29 U.S.C. § 773
Section 773 · Demonstration and training programs
Viewing 29 U.S.C. § 773 as in effect on October 29, 1992. The text changed in 3 later editions (most recent July 22, 2014).
View current version →It is the purpose of this section to assist and encourage the provision of needed community rehabilitation programs for individuals with disabilities primarily served by State rehabilitation programs.
The Commissioner may, under special circumstances and in accordance with this section and subject to section 776 of this title, guarantee the payment of principal and interest on loans made to nonprofit private entities by non-Federal lenders and by the Federal Financing Bank for the construction of facilities for community rehabilitation programs, including equipment used in their operation.
In the case of a guarantee of any loan to a nonprofit private entity under this section, the Commissioner shall pay, to the holder of such loan and for and on behalf of the project for which the loan was made, amounts sufficient to reduce by 2 percent per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan which is guaranteed under this section shall have a contractual right to receive from the United States interest payments required by the preceding sentence.
The cumulative total of the principal of the loans outstanding at any time with respect to which guarantees have been issued, or which have been directly made, may not exceed $100,000,000.
(1) The Commissioner may not approve a loan guarantee for a project under this section unless the Commissioner determines that (A) the terms, conditions, security (if any), and schedule and amount of repayments with respect to the loan are sufficient to protect the financial interests of the United States and are otherwise reasonable, including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation outstanding as the Commissioner determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States, and (B) the loan would not be available on reasonable terms and conditions without the guarantee under this section.
(2)(A) The United States shall be entitled to recover from the applicant for a loan guarantee under this section the amount of any payment made pursuant to such guarantee, unless the Commissioner for good cause waives such right of recovery. Upon making any such payment, the United States shall be subrogated to all of the rights of the recipient of the payments with respect to which the guarantee was made.
(B) To the extent permitted by subparagraph (C), any terms and conditions applicable to a loan guarantee under this section (including terms and conditions imposed under paragraph (1)) may be modified by the Commissioner to the extent considered consistent with the interests of the United States.
(C) Any loan guarantee made by the Commissioner under this section shall be incontestable (i) in the hands of an applicant on whose behalf such guarantee is made unless the applicant engaged in fraud or misrepresentation in securing such guarantee, and (ii) as to any person (or a successor in interest) who makes or contracts to make a loan to such applicant in reliance thereon unless such person (or a successor in interest) engaged in fraud or misrepresentation in making or contracting to make such loan.
(D) Guarantees of loans under this section shall be subject to such further terms and conditions as the Commissioner considers necessary to assure that the purposes of this section will be achieved.
(1) There is established in the Treasury a loan guarantee fund (hereinafter in this subsection referred to as the “fund”) which shall be available to the Commissioner without fiscal year limitation, in such amounts as may be specified from time to time in appropriation Acts—
(A) to enable the Commissioner to discharge the responsibilities under loan guarantees issued under this section; and
(B) for payment of interest under subsection (c) of this section on loans guaranteed under this section.
There are authorized to be appropriated such amounts as may be necessary to provide the sums required for the fund. There shall also be deposited in the fund amounts received by the Commissioner in connection with loan guarantees under this section and other property or assets derived by the Commissioner from operations respecting such loan guarantees, including any money derived from the sale of assets.
(2)(A) If at any time the sums in the fund are insufficient to enable the Commissioner—
(i) to make payments of interest under subsection (c) of this section; or
(ii) to otherwise comply with guarantees under this section of loans to nonprofit private entities;
the Commissioner is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Commissioner with the approval of the Secretary of the Treasury.
(B) Such notes or other obligations shall bear interest at a rate determined by the Secretary of the Treasury, taking into consideration the current average market yield on outstanding marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations.
(C) The Secretary of the Treasury shall purchase any notes and other obligations issued under this paragraph, and for that purpose the Secretary may use as a public debt transaction the proceeds from the sale of any securities issued under chapter 31 of title 31. The purposes for which securities may be issued under that chapter are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by the Secretary under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as a public debt transaction of the United States.
(D) Sums borrowed under this paragraph shall be deposited in the fund and redemption of such notes and obligations shall be made by the Commissioner from the fund.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Codification
In subsec. (f)(2)(C), “chapter 31 of title 31” and “that chapter” substituted for “the Second Liberty Bond Act” and “that Act”, respectively, on authority of Pub. L. 97–258, §4(b), Sept. 13, 1982, 96 Stat. 1067, the first section of which enacted Title 31, Money and Finance.
Prior Provisions
A prior section 304 of Pub. L. 93–112 was renumbered section 302 and is classified to section 771a of this title.
Another prior section 304 of Pub. L. 93–112, title III, Sept. 26, 1973, 87 Stat. 381; Pub. L. 93–516, title I, §§106, 111(i)–(k), Dec. 7, 1974, 88 Stat. 1619, 1621; Pub. L. 93–651, title I, §§106, 111(i)–(k), Nov. 21, 1974, 89 Stat. 2–4, 2–6; Pub. L. 94–230, §§6, 11(b)(9), Mar. 15, 1976, 90 Stat. 212, 213, related to special projects and demonstrations, prior to repeal by Pub. L. 95–602, title I, §109(1), Nov. 6, 1978, 92 Stat. 2962.
Amendments
1992—Pub. L. 102–569, §304(1), substituted “community rehabilitation programs” for “rehabilitation facilities” in section catchline.
Subsec. (a). Pub. L. 102–569, §§102(p)(17), 304(2), substituted “community rehabilitation” for “facilities for” and “disabilities” for “handicaps”.
Subsec. (b). Pub. L. 102–569, §304(3), inserted “under special circumstances and” after “may,” and substituted “facilities for community rehabilitation programs” for “rehabilitation facilities”.
1986—Subsec. (a). Pub. L. 99–506, §103(d)(2)(C), substituted “individuals with handicaps” for “handicapped individuals”.
Subsec. (e)(1). Pub. L. 99–506, §1001(d)(2)(A), substituted “unless the Commissioner determines” for “unless he determines”.
Subsec. (e)(2)(B). Pub. L. 99–506, §1001(d)(2)(B), substituted “to the extent considered” for “to the extent he considers”.
Subsec. (e)(2)(C)(ii). Pub. L. 99–506, §1001(d)(2)(C), substituted “(or a successor in interest)” for “(or his successor in interest)” in two places.
Subsec. (f)(1). Pub. L. 99–506, §1001(d)(2)(E), substituted “derived by the Commissioner from operations” for “derived by him from his operations” in concluding provisions.
Subsec. (f)(1)(A). Pub. L. 99–506, §1001(d)(2)(D), substituted “to enable the Commissioner to discharge the responsibilities under loan guarantees issued under this section” for “to enable him to discharge his responsibilities under loan guarantees issued by him under this section”.
Subsec. (f)(2)(A). Pub. L. 99–506, §1001(d)(2)(F), substituted “the Commissioner is authorized” for “he is authorized” in concluding provisions.
Subsec. (f)(2)(C). Pub. L. 99–506, §1001(d)(2)(G), substituted “and for that purpose may use” for “and for that purpose he may use” and “acquired by the Secretary” for “acquired by him”.
1978—Pub. L. 95–602 substituted provisions guaranteeing the payment of principal and interest on loans made to nonprofit private entities by non-Federal lenders and by the Federal Financing Bank for construction of rehabilitation facilities but restricting the total amount of principal of loans outstanding at any one time to an amount not to exceed $100,000,000 for provisions authorizing the Secretary to insure mortgages for rehabilitation facilities and establishing a Rehabilitation Facilities Insurance Fund.