
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: 42USC9812]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                CHAPTER 105--COMMUNITY SERVICES PROGRAMS
 
              SUBCHAPTER I--COMMUNITY ECONOMIC DEVELOPMENT
 
  Part C--Development Loans to Community Economic Development Programs
 
Sec. 9812. Development loan fund


(a) Authorities, scope, and purposes; conditions; interest rate; 
        repayment

    The Secretary is authorized to make or guarantee loans (either 
directly or in cooperation with banks or other organizations through 
agreements to participate on an immediate or deferred basis) to 
community development corporations, to families and local cooperatives 
and the designated supportive organizations of cooperatives eligible for 
financial assistance under this subchapter, to private nonprofit 
organizations receiving assistance under chapter 106 of this title, or 
to public and private nonprofit organizations or agencies, for business 
facilities and community development projects, including community 
development credit unions, which the Secretary determines will carry out 
the purposes of this part. No loans, guarantees, or other financial 
assistance shall be provided under this section unless the Secretary 
determines that--
        (1) there is reasonable assurance of repayment of the loan;
        (2) the loan is not otherwise available on reasonable terms from 
    private sources or other Federal, State, or local programs; and
        (3) the amount of the loan, together with other funds available, 
    is adequate to assure completion of the project or achievement of 
    the purposes for which the loan is made.

Loans made by the Secretary pursuant to this section shall bear interest 
at a rate not less than a rate determined by the Secretary of the 
Treasury taking into consideration the average market yield on 
outstanding Treasury obligations of comparable maturity, plus such 
additional charge, if any, toward covering other costs of the program as 
the Secretary of Health and Human Services may determine to be 
consistent with its purposes, except that, for the 5 years following the 
date in which funds are initially available to the borrower, the rate of 
interest shall be set at a rate considered appropriate by the Secretary 
in light of the particular needs of the borrower, which rate shall not 
be lower than 1 percent. All such loans shall be repayable within a 
period of not more than 30 years.

(b) Adjustment of interest rates, moratorium on principal and interest, 
        etc.

    The Secretary is authorized to adjust interest rates, grant 
moratoriums on repayment of principal and interest, collect or 
compromise any obligations held by the Secretary, and to take such other 
actions in respect to such loans as the Secretary shall determine to be 
necessary or appropriate, consistent with the purposes of this section.

(c) Establishment, funding, etc.

    (1) To carry out the lending and guaranty functions authorized under 
this part, there shall be established a Development Loan Fund consisting 
of two separate accounts, one of which shall be a revolving fund called 
the Rural Development Loan Fund and the other of which shall be a 
revolving fund called the Community Development Loan Fund. The capital 
of each such revolving fund shall remain available until expended.
    (2) The Rural Development Loan Fund shall consist of the remaining 
funds provided for in part A of title III of the Economic Opportunity 
Act of 1964 [42 U.S.C. 2841 et seq.], as in effect on September 19, 
1972, and such amounts as may be deposited in such fund by the Secretary 
out of funds made available from appropriations for purposes of carrying 
out this part. The Secretary shall utilize the services of the Farmers 
Home Administration,\1\ or the Rural Development Administration in 
administering such fund.
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    \1\ So in original. The comma probably should not appear.
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    (3) The Community Development Loan Fund shall consist of such 
amounts as may be deposited in such fund by the Secretary out of funds 
made available from appropriations for purposes of carrying out this 
subchapter. The Secretary may make deposits in the Community Development 
Loan Fund in any fiscal year in which the Secretary has made available 
for grants to community development corporations under this subchapter 
not less than $60,000,000 out of funds made available from 
appropriations for purposes of carrying out this subchapter.

(Pub. L. 97-35, title VI, Sec. 623, Aug. 13, 1981, 95 Stat. 494; Pub. L. 
101-624, title XXIII, Sec. 2303(f)(1), Nov. 28, 1990, 104 Stat. 3981.)

                       References in Text

    Chapter 106 of this title, referred to in subsec. (a), was in the 
original ``subtitle B of this title'', meaning subtitle B (Sec. 671 et 
seq.) of title VI of Pub. L. 97-35, Aug. 13, 1981, 95 Stat. 511, as 
amended, known as the Community Services Block Grant Act, which is 
classified generally to chapter 106 (Sec. 9901 et seq.) of this title. 
For complete classification of this Act to the Code, see Short Title 
note set out under section 9901 of this title and Tables.
    The Economic Opportunity Act of 1964, referred to in subsec. (c)(2), 
is Pub. L. 88-452, Aug. 20, 1964, 78 Stat. 508, as amended. Part A of 
title III of the Economic Opportunity Act of 1964 was classified 
generally to part A (Sec. 2841 et seq.) of subchapter III of chapter 34 
of this title prior to repeal by Pub. L. 97-35, title VI, Sec. 683(a), 
Aug. 13, 1981, 95 Stat. 519. For complete classification of this Act to 
the Code, see Tables.


                               Amendments

    1990--Subsec. (c)(2). Pub. L. 101-624 inserted ``, or the Rural 
Development Administration'' after ``Farmers Home Administration''.

                          Transfer of Functions

    Functions relating to administration of Community Development Credit 
Union Revolving Loan Fund transferred from Secretary of Health and Human 
Services to National Credit Union Administration Board by Pub. L. 99-
609, set out as a note under section 9822 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 9812a, 9822 of this title.
