Title 42, The Public Health and WelfareRelease 119-102

§291j–4 Payment of Interest on Guaranteed Loans

Title 42 › CHAPTER 6A — PUBLIC HEALTH SERVICE › SUBCHAPTER IV — CONSTRUCTION AND MODERNIZATION OF HOSPITALS AND OTHER MEDICAL FACILITIES › Part B — Loan Guarantees and Loans for Modernization and Construction of Hospitals and Other Medical Facilities › § 291j–4

Last updated Aug 21, 2026|Official source

Summary

The Secretary must pay money so that a guaranteed loan made to a nonprofit agency for a hospital or medical facility gets a 3% per year cut in its net interest rate. The payments go to the loan holder, on behalf of the hospital, and loan holders have a contract right to get them. Those payment contracts cannot promise more money than Congress provides in appropriations Acts.

Full Legal Text

Title 42, §291j–4

The Public Health and Welfare, Source: USLM XML via OLRC

(a)Subject to the provisions of subsection (b), in the case of a guarantee of any loan to a nonprofit private agency under this part with respect to a hospital or other medical facility, the Secretary shall pay, to the holder of such loan and for and on behalf of such hospital or other medical facility amounts sufficient to reduce by 3 per centum per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan, to a nonprofit private agency, which is guaranteed under this part shall have a contractual right to receive from the United States interest payments required by the preceding sentence.

(b)Contracts to make the payments provided for in this section shall not carry an aggregate amount greater than such amount as may be provided in appropriations Acts.

Reference

Citations & Metadata

Citation

42 U.S.C. § 291j–4

Title 42, The Public Health and Welfare

Last Updated

Aug 21, 2026

Release point: 119-102