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§291j–6 Loan Guarantee and Loan Fund

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–6

Last updated Apr 5, 2026|Official source

Summary

Creates a loan guarantee and loan fund in the Treasury that the Secretary can use without yearly limits in the amounts Congress provides. The fund can be used to carry out loan guarantees, pay interest on guaranteed loans to nonprofit agencies, make and support direct loans to public agencies that are sold and guaranteed, pay interest on those loans, and buy back such sold loans. Congress can add money as needed and may allow the Secretary to put loan repayments, interest, sale proceeds, and other program assets into the fund. Only money that Congress approves or money from selling those loans may be used for making direct loans to public agencies. If the fund does not have enough money, the Secretary must use available funds to pay interest and meet guarantees for nonprofit loans, provide interest subsidies and payments to purchasers when public agencies default, and to repurchase sold public-agency loans.

Title 42, §291j–6

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

(a)(1)There is hereby established in the Treasury a loan guarantee and loan fund (hereinafter in this section referred to as the “fund”) which shall be available to the Secretary without fiscal year limitation, in such amounts as may be specified from time to time in appropriations Acts, (i) to enable him to discharge his responsibilities under guarantees issued by him under this part, (ii) for payment of interest on the loans to nonprofit agencies which are guaranteed, (iii) for direct loans to public agencies which are sold and guaranteed, (iv) for payment of interest with respect to such loans, and (v) for repurchase by him of direct loans to public agencies which have been sold and guaranteed. There are authorized to be appropriated to the fund from time to time such amounts as may be necessary to provide capital required for the fund. To the extent authorized from time to time in appropriation Acts, there shall be deposited in the fund amounts received by the Secretary as interest payments or repayments of principal on loans and any other moneys, property, or assets derived by him from his operations under this part, including any moneys derived from the sale of assets.

(2)Of the moneys in the fund, there shall be available to the Secretary for the purpose of making of direct loans to public agencies only such sums as shall have been appropriated for such purpose pursuant to section 291j–7 of this title or sums received by the Secretary from the sale of such loans (in accordance with such section) and authorized in appropriations Acts to be used for such purpose.

(b)If at any time the moneys in the fund are insufficient to enable the Secretary to discharge his responsibilities under this part—

(i)to make payments of interest on loans to nonprofit private agencies which he has guaranteed under this part;

(ii)to otherwise comply with guarantees under this part of loans to nonprofit private agencies;

(iii)to make payments of interest subsidies with respect to loans to public agencies which he has made, sold, and guaranteed under this part;

(iv)in the event of default by public agencies to make payments of principal and interest on loans which the Secretary has made, sold, and guaranteed, under this part, to make such payments to the purchaser of such loan;

(v)to repurchase loans to public agencies which have been sold and guaranteed under this part,

Notes & Related Subsidiaries

Editorial Notes

Codification In subsec. (b), “chapter 31 of title 31” and “that chapter” substituted for “the Second Liberty Bond Act, as amended” and “that Act, as amended”, respectively, on authority of Pub. L. 97–258, § 4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.

§291j–6 Loan Guarantee and Loan Fund

Summary

Title 42, §291j–6

Notes & Related Subsidiaries

Editorial Notes

Citations & Metadata