
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: 42USC300q]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                    CHAPTER 6A--PUBLIC HEALTH SERVICE
 
              SUBCHAPTER XIV--HEALTH RESOURCES DEVELOPMENT
 
                    Part A--Loans and Loan Guarantees
 
Sec. 300q. Loan and loan guarantee authority


(a) Covered projects: duration; payment of principal and interest on 
        loans for covered projects: duration; payments for reduction of 
        interest rate

    (1) The Secretary, during the period ending September 30, 1982, may, 
in accordance with this part, make loans from the fund established under 
section 300q-2(d) of this title to any public or nonprofit private 
entity for projects for--
        (A) the discontinuance of unneeded hospital services or 
    facilities,
        (B) the conversion of unneeded hospital services and facilities 
    to needed health services and medical facilities, including 
    outpatient medical facilities and facilities for long-term care;
        (C) the renovation and modernization of medical facilities, 
    particularly projects for the prevention or elimination of safety 
    hazards, projects to avoid noncompliance with licensure or 
    accreditation standards, or projects to replace obsolete facilities;
        (D) the construction of new outpatient medical facilities; and
        (E) the construction of new inpatient medical facilities in 
    areas which have experienced (as determined by the Secretary) recent 
    rapid population growth.

    (2)(A) The Secretary, during the period ending September 30, 1982, 
may, in accordance with this part, guarantee to--
        (i) non-Federal lenders for their loans to public and nonprofit 
    private entities for medical facilities projects described in 
    paragraph (1), and
        (ii) the Federal Financing Bank for its loans to public and 
    nonprofit private entities for such projects,

payment of principal and interest on such loans.
    (B) In the case of a guarantee of any loan to a public or nonprofit 
private entity under subparagraph (A)(i) which is located in an urban or 
rural poverty area, the Secretary may pay, to the holder of such loan 
and for and on behalf of the project for which the loan was made, 
amounts sufficient to reduce by not more than one half the net effective 
interest rate otherwise payable on such loan if the Secretary finds that 
without such assistance the project could not be undertaken.

(b) Amount of loans for medical facilities projects and such projects in 
        urban or rural poverty areas

    The principal amount of a loan directly made or guaranteed under 
subsection (a) of this section for a medical facilities project, when 
added to any other assistance provided such project under part B, may 
not exceed 90 per centum of the cost of such project unless the project 
is located in an area determined by the Secretary to be an urban or 
rural poverty area, in which case the principal amount, when added to 
other assistance under part B, may cover up to 100 per centum of such 
costs.

(c) Limitation on cumulative total of principal of outstanding loans

    The cumulative total of the principal of the loans outstanding at 
any time with respect to which guarantees have been issued, or which 
have been directly made, may not exceed such limitations as may be 
specified in appropriation Acts.

(d) Administrative assistance of Department of Housing and Urban 
        Development

    The Secretary, with the consent of the Secretary of Housing and 
Urban Development, shall obtain from the Department of Housing and Urban 
Development such assistance with respect to the administration of this 
part as will promote efficiency and economy thereof.

(July 1, 1944, ch. 373, title XVI, Sec. 1601, formerly Sec. 1620, as 
added Pub. L. 93-641, Sec. 4, Jan. 4, 1975, 88 Stat. 2264; amended Pub. 
L. 94-273, Sec. 2(21), Apr. 21, 1976, 90 Stat. 376; Pub. L. 95-83, title 
I, Sec. 106(x)(1), Aug. 1, 1977, 91 Stat. 385; renumbered Sec. 1601 and 
amended Pub. L. 96-79, title II, Secs. 201(b)(1), 203(a)(1), (2), Oct. 
4, 1979, 93 Stat. 630, 635.)


                            Prior Provisions

    A prior section 1601 of act July 1, 1944, ch. 373, title XVI, as 
added Jan. 4, 1975, Pub. L. 93-641, Sec. 4, 88 Stat. 2258, was 
classified to section 300o of this title, prior to repeal by Pub. L. 96-
79, Sec. 202(a).


                               Amendments

    1979--Subsec. (a). Pub. L. 96-79, Secs. 201(b)(1), 203(a)(2), added 
par. (1); substituted reference to section 1602(d) for 1622(d), set out 
in text as ``section 300q-2(d) of this title''; incorporated in par. (2) 
former subsec. (b) provisions made applicable for period ending Sept. 
30, 1982, previously covering period beginning July 1, 1974, and ending 
Sept. 30, 1978, extended provisions to public entities, struck out 
existing condition that applications for assistance under subchapter be 
approved under former section 300o-3 of this title, substituted in 
subpar. (2)(B) provision for payment of amounts sufficient to reduce by 
not more than one half net effective interest otherwise payable on the 
loan for prior provision for amounts sufficient to reduce by 3 per 
centum per annum net effective interest rate on the loan, and struck out 
provision granting contractual right of holder of a guaranteed loan to 
receive from the United States such interest payments.
    Subsec. (b). Pub. L. 96-79, Sec. 201(b)(1), added subsec. (b) and 
incorporated existing provisions of subsec. (b) relating to loan 
guarantee authority for payment of principal and interest on loans for 
approved projects, their duration, and payments for reduction of 
interest rate in subsec. (a)(2) of this section.
    1977--Subsecs. (a), (b)(1). Pub. L. 95-83 substituted ``September 
30, 1978'' for ``September 30, 1977''.
    1976--Subsecs. (a), (b)(1). Pub. L. 94-273 substituted ``September'' 
for ``June''.


                    Effective Date of 1979 Amendment

    Section 204 of Pub. L. 96-79 provided that: ``The amendments made by 
this title [enacting sections 300s, 300s-1, and 300s-6, amending this 
section and sections 201, 300q-2, 300r, 300s-1a, 300s-3, and 300s-5, and 
repealing sections 300o to 300o-3, 300p to 300p-3, 300q-1, and 300s of 
this title] shall take effect October 1, 1979, except that the 
amendments made by section 201(b) [amending this section and section 
300q-2 of this title] respecting the payment of an interest subsidy for 
a loan or loan guarantee made under part A of title XVI of the Public 
Health Service Act [this part] shall apply only with respect to loans 
and loan guarantees made after October 1, 1979, and with respect to 
loans and loan guarantees made under such part before such date the 
Secretary shall continue to pay the interest subsidy authorized for such 
loans and loan guarantees before such date.''

                  Section Referred to in Other Sections

    This section is referred to in section 300q-2 of this title.
