
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: 42USC291j-3]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
  SUBCHAPTER IV--CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER 
                           MEDICAL FACILITIES
 
Part B--Loan Guarantees and Loans for Modernization and Construction of 
                 Hospitals and Other Medical Facilities
 
Sec. 291j-3. Applications and conditions


(a) Contents of applications

    For each project for which a guarantee of a loan to a nonprofit 
private agency or a direct loan to a public agency is sought under this 
part, there shall be submitted to the Secretary, through the State 
agency designated in accordance with section 291d of this title, an 
application by such private nonprofit agency or by such public agency. 
If two or more private nonprofit agencies, or two or more public 
agencies, join in the project, the application may be filed by one or 
more such agencies. Such application shall (1) set forth all of the 
descriptions, plans, specifications, assurances, and information which 
are required by the third sentence of section 291e(a) of this title 
(other than clause (6) thereof) with respect to applications submitted 
under that section, (2) contain such other information as the Secretary 
may require to carry out the purposes of this part, and (3) include a 
certification by the State agency of the total cost of the project and 
the amount of the loan for which a guarantee is sought under this part, 
or the amount of the direct loan sought under this part, as the case may 
be.

(b) Conditions for approval

    The Secretary may approve such application only if--
        (1) there remains sufficient balance in the allotment determined 
    for such State pursuant to section 291j-2 of this title to cover the 
    amount of the loan for which a guarantee is sought, or the amount of 
    the direct loan sought (as the case may be), in such application,
        (2) he makes each of the findings which are required by clauses 
    (1) through (4) of section 291e(b) of this title for the approval of 
    applications for projects thereunder (except that, in the case of 
    the finding required under such clause (4) of entitlement of a 
    project to a priority established under section 291c(a) of this 
    title; such finding shall be made without regard to the provisions 
    of clauses (1) and (3) of such section),
        (3) he finds that there is compliance with section 291e(e) of 
    this title,
        (4) he obtains assurances that the applicant will keep such 
    records, and afford such access thereto, and make such reports, in 
    such form and containing such information, as the Secretary may 
    reasonably require, and
        (5) he also determines, in the case of a loan for which a 
    guarantee is sought, that the terms, conditions, maturity, security 
    (if any), and schedule and amounts of repayments with respect to the 
    loan are sufficient to protect the financial interests of the United 
    States and are otherwise reasonable and in accord with regulations, 
    including a determination that the rate of interest does not exceed 
    such per centum per annum on the principal obligation outstanding as 
    the Secretary determines to be reasonable, taking into account the 
    range of interest rates prevailing in the private market for similar 
    loans and the risks assumed by the United States.

(c) Hearing

    No application under this section shall be disapproved until the 
Secretary has afforded the State agency an opportunity for a hearing.

(d) Amendment of approved applications

    Amendment of an approved application shall be subject to approval in 
the same manner as an original application.

(e) Recovery rights; terms and conditions

    (1) In the case of any loan to a nonprofit private agency, the 
United States shall be entitled to recover from the applicant the amount 
of any payments made pursuant to any guarantee of such loan under this 
part, unless the Secretary for good cause waives its right of recovery, 
and, upon making any such payment, the United States shall be subrogated 
to all of the rights of the recipient of the payments with respect to 
which the guarantee was made.
    (2) Guarantees of loans to nonprofit private agencies under this 
part shall be subject to such further terms and conditions as the 
Secretary determines to be necessary to assure that the purposes of this 
part will be achieved, and, to the extent permitted by subsection (f) of 
this section, any of such terms and conditions may be modified by the 
Secretary to the extent he determines it to be consistent with the 
financial interest of the United States.

(f) Incontestable guarantee

    Any guarantee of a loan to a nonprofit private agency made by the 
Secretary pursuant to this part shall be incontestable in the hands of 
an applicant on whose behalf such guarantee is made, and as to any 
person who makes or contracts to make a loan to such applicant in 
reliance thereon, except for fraud or misrepresentation on the part of 
such applicant or such other person.

(July 1, 1944, ch. 373, title VI, Sec. 623, as added Pub. L. 91-296, 
title II, Sec. 201, June 30, 1970, 84 Stat. 346.)
