average of full-time enrollments during fiscal years ending June 30, 1962, 1963, and 1964, except that no such school shall receive in any fiscal year an amount in excess of product of $100 and the full-time enrollment in such school during the year.

Subsec. (c). Pub. L. 90-490 substituted provisions for determination of number of students enrolled and defining "full-time students" for provisions which defined a "federally-sponsored student" and provided for determination of full-time enrollment and number of federallysponsored students as of Feb. 15 of each fiscal year.

1967-Subsec. (c) (1). Pub. L. 90-174 defined “federallysponsored student" to include a school of nursing student receiving a loan the source of which is the nurse training revolving fund or a nursing educational opportunity grant.

EFFECTIVE DATE OF 1968 AMENDMENT

Amendment by Pub. L. 90-490 applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 214 of Pub. L. 90-490, set out as a note under section 296f of this title.

EFFECTIVE DATE OF 1967 AMENDMENT

Section 12(f) of Pub. L. 90-174 provided that: "The amendment made by subsection (a) [to subsec. (c) (1) of this section] shall be effective as of November 3, 1966." DEFINITION OF "SECRETARY"

Term "Secretary" used in subsec. (c) (1) of this section as meaning the Secretary of Health, Education, and Welfare, see section 15 of Pub. L. 90-174, set out as a note under section 201 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 296f, 296g, 298b of this title.

§ 296f. Applications for improvement and institutional grants.

(a) Filing date.

The Secretary may from time to time set dates (not earlier than in the fiscal year preceding the year for which a grant is sought) by which applications under section 296d or 296c of this title for any fiscal year must be filed.

(b) Consultation with Council.

The Secretary shall not approve or disapprove any application for a grant under this part except after consultation with the National Advisory Council on Nurse Training.

(c) Eligibility; contents.

A grant under section 296d or 296e of this title may be made only if the application therefor―

(1) is from a public or nonprofit private school of nursing, or, in the case of grants under section 296d of this title, a public or nonprofit private agency, organization, or institution;

(2) contains or is supported by assurances satisfactory to the Secretary that the applicant will expend in carrying out its functions as a school of nursing, during the fiscal year for which such grant is sought, an amount of funds (other than funds for construction as determined by the Secretary) from non-Federal sources which are at least as great as the average amount of funds expended by such applicant for such purpose (excluding expenditures of a nonrecurring nature) in the three fiscal years immediately preceding the fiscal year for which such grant is sought;

(3) contains such additional information as the Secretary may require to make the determinations required of him under this part and such assurances as he may find necessary to carry out the purposes of this part; and

(4) provides for such fiscal control and accounting procedures and reports, and access to the records of the applicant, as the Secretary may require to assurance proper disbursement of and accounting for Federal funds paid to the applicant under this part.

(July 1, 1944, ch. 373, title VIII, § 807, as added Aug. 16, 1968, Pub. L. 90-490, title II, § 212, 82 Stat. 782.) EFFECTIVE DATE

Section 214 of Pub. L. 90-490 provided that: "The amendments made by the preceding provisions of this part [enacting sections 296f and 296g of this title and amending sections 296d, 296e, and 298b(f) (2) of this title] shall apply with respect to appropriations for fiscal years ending after June 30, 1969."

§ 296g. Authorization of appropriations for improvement and institutional grants.

(a) There are authorized to be appropriated $35,000,000 for the fiscal year ending June 30, 1970, and $40,000,000 for the fiscal year ending June 30, 1971, for improvement grants under section 296d of this title and institutional grants under section 296e of this title.

(b) of the sums appropriated under subsection (a) of this section $15,000,000 shall be available for each of the fiscal years ending June 30, 1970, and June 30, 1971, for grants under section 296d of this title. (July 1, 1944, ch. 373, title VIII, § 808, as added Aug. 16, 1968, Pub. L. 90-490, title II, § 212, 82 Stat. 783.)

EFFECTIVE DATE

Section applicable with respect to appropriations for fiscal years ending after June 30, 1969, see section 214 of Pub. L. 90-490, set out as a note under section 296f of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 296d, 296e of this title.

PART B.-ASSISTANCE TO NURSING STUDENTS

PART REFERRED TO IN OTHER SECTIONS This part is referred to in section 298b of this title.

§ 297. Traineeships for advanced training of professionals.

(a) Authorization of appropriations.

There are authorized to be appropriated $8,000,000 for the fiscal year ending June 30, 1965, $9,000,000 for the fiscal year ending June 30, 1966, $10,000,000 for the fiscal year ending June 30, 1967, $11,000,000 for the fiscal year ending June 30, 1968, $12,000,000 for the fiscal year ending June 30, 1969, $15,000,000 for the fiscal year ending June 30, 1970, and $19,000,000, for the fiscal year ending June 30, 1971, to cover the cost of traineeships for the training of professional nurses to teach in the various fields of nurse training (including practical nurse training), to serve in administrative or supervisory capacities, or to serve in other professional nursing specialties determined by the Surgeon General to required advanced training.

(b) Award through grants to public or non-profit private institutions.

Traineeships under this section shall be awarded by the Surgeon General through grants to public or nonprofit private institutions providing the training.

(c) Payments; limitations.

Payments to institutions under this section may be made in advance or by way of reimbursement, and at such intervals and on such conditions, as the Surgeon General finds necessary. Such payments may be used only for traineeships and shall be limited to such amounts as the Surgeon General finds necessary to cover the costs of tuition and fees, and a stipend and allowances (including travel and subsistence expenses) for the trainees. (July 1, 1944, ch. 373, title VIII, § 821, as added Sept. 4, 1964, Pub. L. 88-581, § 2, 78 Stat. 913, and amended Aug. 16, 1968, Pub. L. 90-490, title II, § 221, 82 Stat. 783.)

1968

AMENDMENTS

Subsec. (a). Pub. L. 90-490 authorized appropriations of $15,000,000 and $19,000,000 for fiscal years ending June 30, 1970, and 1971, respectively.

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.

§ 297a. Loan agreements; student loan fund; provisions of agreements.

(a) The Secretary of Health, Education, and Welfare is authorized to enter into an agreement for the establishment and operation of a student loan fund in accordance with this part with any public or nonprofit private school of nursing which is located in a State.

(b) Each agreement entered into under this section shall

(1) provide for establishment of a student loan fund by the school;

(2) provide for deposit in the fund, except as provided in section 297h of this title, of (A) the Federal capital contributions paid under this part to the school by the Secretary, (B) an additional amount from other sources equal to not less than one-ninth of such Federal capital contributions, (C) collections of principal and interest on loans made from the fund, (D) collections pursuant to section 297b (f) of this title, and (E) any other earnings of the fund;

(3) provide that the fund except as provided in section 297h of this title, shall be used only for loans to students of the school in accordance with the agreement and for costs of collection of such loans and interest thereon;

(4) provide that loans may be made from such fund only to students pursuing a full-time course of study at the school leading to a baccalaureate or associate degree in nursing or an equivalent degree or a diploma in nursing, or to a graduate degree in nursing, and that while the agreement remains in effect no such student who has attended such school before July 1, 1971, shall receive a loan from a loan fund established under section 424 of Title 20, and

(5) contain such other provisions as are necessary to protest the financial interests of the United States.

(July 1, 1944, ch. 373, title VIII, § 822, as added Sept. 4, 1964, Pub. L. 88-581, § 2, 78 Stat. 913, and

amended Aug. 16, 1968, Pub. L. 90-490, title II, § 222 (a), (c) (2), 82 Stat. 738, 784.)

AMENDMENTS

1968 Subsec. (b) (2). Pub. L. 90-490, § 222 (a) (1), (c) (2), inserted ", except as provided in section 297h of this title," after "fund" where first appearing and added cl. (D) and redesignated former cl. (D) as (E), respectively.

Subsec. (b) (3). Pub. L. 90-490, § 222 (a)(1), inserted ", except as provided in section 297h of this title" after "fund" where first appearing and authorized the cancellation of an additional 50 per centum of a nursery student loan.

Subsec. (b) (4). Pub. L. 90-490, § 222(a) (2), substituted "1971" for "1969".

EFFECTIVE DATE OF 1968 AMENDMENT Amendment of subsec. (b) (2) by section 222 (c) (2) of Pub. L. 90-490 applicable with respect to loans made after June 30, 1969, see section 222(1) of Pub. L. 90-490, set out as a note under section 297b of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 296e, 297c, 297e, 2971, 297h of this title.

§ 297b. Loan provisions.

(a) Maximum amount per individual per year; preference to first year students.

The total of the loans for any academic year (or its equivalent, as determined under regulations of the Secretary) made by schools of nursing from loan funds established pursuant to agreements under this part may not exceed $1,500 in the case of any student. The aggregate of the loans for all years from such funds may not exceed $6,000 for any student. In the granting of such loans, a school shall give preference to licensed practical nurses and to persons who enter as first-year students after enactment of this subchapter.

(b) Terms and conditions.

Loans from any such student loan fund by any school shall be made on such terms and conditions as the school may determine; subject, however, to such conditions, limitations, and requirements as the Secretary of Health, Education, and Welfare may prescribe (by regulation or in the agreement with the school) with a view to preventing impairment of the capital of such fund to the maximum extent practicable in the light of the objective of enabling the student to complete his course of study; and except that

(1) such a loan may be made only to a student who (A) is in need of the amount of the loan to pursue a full-time course of study at the school leading to a baccalaureate or associate degree in nursing or an equivalent degree, or a diploma in nursing, or a graduate degree in nursing, and (B) is capable, in the opinion of the school, of maintaining good standing in such course of study;

(2) such a loan shall be repayable in equal or graduated periodic installments (with the right of the borrower to accelerate repayment) over the ten-year period which begins nine months after the student ceases to pursue a full-time course of study at a school of nursing, excluding from such 10-year period all (A) periods (up to three years) of (i) active duty performed by the borrower as a member of a uniformed service, or (ii) service as a volunteer under the Peace Corps Act, and (B)

periods (up to five years) during which the borrower is pursuing a full-time course of study at a collegiate school of nursing leading to baccalaureate degree in nursing or an equivalent degree, or to graduate degree in nursing, or is otherwise pursuing advanced professional training in nursing;

(3) not to exceed 50 per centum of any such loan (plus interest) shall be canceled for full-time employment as a professional nurse (including teaching in any of the fields of nurse training and service as an administrator, supervisor, or consultant in any of the fields of nursing) in any public or nonprofit private institution or agency, at the rate of 10 per centum of the amount of such loan plus interest thereon, which was unpaid on the first day of such service, for each complete year of such service, except that such rate shall be 15 per centum for each complete year of service as such a nurse in a public or other nonprofit hospital in any area which is determined, in accordance with regulations of the Secretary, to be an area which has a substantial shortage of such nurses at such hospitals, and for the purpose of any cancellation as such higher rate, an amount equal to an additional 50 per centum of the total amount of such loans plus interest may be canceled;

(4) the liability to repay the unpaid balance of such loan and accrued interest thereon shall be canceled upon the death of the borrower, or if the Secretary determines that he has become permanently and totally disabled;

(5) such a loan shall bear interest on the unpaid balance of the loan, computed only for periods during which the loan is repayable, at the rate of 3 per centum per annum;

(6) such a loan shall be made without security or endorsement, except that if the borrower is a minor and the note or other evidence of obligation executed by him would not, under the applicable law, create a binding obligation, either security or endorsement may be required;

(7) no note or other evidence of any such loan may be transferred or assigned by the school making the loan except that, if the borrower transfers to another school participating in the program under this part, such note or other evidence of a loan may be transferred to such other school. (c) Cancellation.

Where all or any part of a loan, or interest, is canceled under this section, the Secretary of Health, Education, and Welfare shall pay to the school an amount equal to the school's proportionate share of the canceled portion, as determined by the Secretary. (d) Installments.

Any loan for any year by a school from a student loan fund established pursuant to an agreement under this part shall be made in such installments as may be provided in regulations of the Secretary or such agreement and, upon notice to the Secretary by the school that any recipient of a loan is failing to maintain satisfactory standing, any or all further installments of his loan shall be withheld, as may be appropriate.

(e) Availability to eligible students in need.

An agreement under this part with any school shall include provisions designed to make loans from the student loan fund established thereunder reasonably available (to the extent of the available funds in such fund) to all eligible students in the school in need thereof.

(f) Penalty for late payment.

Subject to regulations of the Secretary, a school may assess a charge with respect to a loan from the loan fund established pursuant to an agreement under this part for failure of the borrower to pay all or any part of an installment when it is due and, in the case of a borrower who is entitled to deferment of the loan under subsection (b) (2) of this section or cancellation of part or all of the loan under subsection (b) (3) of this section, for any failure to file timely and satisfactory evidence for such entitlement. The amount of any such charge may not exceed $1 for the first month or part of a month by which such installment or evidence is late and $2 for each such month or part of a month thereafter. The school may elect to add the amount of any such charge to the principal amount of the loan as of the first day after the day on which such installment or evidence was due, or to make the amount of the charge payable to the school not later than the due date of the next installment after receipt by the borrower of notice of the assessment of the charge. (g) 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 VIII, § 823, as added Sept. 4, 1964, Pub. L. 88-581, § 2, 78 Stat. 914, and amended Oct. 22, 1965, Pub. L. 89-290, § 4(g) (2), 79 Stat. 1058; Aug. 16, 1968, Pub. L. 90-490, title II, § 222(b), (c) (1), 82 Stat. 783, 784.)

REFERENCES IN TEXT

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

AMENDMENTS

1968-Subsec. (a). Pub. L. 90-490, § 222(b) (1), increased limitation on amount of annual loans per student from $1,000 to $1,500, required preferences in the granting of loans to licensed practical nurses, and limited the aggregate of loans for all years to any one student to $6,000. Subsec. (b) (2). Pub. L. 90-490, § 222(b)(2), provided for commencement of repayment nine months, rather than one year, after student ceases to pursue full-time course of study, excluded from ten-year repayment period periods (up to three years) of active duty as member of a uniformed service or Peace Corps volunteer service and periods (up to five years) as undergraduate or graduate degree student in nursing, including advanced professional training in nursing, and struck out prohibition against accrual of interest on loans.

Subsec. (b) (3). Pub. L. 90–490, § 222(b) (3), authorized cancellation of an additional 50 per centum of a nursing student loan (plus interest) at rate of 15 per centum for each complete year of service in a public or other nonprofit hospital in an area with a substantial shortage of

nurses.

Subsec. (b) (5). Pub. L. 90-490, § 222(b) (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. (f), (g). Pub. L. 90-490, § 222(c)(1), added subsecs. (f) and (g).

1965 Subsec. (b)(5). Pub. L. 89-290 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.

EFFECTIVE DATE OF 1968 AMENDMENT

Section 222 (1) of Pub. L. 90-490 provided that: "The amendments made by subsection (b) (1) and (2) [to subsecs. (a) and (b)(2) of this section] shall apply with respect to all loans made after June 30, 1969, and with respect to loans made from a student loan fund established under an agreement pursuant to section 822 [section 297a of this title], before July 1, 1969, to the extent agreed to by the school which made the loans and the Secretary (but then only for years beginning after June 30, 1968). The amendments made by subsection (b)(4) [to subsec. (b) (5) of this section] and subsection (c) [adding subsecs. (f) and (g) to this section and amending section 297a(b)(2) of this title] shall apply with respect to loans made after June 30, 1969. The amendment made by subsection (h) [adding section 297h of this title] shall apply with respect to appropriations for fiscal years beginning after June 30, 1969. The amendment made by subsection (b) (3) [to subsec. (b)(3) of this section] shall apply with respect to service, specified in section 823(b)(3) of such Act [subsec. (b)(3) of this section] performed during academic years beginning after the enactment of this Act, whether the loan was made before or after such enactment [Aug. 16, 1968]."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 297a, 2971 of this title.

§ 297c. Authorization of appropriations for loans.

There are authorized to be appropriated to the Secretary of Health, Education, and Welfare for Federal capital contributions to student loan funds pursuant to section 297a (b) (2) (A) of this title $3,100,000 for the fiscal year ending June 30, 1965, $8,900,000 for the fiscal year ending June 30, 1966, $16,800,000 for the fiscal year ending June 30, 1967, $25,300,000 for the fiscal year ending June 30, 1968, $30,900,000 for the fiscal year ending June 30, 1969, $20,000,000 for the fiscal year ending June 30, 1970, and $21,000,000 for the fiscal year ending June 30, 1971, and 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 for any academic year ending before July 1, 1971, to continue or complete their education. Sums appropriated pursuant to 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 297f(d) of this title, and (2) in accordance with agreements under this part, for Federal capital contributions to schools with which such agreements have been made, to be used, together with deposits in such funds pursuant to section 297a (b) (2) (B) of this title, for establishment and maintenance of student loan funds, and (3) for transfers pursuant to section 297h of this title. (July 1, 1944, ch. 373, title VIII, § 824, as added Sept. 4, 1964, Pub. L. 88581, § 2, 78 Stat. 915, and amended Nov. 3, 1966, Pub. L. 89-751, § 6(b), 80 Stat. 1235; Aug. 16, 1968, Pub. L. 90-490, title II, § 222(d), 82 Stat. 784.)

47-500 0-71-vol. 9—————14

AMENDMENTS

1968-Pub. L. 90-490 authorized appropriations of $20,000,000 and $21,000,000 for fiscal years ending June 30, 1970, and 1971, respectively, and necessary sums for fiscal year ending June 31, 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 297h of this title, respectively.

1966-Pub. L. 89-751 authorized availability of appropriations for payments into the fund established by section 297f (d) of this title.

EFFECTIVE DATE OF 1966 AMENDMENT

Section 6(e) (1) of Pub. L. 89-751 provided that: "The amendments made by this section [to this section and sections 297d-297f of this title] shall be effective in the case of payments to student loan funds made after the enactment of this Act [Nov. 3, 1966], except in the case of payments pursuant to commitments (made prior to enactment of this Act [Nov. 3, 1966]) to make loans under section 827 of the Public Health Service Act [section 297f of this title] as in effect prior to the enactment of this Act [Nov. 3, 1966]."

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 297d, 297f of this title.

§ 297d. Allotments and payments of Federal capital contributions and loans to schools.

(a) From the sums appropriated pursuant to section 297c of the title for any fiscal year, the Secretary shall allot to each school an amount which bears the same ratio to the amount so appropriated as the number of persons enrolled on a full-time basis in such school bears to the total number of persons enrolled on a full-time basis in all schools of nursing in all the States. The number of persons enrolled on a full-time basis in schools of nursing for purposes of this section shall be determined by the Secretary for the most recent year for which satisfactory data are available to him. For purposes of allotments under this section, a school of nursing also includes any school with which the Secretary has, prior to the time the allotment is made, entered into an agreement for establishment of a student loan fund under this part. 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 297f of this title) which are in excess of the amount appropriated pursuant to section 297c of this title for that year shall be allotted among States and among schools within States in such manner as the Secretary determines will best carry out the purposes of this part.

(b) (1) The Secretary shall from time to time set dates by which schools of nursing in a State must file applications for Federal capital contributions, and for loans pursuant to section 297f of this title, from the allotment of such State under the first two sentences of subsection (a) of this section.

(2) If the total of the amounts requested for any fiscal year in such applications which are made by schools in a State exceeds the amount of the allotment of such State for that fiscal year, the amounts to be paid 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 amount of the allotment of such State as the number of students who will be enrolled full time in such school during such fiscal year bears to the

total number of students who will be enrolled full time in all such schools in such State during such year. Amounts remaining after allotment under the preceding sentence shall be redistributed in accordance with clause (B) of such sentence among schools which in their applications requested more than the amounts so paid to their loan funds, but with such adjustments as may be necessary to prevent the total paid to any such school's loan fund from exceeding the total so requested by it. If the total of the amounts requested for any fiscal year in such applications which are made by schools in a State is less than the amount of the allotment of such State for that fiscal year, the Secretary may reallot the remaining amount from time to time, on such date or dates as he may fix, to other States in proportion to the original allotments to such States under subsection (a) of this section for such year. For the purpose of this section, the number of students who graduated from secondary schools in each State during a fiscal year and the number of students who will be enrolled full time in schools of nursing in each State shall be estimated by the Secretary of Health, Education, and Welfare on the basis of the best information available to him; and in making such estimates, the number of students enrolled full time in any collegiate school of nursing shall be deemed to be twice their actual number.

(c) The Federal capital contributions to a loan fund of a school under this part 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, § 825, as added Sept. 4, 1964, Pub. L. 88-581, § 2, 78 Stat. 915, and amended Nov. 3, 1966, Pub. L. 89-751, § 6(c), 80 Stat. 1235; Aug. 16, 1968, Pub. L. 90-490, title II, § 222(e), 82 Stat. 785.)

AMENDMENTS

1968 Subsec. (a). Pub. L. 90-490 substituted a new formula for distribution of Federal funds among schools of nursing by providing for allotment of funds among the schools entirely on the basis of their relative enrollments for former provisions which allocated funds among the States, 50 per centum on the basis of relative number of high school graduates, and 50 per centum on the basis of relative number of students enrolled in schools of nursing, and provided for determination of number of persons enrolled in such schools for most recent year for which satisfactory data are available to the Secretary.

1966 Subsec. (a). Pub. L. 89-751, § 6(c) (1), authorized the allotment of appropriations for payment as Federal capital contributions or as loans to schools under section 297f of this title, and directed that 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 297f of this title) which are in excess of the amount appropriated pursuant to section 297c of this title for that year shall be allotted among States and among schools within States in such manner as the Secretary determines will best carry out the purposes of this part.

Subsec. (b) (1). Pub. L. 89-751, § 6(c) (2), substituted "schools of nursing in a State must file applications for Federal capital contributions, and for loans pursuant to section 297f of this title, from the allotment of such State under the first two sentences of subsection (a) of this section" for "schools of nursing with which he has in effect agreements under this part must file applications for Federal capital contributions to their loan funds pursuant to section 297a (b) (2) (A) 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 297f of this title as in effect prior to Nov. 3, 1966, see section 6(e) (1) of Pub. L. 89-751, set out as a note under section 297c of this title.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in section 298b of this title. § 297e. 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 297a of this title by each school as follows:

(1) The Secretary of Health, Education, and Welfare 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 297a (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 297a(b) (2) (A) 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 297f(d) of this title) as was determined for the Secretary under subsection (a) of this section. (July 1, 1944, ch. 373, title VIII, § 826, as added Sept. 4, 1964, Pub. L. 88-581, § 2, 78 Stat. 916, and amended Nov. 3, 1966, Pub. L. 89-751, § 6(d), 80 Stat. 1235; Aug. 16, 1968, Pub. L. 90-490, title II, § 222(f), 82 Stat. 785.)

AMENDMENTS

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

1966 Subsec. (a). Pub. L. 89–751, § 6(d)(1), (2), substituted "an agreement pursuant to section 297a (b) of this title" for "this part" in the opening provisions, and in par. (1) substituted "such balance" for "the balance." Subsec. (b). Pub. L. 89-751, § 6(d) (3), inserted parenthetical phrase "(other than so much of such fund as relates to payments from the revolving fund established by section 2971(d) 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 297f of this title as in effect prior to Nov. 3, 1966, see section 6(e)(1) of Pub. L. 89-751, set out as a note under section 297c of this title.

§ 297f. Loans to schools of nursing to capitalize 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