PRIA, Government Policy, Made Personal

Summary

Defines key words used in this part. An eligible institution is a Part B institution as defined elsewhere in the law. A loan is money lent to an eligible institution under this program and an agreement with the Secretary. A qualified bond is a debt issued by the bonding authority whose proceeds are lent to eligible institutions for approved capital projects. Funding means payments from the Secretary to the institution or its assignee that meet the Secretary’s insurance obligation under the loan agreement. A capital project covers repair, renovation, and, in rare cases, construction or purchase of campus buildings, essential equipment, utility and support infrastructure, and other items needed for accreditation; no more than 5 percent of loan proceeds may be used for an admin or student center run by a private business that pays the institution. Interest means any payment treated as interest on an obligation. A bond is not “outstanding” if money has been irrevocably placed in trust to pay its principal and interest. The designated bonding authority is the private, for‑profit company the Secretary selects to issue taxable construction bonds for this program. The Advisory Board is the board created elsewhere in the law.

Title 20, §1066a

Education, Source: USLM XML via OLRC

For the purposes of this part:

(1)The term “eligible institution” means a “part B institution” as that term is defined in section 1061(2) of this title.

(2)The term “loan” means a loan made to an eligible institution under the provisions of this part and pursuant to an agreement with the Secretary.

(3)The term “qualified bond” means any obligation issued by the designated bonding authority at the direction of the Secretary, the net proceeds of which are loaned to an eligible institution for the purposes described in section 1066b(b) of this title.

(4)The term “funding” means any payment under this part from the Secretary to the eligible institution or its assignee in fulfillment of the insurance obligations of the Secretary pursuant to an agreement under section 1066b of this title.

(5)The term “capital project” means, subject to section 1066c(b) of this title, the repair, renovation, or, in exceptional circumstances, the construction or acquisition, of—

(A)any classroom facility, library, laboratory facility, dormitory (including dining facilities) or other facility customarily used by colleges and universities for instructional or research purposes or for housing students, faculty, and staff;

(B)a facility for the administration of an educational program, or a student center or student union, except that not more than 5 percent of the loan proceeds provided under this part may be used for the facility, center or union if the facility, center or union is owned, leased, managed, or operated by a private business, that, in return for such use, makes a payment to the eligible institution;

(C)instructional equipment, technology, research instrumentation, and any capital equipment or fixture related to facilities described in subparagraph (A);

(D)a maintenance, storage, or utility facility that is essential to the operation of a facility, a library, a dormitory, equipment, instrumentation, a fixture, real property or an interest therein, described in this paragraph;

(E)a facility designed to provide primarily outpatient health care for students or faculty;

(F)physical infrastructure essential to support the projects authorized under this paragraph, including roads, sewer and drainage systems, and water, power, lighting, telecommunications, and other utilities;

(G)any other facility, equipment or fixture which is essential to the maintaining of accreditation of the member institution by an accrediting agency or association recognized by the Secretary under subpart 2 of part H of subchapter IV; and

(H)any real property or interest therein underlying facilities described in subparagraph (A) or (G).

(6)The term “interest” includes accredited value or any other payment constituting interest on an obligation.

(7)The term “outstanding”, when used with respect to bonds, shall not include bonds the payment of which shall have been provided for by the irrevocable deposit in trust of obligations maturing as to principal and interest in such amounts and at such times as will ensure the availability of sufficient moneys to make payments on such bonds.

(8)The term “designated bonding authority” means the private, for-profit corporation selected by the Secretary pursuant to section 1066d(1) of this title for the purpose of issuing taxable capital project construction bonds in furtherance of the purposes of this part.

(9)The term “Advisory Board” means the Advisory Board established by section 1066f of this title.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 1132c–1 of this title prior to renumbering by Pub. L. 105–244.

Prior Provisions

A prior section 342 of Pub. L. 89–329 was classified to section 1067 of this title prior to the general amendment of this subchapter by Pub. L. 99–498.

Amendments

2008—Par. (5). Pub. L. 110–315, § 320(1)(A), inserted a comma after “1066c(b) of this title” in introductory provisions. Par. (5)(C). Pub. L. 110–315, § 320(1)(B), substituted “equipment, technology,” for “equipment technology,,”. Par. (5)(G). Pub. L. 110–315, § 314(a)(1), substituted “by an accrediting agency or association recognized by the Secretary under subpart 2 of part H of subchapter IV” for “by a nationally recognized accrediting agency or association”. Par. (8). Pub. L. 110–315, § 314(a)(2), inserted “capital project” after “issuing taxable”. 1998—Par. (3). Pub. L. 105–244, § 301(c)(4)(A), substituted “section 1066b(b)” for “section 1132c–2(b)”. Par. (4). Pub. L. 105–244, § 301(c)(4)(B), substituted “section 1066b” for “section 1132c–2”. Par. (5). Pub. L. 105–244, § 301(c)(4)(C), substituted “section 1066c(b)” for “section 1132c–3(b)” in introductory provisions. Par. (5)(B). Pub. L. 105–244, § 306(a)(2), added subpar. (B). Former subpar. (B) redesignated (C). Par. (5)(C). Pub. L. 105–244, § 306(a)(1), (3), redesignated subpar. (B) as (C) and inserted “technology,” after “instructional equipment”. Former subpar. (C) redesignated (G). Par. (5)(D) to (F). Pub. L. 105–244, § 306(a)(4), added subpars. (D) to (F). Former subpar. (D) redesignated (H). Par. (5)(G). Pub. L. 105–244, § 306(a)(1), redesignated subpar. (C) as (G). Par. (5)(H). Pub. L. 105–244, § 306(a)(1), (5), redesignated subpar. (D) as (H) and substituted “(G)” for “(C)”. Par. (8). Pub. L. 105–244, § 301(c)(4)(D), substituted “section 1066d(1)” for “section 1132c–4(1)”. Par. (9). Pub. L. 105–244, § 301(c)(4)(E), substituted “section 1066f” for “section 1132c–6”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1998 AmendmentAmendment by Pub. L. 105–244 effective Oct. 1, 1998, except as otherwise provided in Pub. L. 105–244, see section 3 of Pub. L. 105–244, set out as a note under section 1001 of this title.

§1066a Definitions