In the event a direct loan is purchased from the Department of Veterans Affairs at
any time pursuant to the provisions of 38 U.S.C. 3711(g), the Department of Veterans Affairs may issue a guaranty in connection therewith
within the maximums applicable to loans guaranteed under 38 U.S.C. 3710 and such loans shall thereafter be subject to the applicable provisions of the regulations
governing the guaranty or insurance of loans to veterans, and such part of the regulations
concerning direct loans to veterans as may be inconsistent therewith or variant therefrom
shall no longer govern the subsequent disposition of the rights and liabilities of
any interested parties.
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