This information provided by Operation Firing For Effect Research Department.
Source; Library of Congress; Congressional Record
Compiled by; Simon Alvarado - OFFE Texas Director of Operations
NOTE: This is the history of the Federal Law we now know as; USC, Title 38, 5301.
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CHAP. LIII – An Act for the relief of certain surviving officers and soldiers of the army of the revolution.
Sec. 4. And be it further enacted, That the pay allowed by this act shall, under the direction of the Secretary Treasury, be paid to the officer or soldier entitled thereto, or to their authorized attorney, as such places and days as said secretary may direct; and that no foreign officer shall be entitled to said pay, nor shall any officer or soldier receive the same, until he furnish to said secretary satisfactory evidence that he is entitled to the same conformity to the provisions of this act; and the pay allowed by this act shall not, in any way, be transferable or liable to attachments, levy, or seizure, by any legal process whatever, but shall inure wholly to the personal benefit of the officer or soldier entitled to the same by this act.
Approved May 15, 1828
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SEC. 3 Payments of benefits due or to become due shall not be assignable, and such payments made to, or on account of, a beneficiary under any of the laws relating to veterans shall be exempt from taxation, shall be exempt from the claims of creditors, and shall not be liable to attachments, levy, or seizure by or any legal or equitable process whatever, either before or after receipt by the beneficiary, Such provisions shall not attach to claims of the United States arising under such laws nor shall the exemption herein contained as to taxation extend to the property purchased in part or wholly out of such payments. Section 4747 of the revised Statutes and section 22 of the World War Veterans Act, 1924, are hereby repealed, and all other Acts inconsistent herewith are hereby modified accordingly. The provisions of this section shall not be construed to prohibit the assignment by any person, to whom converted insurance shall be payable under Title III of the World War Veterans’ Act, 1924, of his interest in such insurance to any other member of the permitted class of beneficiaries.
1. Twentieth Congress under Session I Chapter LIII – An Act for the relief of certain surviving officers and soldiers of the army of the revolution.
Section 4 that the “pay under this act shall not, in way, be transferable or liable to attachment, levy, or seizure, by any legal process whatever, but shall inure wholly to the benefit of the officer or soldier entitled to the same by this act.” Approved, May 15, 1828 (From the Library of Congress)
2. It was the intent of the Seventy Fourth Congress Chapter 510; An Act- To safeguard the estates of veterans derived from payments of pension, compensation, emergency officers’ retirement and insurance, and other purposes. Section 3.
“Payments of benefits due or to become due shall not be assignable, and such payments made to, or on account of, a beneficiary under any of the laws relating to veterans shall be exempt from taxation, shall be exempt from the claims of creditors, and shall not be liable to attachment, levy, or seizure by or any legal or equitable process whatever, either before or after receipt by the beneficiary.” Approved August 12, 1935
3. It was the intent of the Eighty Fifth Congress (1958) Volume 72 Part I; An Act To consolidate into one act all of the laws by the Veterans Administration, and for other purposes. (Data from the Library of Congress)
(a) Payments of benefits due or become due under any law administered by the Veterans Administration should not be assignable except to the extent specifically authorized by law, and such payments made to, or on account of, a beneficiary shall be exempt from taxation, should be exempt from the claims of creditors and shall not be liable to attachment, levy, or seizure by or under any legal or equitable process whatever, either before or after receipt by the beneficiary. The preceding sentence shall not apply to claims of the United States arising under such laws nor shall the exemption therein contained as to taxation extend to ant property purchased in part or wholly out of such payments. The provision of this section shall not be construed to prohibit the reassignment of insurance otherwise authorized under Chapter 20 of this title, or of Servicemen Indemnity.
(b) This section shall prohibit the collection setoff, or otherwise out of any benefits payable pursuant to any law administered by the Veterans Administration and relating to veterans, their estate, or their dependents, of any claim of the United States, or any agency thereof against (1) any person other than the indebted beneficiary or his estate; or (2) any
beneficiary or his estate except amounts due the United States by such beneficiary or his estate by reason of overpayments or illegal payments made under such law to such beneficiary or his estate or to his dependents as such. If the benefits referred to in the preceding sentence are insurance payable by reason of yearly renewable term insurance, United States Government Life Insurance, or national Service Life Insurance issued by the United States, the exemption provided in this section shall not apply to indebtedness existing against the particular insurance
(c) contract upon the maturity of which the claim is based, whether such indebtedness is in the form of liens to secure unpaid premiums, or loans, or interest of such premiums or loans or indebtedness arising from overpayments of dividends, refunds, or other insurance benefits. Notwithstanding subsection (a), payments of benefits under laws administered by the Veterans Administration shall not be exempt from levy under subchapter D of Chapter 64 of the Internal Revenue Code of 1954 (relating to seizure of property for collection of taxes).
3101. See above
3102. Waiver of recovery of overpayments
3103. Certain bars to benefits
3104. Prohibition against duplication of benefits
3105. Waiver of retired pay
3106. Renouncement of rights to benefits
3107. Apportionment of benefits
3108. Withholding benefits of persons in territory of the enemy
3109. Payment of certain withheld benefits
whol·ly [ hṓlee ] 
solely and exclusively: solely and to the exclusion of all other thin