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

Page 1103 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297e Editorial Notes REFERENCES IN TEXT Section 297c of this title, referred to in subsec. (a)(2)(A), was repealed by Pub. L. 105–392, title I, § 123(3), Nov. 13, 1998, 112 Stat. 3562. AMENDMENTS 2010—Subsecs. (a)(3), (c). Pub. L. 111–148 substituted ‘‘this part’’ for ‘‘this subpart’’. 1992—Subsec. (a)(3). Pub. L. 102–408 struck out ‘‘(A)’’ after ‘‘(3)’’, substituted ‘‘available for allotment until expended.’’ for ‘‘available for allotment in such fiscal year and in the fiscal year succeeding the fiscal year.’’ and ‘‘this subpart.’’ for ‘‘this subpart, except that in making such allotments, the Secretary shall give pri- ority to schools of nursing which established student loan funds under this subpart after September 30, 1975.’’, and struck out subpar. (B) which read as follows: ‘‘With respect to funds available pursuant to subpara- graph (A), any such funds returned to the Secretary and not allotted by the Secretary, during the period of availability specified in such subparagraph, shall be available to carry out section 297j of this title and, for such purpose, shall remain available until expended.’’ 1988—Subsec. (a)(3). Pub. L. 100–607 designated exist- ing provisions as subpar. (A) and added subpar. (B). 1985—Subsec. (a). Pub. L. 99–92 amended subsec. (a) generally, substituting provisions relating to applica- tion for allotment, reduction or adjustment of amount requested in application, reallotment, and availability of funds for allotment during fiscal years for provisions relating to determination of amount of allotment. Subsec. (b). Pub. L. 99–92 amended subsec. (b) gen- erally, substituting provisions relating to payment to a loan fund of a school of allotments for provisions relat- ing to application for allotment, adjustment or reduc- tion of amount requested in application, and reallot- ment. 1975—Subsec. (a). Pub. L. 94–63, § 941(h)(1), (4)(A)(i), (i)(4), substituted ‘‘subpart’’ for ‘‘part’’ wherever ap- pearing, struck out ‘‘(whether as Federal capital con- tributions or as loans to schools under section 297f of this title)’’ before ‘‘which are in excess’’, and sub- stituted references to section 847 of the Act for ref- erences to section 824, which had previously been trans- lated as section 297c of this title, requiring no further translations in text as a result of renumbering of the Public Health Service Act. Subsec. (b)(1). Pub. L. 94–63, § 941(h)(4)(A)(ii), struck out ‘‘, and for loans pursuant to section 297f of this title,’’ after ‘‘contributions’’. Subsec. (b)(2). Pub. L. 94–63, § 941(h)(2), struck out ‘‘of Health, Education, and Welfare’’ after ‘‘Secretary’’. Subsec. (c). Pub. L. 94–63, § 941(h)(1), substituted ‘‘sub- part’’ for ‘‘part’’. 1968—Subsec. (a). Pub. L. 90–490 substituted a new for- mula 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 enroll- ments for former provisions which allocated funds among the States, 50 per centum on the basis of rel- ative number of high school graduates, and 50 per cen- tum on the basis of relative number of students en- rolled in schools of nursing, and provided for deter- mination 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 allotment of appropriations for payment as Federal capital contributions or as loans to schools under sec- tion 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 determinates 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 applica- tions for Federal capital contributions to their loan funds pursuant to section 297a(b)(2)(A) of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–607, title VII, § 713(h)(2), Nov. 4, 1988, 102 Stat. 3161, provided that: ‘‘Except as provided in Public Law 100–436 [Sept. 20, 1988, 102 Stat. 1680, see Tables for classification], the amendment made by paragraph (1) [amending this section] shall take effect as if such amendment had been effective on September 30, 1988, and as if section 843 of the Public Health Service Act [42 U.S.C. 297j], as added by section 715 of this title, had been effective on such date.’’ EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–92 effective Oct. 1, 1985, see section 10(a) of Pub. L. 99–92, set out as a note under section 297a of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94–63 effective July 1, 1975, see section 942 of Pub. L. 94–63, set out as a note under sec- tion 297a of this title. EFFECTIVE DATE OF 1966 AMENDMENT Pub. L. 89–751, § 6(e)(1), Nov. 3, 1966, 80 Stat. 1236, pro- vided that: ‘‘The amendments made by this section [amending this section and sections 297c, 297e, and 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 pursu- ant to commitments (made prior to enactment of this Act) to make loans under section 827 of the Public Health Service Act [42 U.S.C. 297f] as in effect prior to the enactment of this Act.’’ APPLICABILITY OF REORG. PLAN NO. 3 OF 1966 Pub. L. 89–751, § 9, Nov. 3, 1966, 80 Stat. 1240, provided that: ‘‘The amendments made by this Act [enacting former sections 295h to 295h–5 and 298c to 298c–8 of this title and amending this section, former sections 292b, 294d, 294n to 294p, 296, and 297c, section 297e, former sec- tion 297f, and section 298 of this title, and section 1717 of Title 12, Banks and Banking] shall be subject to the provisions of Reorganization Plan Numbered 3 of 1966 [42 U.S.C. 202 note].’’ § 297e. Distribution of assets from loan funds (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 con- tributions to such fund by the Secretary pursu- ant 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 de- posited therein pursuant to section 297a(b)(2)(B) of this title. (2) The remainder of such balance shall be paid to the school. Page 1104 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297e 1 See References in Text note below. (b) Payment of principal or interest on loans If a capital distribution is made under sub- section (a), the school involved shall, after such capital distribution, pay to the Secretary, not less often than quarterly, the same propor- tionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established under sec- tion 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 man- ner of a school’s participation in the loan pro- gram 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 Sec- retary 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 con- tributions 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 propor- tionate share of amounts received by the school after the date of termination referred to in para- graph (1) in payment of principal or interest on loans made from the loan fund as was deter- mined for the Secretary under such paragraph. (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.) Editorial Notes REFERENCES IN TEXT This part, referred to in subsec. (c)(1), was in the original ‘‘this subpart’’ and was translated to reflect the probable intent of Congress and the redesignation of subpart II of part B of this subchapter as part E of this subchapter by Pub. L. 105–392, title I, § 123(2), Nov. 13, 1998, 112 Stat. 3562. AMENDMENTS 2010—Pub. L. 111–148 made technical amendment to section and subsec. (a) designations resulting in no change in text. 1998—Subsec. (a). Pub. L. 105–392, § 133(e)(1)(A), added introductory provisions and struck out former intro- ductory provisions which read as follows: ‘‘After Sep- tember 30, 1996, and not later than December 31, 1999, 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:’’. Subsec. (a)(1). Pub. L. 105–392, § 133(e)(1)(B), sub- stituted ‘‘on the date of termination of the fund’’ for ‘‘at the close of September 30, 1999,’’. Subsec. (b). Pub. L. 105–392, § 133(e)(2), amended sub- sec. (b) generally. Prior to amendment, subsec. (b) read as follows: ‘‘After December 31, 1999, each school with which the Secretary has made an agreement under this subpart shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts re- ceived by the school after September 30, 1999, in pay- ment 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) of this section.’’ 1992—Subsec. (a). Pub. L. 102–408, § 208(b)(2), sub- stituted ‘‘1999’’ for ‘‘1994’’ in introductory provisions and in par. (1). Pub. L. 102–408, § 208(b)(1), substituted ‘‘1996’’ for ‘‘1991’’ in introductory provisions. Subsec. (b). Pub. L. 102–408, § 208(b)(2), substituted ‘‘1999’’ for ‘‘1994’’ in two places. 1988—Subsec. (a). Pub. L. 100–607, § 713(i)(1)(A), which directed substitution of ‘‘1994’’ for ‘‘1991’’ in text pre- ceding par. (1), was executed by making the substi- tution for ‘‘1991’’ the second time appearing to reflect the probable intent of Congress. Subsec. (a)(1). Pub. L. 100–607, § 713(i)(1)(B), sub- stituted ‘‘1994’’ for ‘‘1991’’. Subsec. (b). Pub. L. 100–607, § 713(i)(2), substituted ‘‘1994’’ for ‘‘1991’’ in two places. 1985—Subsecs. (a), (b). Pub. L. 99–92, § 8(f)(1), sub- stituted ‘‘1991’’ for ‘‘1987’’ wherever appearing. Subsec. (c). Pub. L. 99–92, § 8(f)(2), added subsec. (c). 1981—Pub. L. 97–35 substituted ‘‘1987’’ for ‘‘1983’’ wher- ever appearing. 1979—Subsec. (a). Pub. L. 96–76, § 109(c)(1), substituted ‘‘September 30, 1983, and not later than December 31, 1983’’ for ‘‘September 30, 1980, and not later than De- cember 31, 1981’’. Prior to amendment, subsec. (a) re- ferred to ‘‘December 31, 1980’’ rather than to ‘‘December 31, 1981’’ as cited in directory language of Pub. L. 96–76. See below for explanation of amendment by Pub. L. 96–32. Pub. L. 96–32 substituted ‘‘December 31, 1980’’ for ‘‘September 30, 1977’’. Subsec. (a)(1). Pub. L. 96–76, § 109(c)(2), substituted ‘‘1983’’ for ‘‘1980’’. Subsec. (b). Pub. L. 96–76, § 109(c)(3), substituted ‘‘1983’’ for ‘‘1980’’ wherever appearing. 1975—Subsec. (a). Pub. L. 94–63, §§ 936(d), 941(h)(2), (i)(5), substituted ‘‘September 30, 1980’’ for ‘‘June 30, 1977’’ wherever appearing, struck out ‘‘of Health, Edu- cation, and Welfare’’ after ‘‘Secretary’’, and sub- stituted references to section 835 of the Act for ref- erences to section 822, which had previously been trans- lated as section 297a of this title, requiring no further translations in text as a result of renumbering of the Public Health Service Act. Subsec. (b). Pub. L. 94–63, §§ 936(d), 941(h)(1), (4)(B), substituted ‘‘subpart’’ for ‘‘part’’, ‘‘September 30, 1980’’ for ‘‘June 30, 1977’’, and ‘‘December 31, 1980’’ for ‘‘Sep- tember 30, 1977’’ and struck out provisions relating to payments from revolving fund established by section 297f(d) of this title. 1971—Pub. L. 92–158 substituted ‘‘1977’’ for ‘‘1975’’ wherever appearing. Pub. L. 92–52 substituted ‘‘1975’’ for ‘‘1974’’ wherever appearing. Page 1105 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297i 1968—Pub. L. 90–490 substituted ‘‘1974’’ for ‘‘1972’’ wherever appearing. 1966—Subsec. (a). Pub. L. 89–751, § 6(d)(1), (2), sub- stituted ‘‘an agreement pursuant to section 297a(b) of this title’’ for ‘‘this part’’ in opening provisions, and in par. (1) substituted ‘‘such balance’’ for ‘‘the balance’’. Subsec. (b). Pub. L. 89–751, § 6(d)(3), inserted ‘‘(other than so much of such fund as relates to payments from the revolving fund established by section 297f(d) of this title)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1985 AMENDMENT Amendment by Pub. L. 99–92 effective Oct. 1, 1985, see section 10(a) of Pub. L. 99–92, set out as a note under section 297a of this title. EFFECTIVE DATE OF 1975 AMENDMENT Amendment by section 936(d) of Pub. L. 94–63 effec- tive July 1, 1975, see section 905 of Pub. L. 94–63, set out as a note under section 297a of this title. Amendment by section 941(h)(1), (2), (4)(B), (i)(1), (5) of Pub. L. 94–63 effective July 1, 1975, see section 942 of Pub. L. 94–63, set out as a note under section 297a of this title. EFFECTIVE DATE OF 1966 AMENDMENT Amendment 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 commit- ments (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 297d of this title. § 297f. Repealed. Pub. L. 94–63, title IX, § 936(e)(1), July 29, 1975, 89 Stat. 363 Section, act July 1, 1944, ch. 373, title VIII, § 827, as added Sept. 4, 1964, Pub. L. 88–581, § 2, 78 Stat. 917; amended Nov. 3, 1966, Pub. L. 89–751, § 6(a), 80 Stat. 1233; Aug. 16, 1968, Pub. L. 90–490, title II, § 222(g), 82 Stat. 785; July 9, 1971, Pub. L. 92–52, § 3(c), 85 Stat. 145; Nov. 18, 1971, Pub. L. 92–158, § 6(d)(2), 85 Stat. 478, set out provi- sions relating to terms, conditions, limitations, man- ner of payment, etc., of loans to schools of nursing to capitalize student loan funds. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective July 1, 1975, see section 905 of Pub. L. 94–63, set out as an Effective Date of 1975 Amendment note under section 297a of this title. AVAILABILITY OF NURSE TRAINING REVOLVING FUND FOR PAYMENT OF OBLIGATIONS DEPOSITS INTO FUND; TRANSFER OF EXCESS AMOUNTS TO GENERAL FUND OF TREASURY AUTHORIZATION OF APPROPRIATIONS Pub. L. 94–63, title IX, § 936(e)(2), (3), July 29, 1975, 89 Stat. 363, provided that: ‘‘(2) The nurse training fund created within the Treasury by section 827(d)(1) of the Act [42 U.S.C. 297f(d)(1)] shall remain available to the Secretary of Health, Education, and Welfare [now Health and Human Services] for the purpose of meeting his respon- sibilities respecting participations in obligations ac- quired under section 827 of the Act [42 U.S.C. 297f]. The Secretary shall continue to deposit in such fund all amounts received by him as interest payments or re- payments of principal on loans under such section 27[827]. If at any time the Secretary determines the moneys in the funds exceed the present and any reason- able prospective further requirements of such fund, such excess may be transferred to the general fund of the Treasury. ‘‘(3) There are authorized to be appropriated without fiscal year limitation such sums as may be necessary to enable the Secretary to make payments under agree- ments entered into under section 827(b) of the Act [42 U.S.C. 297f(b)] before the date of the enactment of this Act [July 29, 1975].’’ CONVERSION OF FEDERAL CAPITAL CONTRIBUTION TO A LOAN UNDER SECTION 297f OF THIS TITLE Pub. L. 89–751, § 6(e)(2), Nov. 3, 1966, 80 Stat. 1236, au- thorized the Secretary of Health, Education, and Wel- fare to convert a Federal capital contribution to a stu- dent loan fund of a particular institution, made under this subchapter, from funds appropriated pursuant thereto for the fiscal year ending June 30, 1967, to a loan under section 297f of this title. § 297g. Modification of agreements; compromise, waiver or release The Secretary may agree to modifications of agreements made under this part, and may com- promise, waive, or release any right, title, claim, or demand of the United States arising or acquired under this part. (July 1, 1944, ch. 373, title VIII, § 840, formerly § 828, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 917; renumbered § 840 and amended Pub. L. 94–63, title IX, § 941(h)(1), (4)(C), (i)(1), July 29, 1975, 89 Stat. 365; Pub. L. 111–148, title V, § 5310(b)(2), Mar. 23, 2010, 124 Stat. 631.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–148 substituted ‘‘this part’’ for ‘‘this subpart’’ in two places. 1975—Pub. L. 94–63, § 941(h)(1), (4)(C), substituted ‘‘sub- part’’ for ‘‘part’’ in two places and struck out ‘‘or loans’’ after ‘‘agreements’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1975 AMENDMENT Amendment by Pub. L. 94–63 effective July 1, 1975, see section 942 of Pub. L. 94–63, set out as a note under sec- tion 297a of this title. § 297h. Repealed. Pub. L. 99–92, § 9(a)(1), Aug. 16, 1985, 99 Stat. 400 Section, act July 1, 1944, ch. 373, title VIII, § 841, for- merly § 829, as added Aug. 16, 1968, Pub. L. 90–490, title II, § 222(h), 82 Stat. 785; renumbered § 841 and amended July 29, 1975, Pub. L. 94–63, title IX, § 941(i)(1), (6), 89 Stat. 365, 366, related to transfers to the scholarship program. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 1, 1985, see section 10(a) of Pub. L. 99–92, set out as an Effective Date of 1985 Amend- ment note under section 297a of this title. § 297i. Procedures for appeal of terminations In any case in which the Secretary intends to terminate an agreement with a school of nurs- ing under this part, the Secretary shall provide the school with a written notice specifying such intention and stating that the school may re- quest a formal hearing with respect to such ter- mination. If the school requests such a hearing within 30 days after the receipt of such notice, the Secretary shall provide such school with a hearing conducted by an administrative law judge.