---
kind: "section"
citation: "50 U.S.C. § 3977"
title: "50"
title_heading: "War and National Defense"
number: "3977"
heading: "Premiums and interest guaranteed by United States"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/50/3977"
units:
  - "Chapter 50 — Servicemembers Civil Relief"
  - "Subchapter IV — Life Insurance"
---

# §3977. Premiums and interest guaranteed by United States

- (a) **Guarantee of premiums and interest by the United States—**
  - (1) **Guarantee—** Payment of [premiums](/usc/50/3971.md?p=2), and interest on [premiums](/usc/50/3971.md?p=2) at the rate specified in [section 3976 of this title](/usc/50/3976.md), which become due on a [policy](/usc/50/3971.md?p=1) under the protection of this subchapter is guaranteed by the United States. If the amount guaranteed is not paid to the [insurer](/usc/50/3971.md?p=4) before the period of insurance protection under this subchapter expires, the amount due shall be treated by the [insurer](/usc/50/3971.md?p=4) as a [policy](/usc/50/3971.md?p=1) loan on the [policy](/usc/50/3971.md?p=1).
  - (2) **Policy termination—** If, at the expiration of insurance protection under this subchapter, the cash surrender value of a [policy](/usc/50/3971.md?p=1) is less than the amount due to pay [premiums](/usc/50/3971.md?p=2) and interest on [premiums](/usc/50/3971.md?p=2) on the [policy](/usc/50/3971.md?p=1), the [policy](/usc/50/3971.md?p=1) shall terminate. Upon such termination, the United States shall pay the [insurer](/usc/50/3971.md?p=4) the difference between the amount due and the cash surrender value.
- (b) **Recovery from insured of amounts paid by the United States—**
  - (1) **Debt payable to the United States—** The amount paid by the United States to an [insurer](/usc/50/3971.md?p=4) under this subchapter shall be a debt payable to the United States by the [insured](/usc/50/3971.md?p=3) on whose [policy](/usc/50/3971.md?p=1) payment was made.
  - (2) **Collection—** Such amount may be collected by the United States, either as an offset from any amount due the [insured](/usc/50/3971.md?p=3) by the United States or as otherwise authorized by law.
  - (3) **Debt not dischargeable in bankruptcy—** Such debt payable to the United States is not dischargeable in bankruptcy proceedings.
- (c) **Crediting of amounts recovered—** Any amounts received by the United States as repayment of debts incurred by an [insured](/usc/50/3971.md?p=3) under this subchapter shall be credited to the appropriation for the payment of claims under this subchapter.

## Source credit

(Oct. 17, 1940, ch. 888, title IV, § 407, as added Pub. L. 108–189, § 1, Dec. 19, 2003, 117 Stat. 2853.)

## Notes

### Editorial Notes

### Codification

Section was formerly classified to section 547 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.

### Prior Provisions

A prior section 407 of act Oct. 17, 1940, ch. 888, art. IV, 54 Stat. 1185; Oct. 6, 1942, ch. 581, § 13, 56 Stat. 775; Pub. L. 85–857, § 14(76), Sept. 2, 1958, 72 Stat. 1272; Pub. L. 102–12, § 9(17), Mar. 18, 1991, 105 Stat. 40, related to regulations and finality of determinations, prior to the general amendment of this Act by Pub. L. 108–189. See sections 3978 and 3979 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to any case not final before Dec. 19, 2003, see section 3 of Pub. L. 108–189, set out as a note under section 3901 of this title.