
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: 42USC297e]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
              SUBCHAPTER VI--NURSING WORKFORCE DEVELOPMENT
 
                          Part E--Student Loans
 
Sec. 297e. Distribution of assets from loan funds


(a) Capital distribution of balance of loan fund

    If a school terminates a loan fund established under an agreement 
pursuant to section 297a(b) of this title, or if the Secretary for good 
cause terminates the agreement with the school, there shall be a capital 
distribution as follows:
    (1) The Secretary shall first be paid an amount which bears the same 
ratio to such balance in such fund on the date of termination of the 
fund as the total amount of the Federal capital contributions to such 
fund by the Secretary pursuant to section 297a(b)(2)(A) of this title 
bears to the total amount in such fund derived from such Federal capital 
contributions and from funds deposited therein pursuant to section 
297a(b)(2)(B) of this title.
    (2) The remainder of such balance shall be paid to the school.

(b) Payment of principal or interest on loans

    If a capital distribution is made under subsection (a) of this 
section, the school involved shall, after such capital distribution, pay 
to the Secretary, not less often than quarterly, the same proportionate 
share of amounts received by the school in payment of principal or 
interest on loans made from the loan fund established under section 
297a(b) of this title as determined by the Secretary under subsection 
(a) of this section.

(c) Payment of balance of loan fund

    (1) Within 90 days after the termination of any agreement with a 
school under section 297a of this title or the termination in any other 
manner of a school's participation in the loan program under this 
subpart,\1\ such school shall pay to the Secretary from the balance of 
the loan fund of such school established under section 297a of this 
title, an amount which bears the same ratio to the balance in such fund 
on the date of such termination as the total amount of the Federal 
capital contributions to such fund by the Secretary pursuant to section 
297a(b)(2)(A) of this title bears to the total amount in such fund on 
such date derived from such Federal capital contributions and from funds 
deposited in the fund pursuant to section 297a(b)(2)(B) of this title. 
The remainder of such balance shall be paid to the school.
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    \1\ See References in Text note below.
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    (2) A school to which paragraph (1) applies shall pay to the 
Secretary after the date on which payment is made under such paragraph 
and not less than quarterly, the same proportionate share of amounts 
received by the school after the date of termination referred to in 
paragraph (1) in payment of principal or interest on loans made from the 
loan fund as was determined for the Secretary under such paragraph.

(July 1, 1944, ch. 373, title VIII, Sec. 839, formerly Sec. 826, as 
added Pub. L. 88-581, Sec. 2, Sept. 4, 1964, 78 Stat. 916; amended Pub. 
L. 89-751, Sec. 6(d), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90-490, title 
II, Sec. 222(f), Aug. 16, 1968, 82 Stat. 785; Pub. L. 92-52, Sec. 3(b), 
July 9, 1971, 85 Stat. 145; Pub. L. 92-158, Sec. 6(d)(1), Nov. 18, 1971, 
85 Stat. 478; renumbered Sec. 839 and amended Pub. L. 94-63, title IX, 
Secs. 936(d), 941(h)(1), (2), (4)(B), (i)(1), (5), July 29, 1975, 89 
Stat. 363, 365, 366; Pub. L. 96-32, Sec. 7(j), July 10, 1979, 93 Stat. 
84; Pub. L. 96-76, title I, Sec. 109(c), Sept. 29, 1979, 93 Stat. 580; 
Pub. L. 97-35, title XXVII, Sec. 2757(d), Aug. 13, 1981, 95 Stat. 931; 
Pub. L. 99-92, Sec. 8(f), Aug. 16, 1985, 99 Stat. 399; Pub. L. 100-607, 
title VII, Sec. 713(i), Nov. 4, 1988, 102 Stat. 3161; Pub. L. 102-408, 
title II, Sec. 208(b), Oct. 13, 1992, 106 Stat. 2075; Pub. L. 105-392, 
title I, Sec. 133(e), Nov. 13, 1998, 112 Stat. 3577.)

                       References in Text

    This subpart, referred to in subsec. (c)(1), probably should be 
``this part'', to reflect the redesignation of subpart II of part B of 
this subchapter as part E of this subchapter by Pub. L. 105-392, title 
I, Sec. 123(2), Nov. 13, 1998, 112 Stat. 3562.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-392, Sec. 133(e)(1)(A), added 
introductory provisions and struck out former introductory provisions 
which read as follows: ``After September 30, 1996, and not later than 
December 31, 1999, there shall be a capital distribution of the balance 
of the loan fund established under an agreement pursuant to section 297a 
of this title by each school as follows:''.
    Subsec. (a)(1). Pub. L. 105-392, Sec. 133(e)(1)(B), substituted ``on 
the date of termination of the fund'' for ``at the close of September 
30, 1999,''.
    Subsec. (b). Pub. L. 105-392, Sec. 133(e)(2), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``After 
December 31, 1999, each school with which the Secretary has made an 
agreement under this subpart shall pay to the Secretary, not less often 
than quarterly, the same proportionate share of amounts received by the 
school after September 30, 1999, in payment of principal or interest on 
loans made from the loan fund established pursuant to such agreement as 
was determined for the Secretary under subsection (a) of this section.''
    1992--Subsec. (a). Pub. L. 102-408, Sec. 208(b)(2), substituted 
``1999'' for ``1994'' in introductory provisions and in par. (1).
    Pub. L. 102-408, Sec. 208(b)(1), substituted ``1996'' for ``1991'' 
in introductory provisions.
    Subsec. (b). Pub. L. 102-408, Sec. 208(b)(2), substituted ``1999'' 
for ``1994'' in two places.
    1988--Subsec. (a). Pub. L. 100-607, Sec. 713(i)(1)(A), which 
directed substitution of ``1994'' for ``1991'' in text preceding par. 
(1), was executed by making the substitution for ``1991'' the second 
time appearing to reflect the probable intent of Congress.
    Subsec. (a)(1). Pub. L. 100-607, Sec. 713(i)(1)(B), substituted 
``1994'' for ``1991''.
    Subsec. (b). Pub. L. 100-607, Sec. 713(i)(2), substituted ``1994'' 
for ``1991'' in two places.
    1985--Subsecs. (a), (b). Pub. L. 99-92, Sec. 8(f)(1), substituted 
``1991'' for ``1987'' wherever appearing.
    Subsec. (c). Pub. L. 99-92, Sec. 8(f)(2), added subsec. (c).
    1981--Pub. L. 97-35 substituted ``1987'' for ``1983'' wherever 
appearing.
    1979--Subsec. (a). Pub. L. 96-76, Sec. 109(c)(1), substituted 
``September 30, 1983, and not later than December 31, 1983'' for 
``September 30, 1980, and not later than December 31, 1981''. Prior to 
amendment, subsec. (a) referred to ``December 31, 1980'' rather than to 
``December 31, 1981'' as cited in directory language of Pub. L. 96-76. 
See below for explanation of amendment by Pub. L. 96-32.
    Pub. L. 96-32 substituted ``December 31, 1980'' for ``September 30, 
1977''.
    Subsec. (a)(1). Pub. L. 96-76, Sec. 109(c)(2), substituted ``1983'' 
for ``1980''.
    Subsec. (b). Pub. L. 96-76, Sec. 109(c)(3), substituted ``1983'' for 
``1980'' wherever appearing.
    1975--Subsec. (a). Pub. L. 94-63, Secs. 936(d), 941(h)(2), (i)(5), 
substituted ``September 30, 1980'' for ``June 30, 1977'' wherever 
appearing, struck out ``of Health, Education, and Welfare'' after 
``Secretary'', and substituted references to section 835 of the Act for 
references to section 822, which had previously been translated as 
section 297a of this title, requiring no further translations in text as 
a result of renumbering of the Public Health Service Act.
    Subsec. (b). Pub. L. 94-63, Secs. 936(d), 941(h)(1), (4)(B), 
substituted ``subpart'' for ``part'', ``September 30, 1980'' for ``June 
30, 1977'', and ``December 31, 1980'' for ``September 30, 1977'' and 
struck out provisions relating to payments from revolving fund 
established by section 297f(d) of this title.
    1971--Pub. L. 92-158 substituted ``1977'' for ``1975'' wherever 
appearing.
    Pub. L. 92-52 substituted ``1975'' for ``1974'' wherever appearing.
    1968--Pub. L. 90-490 substituted ``1974'' for ``1972'' wherever 
appearing.
    1966--Subsec. (a). Pub. L. 89-751, Sec. 6(d)(1), (2), substituted 
``an agreement pursuant to section 297a(b) of this title'' for ``this 
part'' in opening provisions, and in par. (1) substituted ``such 
balance'' for ``the balance''.
    Subsec. (b). Pub. L. 89-751, Sec. 6(d)(3), inserted ``(other than so 
much of such fund as relates to payments from the revolving fund 
established by section 297f(d) of this title)''.


                    Effective Date of 1985 Amendment

    Amendment by Pub. L. 99-92 effective Oct. 1, 1985, see section 10(a) 
of Pub. L. 99-92, set out as a note under section 297a of this title.


                    Effective Date of 1975 Amendment

    Amendment by section 936(d) of Pub. L. 94-63 effective July 1, 1975, 
see section 905 of Pub. L. 94-63, set out as a note under section 297a 
of this title.
    Amendment by section 941(h)(1), (2), (4)(B), (i)(1), (5) of Pub. L. 
94-63 effective July 1, 1975, see section 942 of Pub. L. 94-63, set out 
as a note under section 297a of this title.


                    Effective Date of 1966 Amendment

    Amendment by Pub. L. 89-751 effective in the case of payments to 
student loan funds made after Nov. 3, 1966, except in the case of 
payments pursuant to commitments (made prior to Nov. 3, 1966) to make 
loans under section 297f of this title as in effect prior to Nov. 3, 
1966, see section 6(e)(1) of Pub. L. 89-751, set out as a note under 
section 297d of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 297d of this title.
