Page:United States Statutes at Large Volume 88 Part 2.djvu/949

 88

STAT. ]

PUBLIC LAW 93-641-JAN. 4, 1975

2265

"(2) In the case of a guarantee of any loan to a nonprofit private ^^l^^^^' ^''^' entity under this title, the Secretary shall pay, to the holder of such loan and for and on behalf of the project for which the loan was made amounts sufficient to reduce by 8 per centum per annum the net effective interest rate otherwise payable on such loan. Each holder of such a loan which is guaranteed under this title shall have a contractual right to receive from the United States interest payments required by the preceding sentence. "(c) The cumulative total of the principal of the loans outstanding Limitations. at any time with respect to which guarantees have been issued, or which have been directly made, may not exceed such limitations as may be specified in appropriation Acts. " (d) The Secretary, with the consent of the Secretary of Housing HUD assistance. and Urban Development, shall obtain from the Department of Housing and Urban Development such assistance with respect to the administration of this part as will promote efficiency and economy thereof. "ALLOCATION

AMONG THE

STATES

"SEC. 1621. (a) For each fiscal year, the'total amount of principal 42 USC 300q-l. of— "(1) loans to nonprofit private entities which may be guaranteed, or "(2) loans which may be directly made, under this part shall be allotted by the Secretary among the States, in accordance with regulations, on the basis of the population, financial need, and need for medical facilities projects described in section 1601 of the respective States. The population of the States shall be determined on the basis of the latest figures certified by the Secretary of Commerce. " (b) Any amount allotted to a State for a fiscal year under funar^avriiabiuty subsection (a) and remaining unobligated at the end of such year shall to state. remain available to such State, for the purpose for which made, for the next two fiscal years (and for such years only), in addition to the amounts allotted to such State for such purposes for such next two fiscal years; except that any such amount which is unob- Reallotments. ligated at the end of the first of such next two years and which the Secretary determines will remain unobligated at the close of the second of such next two years may be reallotted by the Secretary, to be available for the purposes for which made until the close of the second of such next two years, to other States which have need therefor, on such basis as the Secretary deems equitable and consistent with the purposes of this title. Any amount so reallotted to a State shall be in addition to the amounts allotted and available to the State for the same period. "GENERAL PROVISIONS RELATING TO LOAN GUARANTEES AND LOANS

"SEC. 1622. (a)(1) The Secretary may not approve a loan guarantee for a project under this part unless he determines that (A) the terms, conditions, security (if any), and schedule and amount of repayments with respect to the loan are sufficient to protect the financial interests of the United States and are otherwise reasonable, including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation outstanding as the Secretary determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States, and (B) the loan would

42 USC 300q-

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