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(k) Minimum monthly repayment.

A school may provide, in accordance with regulations of the Secretary, that during the repayment period of a loan from a loan fund established pursuant to an agreement under this part payments of principal and interest by the borrower with respect to all the outstanding loans made to him from loan funds so established shall be at a rate equal to not less than $15 per month. (July 1, 1944, ch. 373, title VII, § 741, as added Sept. 24, 1963, Pub. L. 88-129, § 2(b), 77 Stat. 171, and amended Oct. 13, 1964, Pub. L. 88-654, § 1(c), (d), 78 Stat. 1086; Oct. 22, 1965, Pub. L. 89-290, § 4 (b), (f) (3), (4), (g) (1), 79 Stat. 1057, 1058; Nov. 2, 1966, Pub. L. 89-709, § 3(c), (d), 80 Stat. 1103; Nov. 3, 1966, Pub. L. 89-751, § 4, 80 Stat. 1230; Aug. 16, 1968, Pub. L. 90-490, title I, § 121 (a) (3), (4), (5) (A), 82 Stat. 777.)

REFERENCES IN TEXT

The Peace Corps Act, referred to in subsec. (c) (2), is classified to chapter 34 of Title 22, Foreign Relations and Intercourse.

AMENDMENTS

1968 Subsec. (c). Pub. L. 90-490, § 121(a)(3), provided for commencement of repayment one year, rather than three, after student ceases to pursue full-time course of study and excluded from ten-year repayment periods (up to five years) of advanced professional training including internships and residencies.

Subsec. (e). Pub. L. 90-490, § 121 (a) (4), struck out provisions for an interest rate which is the greater of 3 per centum or the going Federal rate at time loan is made, defining going Federal rate, and making rate determined for first loan applicable to any subsequent loan.

Subsecs. (1), (k). Pub. L. 90-490, § 121(a) (5) (A), added subsecs. (1) and (k).

1966 Subsec. (b). Pub. L. 89-709, § 3(c), included students pursuing a full time course leading to a degree of doctor of veterinary medicine or an equivalent degree. Subsec. (c). Pub. L. 89-709, § 3(d), included schools of veterinary medicine.

Subsec. (f). Pub. L. 89-751 inserted provisions requiring, in the case of a physician, dentist, or optometrist, that the rate shall be 15 per centum (rather than 10 per centum) for each year of such practice in an area in a State which for purposes of this subsection and for that year has been determined by the Secretary to be a rural area characterized by low family income; and, for the purpose of any cancellation pursuant to these provisions, an amount equal to an additional 50 per centum of the total amount of such loans plus interest is authorized to be cancelled.

1965 Subsec. (a). Pub. L. 89-290, § 4(b) (1), substituted "may not exceed $2,500" for "may not exceed $2,000."

Subsec. (b). Pub. L. 89-290, § 4(f) (3), inserted "bachelor of science in pharmacy or doctor of pharmacy, doctor of podiatry or doctor of surgical chiropody."

Subsec. (c). Pub. L. 89-290, § 4(f) (4), inserted "pharmacy, podiatry."

Subsec. (e). Pub. L. 89-290, § 4(g) (1), applied the rate of interest for the first loan obtained by a student from a loan fund established under this part to any subsequent loan to such student from such fund during his course of study.

Subsec. (f). Pub. L. 89-290, § 4(b) (2), added subsec. (f). Former subsec. (f) redesignated (g).

Subsecs. (g)-(1). Pub. L. 89-290, § 4(b) (2), redesignated former subsec. (f)-(h) as (g)—(1), respectively.

1964 Subsec. (b). Pub. L. 88-654, § 1 (c), inserted doctor of optometry or an equivalent degree.

Subsec. (c). Pub. L. 88-654, § 1(d), included schools of optometry.

EFFECTIVE DATE OF 1968 AMENDMENT Amendment of subsec. (c) applicable with respect to all loans made under an agreement under this part after June 30, 1969, and with respect to loans thereunder be

fore July 1, 1969, to extent agreed to by the school which made the loans and the Secretary (but only as to years beginning after June 30, 1969, and amendment of subsec. (e) and enactment of subsecs. (1) and (k) applicable with respect to loans made after June 30, 1969, see section 121(f) of Pub. L. 90-490, set out as a note under section 294f of this title.

EFFECTIVE DATE OF 1965 AMENDMENT Amendment of subsecs. (b) and (c) of this section by Pub. L. 89-290 effective with respect to periods beginning on or after July 1, 1966, see section 4(f) (5) of Pub. L. 89-290, set out as a note under section 294 of this title. SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 293d, 294, 294d of this title.

§ 294b. Authorization of appropriations.

(a) Availability for health professions education fund and for school loan funds.

There are hereby authorized to be appropriated to the Secretary of Health, Education, and Welfare to carry out this part (other than section 294d of this title) $5,100,000 for the fiscal year ending June 30, 1964, $10,200,000 for the fiscal year ending June 30, 1965, $15,400,000 for the fiscal year ending June 30, 1966, $25,000,000 each for the fiscal year ending June 30, 1967, and the two succeeding fiscal years, and $35,000,000 each for the fiscal year ending June 30, 1970, and the next fiscal year. In addition to the sums authorized to be appropriated by the preceding sentence, there are authorized to be appropriated $500,000 for the fiscal year ending June 30, 1967, $1,000,000 for the fiscal year ending June 30, 1968, and $1,500,000 for the fiscal year ending June 30, 1969, which sums shall be available for carrying out this part (other than section 294d of this title) solely with respect to students of veterinary medicine. There are further authorized to be appropriated to the Secretary such sums for the fiscal year ending June 30, 1972, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan under this part for any academic year ending before July 1, 1971, to continue or complete their education. Sums appropriated under this section for the fiscal year ending June 30, 1967, or any subsequent fiscal year shall be available to the Secretary (1) for payments into the fund established by section 294d (d) of this title, (2) for making Federal capital contributions into loan funds at schools which have established loan funds under this part, and (3) for transfers pursuant to section 294f of this title.

(b) Time for applications for capital contributions or loans; reduction of allotments; reallotments; allotment of excess funds; payments in installments to prevent accumulations.

(1) The Secretary shall from time to time set dates by which schools must file applications for Federal capital contributions, and for loans pursuant to section 294d of this title.

(2) If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this section for that fiscal year, the allotment to the loan fund of each such school shall be reduced to whichever of the following is the smaller: (A) the amount requested in its application or (B) an amount which bears the same ratio to the amounts appropriated as the number of students estimated by the Secretary to be enrolled in

such school during such fiscal year bears to the estimated total number of students in all such schools during such year. Amounts remaining after allotment under the preceding sentence shall be reallotted in accordance with clause (B) of such sentence among schools whose applications requested more than the amounts so allotted to their loan funds, but with such adjustments as may be necessary to prevent the total allotted to any such school's loan fund from exceeding the total so requested by it.

(3) Funds available in any fiscal year for payment to schools under this part (whether as Federal capital contributions or as loans to schools under section 294d of this title) which are in excess of the amount appropriated pursuant to this section for that year shall be allotted among schools in such manner as the Secretary determines will best carry out the purposes of this part.

(4) Allotments to a loan fund of a school shall be paid to it from time to time in such installments as the Secretary determines will not result in unnecessary accumulations in the loan fund at such school. (July 1, 1944, ch. 373, title VII, § 742, as added Sept. 24, 1963, Pub. L. 88-129, § 2(b), 77 Stat. 172, and amended Oct. 22, 1965, Pub. L. 89-290, § 4(c), 79 Stat. 1057; Nov. 2, 1966, Pub. L. 89-709, § 3(e), 80 Stat. 1103; Nov. 3, 1966, Pub. L. 89-751, § 5(b), 80 Stat. 1232; Aug. 16, 1968, Pub. L. 90-490, title I, § 121 (b), 82 Stat. 778.)

AMENDMENTS

1968 Subsec. (a). Pub. L. 90-490 authorized appropriations of $35,000,000 each for the fiscal year ending June 30, 1970, and the next fiscal year, and necessary sums for fiscal year ending June 30, 1972, rather than 1970, and two succeeding fiscal years for loans to students receiving loan for any academic year ending before July 1, 1971, rather than 1969, and made appropriations available for transfers pursuant to section 294f of this title, respectively.

1966 Subsec. (a). Pub. L. 89-751, § 5(b) (1), substituted "Sums appropriated under this section for the fiscal year ending June 30, 1967, or any subsequent fiscal year shall be available to the Secretary (1) for payments into the fund established by section 294d (d) of this title, and (2) for making Federal capital contributions into loan funds at schools which have established loan funds under this part" for "Sums appropriated pursuant to this subsection shall be allotted among loan funds at schools which have established loan funds under this part."

Pub. L. 89-709 authorized appropriations for the fiscal years ending June 30, 1967, June 30, 1968, and June 30, 1969, which sums shall be available for carrying out this part (other than section 294d of this title) solely with respect to students of veterinary medicine.

Subsec. (b)(1). Pub. L. 89-751, § 5(b) (2), substituted "schools must file applications for Federal capital contributions, and for loans pursuant to section 294d of this title" for "schools with which he has in effect agreements under this part must file applications for allotments to their loan funds."

Subsec. (b) (2). Pub. L. 89-751, § 5(b) (3), substituted "appropriated under this section" for "appropriated under this part."

Subsec. (b) (3). Pub. L. 89-751, § 5(b) (4), added par. (3) and redesignated former par. (3) as (4).

Subsec. (b) (4). Pub. L. 89-751, § 5(b)(4), redesignated former par. (3) as (4).

1965 Subsec. (a). Pub. L. 89-290 inserted "(other than section 744)", which for purposes of codification has been changed to "(other than section 294d of this title)", and substituted provisions authorizing the appropriation of $25,000,000 each for the fiscal year ending June 30, 1967, and the two succeeding fiscal years, and authorizing the appropriation of such sums for the fiscal year ending

June 30, 1970, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan under this part for any academic year ending before July 1, 1969, to continue or complete their education for provisions which authorized the appropriation of such sums for the fiscal year ending June 30, 1967, and each of the two succeeding fiscal years as may be necessary to enable students who have received a loan for any academic year ending before July 1, 1966, to continue or complete their education.

EFFECTIVE DATE OF 1968 AMENDMENT Amendment of subsec. (a) by section 121(b) (3) of Pub. L. 90-490, making appropriations available for transfers pursuant to section 294f of this title, applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 121(f) of Pub. L. 90-490, set out as a note under section 294f of this title.

EFFECTIVE DATE OF 1966 AMENDMENT Amendment of section by Pub. L. 89-751 effective in the case of payments to student loan funds made after Nov. 3, 1966, except in the case of payments pursuant to commitments (made prior to Nov. 3, 1966) to make loans under section 294d of this title as in effect prior to Nov. 3, 1966, see section 5(d) (1) of Pub. L. 89-751, set out as a note under section 294 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 293d, 294d of this title.

§ 294c. Distribution of assets from loan funds.

(a) After June 30, 1974, and not later than September 30, 1974, there shall be a capital distribution of the balance of the loan fund established under an agreement pursuant to section 294 (b) of this title by each school as follows:

(1) The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund at the close of June 30, 1974, as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 294(b) (2) (A) of this title bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to section 294(b) (2) (B) of this title.

(2) The remainder of such balance shall be paid to the school.

(b) After September 30, 1974, each school with which the Secretary has made an agreement under this part shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after June 30, 1974, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement (other than so much of such fund as relates to payments from the revolving fund established by section 294d (d) of this title) as was determined for the Secretary under subsection (a) of this section. (July 1, 1944, ch. 373, title VII, § 743, as added Sept. 24, 1963, Pub. L. 88-129, § 2(b), 77 Stat. 172, and amended Oct. 22, 1965, Pub. L. 89-290, § 4(d), 79 Stat. 1057; Nov. 3, 1966, Pub. L. 89-751, § 5(c) (2), (3), 80 Stat. 1233; Aug. 16, 1968, Pub. L. 90-490, title I, § 121 (c), 82 Stat. 778.)

AMENDMENTS

1968-Pub. L. 90-490 substituted "1974" for "1972" wherever appearing.

1966 Subsec. (a). Pub. L. 89-751, § 5(c) (2), substituted "section 294 (b) of this title" for "this part" in the opening provisions, and in par. (1) substituted "such balance" for "the balance" and "total amount of

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the Federal capital contributions to such fund by the Secretary pursuant to section 294(b) (2) (A) of this title bears to the total amount in such fund derived from such Federal capital contributions" for "total amount of the allotments to such fund by the Secretary under this part bears to the total amounts in such fund derived from such allotments."

Subsec. (b). Pub. L. 89-751, § 5(c) (3), inserted parenthetical phrase "(other than so much of such fund as relates to payments from the revolving fund established by section 294d (d) of this title)."

1965

Subsec. (a). Pub. L. 89-290 substituted "1972" for "1969" wherever appearing.

Subsec. (b). Pub. L. 89-290 substituted "1972" for "1969" wherever appearing.

EFFECTIVE DATE OF 1966 AMENDMENT Amendment of section by Pub. L. 89-751 effective in the case of payments to student loan funds made after Nov. 3, 1966, except in the case of payments pursuant to commitments (made prior to Nov. 3, 1966) to make loans under section 294d of this title as in effect prior to Nov. 3, 1966, see section 5(d)(1) of Pub. L. 89-751, set out as a note under section 294 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 293d of this title.

§ 294d. Loans to schools to capitalize health professions student loan funds.

(a) Fiscal years available; terms, conditions, and limitations; institutional contributions; interest. (1) During the fiscal years ending June 30, 1967, and June 30, 1968, and each of the next three fiscal years, the Secretary may make loans, from the revolving fund established by subsection (d) of this section, to any public or other nonprofit school referred to in section 294 (a) of this title which is located in a State and is accredited as provided in section 293a (b) (1) (B) of this title, to provide all or part of the capital needed by any such school for making loans to students under this section (other than capital needed to finance the institutional contributions required by section 294 (b) (2) (B) of this title). Loans to students from such borrowed sums shall be subject to the terms, conditions, and limitations set forth in section 294a of this title. The requirement in section 294(b) (2) (B) of this title with respect to institutional contributions to student loan funds shall not apply to loans made to schools under this section.

(2) A loan to a school under this section may be upon such terms and conditions, consistent with applicable provisions of section 294 of this title, 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.

(b) Payments to schools to cover certain costs incurred in making students loans from borrowed funds; authorization of appropriations.

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 294 (b) (3) of this title with respect to such sums, and (4) the amount of principal which is canceled pursuant to section 294a (d) or (f) of this title with 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.

(c) Limitation on loans from revolving fund.

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 $45,000,000 and the amount of Federal funds (other than loans under this section) deposited in student loan funds under this part for that year.

(d) Health professions education revolving fund; authorization of appropriations.

(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 847, 848, and 849 of Title 31) for wholly owned Government Corporations.

(2) The fund shall consist of appropriations paid into the fund pursuant to section 294b(a) of this title, 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) of this section), 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) of this section) shall be paid from the fund, including (but not limited to) expenses and payments of the Secretary in connection with the sale, under section 1717(c) of Title 12, of participations in obligations acquired under this section. From time to time, and at least at the close of each fiscal year, the Secretary shall pay from the fund into the Treasury as miscellaneous receipts interest on the cumulative amount of appropriations paid out for loans under this section, less the average undisbursed cash balance in the fund during the year. The rate of such interest shall be deter

mined by the Secretary of the Treasury, taking into consideration the average market yield during the month preceding each fiscal year on outstanding Treasury obligations of maturity comparable to the average maturity of loans made from the fund. Interest payments may be deferred with approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. If at any time the Secretary determines that moneys in the fund exceed the present and any reasonably prospective future requirements of the fund, such excess may be transferred to the general fund of the Treasury.

(4) In addition to the sums authorized to be appropriated by section 294b(a) of this title, there are authorized to be appropriated to the fund established by this subsection $10,000,000 for the fiscal year ending June 30, 1967. (July 1, 1944, ch. 373, title VII, § 744, as added Sept. 24, 1963, Pub. L. 88129, § 2(b), 77 Stat. 173, and amended Oct. 22, 1965, Pub. L. 89-290, § 4 (e), 79 Stat. 1057; Nov. 3, 1966, Pub. L. 89-751, § 5(a), 80 Stat. 1230; Aug. 16, 1968, Pub. L. 90-490, title I, § 121(d), 82 Stat. 778.) AMENDMENTS

1968-Subsec. (a) (1). Pub. L. 90-490, § 121(d) (1), made the loan provisions applicable during three fiscal years ending after June 30, 1968.

Subsec. (c) (2). Pub. L. 90-490, § 121 (d) (2), substituted "$45,000,000" for "$35,000,000".

1966-Pub. L. 89-751 substituted provisions designated as subsecs. (a)-(d) authorizing loans to schools to capitalize health professions student loan funds for former authorization of loans to schools to finance deposits in school loan funds.

1965-Pub. L. 89-290 authorized the appropriation of such sums as may be necessary to carry out the purposes of this section, but not to exceed a total of $1,500,000, and required loans made by the Surgeon General under this section to mature within such periods as may be determined by the Surgeon General to be appropriate in each case, but not exceeding fifteen years.

EFFECTIVE DATE OF 1966 AMENDMENT Amendment of section by Pub. L. 89-751 effective in the case of payments to student loan funds made after Nov. 3, 1966, except in the case of payments pursuant to commitments (made prior to Nov. 3, 1966) to make loans under this section as in effect prior to Nov. 3, 1966, see section 5(d) (1) of Pub. L. 89-751, set out as a note under section 294 of this title.

CONVERSION OF FEDERAL CAPITAL CONTRIBUTION TO A LOAN UNDER THIS SECTION

Section 5(d) (2) of Pub. L. 89-751 provided that: "The Secretary of Health, Education, and Welfare is authorized, at the request of any institution, to take such steps as are necessary to convert a Federal capital contribution (which shall include the amount allocated to it under section 740(b)(2)(A) of the Public Health Service Act [section 294(b) (2) (A) of this title]) to a student loan fund of such institution, made under title VII of the Public Health Service Act [this subchapter] from funds appropriated pursuant thereto for the fiscal year ending June 30, 1967, to a loan under section 744 of such Act [this section] as amended by this Act."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 293d, 294b, 294c, of this title.

§ 294e. Administrative provisions.

The Secretary may agree to modifications of agreements or loans made under this part, and may compromise, waive, or release any right, title, claim, or demand of the United States arising or acquired

under this part. (July 1, 1944, ch. 373, title VII, § 745, as added Sept. 24, 1963, Pub. L. 88–129, § 2(b), 77 Stat. 173.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 293d of this title. § 294f. Transfer of funds to scholarships.

Not to exceed 20 per centum of the amount paid to a school from the appropriations for any fiscal year for Federal capital contributions under an agreement under this part, or such larger percentage thereof as the Secretary may approve, may be transferred to the sums available to the school under part F of this subchapter to be used for the same purpose as such sums. In the case of any such transfer, the amount of any funds which the school deposited in its student loan fund pursuant to section 294 (b) (2) (B) of this title with respect to the amount so transferred may be withdrawn by the school from such fund. (July 1, 1944, ch. 373, title VII, § 746, as added Aug. 16, 1968, Pub. L. 90-490, title I, § 121(e), 82 Stat. 778.)

EFFECTIVE DATE

Section 121 (f) of Pub. L. 90-490 provided that: "The amendments made by subsections (a)(1), (b) (3), and (e) [amending 294 (b) (2), (3), 294b(a), 4th Sent. And adding this section] shall apply with respect to appropriations for fiscal years ending after June 30, 1969. The amendment made by subsection (a) (3) [to section 294a (c) of this title] shall apply (1) with respect to all loans made under an agreement under part (C) of title VII of the Public Health Service Act [this part] after June 30. 1969, and (2) with respect to loans made thereunder before July 1, 1969, to the extent agreed to by the school which made the loans and the Secretary (but, then, only as to years beginning after June 30, 1969). The amendment made by subsection (a) (4) [to section 294a (e) of this title] and (5) shall apply with respect to loans made after June 30, 1969."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 294, 294b of this title.

PART D.-GRANTS FOR CONSTRUCTION OF MENTAL RETARDATION RESEARCH FACILITIES

CROSS REFERENCES

Mental retardation facilities and mental health centers, see section 2661 et seq. of this title.

§ 295. Authorization of appropriations.

There are authorized to be appropriated $6,000,000 for the fiscal year ending June 30, 1964, $8,000,000 for the fiscal year ending June 30, 1965, and $6,000,000 each for the fiscal year ending June 30, 1966, and the fiscal year ending June 30, 1967, for project grants to assist in meeting the costs of construction of facilities for research, or research and related purposes, relating to human development, whether biological, medical, social, or behavioral, which may assist in finding the causes, and means of prevention, or mental retardation, or in finding means of ameliorating effects of mental reretardation. Sums so appropriated shall remain available until expended for payments with respect to projects or1 which applications have been filed under this part before July 1, 1967, and approved by

1 So in original. Probably should be "for."

the Surgeon General thereunder before July 1, 1968. (July 1, 1944, ch. 373, title VII, § 761, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 282.) ABOLITION OF OFFICE OF SURGEON GENERAL

The Office of the Surgeon General was abolished by section 3 of 1966 Reorg. Plan No. 3 eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and all functions thereof were transferred to the Secretary of Health, Education, and Welfare by section 1 of 1966 Reorg. Plan No. 3, set out as a note under section 202 of this title.

§ 295a. Applications.

(a) Approval by Surgeon General.

Applications for grants under this part with respect to any facility may be approved by the Surgeon General only if—

(1) the applicant is a public or nonprofit instition which the Surgeon General determines is competent to engage in the type of research for which the facility is to be constructed; and

(2) the application contains or is supported by reasonable assurances that (A) for not less than twenty years after completion of construction, the facility will be used for the research, or research and related purposes, for which it was constructed; (B) sufficient funds will be available for meeting the non-Federal share of the cost of constructing the facility; (C) sufficient funds will be available, when the construction is completed, for effective use of the facility for the research, or research and related purposes, for which it was constructed; and (D) all laborers and mechanics employed by contractors or subcontractors in the performance of work on construction of the center will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the Davis-Bacon Act, as amended; and the Secretary of Labor shall have, with respect to the labor standards specified in this clause (D) the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176), and section 276c of Title 40.

(b) Matters considered.

In acting on applications for grants, the Surgeon General shall take into consideration the relative effectiveness of the proposed facilities in expanding the Nation's capacity for research and related purposes in the field of mental retardation and related aspects of human development, and such other factors as he, after consultation with the national advisory council or councils concerned with the field or fields of research involved, may by regulation prescribe in order to assure that the facilities constructed with such grants, severally and together, will best serve the purpose of advancing scientific knowledge pertaining to mental retardation and related aspects of human development. (July 1, 1944, ch. 373, title VII, § 762, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 282.)

REFERENCES IN TEXT

The Davis-Bacon Act, as amended, referred to in subsec. (a) (2) (D), is classified to sections 276a to 276a-5 of Title 40, Public Buildings, Property, and Works.

Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176), referred to in subsec. (a) (2) (D), is set out in the Appendix to Title 5, Government Organization and Employees.

ABOLITION OF OFFICE OF SURGEON GENERAL The Office of the Surgeon General was abolished by section 3 of 1966 Reorg. Plan No. 3 eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and all functions thereof were transferred to the Secretary of Health, Education, and Welfare by section 1 of 1966 Reorg. Plan No. 3, set out as a note under section 202 of this title.

§ 295b. Amount of grants. (a) Maximum payments.

The total of the grants with respect to any project for the construction of a facility under this part may not exceed 75 per centum of the necessary cost of construction of the center as determined by the Surgeon General.

(b) Advances or reimbursement; installments; conditions.

Payments of grants under this part shall be made in advance or by way of reimbursement, in such installments consistent with construction progress, and on such conditions as the Surgeon General may determine.

(c) Nonduplication of grants.

No grant may be made after January 1, 1964, under any provision of this chapter other than this part, for any of the four fiscal years in the period beginning July 1, 1963, and ending June 30, 1967, for construction of any facility described in this part, unless the Surgeon General determines that funds are not available under this part to make a grant for the construction of such facility. (July 1, 1944, ch. 373, title VII, § 763, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 283.)

ABOLITION OF OFFICE OF SURGEON GENERAL The Office of the Surgeon General was abolished by section 3 of 1966 Reorg. Plan No. 3 eff. June 25, 1966, 31 F.R. 8855, 80 Stat. 1610, and all functions thereof were transferred to the Secretary of Health, Education, and Welfare by section 1 of 1966 Reorg. Plan No. 3, set out as a note under section 202 of this title.

§ 295c. Recovery of expenditures under certain conditions.

If, within twenty years after completion of any construction for which funds have been paid under this part

(1) the applicant or other owner of the facility shall cease to be a public or nonprofit institution,

or

(2) the facility shall cease to be used for the research purposes, or research and related purposes, for which it was constructed, unless the Surgeon General determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to do so,

the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated) of the facility, as the amount of the Federal participation bore to the cost of construction of such facility. (July 1, 1944, ch. 373, title VII, § 764, as added Oct. 31, 1963, Pub. L. 88-164, title I, § 101, 77 Stat. 283.)

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