Page:United States Statutes at Large Volume 124.djvu/2598

 124 STAT. 2572 PUBLIC LAW 111–240—SEPT. 27, 2010 such participating State shall be paid into the general fund of the Treasury for reduction of the public debt. (iv) MUNICIPALITIES.—In this subparagraph, the term ‘‘participating State’’ shall include a municipality given special permission to participate in the Program, under section 3004(d). (D) EXCEPTION.—The Secretary may, in the Secretary’s discretion, transfer the full amount of the participating State’s allocated amount to the State in a single transfer if the participating State applies to the Secretary for approval to use the full amount of the allocation as collat- eral for a qualifying loan or swap funding facility. (2) TRANSFERRED AMOUNTS.—Each amount transferred to a participating State under this section shall remain available to the State until used by the State as permitted under para- graph (3). (3) USE OF TRANSFERRED FUNDS.—Each participating State may use funds transferred to it under this section only— (A) for making Federal contributions to, or for the account of, an approved State program; (B) as collateral for a qualifying loan or swap funding facility; (C) in the case of the first 1⁄3 transferred, for paying administrative costs incurred by the State in implementing an approved State program in an amount not to exceed 5 percent of that first 1⁄3; or (D) in the case of each successive 1⁄3 transferred, for paying administrative costs incurred by the State in imple- menting an approved State program in an amount not to exceed 3 percent of that successive 1⁄3. (4) TERMINATION OF AVAILABILITY OF AMOUNTS NOT TRANS- FERRED WITHIN 2 YEARS OF PARTICIPATION.—Any portion of a participating State’s allocated amount that has not been trans- ferred to the State under this section by the end of the 2- year period beginning on the date that the Secretary approves the State for participation may be deemed by the Secretary to be no longer allocated to the State and no longer available to the State and shall be returned to the General Fund of the Treasury. (5) TRANSFERRED AMOUNTS NOT ASSISTANCE.—The amounts transferred to a participating State under this section shall not be considered assistance for purposes of subtitle V of title 31, United States Code. (6) DEFINITIONS.—In this section— (A) the term ‘‘allocated amount’’ means the total amount of Federal funds allocated by the Secretary under subsection (b) to the participating State; and (B) the term ‘‘1⁄3’’ means— (i) in the case of the first 1⁄3 and second 1⁄3, an amount equal to 33 percent of a participating State’s allocated amount; and (ii) in the case of the last 1⁄3, an amount equal to 34 percent of a participating State’s allocated amount.