---
kind: "section"
citation: "38 U.S.C. § 1963"
title: "38"
title_heading: "Veterans’ Benefits"
number: "1963"
heading: "Authority for payment of interest on settlements"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/1963"
units:
  - "Part II — General Benefits"
  - "Chapter 19 — Insurance"
  - "Subchapter II — United States Government Life Insurance"
---

# §1963. Authority for payment of interest on settlements

- (a) Subject to [subsection (b)](#b) of this section, the [Secretary](/usc/38/101.md?p=1) may pay interest on the proceeds of a United States Government Life [Insurance](/usc/38/1901.md?p=1) policy from the date the policy matures to the date of payment of the proceeds to the beneficiary or, in the case of an endowment policy, to the policyholder.
- (b)
  - (1) The [Secretary](/usc/38/101.md?p=1) may pay interest under [subsection (a)](#a) of this section only if the [Secretary](/usc/38/101.md?p=1) determines that the payment of such interest is administratively and actuarially sound for the settlement option involved.
  - (2) Interest paid under [subsection (a)](#a) shall be at the rate that is established by the [Secretary](/usc/38/101.md?p=1) for dividends held on credit or deposit in policyholders’ accounts.

## Source credit

(Added Pub. L. 100–687, div. B, title XIV, § 1401(a)(2), Nov. 18, 1988, 102 Stat. 4128, § 763; renumbered § 1963 and amended Pub. L. 102–83, §§ 4(b)(1), (2)(E), 5(a), Aug. 6, 1991, 105 Stat. 404–406.)

## Notes

### Editorial Notes

### Amendments

1991—Pub. L. 102–83 renumbered section 763 of this title as this section and substituted “Secretary” for “Administrator” wherever appearing.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective with respect to insurance policies maturing after Nov. 18, 1988, see section 1401(a)(3) of Pub. L. 100–687, set out as a note under section 1928 of this title.