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B. The Structure of Section 3709(b) and (d) and How It Affects Type I and Type II Cash-Outs Subsection (b) requires that a refinance loan provide a net tangible benefit to a veteran As explained, section 3709 bifurcates cash-out refinance loans into two types. Type I Cash-Outs are subject to 38 U.S.C. 3709(a) through (c).