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42 U.S.C. § 297e — Distribution of assets from loan funds

submitted 82 years ago by Pub. L. 88-581 to r/title-42-THE-PUBLIC-HEALTH-AND-WELFARE · 434 words · no verdicts yet

in plain englishAI-generated · not legal advice

This law explains what happens to a nursing school's loan fund money when it ends. The Secretary gets back a share equal to the federal government's original contribution. The school keeps the rest, but must keep sharing loan collections with the Secretary afterward.

(a) Capital distribution of balance of loan fund If a school shuts down its loan fund, or the Secretary ends the agreement with the school for good cause, the money left in the fund gets split: (1) First, the Secretary gets paid a share equal to the same ratio that the federal government's capital contributions bear to the fund's total balance (counting both the federal contributions and the extra money the school added under section 297a(b)(2)(B)). (2) Whatever is left after that goes to the school. (b) Payment of principal or interest on loans After that one-time split happens, the school must keep paying the Secretary — at least every three months — the same proportional share (as figured under (a)) of any principal or interest it later collects on loans made from that fund. (c) Payment of balance of loan fund (1) Within 90 days after a school's agreement ends, or its participation in the loan program otherwise ends, the school must pay the Secretary a share of its fund balance — figured the same way as in (a), based on federal contributions versus the fund's total. The rest goes to the school. (2) After that payment, the school must keep paying the Secretary, at least quarterly, the same proportional share of any loan principal or interest it collects afterward.
the actual law source: uscode.house.gov ↗public domain
(a) Capital distribution of balance of loan fund

If a school terminates a loan fund established under an agreement pursuant to section 297a(b) of this title, or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows:

(1)

The Secretary shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund 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)(B) of this title.

(2)

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

(b) Payment of principal or interest on loans

If a capital distribution is made under subsection (a), the school involved shall, after such capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established under section 297a(b) of this title as determined by the Secretary under subsection (a).

(c) Payment of balance of loan fund
(1)

Within 90 days after the termination of any agreement with a school under section 297a of this title or the termination in any other manner of a school’s participation in the loan program under this part,1 such school shall pay to the Secretary from the balance of the loan fund of such school established under section 297a of this title, an amount which bears the same ratio to the balance in such fund on the date of such termination 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 on such date derived from such Federal capital contributions and from funds deposited in the fund pursuant to section 297a(b)(2)(B) of this title. The remainder of such balance shall be paid to the school.

(2)

A school to which paragraph (1) applies shall pay to the Secretary after the date on which payment is made under such paragraph and not less than quarterly, the same proportionate share of amounts received by the school after the date of termination referred to in paragraph (1) in payment of principal or interest on loans made from the loan fund as was determined for the Secretary under such paragraph.

Source credit: (July 1, 1944, ch. 373, title VIII, § 839, formerly § 826, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 916; amended Pub. L. 89–751, § 6(d), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90–490, title II, § 222(f), Aug. 16, 1968, 82 Stat. 785; Pub. L. 92–52, § 3(b), July 9, 1971, 85 Stat. 145; Pub. L. 92–158, § 6(d)(1), Nov. 18, 1971, 85 Stat. 478; renumbered § 839 and amended Pub. L. 94–63, title IX, §§ 936(d), 941(h)(1), (2), (4)(B), (i)(1), (5), July 29, 1975, 89 Stat. 363, 365, 366; Pub. L. 96–32, § 7(j), July 10, 1979, 93 Stat. 84; Pub. L. 96–76, title I, § 109(c), Sept. 29, 1979, 93 Stat. 580; Pub. L. 97–35, title XXVII, § 2757(d), Aug. 13, 1981, 95 Stat. 931; Pub. L. 99–92, § 8(f), Aug. 16, 1985, 99 Stat. 399; Pub. L. 100–607, title VII, § 713(i), Nov. 4, 1988, 102 Stat. 3161; Pub. L. 102–408, title II, § 208(b), Oct. 13, 1992, 106 Stat. 2075; Pub. L. 105–392, title I, § 133(e), Nov. 13, 1998, 112 Stat. 3577; Pub. L. 111–148, title V, § 5310(b)(5), Mar. 23, 2010, 124 Stat. 631.)

history & why it existsrecord from the source credit
  • 1944Enacted · Pub. L. 88-581 · 78 Stat. 916
  • 1966Amended · Pub. L. 89-751 · 80 Stat. 1235
  • 1968Amended · Pub. L. 90-490 · 82 Stat. 785
  • 1971Amended · Pub. L. 92-52 · 85 Stat. 145
  • 1971Amended · Pub. L. 92-158 · 85 Stat. 478
  • 1975Amended · Pub. L. 94-63 · 89 Stat. 363, 365, 366
  • 1979Amended · Pub. L. 96-32 · 93 Stat. 84
  • 1979Amended · Pub. L. 96-76 · 93 Stat. 580
  • 1981Amended · Pub. L. 97-35 · 95 Stat. 931
  • 1985Amended · Pub. L. 99-92 · 99 Stat. 399
  • 1988Amended · Pub. L. 100-607 · 102 Stat. 3161
  • 1992Amended · Pub. L. 102-408 · 106 Stat. 2075
  • 1998Amended · Pub. L. 105-392 · 112 Stat. 3577
  • 2010Amended · Pub. L. 111-148 · 124 Stat. 631

A history note hasn’t been published yet. The record shows enactment by Pub. L. 88-581 on 1944-07-01.

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