SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1132b-1, 1132d11 of this title.

§ 1132b-1. Grants

(a) Institutions eligible; application required; maximum amount of payments in any fiscal year

(1) Any institution of higher education desiring to receive a grant under this part shall submit an application therefor at such time, in such manner, and containing such information as the Commissioner may require.

(2) In determining whether to approve applications under this section, the order in which to approve such applications, and the amount of grants, the Commissioner shall give consideration to the extent to which the projects for which assistance is sought will contribute toward achieving the objectives of this part, and the extent to which they will aid in attaining a wider distribution of graduate schools and cooperative graduate centers throughout the States. In no case shall the total of the payments from appropriations for any fiscal year pursuant to section 1132b of this title made with respect to projects in any State exceed an amount equal to 121⁄2 per centum of such appropriations.

(3) For the purposes of this section, the term "institution of higher education" includes cooperative graduate center boards.

(b) Action by panel of specialists required for application approval

The Commissioner shall not approve any application under this section until he has obtained the advice and recommendations of a panel of specialists who are not regular fulltime employees of the Federal Government and who are competent to evaluate such application.

(c) Maximum allowable percentile of development cost

No grant under this part may be in an amount in excess of 50 per centum of the development cost of the project covered by the application.

(Pub. L. 89-329, title VII, § 722, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 294.)

PART C-LOANS for ConsTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1132e-1, 1145c, 1221 of this title.

§ 1132c. Authorization

(a) Lending authority

(1) The Commissioner shall carry out a program of making and insuring loans,, in accordance with the provisions of this part.

(2) The Commissioner is authorized to make loans to institutions of higher education and to higher education building agencies for the construction, reconstruction, or renovation of academic facilities and to insure loans.

(b) Appropriations

For the purpose of making payments into the fund established under section 1132c-3 of this

title, there are hereby authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1972, $100,000,000 for the fiscal year ending June 30, 1973, $150,000,000 for the fiscal year ending June 30, 1974, and $200,000,000 for each of the fiscal years ending prior to October 1, 1979. Sums appropriated pursuant to this subsection for any fiscal year shall be available without fiscal year limitations.

(Pub. L. 89-329, title VII, § 741, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 295, and amended Pub. L. 94-482, title I, §§ 161(c), 162(a)(3), Oct. 12, 1976, 90 Stat. 2156.) AMENDMENTS

1976-Subsec. (a)(2). Pub. L. 94-482, § 162(a)(3), added ", reconstruction, or renovation" following "construction".

Subsec. (b). Pub. L. 94-482, § 161(c), substituted "each of the fiscal years ending prior to October 1, 1979" for "the fiscal year ending June 30, 1975".

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided or, if not so specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1132c-3, 1132d11 of this title.

§ 1132c-1. Eligibility conditions, amounts and terms of loans

(a) No loan pursuant to this part shall be made unless the Commissioner finds (1) that not less than 20 per centum of the development cost of the facility will be financed from nonFederal sources, (2) that the applicant is unable to secure the amount of such loan from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this part, (3) that the construction, reconstruction, or renovation will be undertaken in an economical manner and that it will not be of elaborate or extravagant design or materials, and (4) that, in the case of a project to construct, reconstruct or renovate an infirmary or other facility designed to provide primarily for outpatient care of students and institutional personnel, no financial assistance will be provided such project under title IV of the Housing Act of 1950 [12 U.S.C. 1749 et seq.).

(b) A loan pursuant to this part shall be secured in such manner and shall be repaid within such period not exceeding fifty years, as may be determined by the Commissioner; and it shall bear interest at (1) a rate determined by the Commissioner which shall not be less than a per annum rate that is one-quarter of 1 percentage point above the average annual interest rate on all interest-bearing obligations of the United States forming a part of the public debt as computed at the end of the preceding fiscal year, adjusted to the nearest one-eighth of 1 per centum, or (2) the rate of 3 per centum per annum, whichever is the lesser.

(Pub. L. 89-329, title VII, § 742, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat.

295, and amended Pub. L. 94-482, title I, § 162(a)(3), (6), Oct. 12, 1976, 90 Stat. 2156, 2157.)

REFERENCES IN TEXT

The Housing Act of 1950, referred to in subsec. (a), is act Apr. 20, 1950, ch. 94, 64 Stat. 48. Title IV of the Housing Act of 1950 is classified generally to subchapter IX (§ 1749 et seq.) of chapter 13 of Title 12, Banks and Banking. For complete classification of this Act to the Code, see Tables volume.

AMENDMENTS

1976-Subsec. (a). Pub. L. 94-482 added ", reconstruction, or renovation" following "construction" in cl. (3) and ", reconstruct or renovate" following "construct" in cl. (4).

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided or, if not so specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1132c-4 of this title.

§ 1132c-2. General provisions for loan program

(a) Transactions of Commissioner final and conclusive

Financial transactions of the Commissioner under this part, except with respect to administrative expenses, shall be final and conclusive on all officers of the Government and shall not be reviewable by any court.

(b) Additional powers and duties of Commissioner

In the performance of, and with respect to, the functions, powers, and duties vested in him by this part, the Commissioner may—

(1) prescribe such rules and regulations as may be necessary to carry out the purposes of this part;

(2) sue and be sued in any court of record of a State having general jurisdiction or in any district court of the United States, and such district courts shall have jurisdiction of civil actions arising under this part without regard to the amount in controversy, and any action instituted under this subsection by or against the Commissioner shall survive notwithstanding any change in the person occupying the office of the Commissioner or any vacancy in such office; but no attachment, injunction, garnishment, or other similar process, mesne or final, shall be issued against the Commissioner or property under his control, and nothing herein shall be construed to except litigation arising out of activities under this part from the application of sections 507(b) and 517 and 2679 of title 28;

(3) foreclose on any property or commence any action to protect or enforce any right conferred upon him by any law, contract, or other agreement, and bid for and purchase at any foreclosure or any other sale any property in connection with which he has made a loan pursuant to this part; and, in the event of any such acquisition (and notwithstanding any other provisions of law relating to the acquisition, handling, or disposal of real proper

ty by the United States), complete, administer, remodel and convert, dispose of, lease, and otherwise deal with, such property; except that (1) such action shall not preclude any other action by him to recover any defi ciency in the amounts loaned and (2) any such acquisition of real property shall not deprive any State or political subdivision thereof of its civil or criminal jurisdiction in and over such property or impair the civil rights under the State or local laws of the inhabitants on such property;

(4) sell or exchange at public or private sale, or lease, real or personal property, and sell or exchange any securities or obligations, upon such terms as he may fix;

(5) subject to the specific limitations in this part, consent to the modification, with respect to the rate of interest, time of payment of any installment of principal or interest, security, or any other term of any contract or agreement to which he is a party or which has been transferred to him pursuant to this section including (A) the granting of a temporary moratorium on the repayment of principal or interest or both to any institution of higher education or higher education building agency the Commissioner finds to be temporarily unable to make such repayment without undue financial hardship, if such institution or agency presents, and the Commissioner approves, a specific plan to make such repayment including a schedule for such repayment, and (B) the granting to any such institution or agency for which he has autho rized a loan under this part prior to January 1, 1976, of the option to pay into the fund established under section 1132c-3 of this title an amount equal to 75 per centum of the total current obligation of the institution or agency under this part, in full accord and sat. isfaction of such total current obligation, if such institution or agency desiring to exercise such an option makes payment from non-Federal sources prior to October 1, 1979; and

(6) include in any contract or instrument made pursuant to this part such other covenants, conditions, or provisions (including provisions designed to assure against use of the facility, constructed with the aid of a loan under this part, for purposes described in section 1132e-1(1) of this title), as he may deem necessary to assure that the purpose of this part will be achieved.

(Pub. L. 89-329, title VII, § 743, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 296, and amended Pub. L. 94-482, title I, § 162(f), Oct. 12, 1976, 90 Stat. 2157.)

AMENDMENTS

1976-Subsec. (b)(5). Pub. L. 94-482 added provisions relating to the granting of a temporary moratorium, and provisions relating to the granting of the option repayment amount.

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specificially otherwise provided or, if not so specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

§ 1132c-3. Revolving Loan Fund and Insurance Fund (a) Creation; limitation on loans

There is hereby created within the Treasury a separate fund for higher education academic facilities loans and loan insurance (hereafter in this section called the "fund") which shall be available to the Commissioner without fiscal year limitation as a revolving fund for the purposes of making loans and insuring loans under this part. The total of any loans made from the fund in any fiscal year shall not exceed limitations specified in appropriation acts.

(b) Operation of fund; sale of assets, beneficial interests, and participations in assets of the fund; interest; deferral

(1) The Commissioner shall transfer to the fund available appropriations provided under section 1132c(b) of this title to provide capital for the fund. All amounts received by the Commissioner as interest payments or repayments of principal on loans, and any other moneys, property, or assets derived by him from his operations in connection with this part, including any moneys derived directly or indirectly from the sale of assets, or beneficial interests or participations in assets of the fund, shall be deposited in the fund.

(2) All loans, expenses, and payments pursuant to operations of the Commissioner under this part shall be paid from the fund, including (but not limited to) expenses and payments of the Commissioner in connection with sale, under section 1717(c) of title 12, of participations in obligations acquired under this part. From time to time, and at least at the close of each fiscal year, the Commissioner shall pay from the fund into the Treasury as miscellaneous receipts interest on the cumulative amount of appropriations paid out for loans under this part or available as capital to the fund, less the average undisbursed cash balance in the fund during the year. The rate of such interest shall be determined 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 the approval of the Secretary of the Treasury, but any interest payments so deferred shall themselves bear interest. If at any time the Commissioner 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.

(Pub. L. 89-329, title VII, § 744, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 296.)

CONTINUATION OF SECTION 745 FUND; TRANSFER OF
MONEYS; APPROPRIATION

Pub. L. 92-318, § 161(b)(4), provided that: "The revolving fund created by section 744 of the Higher Education Act of 1965 [this section] shall be deemed to be a continuation of the revolving fund created by section 305 of the Higher Education Facilities Act of 1963 [former section 745 of this title]. Any sums in the fund for higher education academic facilities created by such section 305 [former section 745 of this title] on the date of enactment of this Act [June 23, 1972]

§ 1132c-4

shall be transferred to the fund created by section 744 of the Higher Education Act of 1965, [this section), and all such funds shall be deemed to have been made available for such fund. Notwithstanding any other provision of law, unless enacted in specific limitation of the provisions of this sentence, any sums appropriated pursuant to section 303(c) of the Higher Education Facilities Act of 1963 [former section 743(c) of this title for any fiscal year ending prior to July 1, 1973, which have not been loaned under title III of that Act of 1963 [former section 741 et seq. of this title] shall be deemed to have been appropriated pursuant to section 741(b) of the Higher Education Act of 1965 [section 1132c(b) of this title] for the fiscal year ending June 30, 1973."

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1132c, 1132c-2, 1132d-11 of this title.

§ 1132c-4. Annual interest grants (a) Power of Commissioner

To assist institutions of higher education and higher education building agencies to reduce the cost of borrowing from other sources for the construction, reconstruction, or renovation of academic facilities, the Commissioner may make annual interest grants to such institutions and agencies.

(b) Maximum period and amount; approval by Secretary

Annual interest grants to an institution of higher education or higher education building agency with respect to any academic facility shall be made over a fixed period not exceeding forty years, and provision for such grants shall be embodied in a contract guaranteeing their payment over such period. Each such grant shall be in an amount not greater than the difference between (1) the average annual debt service which would be required to be paid, during the life of the loan, on the amount borrowed from other sources for the construction of such facilities, and (2) the average annual debt service which the institution would have been required to pay, during the life of the loan, with respect to such amounts if the applicable interest rate were the maximum rate specified in section 1132c-1(b) of this title. The amount on which such grant is based shall be approved by the Secretary.

(c)

1977 and on October 1 of each of the succeeding fiscal years].

(d) Maximum amount of funds usable in one State

Not more than 121⁄2 per centum of the funds provided for in this section for grants may be used within any one State.

(e) Prerequisites; nature of financing

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 sources, (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, from other sources upon terms and conditions equally as favorable as the terms and conditions applicable to loans under this subchapter, and (3) that the construction, reconstruction, or renovation will be undertaken in an economical manner and that it will not be of elaborate 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 subchapter, such a loan shall be considered financing from a non-Federal source.

(Pub. L. 89-329, title VII, § 745, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 297, and amended Pub. L. 94-482, title I, §§ 161(d), 162(a)(3), (g), Oct. 12, 1976, 90 Stat. 2156, 2157.)

CODIFICATION

Subsec. (c)(2) of this section was amended in an inconsistent manner by sections 161(d) and 162(g)(2) of Pub. L. 94-482. Each amendment has been executed to the text of the subsection within brackets, the first bracketed provisions enacted by section 161(d) and the second bracketed provisions enacted by section 162(g)(2).

AMENDMENTS

1976-Subsec. (a). Pub. L. 94-482, § 162(a)(3), added ", reconstruction, or renovation" following "construction".

Subsec. (b). Pub. L. 94-482, § 162(g)(1), substituted "1132c-1(b)" for "1132c-3(b)(2)".

Subsec. (c)(2). Pub. L. 94-482, §§ 161(d), 162(g)(2), substituted "the first day of each fiscal year during the period ending September 30, 1979" for "July 1 of each of the four succeeding years", and "six succeeding years, and October 1, 1977 and on October 1 of each of the succeeding fiscal years" for "four succeeding years", respectively. See Codification note set out above.

Subsec. (e). Pub. L. 94-482, § 162(a)(3), added “, reconstruction, or renovation" following "construction".

EFFECTIVE DATE OF 1976 AMENDMENT

Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided or, if not to specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1132c-5 of this title.

§ 1132c-5. Academic facilities loan insurance (a) Authority of Commissioner to insure loans; criteria

(1) In order to assist nonprofit private institutions of higher education and nonprofit private higher education building agencies to procure loans for the construction, reconstruction, or renovation of academic facilities, the Commis sioner 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 1132c-4 of this title 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) Right of recovery

(1) The United States shall be entitled to recover from any institution or agency to which loan insurance has been issued under this section the amount of any payment made pursuant to that insurance, unless the Commissioner for good cause waives its right of recovery. Upon making any such payment, the United 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) of this section 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) Issuance of insurance

Insurance may be issued by the Commissioner under subsection (a) of this section 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, including a determi nation that the rate of interest does not exceed such per centum per annum on the principal obligation outstanding as the Commissioner 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. The Commissioner may charge a premium for such insurance in an amount reasonably determined by him to be necessary to cover administrative expenses and probable losses under subsections (a) and (b) of this section. Such insurance shall be subject to such further terms and conditions as the Commissioner determines to be necessary.

(Pub. L. 89-329, title VII, § 746, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 298, and amended Pub. L. 94-482, title I, § 162(a)(3), Oct. 12, 1976, 90 Stat. 2156.)

AMENDMENTS

1976-Subsec. (a)(1). Pub. L. 94-482 added ", reconstruction, or renovation" following "construction".

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided or, if not so specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

PART D-ASSISTANCE IN MAJOR DISASTER AREAS

PART REFERRED TO IN OTHER SECTIONS

This part is referred to in sections 1132e-1, 1221 of this title.

§ 1132d. Authorization of appropriations

(a) The commissioner shall carry out a program of financial assistance to public institutions of higher education, in accordance with the provisions of this part.

(b) There are authorized to be appropriated for each fiscal year such sums as may be necessary to carry out the provisions of this part. (Pub. L. 89-329, title VII, § 761, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 299.)

§ 1132d-1. Disaster assistance for replacement or restoration of academic facilities

(a) Authority of Commissioner to provide assistance If the Director of the Office of Emergency Preparedness determines that a public institution of higher education is, in whole or in part, within an area which, after June 30, 1971, and before October 1, 1979, has suffered a disaster which is a major disaster, and if the Commissioner determines with respect to such institution that

(1) the academic facilities of such institution have been destroyed or seriously damaged as a result of the disaster;

(2) such institution is exercising due diligence in availing itself of State and other financial assistance available for restoration or replacement of such facilities; and

(3) the institution does not have sufficient funds available from such other sources, including proceeds of insurance on the facilities, to provide for the restoration or replacement of such facilities;

the Commissioner is authorized to provide such assistance to such institution as is provided in subsection (b) of this section.

(b) Amount of assistance

(1) Assistance under this section shall be a grant to an eligible institution, as determined under subsection (a) of this section, of an amount necessary to enable the institution to carry out the construction necessary to restore or replace the academic facilities determined under clause (1) of subsection (a) of this section to be damaged or destroyed.

(2) The maximum amount of a grant under this section shall not exceed the cost of construction incident to the restoration or replacement of the facilities determined to be damaged or destroyed under clause (1) of subsection (a) of this section less the amount of additional as

sistance determined under clause (3) of subsection (a) of this section to be available.

(c) Replacement of temporary facilities

(1) Assistance under this section may include a grant of an amount necessary to enable the institution to lease, or otherwise obtain the use of, such facilities as are needed to replace, temporarily, facilities which have been made unavailable as a result of a major disaster.

(2) An institution shall be eligible for assistance under this subsection if it qualifies for assistance under subsection (a) of this section, whether or not it receives assistance under subsection (b) of this section.

(Pub. L. 89-329, title VII, § 762, as added Pub. L. 92-318, title I, § 161(a), June 23, 1972, 86 Stat. 299, and amended Pub. L. 94-482, title I, §§ 161(e), 162(h), Oct. 12, 1976, 90 Stat. 2156, 2157.)

AMENDMENTS

1976-Subsec. (a). Pub. L. 94-482 substituted "October 1, 1979" for "July 1, 1975" and "Office of Emergency Preparedness" for "Office of Emergency Planning".

EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94-482 effective 30 days after Oct. 12, 1976, except either as specifically otherwise provided or, if not so specifically otherwise provided, effective July 1, 1976, for those amendments providing for authorization of appropriations, see section 532 of Pub. L. 94-482, set out as an Effective Date of 1976 Amendment note under section 1001 of this title.

TRANSFER OF FUNCTIONS

Functions of the Director of the Office of Emergency Preparedness under this section, transferred to the President by Reorg. Plan No. 1 of 1973, set out in the Appendix to Title 5, were transferred to the Secretary of Housing and Urban Development by section 2(2) of Ex. Ord. No. 11749, Dec. 10, 1973, 38 F.R. 34177, set out as a note under section 5121 of Title 42, The Public Health and Welfare. Section 6(a) of Ex. Ord. No. 11749 superseded section 1 of Ex. Ord. No. 11725, June 27, 1973, 38 F.R. 17175, which had previously transferred the functions of the Director of the Office of Emergency Preparedness under this section to the Secretary of Housing and Urban Development.

The Office of Emergency Preparedness including the offices of Director, Deputy Director, Assistant Directors, and Regional Directors, was abolished and all functions vested by law in the Office of Emergency Preparedness or the Director of the Office of Emergency Preparedness were transferred to the President of the United States by sections 1 and 3(a)(1) of Reorg. Plan No. 1 of 1973, eff. July 1, 1973, set out in the Appendix to Title 5, Government Organization and Employees.

SECTION REFERRED TO IN OTHER SECTIONS This section is referred to in sections 1132d-2, 1132d3, 1132d-4 of this title.

§ 1132d-2. Equipment and supplies

If an institution is eligible for assistance under section 1132d-1(a) of this title, the Commissioner is authorized, whether or not such institution receives assistance under section 1132d-1(b) of this title, to make a grant to such institution of not in excess of an amount he determines necessary to replace equipment, maintenance supplies, and instructional supplies (including books, and curricular and program ma