Page:United States Statutes at Large Volume 80 Part 1.djvu/1267

 80 STAT. ]

PUBLIC LAW 89-751-NOV. 3, 1966

to student loan funds shall not apply to loans made to schools under tills section. "(2) A loan to a school under this section may be upon such terms and conditions, consistent with applicable provisions of section 740, as the Secretary deems appropriate. If the Secretary deems it to be necessary to assure that the purposes of this section will be achieved, these terms and conditions may include provisions making the school's obligation to the Secretary on such a loan payable solely from such revenues or other assets or security (including collections on loans to students) as the Secretary may approve. Such a loan shall bear interest at a rate which the Secretary determines to be adequate to cover (A) the cost of the funds to the Treasury as determined by the Secretary of the Treasury, taking into consideration the current average yields of outstanding marketable obligations of the United States having maturities comparable to the maturities of loans made by the Secretary under this section, and (B) probable losses.

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"Payments to Schools To Cover Certain Costs Incurred in Making Student Loans From Borrowed Funds "(b) If a school borrows any sums under this section, the Secretary shall agree to pay to the school (1) an amount equal to 90 per centum of the loss to the school from defaults on student loans made from such sums, (2) the amount by which the interest payable by the school on such sums exceeds the interest received by it on student loans made from such sums, (3) an amount equal to the collection expenses authorized by section 740(b)(3) to be paid out of a student loan fund with respect to such sums, and (4) the amount of principal which is canceled pursuant to section 741(d) or (f) w4th respect to student loans made from such funds. There are authorized to be appropriated without fiscal year limitation such sums as may be necessary to carry out the purposes of this subsection.

79 Stat. 1057. 42 USC 294a.

"Limitation on Loans From Revolving Fund "(c) The total of the loans made in any fiscal year under this section may not exceed the lesser of (1) such limitations as may be specified in appropriation Acts, and (2) the difference between $35,000,000 and the amount of Federal funds (other than loans under this section) deposited in student loan funds under this part for that year. "Revolving Fund " (d)(1) There is hereby created within the Treasury a health professions education fund (hereinafter in this section called 'the fund') which shall be available to the Secretary without fiscal-year limitation as a revolving fund for the purposes of this section. A business-type budget for the fund shall be prepared, transmitted to the Congress, considered, and enacted in the manner prescribed by law (sections 102, 103, and 104 of the Government Corporation Control Act, 31 U.S.C. 847-849) for wholly owned Government Corporations. e/stat^ss"^' "(2) The fund shall consist of appropriations paid into the fund 2)ursuant to section 742(a), appropriations made pursuant to this sub- 43 USC 29^4b. section, all amounts received by the Secretary as mterost payments or repayments of principal on loans under this section, and any other moneys, property, or assets derived by him from his operations in connection with this section (other than subsection (b)), including any moneys derived directly or indirectly from the sale of assets, or beneficial interests or participations in assets, of the fund.

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