
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: 42USC606]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                       CHAPTER 7--SOCIAL SECURITY
 
 SUBCHAPTER IV--GRANTS TO STATES FOR AID AND SERVICES TO NEEDY FAMILIES 
              WITH CHILDREN AND FOR CHILD-WELFARE SERVICES
 
   Part A--Block Grants to States for Temporary Assistance for Needy 
                                Families
 
Sec. 606. Federal loans for State welfare programs


(a) Loan authority

                           (1) In general

        The Secretary shall make loans to any loan-eligible State, for a 
    period to maturity of not more than 3 years.

                       (2) Loan-eligible State

        As used in paragraph (1), the term ``loan-eligible State'' means 
    a State against which a penalty has not been imposed under section 
    609(a)(1) of this title.

(b) Rate of interest

    The Secretary shall charge and collect interest on any loan made 
under this section at a rate equal to the current average market yield 
on outstanding marketable obligations of the United States with 
remaining periods to maturity comparable to the period to maturity of 
the loan.

(c) Use of loan

    A State shall use a loan made to the State under this section only 
for any purpose for which grant amounts received by the State under 
section 603(a) of this title may be used, including--
        (1) welfare anti-fraud activities; and
        (2) the provision of assistance under the State program to 
    Indian families that have moved from the service area of an Indian 
    tribe with a tribal family assistance plan approved under section 
    612 of this title.

(d) Limitation on total amount of loans to State

    The cumulative dollar amount of all loans made to a State under this 
section during fiscal years 1997 through 2002 shall not exceed 10 
percent of the State family assistance grant.

(e) Limitation on total amount of outstanding loans

    The total dollar amount of loans outstanding under this section may 
not exceed $1,700,000,000.

(f) Appropriation

    Out of any money in the Treasury of the United States not otherwise 
appropriated, there are appropriated such sums as may be necessary for 
the cost of loans under this section.

(Aug. 14, 1935, ch. 531, title IV, Sec. 406, as added Pub. L. 104-193, 
title I, Sec. 103(a)(1), Aug. 22, 1996, 110 Stat. 2128; amended Pub. L. 
105-33, title V, Sec. 5514(c), Aug. 5, 1997, 111 Stat. 620.)


                            Prior Provisions

    A prior section 606, acts Aug. 14, 1935, ch. 531, title IV, 
Sec. 406, 49 Stat. 629; Aug. 10, 1939, ch. 666, title IV, Sec. 403, 53 
Stat. 1380; Aug. 28, 1950, ch. 809, title III, pt. 2, Sec. 323(a), 64 
Stat. 551; Aug. 1, 1956, ch. 836, title III, Secs. 321, 322, 351(b), 70 
Stat. 850, 855; July 25, 1962, Pub. L. 87-543, title I, 
Secs. 104(a)(3)(D), 108(a), 109, 152, 156(b), 76 Stat. 185, 189, 190, 
206, 207; Oct. 13, 1964, Pub. L. 88-641, Sec. 2(a), 78 Stat. 1042; July 
30, 1965, Pub. L. 89-97, title IV, Sec. 409, 79 Stat. 422; Jan. 2, 1968, 
Pub. L. 90-248, title II, Secs. 201(f), 206(b), 207(a), 241(b)(5), 81 
Stat. 880, 893, 916; Jan. 4, 1975, Pub. L. 93-647, Secs. 3(a)(5), 
101(c)(7), 88 Stat. 2348, 2360; Nov. 12, 1977, Pub. L. 95-171, 
Sec. 3(a)(2), 91 Stat. 1354; Dec. 28, 1980, Pub. L. 96-611, Sec. 4, 94 
Stat. 3567; Aug. 13, 1981, Pub. L. 97-35, title XXI, Sec. 2184(b)(2), 
title XXIII, Secs. 2311, 2312, 2317(b), 2353(b)(1), 95 Stat. 817, 852, 
853, 856, 872; Sept. 3, 1982, Pub. L. 97-248, title I, Sec. 153(a), 96 
Stat. 396; July 18, 1984, Pub. L. 98-369, div. B, title III, 
Sec. 2361(c), title VI, Sec. 2663(c)(3)(A), (B)(i), 98 Stat. 1104, 1166; 
Aug. 16, 1984, Pub. L. 98-378, Sec. 20(a), 98 Stat. 1322, related to 
definitions used in this part, prior to repeal by Pub. L. 104-193, 
Sec. 103(a)(1), as amended by Pub. L. 105-33, title V, Sec. 5514(c), 
Aug. 5, 1997, 111 Stat. 620.


                               Amendments

    1997--Pub. L. 105-33 made technical amendment to directory language 
of Pub. L. 104-193, Sec. 103(a)(1), which enacted this section.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-33 effective as if included in the 
provision of Pub. L. 104-193 amended at the time the provision became 
law, see section 5518(d) of Pub. L. 105-33, set out as a note under 
section 862a of Title 21, Food and Drugs.


                             Effective Date

    Section effective July 1, 1997, with transition rules relating to 
State options to accelerate such date, rules relating to claims, 
actions, and proceedings commenced before such date, rules relating to 
closing out of accounts for terminated or substantially modified 
programs and continuance in office of Assistant Secretary for Family 
Support, and provisions relating to termination of entitlement under 
AFDC program, see section 116 of Pub. L. 104-193, as amended, set out as 
a note under section 601 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 609, 612, 672, 673, 1308, 
1396a, 1396d, 1396u-1, 1396v of this title.
