Page:United States Statutes at Large Volume 100 Part 2.djvu/423

 PUBLIC LAW 99-498—OCT. 17, 1986

100 STAT. 1525

"(1) research or instructional instrumentation and equipment, and "(2) equipment and structural changes necessary to ensure the proper functioning of such research or instructional instrumentation and equipment, may be allocated by the recipient for maintenance of equipment and changes described in paragraphs (1) and (2). Part or all of this percentage may also be applied to costs of upgrading such equipment and structural changes within three years of the date of initial use, if the recipient deems such upgrading essential to the continued utility (usefulness) of such research or instructional instrumentation and equipment.


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"PART C—LOANS FOR CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES "ELIGIBILITY CONDITIONS, AMOUNTS, AND TERMS

731, (a) SELECTION OF RECIPIENTS.—From the sums available 20 USC ll32d. for this part, the Secretary shall make and insure loans to institutions of higher education and to higher education building agencies for programs consistent with the purposes of this title. No loan shall be made unless the Secretary finds that— "(1) not less than 20 percent of the development cost of the project will be financed from non-Federal sources; "(2) the applicant is unable to secure the loan from other sources upon terms and conditions equally as favorable as those applicable to loans under this part; "(3) the project will be undertaken in an economical manner; and "(4) for any project with regard to an infirmary or other outpatient care facility for students and institutional personnel, gissistance will not be provided under part F of this title. "(b) TERMS OF LOANS.—Loans shall be repaid within 50 years and 'shall bear interest at (1) a rate annually determined by the Sec^ retary which shall be not more than one-quarter of 1 percentage point above the average annual interest rate on all interest-bearing obligations of the United States forming a part of the public debt as computed at the end of the preceding fiscal year, adjusted to the nearest one-eighth of 1 percent, or (2) the rate of 5.5 percent per year, whichever is less. ^ i^u i. "(c) USE FOR MAINTENANCE.—An amount less than or equal to 10 percent of that portion of a loan granted under this part which is allotted by the recipient to meet costs of— "(1) research or instructional instrumentation and equipment, and "(2) equipment and structural changes necessary to ensure the proper functioning of such research or instructional instrumentation and equipment, may be allocated by the recipient for maintenance of equipment and changes described in paragraphs (1) and (2). Part or all of this percentage may also be applied to costs of upgrading such equipment and structural changes within three years of the date of initial use, if the recipient deems such upgrading essential to the continued utility (usefulness) of such research or instructional instrumentation and equipment. "SEC.

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