F. R. 7126, Nov. 27, 1948, unless otherwise noted. § 11.88 Cancellation of note. When a veteran's note is redeemed by the Veterans' Administration, the note will be canceled and both the note and certificate will be retained in the files of the Veterans' Administration until such time as settlement is made. § 11.89 Notification of veteran. When a note is redeemed notification will be sent to the veteran at his last known address, advising him that the Veterans' Administration holds his note, and outlining the conditions governing repayment. § 11.91 Repayment of loans. Should the veteran so desire, he may repay the amount due on his note in full or in installments. § 11.93 Failure to redeem. (a) If the veteran fails to redeem his certificate before its maturity there will be deducted from the face value of the certificate the amount of the unpaid principal of the note of the veteran and the unpaid interest thereon through September 30, 1931. (b) If the veteran failed to redeem his certificate and died prior to January 27, 1936, there will be deducted from the face value of the certificate the amount of the unpaid principal of the veteran's note and the unpaid interest thereon to the date of his death. If the veteran died on or after January 27, 1936, the amount to be deducted when making settlement will be the unpaid principal of the veteran's note and the unpaid interest thereon through September 30, 1931. VETERANS' ADMINISTRATION LOANS ON AD- § 11.96 By whom loans may be made. Loans will be made by the Veterans' Administration, Washington, D.C., to any veteran, upon his promissory note secured by his adjusted service certificate, in any amount in even dollars not less than $10 and not in excess of the loan value of the certificate at the date the loan is made. Each certificate contains on its face a table for determining the loan value of the certificate but at no time is the loan value less than fifty per centum of the face value. § 11.99 Identification. Before a loan is made on an adjusted service certificate, the person applying therefor will be identified as the person entitled to the certificate offered as security. Such identification will be made in accordance with § 11.114. [19 F. R. 5086, Aug. 12, 1954] § 11.100 Form of note. The form of note used in making loans secured by adjusted service certificates shall follow Form 1185. § 11.102 Term of note. All loans will be for a period of one year and if not paid will be automatically extended from year to year for periods of one year in the amount of the principal plus interest accrued to the end of the immediately preceding expired loan year, which total amount shall automatically become a new principal each year provided a loan may be paid off at any time by the payment of principal and accrued interest, but in no event will interest accruing after September 30, 1931, be deducted in final settlement of a certificate except as provided in § 11.93(b). § 11.104 Disposition of notes and certificates. All notes and certificates shall be held in the custody of the Veterans' Administration, Washington, D.C. APPLICATION FOR PAYMENT OF ADJUSTED SERVICE CERTIFICATE UNDER THE ADJUSTED COMPENSATION PAYMENT ACT, 1936 (PUB. LAW 425, 74TH CONG.) § 11.109 Settlement of unmatured adjusted service certificates. Where an application for final settlement of an adjusted service certificate is received in the Veterans' Administration prior to the maturity date of the certificate, payment will be made under the terms of the Adjusted Compensation Payment Act, 1936. This act provides for payment of the amount due on the certificate, after deducting any unpaid loans with interest through September 30, 1931, in adjusted service bonds. These bonds will be issued by the Treasury Department in denominations of $50, in the name of the veteran only, and will bear interest at the rate of 3 percent per annum from June 15, 1936, to June 15, 1945. Any excess amount not sufficient to purchase a $50 bond will be paid by check. [19 F. R. 5087, Aug. 12, 1954] § 11.110 Who may make application for final settlement. A mentally competent veteran to whom an adjusted service certificate has been issued. (a) A legally appointed guardian of an incompetent veteran. An application submitted by a legally appointed guardian must be accompanied by letters of guardianship showing the fiduciary relationship, provided such papers are not already on file in the Veterans' Administration. (b) A representative of a physically incapacitated veteran. Where application is made by a representative of a physically incapacitated veteran, the representative must attach a statement describing the veteran's incapacity. The correctness of such statement must be certified by an officer as designated in § 11.114. (c) A superintendent or other bonded officer designated by the Secretary of the Interior to receive funds under the provision of Public No. 373, 72d Congress, may make application for an incompetent adult or minor Indian who is a recognized ward of the Government. The application must be accompanied by a certification from the superintendent or other bonded officer showing (1) that the said beneficiary is a ward of the Government; (2) that no guardian or other fiduciary has been appointed; (3) that the officer making application has been designated by the Secretary of the Interior in accordance with Public No. 373, 72d Congress; (4) that he is properly bonded; and (5) that he will receive, handle, and account for such benefits in accordance with existing law and regulations of the Department of Interior. (d) A manager of a Veterans' Administration hospital, or a manager or su Before settlement is made on an adjusted service certificate, the person applying therefor will be identified as the person entitled to the settlement for which an application is made. If made in the United States or possessions, certification will be accepted if made by a United States postmaster or assistant postmaster over an impression of the post office cancellation stamp; a commissioned officer of the regular establishment of the Army, Navy, or Marine Corps; a member of the United States Senate or the House of Representatives; an officer, over his official title, of a post, chapter, or other comparable unit of an organization recognized under Veterans Regulation No. 10 (38 U.S.C. ch. 12A), or an officer over his official title, of the State or national body of such organization, or any person who is legally authorized to administer oaths in a State, Territory, possession, District of Columbia, or in a Federal judicial district, of the United States. If identification is made in a foreign country, it will be certified by an American consul, a recognized representative of an American Embassy or Legation, or by a person authorized to administer oaths under the laws of the place where identification is made; provided, there be attached to the certificate of such latter officer a proper certification by an accredited official of the State Department of the United States that such officer was authorized to administer oaths in the place where certification was made. A manager of a Veterans' Administration hospital is authorized to identify patients, members, or employees of the hospital over which he has charge. An employee of the Veterans' Administration who has been specifically designated in writing to do so may identify applicants during official hours and on the premises of the Veterans' Administration using for this purpose, if necessary, the official records of the Veterans' Administration. Field station finance employees may not be designated for this purpose. (a) Fingerprint impressions shall be required on the application and shall be imprinted thereon in the presence of the persons identifying the veteran. In the case of veterans who are mentally incapacitated and application is being executed by a representative of the veteran, the veterans' fingerprints will be obtained if possible. If this cannot be done, as also in the case of an individual whose fingers are all missing, a statement of explanation will be required. [13 F. R. 7127, Nov. 27, 1948, as amended at 19 F. R. 5087, Aug. 12, 1954] § 11.115 Where to file application. The application for final setlement, accompanied by the veteran's adjusted service certificate, unless the certificate is being held in the Veterans' Administration as collateral for a loan, must be forwarded to the Manager, Veterans Benefits Office, Washington D.C., 20421. [19 F. R. 5087, Aug. 12, 1954] § 11.116 Death of veteran before final settlement. If the veteran dies after making application under the Adjusted Compensation Payment Act, 1936, but before it is filed, it may be filed by any person and will be considered valid if found to bear the bona-fide signature of the applicant, discloses an intention to claim benefits under the act, and is filed before the maturity of the certificate and before payment is made to the beneficiary. An application made by the veteran or his legal representative shall evidence his intention to claim the benefits of this act; no other evidence shall be acceptable. (a) If the veteran's death occurs after the application is filed but before payment is received under this act, or if the application is filed after death occurs but before the maturity of the certificate and before payment is made to the beneficiary under section 501 of the World War Adjusted Compensation Act, as amended, payment under this act shall be made to the estate of the veteran irrespective of any beneficiary designation. (b) If the veteran dies without filing a valid application under this act, no payment under this act shall be made. In such case, payment of the certificate will be made under the World War Adjusted Compensation Act, as amended, in accordance with § 11.128; however, in making any settlement there shall be deducted from the face value of the certificate the amount of any outstanding loans and so much of the unpaid interest as accrued prior to October 1, 1931. [19 F. R. 5087, Aug. 12, 1954] § 11.117 Missing applications. Where the records of the Veterans' Administration show that an application, disclosing an intention to claim the benefits of this act, has been filed and the application cannot be found, such application shall be presumed, in the absence of affirmative evidence to the contrary, to have been valid when originally filed. The determination of the correctness of this assumption shall be made by the Manager, Veterans Benefits Office, Washington, D.C., or his designee. [19 F. R. 5087, Aug. 12, 1954] APPLICATION FOR PAYMENT OF ADJUSTED SERVICE CERTIFICATE UNDER THE WORLD WAR ADJUSTED COMPENSATION ACT, AS AMENDED (PUBLIC LAW 120, 68TH CONGRESS) SOURCE: §§ 11.125 to 11.130 appear at 19 F.R. 5087, Aug. 12, 1954, unless otherwise noted. § 11.125 Settlement of matured adjusted service certificates. Where an application for final settlement of an adjusted service certificate is received in the Veterans' Administration subsequent to the date of maturity of the certificate, payment will be made under the terms of the World War Adjusted Compensation Act, as amended. This act provides for payment of the face value of the certificate less any outstanding indebtedness for loans obtained on the certificate; however, interest accrued on the loans subsequent to September 30, 1931, and unpaid will be canceled insofar as the veteran is concerned. § 11.126 Form of application. Either demand for payment (Form 1748) or application (Form 1701) may be used by the veteran or his legal representative in applying for final settlement of a matured certificate. § 11.127 Identification. Before payment may be made on the adjusted service certificate, the person applying therefor will be identified as the If the veteran dies without having filed application for final settlement under the Adjusted Compensation Payment Act, 1936, and the certificate has not matured, payment will be made to the last designated beneficiary or, if no beneficiary, to his estate. If the certificate has matured, payment will be made to the veteran's estate regardless of any beneficiary designation. Payment of the amount due on a deceased veteran's certificate will be made only on an approved award based upon receipt in the Veterans' Administration of an application properly executed by the person or persons entitled. § 11.129 Form of application for pay. ment of deceased veteran's certifi cate. Demand for payment (VA Form 8-582) is the proper form for use in applying for payment of the amount due on a deceased veteran's certificate. $11.130 Where to file applications. Application for payment of a matured certificate or a deceased veteran's certificate, accompanied by the adjusted service certificate, unless it is held in the Veterans' Administration as collateral for a loan, must be forwarded to the Manager, Veterans Benefits Office, Washington, D.C., 20421. PART 12-DISPOSITION OF VETERAN'S PERSONAL FUNDS AND EFFECTS DISPOSITION OF VETERAN'S PERSONAL FUNDS AND EFFECTS ON STATION UPON DEATH, or DISCHARGE, OR UNAUTHORIZED ABSENCE, and OF FUNDS AND EFFECTS FOUND ON STATION Sec. Proceeds of sale. Miscellaneous provisions. Posting of notice of the provisions of DISPOSITION OF PERSONAL FUNDS AND EFFECTS (a) As used in respect to the disposition of property of veterans dying at Veterans' Administration hospitals or other field stations, or who are discharged or who elope, or are absent without leave therefrom, and in respect to property found thereat, the term "funds" means all types of United States currency and coin, checks payable to the decedent except checks drawn on the Treasurer of the United States which have never been negotiated, and includes deposits to the credit of the veteran in the account "Personal Funds of Patients," and each competent veteran will be so advised. The term "effects" means and embraces all other property of every description, including insurance policies, certificates of stock, bonds and notes the obligation of the United States or of others, and all other papers of every character except checks drawn on the Treasurer of the United States, as well as clothing, jewelry and other forms of property, or evidences of interest therein. Checks drawn on the Treasurer of the United States which have never been negotiated will be returned to the issuing office for disposition. (b) "Field stations" as used in §§ 12.1 to 12.13 includes hospitals, centers, domiciliary activities, supply depots, and other offices over which the Veterans Administration has direct and exclusive administrative jurisdiction, and excludes State, county, city, private, and contract hospitals and hospitals or other institutions operated by the United States through agencies other than the Veterans Administration. At institutions other than field stations as herein defined funds or effects as defined in paragraph (a) of this section, except for funds derived from gratuitous benefits under laws administered by the Veterans Administration and deposited by the Veterans Administration in the account Personal Funds of Patients for incompetent veterans, will be disposed of under the laws governing such institutions. In any case where the veteran died intestate without heirs or next of kin his personal property vests in the United States. Disposition of the property will be made in accordance with the provisions of §§ 12.19 to 12.23. [13 F.R. 7127, Nov. 27, 1948, as amended at 25 F.R. 1612, Feb. 25, 1960] § 12.1 Designee cases; competent vet erans. (a) Each competent veteran now being cared for or who is hereafter admitted to receive care as such at a Veterans Administration field station, unless it be detrimental to his health, will be requested and encouraged to designate on the prescribed VA Form 10-P10, Application for Hospital Treatment or Domiciliary Care, the person to whom he desires the Veterans Administration to deliver his funds and effects in event of death. He may also designate an alternate to whom delivery will be made if the first designee fails or refuses to It should be clearly accept delivery. understood that the delivery of such funds or effects will constitute only a delivery of possession thereof, and such delivery is not intended to affect in any manner the title to such funds or effects or determine the person ultimately entitled to receive same from the person to whom delivery is made (hereinafter in the regulations in this part termed the "designee"). The person designated may not be an employee of the Veterans Administration unless such employee be the wife (or husband), child, grandchild, mother, father, grandmother, grandfather, brother, or sister of the veteran. The veteran may in writing change or revoke such designation at any time. If a veteran becomes incompetent, any designation previously made will become inoperative with respect to those funds deposited by the Veterans Administration in Personal Funds of Patients which were derived from gratuitous benefits under laws administered by the Veterans Administration. The guardian may change or revoke the existing designation with respect to personal effects and funds derived from other sources. (b) Veterans will be encouraged to place in the custody of their relatives articles of little or no utility value to them during their period of care at a Veterans' Administration field station, and to retain in their possession only such funds and effects as are actually required and necessary for their immediate convenience. [13 F.R. 7128, Nov. 27, 1948, as amended at 25 F.R. 1612, Feb. 25, 1960] § 12.2 Designee cases; incompetent vet erans. (a) An incompetent veteran will not be informed concerning the designation of a person to receive funds or effects; but if he has a guardian the guardian will be requested to make such designation of himself or another person to receive possession of the funds and efects (other than funds deposited by the Veterans Administration in Personal Funds of Patients which were derived from gratuitous benefits under laws administered by the Veterans Administration) upon the incompetent's death. The guardian will sign the letter designating himself or another person with the veteran's name "By guardian of his estate". (b) No effort will be made to obtain a designation by or on behalf of an incompetent veteran who has no guardian. [13 F.R. 7128, Nov. 27, 1948, as amended at 25 F.R. 1613, Feb. 25, 1960] § 12.3 Deceased veteran's cases. (a) Immediately upon the death or the absence without leave of any bene |