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42 U.S.C. § 291j–4Payment of interest on guaranteed loans

submitted 82 years ago by Pub. L. 91-296 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 138 words · no verdicts yet

in plain englishAI-generated · not legal advice

For guaranteed loans to nonprofit hospitals, the Secretary pays the lender enough to cut the effective interest rate by 3 percentage points a year — but only up to whatever amount Congress actually appropriates for this purpose.

(a) Subject to subsection (b), when the Secretary guarantees a loan that a nonprofit private agency took out for a hospital or other medical facility, the Secretary pays the lender — on the facility's behalf — enough money to cut the loan's real interest rate by 3 percentage points a year. Whoever holds the loan has a legal right to receive these payments from the government. (b) The total amount the government commits to pay this way can never be more than what Congress has actually provided for in its appropriations laws.
the actual law source: uscode.house.gov ↗public domain
(a)

Subject to the provisions of subsection (b), in the case of a guarantee of any loan to a nonprofit private agency under this part with respect to a hospital or other medical facility, the Secretary shall pay, to the holder of such loan and for and on behalf of such hospital or other medical facility amounts sufficient to reduce by 3 per centum per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan, to a nonprofit private agency, which is guaranteed under this part shall have a contractual right to receive from the United States interest payments required by the preceding sentence.

(b)

Contracts to make the payments provided for in this section shall not carry an aggregate amount greater than such amount as may be provided in appropriations Acts.

Source credit: (July 1, 1944, ch. 373, title VI, § 624, as added Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 347.)

history & why it existsrecord from the source credit
  • 1944Enacted · Pub. L. 91-296 · 84 Stat. 347

A history note hasn’t been published yet. The record shows enactment by Pub. L. 91-296 on 1944-07-01.

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