80 STAT. ]
PUBLIC LAW 89-751-NOV. 3, 1966
1233
(2)(A) So much of section 74S(a) of such Act as precedes para- 42 us^c 294c. graph (1) is amended by striking out "this part" and inserting in lieu thereof "an agreement pursuant to section 740(b)". (B) Paragraph (1) of such section 743(a) is amended by striking out "total amount of the allotments to such fund by the Secretary under this part bears to the total amounts in such fund derived from such allotments" and inserting in lieu thereof "total amount of the Federal capital contributions to such fund by the Secretary pursuant to section 740(b)(2)(A) bears to the total amount in such fund derived from ^ ' ^ ' P- ^232. such Federal capital contributions" and by striking out "the balance" and inserting in lieu thereof "such balance". (3) Subsection (b) of such section 743 is amended by inserting "(other than so much of such fund as relates to payments from the revolving fund established by section 7 4 4 (d)) " after "loan fund es- Ante, p. 1231. tablished pursuant to such agreement". Effective Date (d)(1) The amendments made by this section shall be effective in the case of payments to student loan funds made after the enactment of this Act, except in the case of payments pursuant to commitments (made prior to enactment of this Act) to make loans under section 744 of the Public Health Service Act as in effect prior to the enactment of this Act. (2) The Secretary of Health, Education, and Welfare is authorized, at the request of any institution, to take such steps as are necessary to convert a Federal capital contribution (which shall include the amount allocated to it under section 7 4 0 (b)(2)(A) of the Public Health Service Act) to a student loan fund of such institution, made under title VII of the Public Health Service Act from funds appropriated pursuant thereto for the fiscal year ending June 30, 1967, to a loan under section 744 of such Act as amended by this Act. E S T A B L I S H I N G A REVOLVING F U N D FROM W H I C H SCHOOLS OF N U R S I N G M A Y OBTAIN LOANS TO CAPITALIZE S T U D E N T LOAN F U N D S U N D E R TITLE VIII - B OF THE P U B L I C H E A L T H SERVICE ACT
SEC. 6. (a) Section 827 of the Public Health Service Act (relating to loans to schools of nursing) is amended to read as follows:
78 Stat. 9 1 7. 42 USC 297f.
"LOANS TO SCHOOLS; REVOLVING FUND
"Loans to Schools "SEC. 827. (a)(1) During the fiscal years ending June 30, 1967, and June 30, 1968, the Secretary may make loans, from the revolving fund established by subsection (d), to any public or nonprofit private school of nursing which is located in a State, to provide all or part of the capital needed by any such school for making loans to students under this section (other than capital needed to make the institutional contributions required of schools by section 8 2 2 (b)(2)(B)). Loans to students from such borrowed sums shall be subject to the terms, conditions, and limitations set forth in section 823. The requirement in section 8 2 2 (b)(2)(B) with respect to institutional contributions by schools to student loan funds shall not apply to loans made to schools under this section. "(2) A loan to a school under this section may be upon such terms and conditions, consistent with applicable provisions of section 822, as the Secretary deems appropriate. If the Secretary deems it to be
^2 USC 297a. ^ 42 USC 297b.
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