Page:United States Statutes at Large Volume 80 Part 1.djvu/1270

 1234

PUBLIC LAW 89-751-NOV. 3, 1966

[sO STAT.

necessary to assure that the purposes of rhis 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. "Payments to Schools To Cover Certain Costs Incurred in Making Student Loans From Borrowed Funds

78 Stat. 913. 42 USC 297a.

42 USC 297b.

" (b) If a school of nursing borrows any sums mider 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 amount of collection expenses authorized by section 822(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 823(b) ^3^ Qj. ^^^ with respect to student loans made from such sums. There are authorized to be appropriated without fiscal-year limitation such sums as may be necessary to carry out the purposes of this subsection. "Limitation on I^oans " (c) The total of the loans made in any fiscal year under this section shall 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 capital contributions paid under this title for that year. "Revolving Fund ,: j,

6i'Stat.''584^^' 42 USC 297c.

Ante, p. 164.

" (d)(1) There is hereby created within the Tre{\sury a nurse training 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 ^^ ^he Government Corporation Control Act, 31 U.S.C. 847-849) for wholly owned Government corporations. "(2) The fund shall consist of appropriations paid into the fund pursuant to section 824, appropriations made pursuant to this subsection, all amounts received by the Secretary as interest 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. "(3) All loans, expenses (other than normal administrative expenses), and payments pursuant to operations of the Secretary under this section (other than subsection (b)) shall be paid from the fund, including (but not limited to) expenses and payments of the Secretary in connection with the sale, under section 302(c) of the Federal I^atioual Mortgage Association Charter Act, of participations in obligations acquired under this section. From time to time, and at least

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