
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC254p]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
                SUBCHAPTER II--GENERAL POWERS AND DUTIES
 
                       Part D--Primary Health Care
 
       subpart iii--scholarship program and loan repayment program
 
Sec. 254p. Special loans for former Corps members to enter 
        private practice
        

(a) Persons entitled; conditions

    The Secretary may, out of appropriations authorized under section 
254k of this title, make one loan to a Corps member who has agreed in 
writing--
        (1) to engage in the private full-time clinical practice of the 
    profession of the member in a health professional shortage area 
    (designated under section 254e of this title) for a period of not 
    less than 2 years which--
            (A) in the case of a Corps member who is required to 
        complete a period of obligated service under this subpart, 
        begins not later than 1 year after the date on which such 
        individual completes such period of obligated service; and
            (B) in the case of an individual who is not required to 
        complete a period of obligated service under this subpart, 
        begins at such time as the Secretary considers appropriate;

        (2) to conduct such practice in accordance with section 
    254n(b)(1) of this title; and
        (3) to such additional conditions as the Secretary may require 
    to carry out this section.

Such a loan shall be used to assist such individual in meeting the costs 
of beginning the practice of such individual's profession in accordance 
with such agreement, including the costs of acquiring equipment and 
renovating facilities for use in providing health services, and of 
hiring nurses and other personnel to assist in providing health 
services. Such loan may not be used for the purchase or construction of 
any building.

(b) Amount of loan; maximum interest rate

    (1) The amount of a loan under subsection (a) of this section to an 
individual shall not exceed $25,000.
    (2) The interest rate for any such loan shall not exceed an annual 
rate of 5 percent.

(c) Application for loan; submission and approval; interest rates and 
        repayment terms

    The Secretary may not make a loan under this section unless an 
application therefor has been submitted to, and approved by, the 
Secretary. The Secretary shall, by regulation, set interest rates and 
repayment terms for loans under this section.

(d) Breach of agreement; notice; determination of liability

    If the Secretary determines that an individual has breached a 
written agreement entered into under subsection (a) of this section, he 
shall, as soon as practicable after making such determination, notify 
the individual of such determination. If within 60 days after the date 
of giving such notice, such individual is not practicing his profession 
in accordance with the agreement under such subsection and has not 
provided assurances satisfactory to the Secretary that he will not 
knowingly violate such agreement again, the United States shall be 
entitled to recover from such individual--
        (1) in the case of an individual who has received a grant under 
    this section (as in effect prior to October 1, 1984), an amount 
    determined under section 254o(b) of this title, except that in 
    applying the formula contained in such section ``<greek-ph>'' shall 
    be the sum of the amount of the grant made under subsection (a) of 
    this section to such individual and the interest on such amount 
    which would be payable if at the time it was paid it was a loan 
    bearing interest at the maximum legal prevailing rate, ``t'' shall 
    be the number of months that such individual agreed to practice his 
    profession under such agreement, and ``s'' shall be the number of 
    months that such individual practices his profession in accordance 
    with such agreement; and
        (2) in the case of an individual who has received a loan under 
    this section, the full amount of the principal and interest owed by 
    such individual under this section.

(July 1, 1944, ch. 373, title III, Sec. 338G, formerly title VII, 
Sec. 755, as added Pub. L. 94-484, title IV, Sec. 408(b)(1), Oct. 12, 
1976, 90 Stat. 2287; renumbered Sec. 338E and amended Pub. L. 97-35, 
title XXVII, Sec. 2709(a), (f), Aug. 13, 1981, 95 Stat. 908, 911; Pub. 
L. 97-414, Sec. 8(g)(3), Jan. 4, 1983, 96 Stat. 2061; renumbered 
Sec. 338F and amended Pub. L. 100-177, title II, Sec. 201(2), title III, 
Sec. 309, Dec. 1, 1987, 101 Stat. 992, 1006; renumbered Sec. 338G and 
amended Pub. L. 101-597, title II, Sec. 204, title IV, Sec. 401(b)[(a)], 
Nov. 16, 1990, 104 Stat. 3027, 3035.)

                          Codification

    Section was formerly classified to section 294x of this title prior 
to renumbering by Pub. L. 97-35.


                            Prior Provisions

    A prior section 338G of act July 1, 1944, was renumbered section 
338H by Pub. L. 101-597 and is classified to section 254q of this title.
    Another prior section 338G of act July 1, 1944, was renumbered 
section 338I by section 201(1) of Pub. L. 100-177 and classified to 
section 254r of this title, prior to repeal by Pub. L. 100-713, title I, 
Sec. 104(b)(1), Nov. 23, 1988, 102 Stat. 4787.
    Another prior section 338G of act July 1, 1944, was classified to 
section 254q of this title prior to repeal by Pub. L. 100-177, title II, 
Sec. 203, Dec. 1, 1987, 101 Stat. 999.


                               Amendments

    1990--Subsec. (a)(1). Pub. L. 101-597, Sec. 401(b)[(a)], substituted 
reference to health professional shortage area for reference to health 
manpower shortage area.
    1987--Subsec. (a). Pub. L. 100-177, Sec. 309(1), substituted subsec. 
(a) consisting of pars. (1) to (3) for former subsec. (a) consisting of 
pars. (1) and (2).
    Subsec. (b). Pub. L. 100-177, Sec. 309(1), added subsec. (b) and 
struck out former subsec. (b) which read as follows: ``The amount of the 
grant or loan under subsection (a) of this section to an individual 
shall be--
        ``(1) $12,500 if the individual agrees to practice his 
    profession in accordance with the agreement for a period of at least 
    one year, but less than two years; or
        ``(2) $25,000 if the individual agrees to practice his 
    profession in accordance with the agreement for a period of at least 
    two years.''
    Subsec. (c). Pub. L. 100-177, Sec. 309(2), struck out ``grant or'' 
before ``loan'' in first sentence.
    Subsec. (d)(1). Pub. L. 100-177, Sec. 309(3), substituted ``under 
this section (as in effect prior to October 1, 1984)'' for ``under this 
section'', and made technical amendment to reference to section 254o(b) 
of this title to reflect renumbering of corresponding section of 
original act.
    1983--Subsec. (d)(1). Pub. L. 97-414 substituted ``section 254o(b)'' 
for ``section 254o(c)''.
    1981--Subsec. (a). Pub. L. 97-35, Sec. 2709(f)(2)-(4), made numerous 
changes to reflect renumbering of subpart sections, among them inserting 
references to section 254k of this title and striking out references to 
section 294v of this title, and added applicability to loans.
    Subsec. (b). Pub. L. 97-35, Sec. 2709(f)(5), inserted applicability 
to loans.
    Subsec. (c). Pub. L. 97-35, Sec. 2709(f)(6), inserted provisions 
relating to loans and interest rates, etc.
    Subsec. (d). Pub. L. 97-35, Sec. 2709(f)(7), restructured and 
revised criteria determining amount of liability of individual within 60 
days after the date of notice instead of within 120 days after the date 
of notice.


                             Effective Date

    Section effective Oct. 1, 1977, see section 408(b)(1) of Pub. L. 94-
484, set out in part as a note under section 254l of this title.


 Effective Date; Savings Provision; Credit for Period of Internship or 
     Residency Before September 30, 1977, Towards Service Obligation

    See section 408(b)(2) of Pub. L. 94-484, set out as a note under 
section 254l of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 254o, 293b of this title.
