42 U.S.C. § 291j — Loans

Page 978 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 291j on any facility with respect to which funds have been paid under section 291f of this title. (July 1, 1944, ch. 373, title VI, § 609, as added Pub. L. 88–443, § 3(a), Aug. 18, 1964, 78 Stat. 456; amend- ed Pub. L. 91–296, title I § 116(d), June 30, 1970, 84 Stat. 342; Pub. L. 98–369, div. B, title III, § 2381(a), July 18, 1984, 98 Stat. 1112.) Editorial Notes PRIOR PROVISIONS A prior section 291i, act July 1, 1944, ch. 373, title VI, § 631, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended June 19, 1948, ch. 544, 62 Stat. 531; Oct. 25, 1949, ch. 722, § 9, 63 Stat. 901; July 12, 1954, ch. 471, § 4(c)–(f), 68 Stat. 465, 466; Aug. 1, 1956, ch. 852, § 19(a), (b), 70 Stat. 911; June 25, 1959, Pub. L. 86–70, § 31(c), 73 Stat. 149; July 12, 1960, Pub. L. 86–624, § 29(d), 74 Stat. 419; Oct. 5, 1961, Pub. L. 87–395, § 5, 75 Stat. 826; Sept. 25, 1962, Pub. L. 87–688, § 4(a)(2), 76 Stat. 587, related to allotment per- centages, and contained various definitions, prior to the general amendment of this subchapter by Pub. L. 88–443. See section 291b of this title. Provisions similar to those comprising this section were contained in section 291h(e) of this title, act July 1, 1944, ch. 373, title VI, § 625, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended Oct. 25, 1949, ch. 722, § 3(c), 63 Stat. 899, 901; July 12, 1954, ch. 471, § 4(b), 68 Stat. 464, prior to the general amendment of this sub- chapter by Pub. L. 88–443. AMENDMENTS 1984—Pub. L. 98–369 amended section generally. Prior to amendment, section read as follows: ‘‘If any facility with respect to which funds have been paid under sec- tion 291f of this title shall, at any time within twenty years after the completion of construction— ‘‘(a) be sold or transferred to any person, agency, or organization (1) which is not qualified to file an ap- plication under section 291e of this title, or (2) which is not approved as a transferee by the State agency designated pursuant to section 291d of this title, or its successor, or ‘‘(b) cease to be a public health center or a public or other nonprofit hospital, outpatient facility, facil- ity for long-term care, or rehabilitation facility, un- less the Surgeon General determines, in accordance with regulations, that there is good cause for releas- ing the applicant or other owner from this obligation, the United States shall be entitled to recover from ei- ther the transferor or the transferee (or, in the case of a facility which has ceased to be public or nonprofit, from the owners thereof) an amount bearing the same ratio to the then value (as determined by the agree- ment of the parties or by action brought in the district court of the United States for the district in which the facility is situated) of so much of the facility as con- stituted an approved project or projects, as the amount of the Federal participation bore to the cost of the con- struction or modernization under such project or projects. Such right of recovery shall not constitute a lien upon said facility prior to judgment.’’ 1970—Cl. (b). Pub. L. 91–296 substituted ‘‘outpatient facility’’ for ‘‘diagnostic or treatment center’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Secretary of Health and Human Services’’ sub- stituted for ‘‘Secretary of Health, Education, and Wel- fare’’ in subsecs. (b), (c), and (d) pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education. REGULATIONS AND PERSONNEL Pub. L. 98–369, div. B, title III, § 2381(c), July 18, 1984, 98 Stat. 1116, provided that: ‘‘Not later than the expira- tion of the one-hundred-and-eighty-day period begin- ning on the date of the enactment of this section [July 18, 1984], the Secretary shall have in effect regulations and personnel to place in effect the amendments made by this section [amending sections 291i and 300s–1a of this title].’’ Executive Documents TRANSFER OF FUNCTIONS Office of Surgeon General abolished by section 3 of Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and functions thereof transferred to Sec- retary of Health, Education, and Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note under sec- tion 202 of this title. Office of Surgeon General reestab- lished within the Office of the Assistant Secretary for Health, see Notice of Department of Health and Human Services, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754. § 291j. Loans (a) Authorization; conditions In order further to assist the States in car- rying out the purposes of this subchapter, the Surgeon General is authorized to make a loan of funds to the applicant for any project for con- struction or modernization which meets all of the conditions specified for a grant under this part. (b) Approval; payments to applicants Except as provided in this section, an applica- tion for a loan with respect to any project under this part shall be submitted, and shall be ap- proved by the Surgeon General, in accordance with the same procedures and subject to the same limitations and conditions as would be ap- plicable to the making of a grant under this part for such project. Any such application may be approved in any fiscal year only if sufficient funds are available from the allotment for the type of project involved. All loans under this section shall be paid directly to the applicant. (c) Terms (1) The amount of a loan under this part shall not exceed an amount equal to the Federal share of the estimated cost of construction or mod- ernization under the project. Where a loan and a grant are made under this part with respect to the same project, the aggregate amount of such loan and such grant shall not exceed an amount equal to the Federal share of the estimated cost of construction or modernization under the project. Each loan shall bear interest at the rate arrived at by adding one-quarter of 1 per centum per annum to the rate which the Secretary of the Treasury determines to be equal to the cur- rent average yield on all outstanding market- able obligations of the United States as of the last day of the month preceding the date the ap- plication for the loan is approved and by adjust- ing the result so obtained to the nearest one- eighth of 1 per centum. Each loan made under this part shall mature not more than forty years after the date on which such loan is made, ex- cept that nothing in this part shall prohibit the payment of all or part of the loan at any time prior to the maturity date. In addition to the terms and conditions provided for, each loan under this part shall be made subject to such terms, conditions, and covenants relating to re- Page 979 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 291j–2 1 See References in Text note below. payment of principal, payment of interest, and other matters as may be agreed upon by the ap- plicant and the Surgeon General. (2) The Surgeon General may enter into agree- ments modifying any of the terms and condi- tions of a loan made under this part whenever he determines such action is necessary to protect the financial interest of the United States. (3) If, at any time before a loan for a project has been repaid in full, any of the events speci- fied in clause (a) or clause (b) of section 291i 1 of this title occurs with respect to such project, the unpaid balance of the loan shall become im- mediately due and payable by the applicant, and any transferee of the facility shall be liable to the United States for such repayment. (d) Funds; miscellaneous receipts Any loan under this part shall be made out of the allotment from which a grant for the project concerned would be made. Payments of interest and repayments of principal on loans under this part shall be deposited in the Treasury as mis- cellaneous receipts. (July 1, 1944, ch. 373, title VI, § 610, as added Pub. L. 88–443, § 3(a), Aug. 18, 1964, 78 Stat. 457.) Editorial Notes REFERENCES IN TEXT Section 291i of this title, referred to in subsec. (c)(3), was amended generally by Pub. L. 98–369, div. B, title III, § 2381(a), July 18, 1984, 98 Stat. 1112, and, as so amended, the provisions contained in former cls. (a) and (b) of section 291i are covered by section 291i(a)(1) and (2). PRIOR PROVISIONS A prior section 291j, act July 1, 1944, ch. 373, title VI, § 632, as added Aug. 13, 1946, ch. 958, § 2, 60 Stat. 1041; amended June 25, 1948, ch. 646, § 32(a), 62 Stat. 991; May 24, 1949, ch. 139, § 127, 63 Stat. 107; Oct. 25, 1949, ch. 722, § 4, 63 Stat. 900; July 12, 1954, ch. 471, § 4(g), 68 Stat. 466; Aug. 28, 1958, Pub. L. 85–791, § 27, 72 Stat. 950, related to withholding of certification for noncompliance with re- quirements, appeal, conclusiveness of findings, the ju- risdiction of the courts of appeals and to review by the Supreme Court, prior to the general amendment of this subchapter by Pub. L. 88–443. See sections 291g and 291h of this title. Provisions similar to those comprising this section were contained in sections 291w to 291z of this title, prior to the general amendment of this subchapter by Pub. L. 88–443. Statutory Notes and Related Subsidiaries CHANGE OF NAME ‘‘Secretary of Health and Human Services’’ sub- stituted for ‘‘Secretary of Health, Education, and Wel- fare’’ pursuant to section 509(b) of Pub. L. 96–88, which is classified to section 3508(b) of Title 20, Education. Executive Documents TRANSFER OF FUNCTIONS Office of Surgeon General abolished by section 3 of Reorg. Plan No. 3 of 1966, eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and functions thereof transferred to Sec- retary of Health, Education, and Welfare by section 1 of Reorg. Plan No. 3 of 1966, set out as a note under sec- tion 202 of this title. Office of Surgeon General reestab- lished within the Office of the Assistant Secretary for Health, see Notice of Department of Health and Human Services, Office of the Assistant Secretary for Health, Mar. 30, 1987, 52 F.R. 11754. PART B—LOAN GUARANTEES AND LOANS FOR MODERNIZATION AND CONSTRUCTION OF HOS- PITALS AND OTHER MEDICAL FACILITIES § 291j–1. Loan guarantees and loans (a) Authority of Secretary (1) In order to assist nonprofit private agen- cies to carry out needed projects for the mod- ernization or construction of nonprofit private hospitals, facilities for long-term care, out- patient facilities, and rehabilitation facilities, the Secretary, during the period July 1, 1970, through June 30, 1974, may, in accordance with the provisions of this part, guarantee to non- Federal lenders making loans to such agencies for such projects, payment of principal of and interest on loans, made by such lenders, which are approved under this part. (2) In order to assist public agencies to carry out needed projects for the modernization or construction of public health centers, and public hospitals, facilities for long-term care, out- patient facilities, and rehabilitation facilities, the Secretary, during the period July 1, 1970, through June 30, 1974, may, in accordance with the provisions of this part, make loans to such agencies which shall be sold and guaranteed in accordance with section 291j–7 of this title. (b) Cost limitations (1) No loan guarantee under this part with re- spect to any modernization or construction project may apply to so much of the principal amount thereof as, when added to the amount of any grant or loan under part A with respect to such project, exceeds 90 per centum of the cost of such project. (2) No loan to a public agency under this part shall be made in an amount which, when added to the amount of any grant or loan under part A with respect to such project, exceeds 90 per cen- tum of the cost of such project. (c) Administrative assistance The Secretary, with the consent of the Sec- retary of Housing and Urban Development, shall obtain from the Department of Housing and Urban Development such assistance with respect to the administration of this part as will pro- mote efficiency and economy thereof. (July 1, 1944, ch. 373, title VI, § 621, as added Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 344; amended Pub. L. 93–45, title I, § 108(b)(1), June 18, 1973, 87 Stat. 93.) Editorial Notes AMENDMENTS 1973—Subsec. (a). Pub. L. 93–45 extended termination date of guarantee and loan making period in pars. (1) and (2) from June 30, 1973, to June 30, 1974. § 291j–2. Allocation among States (a) Allotment regulations For each fiscal year, the total amount of prin- cipal of loans to nonprofit private agencies