
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: 42USC2991b-1]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 34--ECONOMIC OPPORTUNITY PROGRAM
 
                SUBCHAPTER VIII--NATIVE AMERICAN PROGRAMS
 
Sec. 2991b-1. Loan fund; demonstration project


(a) Grant to Office of Hawaiian Affairs to establish revolving loan 
        fund; purposes of fund; administrative costs; matching funds

    (1) In order to provide funding that is not available from private 
sources, the Commissioner shall award a grant to the Office of Hawaiian 
Affairs of the State of Hawaii (referred to in this section as the 
``Office''), which shall use that grant to carry out, in the State of 
Hawaii, a demonstration project involving the establishment of a 
revolving loan fund--
        (A) from which the Office shall make loans or loan guarantees to 
    Native Hawaiian organizations and to individual Native Hawaiians for 
    the purpose of promoting economic development in the State of 
    Hawaii; and
        (B) into which all payments, interest, charges, and other 
    amounts collected from loans made under subparagraph (A) shall be 
    deposited notwithstanding any other provision of law.

    (2) The agreement under which a grant is awarded under paragraph (1) 
shall contain provisions which set forth the administrative costs of the 
grantee that are to be paid out of the funds provided under the grant 
and a requirement that the grantee contribute to the revolving loan fund 
an amount of non-Federal funds equal to the amount of such grant.

(b) Loans or loan guarantees to borrowers; determinations; term; 
        interest rate; default and collection procedures; prohibition on 
        self-lending

    (1) The Office may make a loan or loan guarantee to a borrower under 
subsection (a)(1)(A) of this section only if the Office determines 
that--
        (A) the borrower is unable to obtain financing from other 
    sources on reasonable terms and conditions; and
        (B) there is a reasonable prospect that the borrower will repay 
    the loan.

    (2) Each loan or loan guarantee made under subsection (a)(1)(A) of 
this section shall be--
        (A) for a term that does not exceed 7 years; and
        (B) at a rate of interest that does not exceed a rate equal to 
    the sum of--
            (I) the most recently published prime rate (as published in 
        the newspapers of general circulation in the State of Hawaii 
        before the date on which the loan is made); and
            (II) 3 percentage points.

    (3) The Office may require any borrower of a loan made under 
subsection (a)(1)(A) of this section to provide such collateral as the 
Office determines to be necessary to secure the loan.
    (4) Prior to making loans under subsection (a)(1)(A) of this 
section, the Office shall establish written procedures and definitions 
pertaining to defaults and collections of payments under the loans which 
shall be subject to the review and approval of the Commissioner. Such 
Office shall provide to each applicant for a loan under subsection 
(a)(1)(A) of this section, at the time application for the loan is made, 
a written copy of such procedures and definitions.
    (5) The Office may not lend to itself any of the funds awarded under 
the grant.

(c) Notice to Commissioner of loans in default and uncollectability of 
        such loans; instructions by Commissioner

    (1) The Office shall provide the Commissioner at regular intervals 
written notice of each loan made under subsection (a)(1)(A) of this 
section that is in default and the status of such loan.
    (2)(A) After making reasonable efforts to collect all amounts 
payable under a loan made under subsection (a)(1)(A) of this section 
that is in default, the Office shall notify the Commissioner that such 
loan is uncollectable or collectable only at an unreasonable cost. Such 
notice shall include recommendations for future action to be taken by 
the Office.
    (B) Upon receiving such notice, the Commissioner shall instruct the 
Office--
        (i) to continue with its collection activities;
        (ii) to cancel, adjust, compromise, or reduce the amount of such 
    loan; or
        (iii) to modify any term or condition of such loan, including 
    any term or condition relating to the rate of interest or the time 
    of payment of any installment of principal or interest, or portion 
    thereof, that is payable under such loan.

    (C) The Office shall carry out all instructions received under 
subparagraph (B) from the Commissioner.

(d) Payment of administrative costs; management and technical assistance

    (1) The Office shall, out of funds available in the revolving loan 
fund established under such subsection--
        (A) pay expenses incurred by the Office in administering the 
    revolving loan fund; and
        (B) provide competent management and technical assistance to 
    borrowers of loans made under subsection (a)(1)(A) of this section 
    to assist the borrowers to achieve the purposes of such loans.

    (2) The Commissioner shall provide to the Office such management and 
technical assistance as the Office may request in order to carry out the 
provisions of this section.

(e) Regulations

    Not later than 120 days after November 29, 1987, the Commissioner, 
in consultation with appropriate agencies of the State of Hawaii and 
community-based Native Hawaiian organizations, shall prescribe 
regulations which set forth the procedures and criteria to be used--
        (1) in making loans under subsection (a)(1)(A) of this section; 
    and
        (2) in canceling, adjusting, compromising, and reducing under 
    subsection (c) of this section the outstanding amounts of such 
    loans.

The Commissioner may prescribe such other regulations as may be 
necessary to carry out the purposes of this section, including 
regulations involving reporting and auditing.

(f) Authorization of appropriations; investment in obligations of United 
        States

    (1) There is authorized to be appropriated for each of the fiscal 
years 2000 and 2001, $1,000,000 for the purpose of carrying out the 
provisions of this section. Any amount appropriated under this paragraph 
shall remain available for expenditure without fiscal year limitation.
    (2) The revolving loan fund that is required to be established under 
subsection (a)(1) of this section shall be maintained as a separate 
account. Any portion of the revolving loan fund that is not required for 
expenditure shall be invested in obligations of the United States or in 
obligations guaranteed or insured by the United States.

(g) Reports to Congress; contents

    (1) The Commissioner, in consultation with the Office, shall submit 
a report to the President pro tempore of the Senate and the Speaker of 
the House of Representatives not later than January 1 following each 
fiscal year, regarding the administration of this section in such fiscal 
year.
    (2) Such report shall include the views and recommendations of the 
Commissioner with respect to the revolving loan fund established under 
subsection (a)(1) of this section and with respect to loans made from 
such fund, and shall--
        (A) describe the effectiveness of the operation of such fund in 
    improving the economic and social self-sufficiency of Native 
    Hawaiians;
        (B) specify the number of loans made in such fiscal year;
        (C) specify the number of loans outstanding as of the end of 
    such fiscal year; and
        (D) specify the number of borrowers who fail in such fiscal year 
    to repay loans in accordance with the agreements under which such 
    loans are required to be repaid.

(Pub. L. 88-452, title VIII, Sec. 803A, as added Pub. L. 100-175, title 
V, Sec. 506(a), Nov. 29, 1987, 101 Stat. 976; amended Pub. L. 102-375, 
title VIII, Sec. 822(2), Sept. 30, 1992, 106 Stat. 1296; Pub. L. 103-
171, Sec. 5(3), Dec. 2, 1993, 107 Stat. 1991; Pub. L. 105-361, Sec. 3, 
Nov. 10, 1998, 112 Stat. 3278.)


                               Amendments

    1998--Subsec. (a)(1). Pub. L. 105-361, Sec. 3(a)(1)(A), in 
introductory provisions, substituted ``award a grant'' for ``award 
grants'' and ``use that grant to carry out'' for ``use such grants to 
establish and carry out''.
    Subsec. (a)(1)(A). Pub. L. 105-361, Sec. 3(a)(1)(B), inserted ``or 
loan guarantees'' after ``make loans''.
    Subsec. (b)(1). Pub. L. 105-361, Sec. 3(a)(2)(A), substituted ``a 
loan or loan guarantee to a borrower'' for ``loans to a borrower'' in 
introductory provisions.
    Subsec. (b)(2). Pub. L. 105-361, Sec. 3(a)(2)(B)(i), substituted 
``Each loan or loan guarantee made'' for ``Loans made'' in introductory 
provisions.
    Subsec. (b)(2)(A). Pub. L. 105-361, Sec. 3(a)(2)(B)(ii), substituted 
``7 years'' for ``5 years''.
    Subsec. (b)(2)(B). Pub. L. 105-361, Sec. 3(a)(2)(B)(iii), 
substituted ``that does not exceed a rate equal to the sum of--'' for 
``that is 2 percentage points below the average market yield on the most 
recent public offering of United States Treasury bills occurring before 
the date on which the loan is made.'' and added cls. (I) and (II).
    Subsec. (f)(1). Pub. L. 105-361, Sec. 3(a)(3), substituted ``2000 
and 2001,'' for ``1992, 1993, and 1994,''.
    1993--Subsecs. (b) to (d)(1). Pub. L. 103-171, Sec. 5(3)(A), struck 
out ``to which a grant is awarded under subsection (a)(1) of this 
section'' before ``may make loans'' in subsec. (b)(1), before ``may 
require any borrower'' in subsec. (b)(3), before ``shall establish 
written'' in subsec. (b)(4), before ``may not lend'' in subsec. (b)(5), 
before ``shall provide the Commissioner'' in subsec. (c)(1), before 
``shall notify the Commissioner'' in subsec. (c)(2)(A), and before 
``shall, out of funds'' in subsec. (d)(1).
    Subsec. (d)(2). Pub. L. 103-171, Sec. 5(3)(B), struck out ``to which 
a grant is made under subsection (a)(1) of this section'' after 
``Commissioner shall provide to the Office''.
    Subsec. (f)(1). Pub. L. 103-171, Sec. 5(3)(C), substituted ``each of 
the fiscal years 1992, 1993, and 1994, $1,000,000'' for ``fiscal years 
1988, 1989, and 1990 the aggregate amount $3,000,000 for all such fiscal 
years''.
    1992--Pub. L. 102-375, Sec. 822(2)(C), (D), substituted 
``Commissioner'' for ``Secretary'' wherever appearing in subsecs. 
(a)(1), (b)(4), (c), (d)(2), and (e) and ``Office'' for ``agency or 
organization'' wherever appearing in subsecs. (b)(1), (3) to (5), (c), 
and (d).
    Pub. L. 102-375, Sec. 822(2)(B), which directed the amendment of 
this section by substituting ``Office'' for ``agency or organization to 
which a grant is awarded under subsection (a)(1) of this section'' 
wherever appearing, could not be executed because the words ``agency or 
organization to which a grant is awarded under subsection (a)(1) of this 
section'' did not appear in the original.
    Subsec. (a)(1). Pub. L. 102-375, Sec. 822(2)(A), substituted ``the 
Office of Hawaiian Affairs of the State of Hawaii (referred to in this 
section as the `Office')'' for ``one agency of the State of Hawaii, or 
to one community-based Native Hawaiian organization whose purpose is the 
economic and social self-sufficiency of Native Hawaiians'', struck out 
``5-year'' before ``demonstration'', and in subpar. (A) substituted 
``the Office'' for ``such agency or Native Hawaiian organization''.
    Subsec. (a)(2). Pub. L. 102-375, Sec. 822(2)(E), inserted before 
period at end ``and a requirement that the grantee contribute to the 
revolving loan fund an amount of non-Federal funds equal to the amount 
of such grant''.
    Subsec. (b)(6). Pub. L. 102-375, Sec. 822(2)(F) struck out par. (6) 
which prohibited making of loan from revolving fund after close of 5-
year period beginning on Nov. 29, 1987.
    Subsec. (f)(1). Pub. L. 102-375, Sec. 822(2)(G), which directed 
substitution of ``each of the fiscal years 1992, 1993, and 1994, 
$1,000,000'' for ``fiscal years 1988, 1989, and 1990 the aggregate 
amount of $3,000,000 for all such fiscal years'', could not be executed 
because the words ``fiscal years 1988, 1989, and 1990 the aggregate 
amount of $3,000,000 for all such fiscal years'' did not appear.
    Subsec. (f)(3). Pub. L. 102-375, Sec. 822(2)(H), struck out par. (3) 
which read as follows:
    ``(A) All monies that are in the revolving loan fund at the close of 
the 5-year period beginning on November 29, 1987, and that are not 
otherwise needed (as determined by the Secretary) to carry out the 
provisions of this section shall be deposited in the Treasury of the 
United States as miscellaneous receipts.
    ``(B) All monies deposited in the revolving loan fund after the 
close of such period pursuant to subsection (a)(1)(B) of this section 
shall be deposited into the Treasury of the United States as 
miscellaneous receipts.''
    Subsec. (g). Pub. L. 102-375, Sec. 822(2)(I), amended subsec. (g) 
generally. Prior to amendment, subsec. (g) read as follows:
    ``(1) The Secretary, in consultation with the agency or organization 
to which a grant is awarded under subsection (a)(1) of this section, 
shall submit to the Congress--
        ``(A) an interim report not later than 2 years after November 
    29, 1987; and
        ``(B) a final report not later than 4 years after November 29, 
    1987;
regarding the administration of this section.
    ``(2) Each such report shall include the views and recommendations 
of the Secretary regarding--
        ``(A) the effectiveness of the demonstration project;
        ``(B) whether the demonstration project should be expanded to 
    other groups eligible for assistance under this subchapter; and
        ``(C) whether the duration of the demonstration project should 
    be extended.''


                             Effective Date

    Section effective upon expiration of 90-day period beginning Nov. 
29, 1987, see section 701(c) of Pub. L. 100-175, set out as an Effective 
Date of 1987 Amendment note under section 3001 of this title.

                  Section Referred to in Other Sections

    This section is referred to in section 2992d of this title.
