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Code · U.S. Code · Title 42 - THE PUBLIC HEALTH AND WELFARE · CHAPTER 105— COMMUNITY SERVICES PROGRAMS · SUBCHAPTER I— COMMUNITY ECONOMIC DEVELOPMENT · § 9812

§ 9812. Development loan fund

888 words·~4 min read·/usc/title-42/section-9812

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(a)Authorities, scope, and purposes; conditions; interest rate; repayment The Secretary is authorized to make or guarantee loans (either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis) to community development corporations, to families and local cooperatives and the designated supportive organizations of cooperatives eligible for financial assistance under this subchapter, to private nonprofit organizations receiving assistance under chapter 106 of this title, or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Secretary determines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that—
(1)there is reasonable assurance of repayment of the loan;
(2)the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and
(3)the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made.
Loans made by the Secretary pursuant to this section shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus such additional charge, if any, toward covering other costs of the program as the Secretary of Health and Human Services may determine to be consistent with its purposes, except that, for the 5 years following the date in which funds are initially available to the borrower, the rate of interest shall be set at a rate considered appropriate by the Secretary in light of the particular needs of the borrower, which rate shall not be lower than 1 percent.
All such loans shall be repayable within a period of not more than 30 years.
(b)Adjustment of interest rates, moratorium on principal and interest, etc. The Secretary is authorized to adjust interest rates, grant moratoriums on repayment of principal and interest, collect or compromise any obligations held by the Secretary, and to take such other actions in respect to such loans as the Secretary shall determine to be necessary or appropriate, consistent with the purposes of this section.
(c)Establishment, funding, etc.
(1)To carry out the lending and guaranty functions authorized under this part, there shall be established a Development Loan Fund consisting of two separate accounts, one of which shall be a revolving fund called the Rural Development Loan Fund and the other of which shall be a revolving fund called the Community Development Loan Fund. The capital of each such revolving fund shall remain available until expended.
(2)The Rural Development Loan Fund shall consist of the remaining funds provided for in part A of title III of the Economic Opportunity Act of 1964 [42 U.S.C. 2841 et seq.], as in effect on September 19, 1972, and such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this part. The Secretary shall utilize the services of the Farmers Home Administration,1 or the Rural Development Administration in administering such fund.
(3)The Community Development Loan Fund shall consist of such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this subchapter. The Secretary may make deposits in the Community Development Loan Fund in any fiscal year in which the Secretary has made available for grants to community development corporations under this subchapter not less than $60,000,000 out of funds made available from appropriations for purposes of carrying out this subchapter.
(Pub. L. 97–35, title VI, § 623, Aug. 13, 1981, 95 Stat. 494; Pub. L. 101–624, title XXIII, § 2303(f)(1), Nov. 28, 1990, 104 Stat. 3981.)
Connections114 cite this · traces to 2
Cited by 114 sections · top 60
statutes-at-large
statute-compilations
14 references not yet in our index
  • 42 U.S.C. 2841
  • 1
  • Pub. L. 97–35, title VI, § 623
  • 95 Stat. 494
  • Pub. L. 101–624, title XXIII, § 2303(f)(1)
  • 104 Stat. 3981
  • Pub. L. 97–35
  • 95 Stat. 511
  • Pub. L. 88–452
  • 78 Stat. 508
  • Pub. L. 97–35, title VI, § 683(a)
  • 95 Stat. 519
  • Pub. L. 101–624
  • Pub. L. 99–609
Citation graph
cites case law
§ 9812
Development loan fund
Stat.×50
Bills×19
Stat. Comp.×16
Pub. L.×15
Fed. Reg.×9
U.S.C.×5
Cite42 U.S.C. 2841
Cite1
Pub. L.Pub. L. 97–35, title VI, § 623
Stat.95 Stat. 494
Pub. L.Pub. L. 101–624, title XXIII, § 2303(f)(1)
Cites 16 · showing 7Cited by 114 across 6 sources
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