Page 261 TITLE 29—LABOR § 773

Pub. L. 102–569, §102(p)(16)(B), substituted ‘‘individuals with disabilities’’ for ‘‘individuals with handicaps’’

in par. (1).

Subsec. (d). Pub. L. 102–569, §303(c)(1), redesignated

subsec. (c) as (d).

Subsec. (d)(1). Pub. L. 102–569, §303(c)(3), substituted

‘‘community rehabilitation programs’’ for ‘‘rehabilitation facilities’’ and ‘‘such programs’’ for ‘‘such facilities’’.

1991—Subsec. (a). Pub. L. 102–52 substituted ‘‘1990,

1991, and 1992’’ for ‘‘1990, and 1991’’.

1988—Subsec. (b)(3)(D). Pub. L. 100–630 substituted

‘‘meets’’ for ‘‘meet’’.

1986—Pub. L. 99–506, §103(d)(2)(C), substituted ‘‘individuals with handicaps’’ for ‘‘handicapped individuals’’

in section catchline.

Subsec. (a). Pub. L. 99–506, §402(a), substituted ‘‘of the

fiscal years 1987, 1988, 1989, 1990, and 1991’’ for ‘‘fiscal

year ending before October 1, 1986’’.

Subsec. (b)(1). Pub. L. 99–506, §103(d)(2)(C), substituted

‘‘individuals with handicaps’’ for ‘‘handicapped individuals’’.

Subsec. (b)(3). Pub. L. 99–506, §1001(d)(1)(A), substituted ‘‘only if the Commissioner determines’’ for

‘‘only on his determination’’.

Subsec. (b)(3)(A). Pub. L. 99–506, §§103(d)(2)(C), 402(b),

substituted ‘‘individuals with handicaps’’ for ‘‘handicapped individuals’’ and inserted reference to supported

employment.

Subsec. (b)(3)(C). Pub. L. 99–506, §1001(d)(1)(B), substituted ‘‘of that individual’s need’’ for ‘‘of his need’’.

Subsec. (b)(3)(D). Pub. L. 99–506, §1001(d)(1)(C), substituted ‘‘as the Commissioner may prescribe’’ for ‘‘as

he may prescribe’’.

Subsec. (c)(1). Pub. L. 99–506, §103(d)(2)(C), substituted

‘‘individuals with handicaps’’ for ‘‘handicapped individuals’’.

1984—Subsec. (a). Pub. L. 98–221 substituted ‘‘October

1, 1986’’ for ‘‘October 1, 1982’’.

1978—Subsec. (a). Pub. L. 95–602, §112(b), substituted

‘‘entering into contracts’’ for ‘‘contracts’’ and ‘‘each

fiscal year ending before October 1, 1982’’ for ‘‘the fiscal

years ending June 30, 1974, June 30, 1975, June 30, 1976,

September 30, 1977, and September 30, 1978’’.

Subsecs. (b), (c). Pub. L. 95–602, §122(c)(3), substituted

‘‘Commissioner’’ for ‘‘Secretary’’.

1976—Subsec. (a). Pub. L. 94–230, §5, extended authorization of appropriation for fiscal year ending Sept. 30,

1977.

Pub. L. 94–230, §11(b)(8), extended authorization of appropriations for fiscal year ending Sept. 30, 1978.

1974—Subsec. (a). Pub. L. 93–516 extended authorization of appropriation for fiscal year ending June 30,

1976.

Pub. L. 93–651 amended subsec. (a) in exactly the

same manner as it was amended by Pub. L. 93–516.

EXTENSION OF VOCATIONAL REHABILITATION PROGRAMS

THROUGH FISCAL YEAR ENDING SEPTEMBER 30, 1978;

EFFECTIVE DATE OF 1976 AMENDMENT

For contingency provisions relating to the extensions

of program authorizations and to the effective date of

such extensions, see section 11(a), (b)(1), and (c) of Pub.

L. 94–230, set out as a note under section 720 of this

title.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 776 of this title.

§ 773. Loan guarantees for community rehabilitation programs

(a) Purpose

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.

(b) Loans to nonprofit entities by non-Federal

lenders and Federal Financing Bank; construction; equipment

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.

(c) Payment by Commissioner for reduction of effective interest rate

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.

(d) Limitation on amount of principal of outstanding loans

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.

(e) Terms and conditions

(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
§ 773 TITLE 29—LABOR Page 262

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.

(f) Establishment in Treasury of loan guarantee

fund; authorization of appropriations; insufficient funds; issuance of notes and other obligations to Secretary of the Treasury; interest rate and redemption

(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.

(Pub. L. 93–112, title III, §304, formerly §303,

Sept. 26, 1973, 87 Stat. 379; Pub. L. 95–602, title I,

§113, Nov. 6, 1978, 92 Stat. 2968; Pub. L. 99–506,

title I, §103(d)(2)(C), title X, §1001(d)(2), Oct. 21,

1986, 100 Stat. 1810, 1843; renumbered §304 and

amended Pub. L. 102–569, title I, §102(p)(17), title

III, §§301(b)(3), 304, Oct. 29, 1992, 106 Stat. 4358,

4411, 4417.)

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.
Page 263 TITLE 29—LABOR § 775

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.

§ 774. Transferred

CODIFICATION

Section, Pub. L. 93–112, title III, §304, formerly title

II, §203, Sept. 26, 1973, 87 Stat. 376, renumbered and

amended, which related to Federal grants, contracts,

and programs for training in rehabilitation services,

was renumbered section 302 of Pub. L. 93–112, by Pub. L.

102–569, title III, §301(b)(3), Oct. 29, 1992, 106 Stat. 4411,

and transferred to section 771a of this title.

§ 775. Comprehensive rehabilitation centers

(a) Establishment and operation; grants to designated State units; information and technical assistance to local governmental units

and public and private nonprofit entities

(1) In order to provide a focal point in communities for the development and delivery of services designed primarily for individuals with disabilities, the Commissioner may make grants to

any designated State unit to establish and operate comprehensive rehabilitation centers. The

centers shall be established in order to provide

a broad range of services to individuals with disabilities, including information and referral

services, counseling services, and job placement,

health, educational, social, and recreational

services, as well as to provide facilities for recreational activities.

(2) To the maximum extent practicable, such

centers shall provide, upon request, to local governmental units and other public and private

nonprofit entities located in the area such information and technical assistance (including support personnel such as interpreters for individuals who are deaf) as may be necessary to assist

those entities in complying with this chapter,

particularly the requirements of section 794 of

this title.

(b) Application for grant; approval by Commissioner

No grant may be made under this section unless an application therefor has been submitted

to and approved by the Commissioner. The Commissioner may not approve an application for a

grant unless the application—

(1) contains assurances that the designated

State unit will use funds provided by such

grant in accordance with subsections (c) and

(d) of this section; and

(2) contains such other information, and is

submitted in such form and in accordance

with such procedures, as the Commissioner

may require.

(c) Grants or contracts by designated State unit;

operation of facilities by designated State

unit; personnel and equipment

(1) The designated State unit may—

(A) in accordance with subsection (c) of this

section make grants to units of general purpose local government or to other public or

nonprofit private agencies or organizations

and may make contracts with any agency or

organization to pay not to exceed 80 percent of

the cost of—

(i) leasing facilities to serve as comprehensive rehabilitation centers;

(ii) expanding, remodeling, or altering facilities to the extent necessary to adapt

them to serve as comprehensive rehabilitation centers;

(iii) operating such centers; or

(iv) carrying out any combination of the

activities specified in this subparagraph; and

(B) directly carry out the activities described in subparagraph (A), except that not

more than 80 percent of the costs of providing

any comprehensive rehabilitation center may

be provided from funds under this section.

(2) Funds made available to any designated

State unit under this section for the purpose of

assisting in the operation of a comprehensive rehabilitation center may be used to compensate

professional and technical personnel required to

operate the center and to deliver services in the

center, and to provide equipment for the center.

(d) Application requirements for approval of

grant or contract by designated State unit;

use of funds by designated State unit

(1) The designated State unit may approve a

grant or enter into a contract under subsection

(c) of this section only if the application for

such grant or contract meets the requirements

specified in paragraphs (1), (2), (4), and (5) of section 776(b) of this title and if the application

contains assurances that any center assisted by

such grant or contract shall be in reasonably

close proximity to the majority of individuals

eligible to use the comprehensive rehabilitation

center.

(2) Any designated State unit which directly

provides for comprehensive rehabilitation centers under subsection (c)(1)(B) of this section

shall use funds under this section in the same

manner as any other grant recipient is required

to use such funds.

(e) Failure of owner or facility to continue to

qualify; recovery by United States; determination of amount

If within 20 years after the completion of any

construction project for which funds have been

paid under this section—

(1) the owner of the facility ceases to be a

public or nonprofit private agency or organization, or

(2) the facility ceases to be used for the purposes for which it was leased or constructed

(unless the Commissioner determines, in accordance with regulations, that there is good

cause for releasing the applicant or other

owner from the obligation to do so),

the United States shall be entitled to recover

from the grant recipient or other owner of the

facility an amount which bears the same ratio

to the value of the facility (or so much thereof

as constituted an approved project or projects)