Page:United States Statutes at Large Volume 86.djvu/340

 298

PUBLIC LAW 92-318-JUNE 23, 1972

Limitations.

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ft< ahr^ii.q4

[86 STAT.

" (^) CoiitrHcts foi' Huiiual interest g-rants under this section shall not be entered into in an aggregate amount greater than is authorized in appropriation Acts; and in any event the total amount of annual interest grants which may be paid to institutions of higher education and higher education building agencies in any year pursuant to contracts entered into under this section shall not exceed $5,0(K), which amount shall be increased by $6,750,(X) on July 1, 19B9, and by $13,50, on July 1. 1970 and on July 1 of each of the four succeeding yearS. ' (d) Not more than 121/^ per centum of the funds provided for in this section for grants may he used within any one State. '' (e) No annual interest grant pursuant to this section shall be made unless the (Commissioner finds (1) that not less than 10 per centum of the development costs of the facility will be financed from non-Federal sourcies, (2) that the applicant is unable to secure a loan in the amount of the loan with respect to which the annual interest grant is to be made, fix>m other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this title, and (3) that the construction will be undertaken in an economical manner and that it will not be of ela;borat« or extravagant design or materials. For purposes of this section, a loan with respect to which an interest grant is made under this section shall not be considered financing from a non-Federal source. For purposes of the other provisions of this title, such a loan shall be considered financing from a nonFederal source. "ACADKMIC

FACILITIES LOAN

IXSFKAIfCE

"SEC. 746. (a)(1) I n order to assist nonprofit pr-ivate institutions of higher education and nonprofit private higher education building agencies to procure loans for the construction of academic facilities, the Commissioner may insure the payment of interest and principal on such loans if such institutions and agencies meet, with respect to such loans, criteria prescribed by or under section 745 for the making of annual interest grants under such section. ''(2) No loan insurance under paragraph (1) may apply to so much of the principal amount of any loan as exceeds 90 per centum of the development cost of the academic facility with respect to which such loan was made. ' ' (b)(1) The United States shall be entitled to recover from any institution or agency to which loan insurance has been issued under this sect'on the amount of any payment made pursuant to that insurance, unless the Commissioner for good cause waives its right of recovery. T^'^pon making any such payment, the Ignited States shall be subrogated to all of the rights of the recipient of the payment with respect to which the payment was made. "(2) Any insurance issued by the Commissioner pursuant to subsection (a) shall be incontestable in the hands of the institution or agency on whose behalf such insurance is issued, and as to any agency, organization, or individual who makes or contracts to make a loan to such institution or agency in reliance thereon, except for fraud or misrepresentation on the part of such institution or agency or on the part of the agency, organization. or individual who makes or- contracts to make such loan. "(c) Insurance may be issued by the Conunissioner under subsection (a) only if he determines that the terms, conditions, maturity, security (if any), and schedule and amounts of repayments with respect to the loan are sufficient to protect the financial interests of the United States and are otherwise reasonable and in accord with regulations,

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