Page:United States Statutes at Large Volume 72 Part 1.djvu/531

 72 8TAT.]

PUBLIC LAW 86-689-AUG. 1, 1968


 * 89

Public Law 85-589 AN ACT To authorize loans for the construction of hospitals and other facilities under title VI of the Public Health Service Act, and for other purposes.

AMust 11, 1958 [HTR. 12694]

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That title VI of the ""SP^^^J^r conPublic Health Service Act, as amended (42 U.S.C. ch. 6A, subch. stnict^on^^ ^^^^ IV), is further amended by adding at the end thereof the following 1049; 68Vtat.46i" new part: "PART

H—LOANS

FOR CONSTRUCTION OF HOSPITALS AND FACILITIES

OTHER

"AUTHORIZATION OF FEDERAL LOANS

"SEC. 661. I n order further to assist the States in carrying out the purposes of this title, the Surgeon General is authorized, prior to July 1, 1962, to make a loan of funds to the applicant for any project for construction which meets all of the conditions specified m this title for a grant under part C or part G. "APPROVAL OF LOANS; PAYMENTS TO APPLICANTS

"SEC. 662. Except as hereinafter provided, an application for a loan with respect to any construction project under this part shall be submitted, and shall be approved by the Surgeon General, in accordance with the same procedures and subject to the same limitations and conditions as would be applicable to the making of a grant under this title for the construction of such project. Any such application may be approved in any fiscal year only if sufficient funds are available from the allotment for the type of facility involved. All loans under this part shall be paid directly to the applicant. "TERMS OF LOANS

"SEC. 663. (a) The amount of a loan under this part shall not exceed an amount equal to the Federal share of the estimated cost of construction of the project. Where a loan under this part and a grant under part C or part G are made with respect to the same project, the aggregate amount of such loan and such grant shall not exceed an amount equal to the Federal share of the estimated cost of constructing the project. Each loan shall bear interest at the rate arrived at by adding one-quarter of 1 per centum per annum to the rate which the Secretary of the Treasury determines to be ec[ual to the current average yield on all outstanding marketable obligations of the United States as of the last day of the month preceding the date the application for the loan is approved and by adjusting the result so obtained to the nearest one-eighth of 1 per centum. Each loan made under this part shall mature not more than forty years after the date on which such loan is made: Provided, That nothing in this Act shall prohibit the payment of all or part of the loan at any time prior to the maturity date. I n addition to the terms and conditions provided for, each loan under this part shall be made subject to such terms, conditions, and covenants relating to repayment of principal, payment of interest, and other matters as may be agreed upon by the applicant and the Surgeon General. " (b) Where the Surgeon General determines it necessary to protect the financial interest of the United States, he may enter into agree-

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