refusal to guarantee or insure loans in certain cases

refusal to guarantee or insure loans in certain cases Sec. 307. Title III of the Servicemen’s Readjustment Act of 1944, as amended, is amended by adding at the end thereof the following new section: “Sec. 514. Whenever the Administrator finds with respect to loans guaranteed or insured under this title that any lender or holder has tailed to maintain adequate loan accounting records, or to demonstrate 66 Stat. 684proper ability to service loans adequately or to exercise proper credit judgment or has willfully or negligently engaged in practices otherwise detrimental to the interest of veterans or of the Government, he may refuse either temporarily or permanently to guarantee or insure any loans made by such lender or holder or bar such lender or holder from acquiring loans guaranteed or insured under this title: Provided, That the Administrator shall not refuse to pay a guarantee on loans theretofore entered into in good faith between the veteran and the lending institution.”