
From the U.S. Code Online via GPO Access
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[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-6]

 
                 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-6. Loan guarantee and loan fund

    (a)(1) There is hereby established in the Treasury a loan guarantee 
and loan fund (hereinafter in this section referred to as the ``fund'') 
which shall be available to the Secretary without fiscal year 
limitation, in such amounts as may be specified from time to time in 
appropriations Acts, (i) to enable him to discharge his responsibilities 
under guarantees issued by him under this part, (ii) for payment of 
interest on the loans to nonprofit agencies which are guaranteed, (iii) 
for direct loans to public agencies which are sold and guaranteed, (iv) 
for payment of interest with respect to such loans, and (v) for 
repurchase by him of direct loans to public agencies which have been 
sold and guaranteed. There are authorized to be appropriated to the fund 
from time to time such amounts as may be necessary to provide capital 
required for the fund. To the extent authorized from time to time in 
appropriation Acts, there shall be deposited in the fund amounts 
received by the Secretary as interest payments or repayments of 
principal on loans and any other moneys, property, or assets derived by 
him from his operations under this part, including any moneys derived 
from the sale of assets.
    (2) Of the moneys in the fund, there shall be available to the 
Secretary for the purpose of making of direct loans to public agencies 
only such sums as shall have been appropriated for such purpose pursuant 
to section 291j-7 of this title or sums received by the Secretary from 
the sale of such loans (in accordance with such section) and authorized 
in appropriations Acts to be used for such purpose.
    (b) If at any time the moneys in the fund are insufficient to enable 
the Secretary to discharge his responsibilities under this part--
        (i) to make payments of interest on loans to nonprofit private 
    agencies which he has guaranteed under this part;
        (ii) to otherwise comply with guarantees under this part of 
    loans to nonprofit private agencies;
        (iii) to make payments of interest subsidies with respect to 
    loans to public agencies which he has made, sold, and guaranteed 
    under this part;
        (iv) in the event of default by public agencies to make payments 
    of principal and interest on loans which the Secretary has made, 
    sold, and guaranteed, under this part, to make such payments to the 
    purchaser of such loan;
        (v) to repurchase loans to public agencies which have been sold 
    and guaranteed under this part,

he is authorized to issue to the Secretary of the Treasury notes or 
other obligations in such forms and denominations, bearing such 
maturities, and subject to such terms and conditions, as may be 
prescribed by the Secretary with the approval of the Secretary of the 
Treasury, but only in such amounts as may be specified from time to time 
in appropriations Acts. Such notes or other obligations shall bear 
interest at a rate determined by the Secretary of the Treasury, taking 
into consideration the current average market yield on outstanding 
marketable obligations of the United States of comparable maturities 
during the month preceding the issuance of the notes or other 
obligations. The Secretary of the Treasury is authorized and directed to 
purchase any notes and other obligations issued hereunder and for that 
purpose he is authorized to use as a public debt transaction the 
proceeds from the sale of any securities issued under chapter 31 of 
title 31, and the purposes for which securities may be issued under that 
chapter, are extended to include any purchase of such notes and 
obligations. The Secretary of the Treasury may at any time sell any of 
the notes or other obligations acquired by him under this subsection. 
All redemptions, purchases, and sales by the Secretary of the Treasury 
of such notes or other obligations shall be treated as public debt 
transactions of the United States. Sums borrowed under this subsection 
shall be deposited in the fund and redemption of such notes and 
obligations shall be made by the Secretary from such fund.

(July 1, 1944, ch. 373, title VI, Sec. 626, as added Pub. L. 91-296, 
title II, Sec. 201, June 30, 1970, 84 Stat. 347.)

                          Codification

    In subsec. (b), ``chapter 31 of title 31'' and ``that chapter'' 
substituted for ``the Second Liberty Bond Act, as amended'' and ``that 
Act, as amended'', respectively, on authority of Pub. L. 97-258, 
Sec. 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which 
enacted Title 31, Money and Finance.

                  Section Referred to in Other Sections

    This section is referred to in sections 291j-7, 300q-2 of this 
title.
