42 U.S.C. § 297d — Allotments and payments of Federal cap-

Page 1102 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 297c 1 See References in Text note below. Amendment by section 941(h)(1), (2), (5), (i)(1) 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 1971 AMENDMENT Pub. L. 92–158, § 6(a)(1), Nov. 18, 1971, 85 Stat. 475, pro- vided that the amendment made by that section is ef- fective with respect to academic years (or their equiva- lent as determined under regulations of the Secretary of Health, Education, and Welfare under this section) beginning after June 30, 1971. EFFECTIVE DATE OF 1968 AMENDMENT Pub. L. 90–490, title II, § 222(i), Aug. 16, 1968, 82 Stat. 785, provided that: ‘‘The amendments made by sub- section (b)(1) and (2) [amending this section] shall apply with respect to all loans made after June 30, 1969, and with respect to loans made from a student loan fund established under an agreement pursuant to sec- tion 822 [now 835] [42 U.S.C. 297a], before July 1, 1969, to the extent agreed to by the school which made the loans and the Secretary (but then only for years begin- ning after June 30, 1968). The amendments made by sub- section (b)(4) [amending this section] and subsection (c) [amending this section and section 297a of this title] shall apply with respect to loans made after June 30, 1969. The amendment made by subsection (h) [enacting section 297h of this title] shall apply with respect to ap- propriations for fiscal years beginning after June 30, 1969. The amendment made by subsection (b)(3) [amend- ing this section] shall apply with respect to service, specified in section 823(b)(3) [now 836(b)(3)] of such Act [42 U.S.C. 297b(b)(3)] performed during academic years beginning after the enactment of this Act, whether the loan was made before or after such enactment [Aug. 16, 1968].’’ CONSTRUCTION OF 1992 AMENDMENT Pub. L. 102–408, title II, § 211(b), Oct. 13, 1992, 106 Stat. 2079, provided that: ‘‘With respect to section 836(h) of the Public Health Service Act [former 42 U.S.C. 297b(h)], as in effect prior to the date of the enactment of this Act [Oct. 13, 1992], any agreement entered into under such section that is in effect on the day before such date remains in effect in accordance with the terms of the agreement, notwithstanding the amend- ment made by subsection (a) of this section [enacting section 297n of this title, amending this section, and re- pealing section 297c–1 of this title].’’ § 297c. Repealed. Pub. L. 105–392, title I, § 123(3), Nov. 13, 1998, 112 Stat. 3562 Section, act July 1, 1944, ch. 373, title VIII, § 837, for- merly § 824, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 915; amended Pub. L. 89–751, § 6(b), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90–490, title II, § 222(d), Aug. 16, 1968, 82 Stat. 784; Pub. L. 92–52, § 3(a), July 9, 1971, 85 Stat. 144; Pub. L. 92–158, § 6(c), Nov. 18, 1971, 85 Stat. 477; Pub. L. 93–385, § 3(a), Aug. 23, 1974, 88 Stat. 741; renumbered § 837 and amended Pub. L. 94–63, title IX, §§ 936(c), 941(i)(1), (3), July 29, 1975, 89 Stat. 363, 365, 366; Pub. L. 96–76, title I, § 109(b), Sept. 29, 1979, 93 Stat. 580; Pub. L. 97–35, title XXVII, § 2757(c), Aug. 13, 1981, 95 Stat. 931, authorized appropriations for student loan funds for certain fiscal years. § 297c–1. Repealed. Pub. L. 102–408, title II, § 211(a)(2), Oct. 13, 1992, 106 Stat. 2078 Section, act July 1, 1944, ch. 373, title VIII, § 837A, as added Nov. 4, 1988, Pub. L. 100–607, title VII, § 714(d), 102 Stat. 3162, authorized appropriations for educational loan repayments for service in certain health facilities. § 297d. Allotments and payments of Federal cap- ital contributions (a) Application for allotment; reduction or ad- justment of amount requested in application; reallotment; continued availability of funds (1) The Secretary shall from time to time set dates by which schools of nursing must file ap- plications for Federal capital contributions. (2)(A) If the total of the amounts requested for any fiscal year in such applications exceeds the total amount appropriated under section 297c 1 of this title for that fiscal year, the allotment from such total amount to the loan fund of each school of nursing shall be reduced to whichever of the following is the smaller: (i) The amount requested in its application. (ii) An amount which bears the same ratio to the total amount appropriated as the number of students estimated by the Secretary to be enrolled on a full-time basis in such school during such fiscal year bears to the estimated total number of students enrolled in all such schools on a full-time basis during such year. (B) Amounts remaining after allotment under subparagraph (A) shall be reallotted in accord- ance with clause (ii) of such subparagraph among schools whose applications requested more than the amounts so allotted to their loan funds, but with such adjustments as may be nec- essary to prevent the total allotted to any such school’s loan fund under this paragraph and paragraph (3) from exceeding the total so re- quested by it. (3) Funds which, pursuant to section 297e(c) of this title or pursuant to a loan agreement under section 297a of this title are returned to the Sec- retary in any fiscal year, shall be available for allotment until expended. Funds described in the preceding sentence shall be allotted among schools of nursing in such manner as the Sec- retary determines will best carry out this part. (b) Installment payment of allotments Allotments to a loan fund of a school shall be paid to it from time to time in such install- ments as the Secretary determines will not re- sult in unnecessary accumulations in the loan fund at such school. (c) Manner of payment The Federal capital contributions to a loan fund of a school under this part shall be paid to it from time to time in such installments as the Secretary determines will not result in unneces- sary accumulations in the loan fund at such school. (July 1, 1944, ch. 373, title VIII, § 838, formerly § 825, as added Pub. L. 88–581, § 2, Sept. 4, 1964, 78 Stat. 915; amended Pub. L. 89–751, § 6(c), Nov. 3, 1966, 80 Stat. 1235; Pub. L. 90–490, title II, § 222(e), Aug. 16, 1968, 82 Stat. 785; renumbered § 838 and amended Pub. L. 94–63, title IX, § 941(h)(1), (2), (4)(A), (i)(1), (4), July 29, 1975, 89 Stat. 365, 366; Pub. L. 99–92, § 8(e), Aug. 16, 1985, 99 Stat. 398; Pub. L. 100–607, title VII, § 713(h)(1), Nov. 4, 1988, 102 Stat. 3161; Pub. L. 102–408, title II, § 208(a), Oct. 13, 1992, 106 Stat. 2075; Pub. L. 111–148, title V, § 5310(b)(2), Mar. 23, 2010, 124 Stat. 631.) 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.