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42 U.S.C. 294b

156

(h) No note or other evidence of a loan made under this part 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.

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

AUTHORIZATION OF APPROPRIATIONS

SEC. 742. (a) 157 There are hereby authorized to be appropriated to the Secretary of Health, Education, and Welfare to carry out this part (other than section 744) $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, and $25,000,000 each for the fiscal year ending June 30, 1967, and the two succeeding fiscal years. There are further authorized to be appropriated to the Secretary 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. Sums appropriated pursuant to this subsection shall be allotted among loan funds at schools which have established loan funds under this part.

(b) (1) The Secretary shall from time to time set dates by which schools with which he has in effect agreements under this part must file applications for allotments to their loan funds.

(2) If the total of the amounts requested for any fiscal year in such applications exceeds the amounts appropriated under this part 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 al

156 These subsections, formerly subsecs. (f), (g), and (h), were redesignated by subsec. 4 (b) (2) of P.L. 89–290.

157 Subsec. 742 (a) amended by sec. 4 (c) of P.L. 89–290.

lotted to any such school's loan fund from exceeding the total so requested by it.

(3) 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.

DISTRIBUTION OF ASSETS FROM LOAN FUNDS

SEC. 743.158 (a) After June 30, 1972, and not later than September 30, 1972, there shall be a capital distribution of the balance of the loan fund established under this part by each school as follows:

(1) The Secretary shall first be paid an amount which bears the same ratio to the balance in such fund at the close of June 30, 1972, as the 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 and from funds deposited therein pursuant to section 740 (b) (2) (B).

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

(b) After September 30, 1972, 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, 1972, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement as was determined for the Secretary under Subsection (a).

LOANS TO SCHOOLS

SEC. 744.159 Upon application by any school with which he has made an agreement under this part, the Secretary may make a loan to such school for the purpose of helping to finance deposits required by section 740 (b) (2) (B) in a loan fund established pursuant to such agreement. Such loan may be made only if the school shows it is unable to secure such funds upon reasonable terms and conditions from non-Federal sources. Loans made under this section shall bear interest at a rate sufficient to cover (1) the cost of the funds to the Treasury, (2) the cost of administering this section, and (3) probable losses. There are hereby authorized to be appropriate such sums as may be necessary to carry out the purposes of this section, but not to exceed a total of $1,500,000. Loans made by the Surgeon General under this section shall mateure within such period as may be determined by the

168 Sec. 743 amended by sec. 4(d) of P.L. 89-290, October 22, 1965, by striking out "1969" wherever it appeared therein and inserting in lieu thereof "1972".

159 Sec. 744 amended by sec. 4 (e) of P.L. 89-290.

42 U.S.C. 294c

42 U.S.C. 294d

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42 U.S.C. 294e

42 U.S.C. 295

42 U.S.C. 295a

Surgeon General to be appropriate in each case, but not exceeding fifteen years.

ADMINISTRATIVE PROVISIONS

SEC. 745. 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.

PART D-CENTERS FOR RESEARCH ON MENTAL RETARDA-
TION AND RELATED ASPECTS OF HUMAN DEVELOPMENT 160

AUTHORIZATION OF APPROPRIATIONS

SEC. 761. 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, of mental retardation, or in finding means of ameliorating the effects of mental retardation. Sums so appropriated shall remain available until expended for payments with respect to projects for which applications have been filed under this part before July 1, 1967, and approved by the Surgeon General thereunder before July 1, 1968.

APPLICATIONS

SEC. 762. (a) 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 institution 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 pur

100 Pt. D added by sec. 101 of P.L. 88-164.

poses, 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 (40 USC 276a-276a-5); and the Secretary of Labor shall have, with respect to the labor standards specified in the clause (D) the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 5 U.S.C. 133z-15), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

(b) 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.

AMOUNT OF GRANTS; PAYMENTS

SEC. 763. (a) 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) 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) No grant may be made after January 1, 1964, under any provision of this Act 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.

RECAPTURE OF PAYMENTS

SEC. 764. 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

42 U.S.C. 295b

42 U.S.C. 295c

42 U.S.C. 295d

42 U.S.C. 295e

(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.

NONINTERFERENCE WITH ADMINISTRATION OF INSTITUTIONS

SEC. 765. Except as otherwise specifically provided in this part, nothing contained in this part shall be construed as authorizing any department, agency, officer, or employee of the United States to exercise any direction, supervision, or control over, or impose any requirement or condition with respect to, the research or related purposes conducted by, and the personnel or administration of, any institution.

DEFINITIONS

SEC. 766. As used in this part

(1) the terms "construction" and "cost of construction" include (A) the construction of new buildings and the expansion, remodeling, and alteration of existing buildings, including architects' fees, but not including the cost of acquisition of land or off-site improvements, and (B) equipping new buildings and existing buildings, whether or not expanded, remodeled, or altered;

(2) the term "nonprofit institution" means an institution owned and operated by one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

PART E-GRANTS TO IMPROVE THE QUALITY OF SCHOOLS
OF MEDICINE, DENTISTRY, OSTEOPATHY, OPTOMETRY,
AND PODIATRY 161

AUTHORIZATION OF APPROPRIATIONS

SEC. 770. There are authorized to be appropriated $20,000,000 for the fiscal year ending June 30, 1966, $40,000,000 for the fiscal year ending June 30, 1967, $60,000,000

101 Pt. E added by sec. 2(a) of P.L. 89-290.

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