---
kind: "section"
citation: "38 U.S.C. § 1926"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1926"
heading: "Authority for higher interest rates for amounts payable to beneficiaries"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1926"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter I — National Service Life Insurance"
---

# §1926. Authority for higher interest rates for amounts payable to beneficiaries


Notwithstanding sections [1902](/usc/38/1902.md), [1923](/usc/38/1923.md), and [1925](/usc/38/1925.md) of this title, if the beneficiary of an [insurance](/usc/38/1901.md?p=1) policy 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 the appropriate section of this subchapter. The [Secretary](/usc/38/101.md?p=1) 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 for the program of [insurance](/usc/38/1901.md?p=1) concerned. 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, § 302(a), Nov. 28, 1979, 93 Stat. 986, § 726; renumbered § 1926 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), (c)(1), Aug. 6, 1991, 105 Stat. 404–406.)

## Notes

### Editorial Notes

### Amendments

1991—Pub. L. 102–83, § 5(a), renumbered section 726 of this title as this section.

Pub. L. 102–83, § 5(c)(1), substituted “1902, 1923, and 1925” for “702, 723, and 725”.

Pub. L. 102–83, § 4(b)(1), (2)(E), substituted “Secretary” for “Administrator”.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective Nov. 28, 1979, see section 601(b) of Pub. L. 96–128, set out as an Effective Date of 1979 Amendment note under section 1114 of this title.