432
"Teaching
fa -i"'^""^'
" ijsc ^^^d
7jStat. 168;
PUBLIC LAW 92-157-NOV. 18, 1971
[85 STAT.
"(5) x h e term 'teaching facilities' means areas dedicated for use by students, faculty, or administrative or maintenance personnel for clinical purposes, research activities, libraries, classrooms, offices, auditoriums, dining areas, student activities, or other related purposes necessary for, and appropriate to, the conduct of comprehensive programs of education. Such term includes interim facilities but does not include off-site improvements or living quarters. "(^) '^^^ term 'interim facilities' means teaching facilities designed to provide teaching space on a short-term (less than ten years) basis while facilities of a more permanent nature are being planned and constructed." ^^) Section 724(4) is amended (A) by striking out "doctor of pharmacy" and inserting "an equivalent degree", and (B) by striking out "doctor of surgical chiropody" and inserting in lieu thereof "an equivalent degree". (4) Section 724 is further amended by striking out the semicolo]i at the end of paragraphs (1) and (2) and inserting in lieu thereof a period and by striking out "; and" at the end of paragraph (4) and inserting in lieu thereof a period. (5) Section 723 (42 U.S.C. 298c) is amended by inserting "(or in the case of interim facilities, within such shorter period as the Secretary shall by regulation prescribe)" immediately after "twenty years". (d) LOAN
GUARANTEES AND INTEREST
SUBSIDIES.—Part
B
is
amended by adding after section 728 (42 U.S.C. 293h) the following new section: "LOAN GUARANTEES AND INTEREST SUBSIDIES
Application.
"SEC. 72;9'. (a) To assist nonprofit private entities to carry out approved construction projects for teaching facilities, the Secretary may, during the period beginning July 1, 1971, and ending with the close of June 30, 1974, guarantee (in accordance with this section and subject to subsection (f)) to any non-Federal lender which makes a loan to such an entity for such a project payment when due of the principal of and interest on such loan if such entity is eligible (as determined under regulations of the Secretary) for a grant under this part for such project. The Secretary may make commitments, on behalf of the United States, to make such loan guarantees prior to the making of such loans. No such loan guarantee (1) may, except under such special circumstances and under such conditions as are prescribed by regulations, apply to any amount which, when added to any grant under this part or any other law of the United States, exceeds 90 per centum of the cost of construction of the project, or (2) may apply to more than 90 per centum of the loss of principal of and interest on the loan. " (b) I n the case of any nonprofit private entity which is eligible (as determined under regulations of the Secretary) for a grant under this part to assist it in carrying out an approved construction project for teaching facilities after June 30, 1971, and to whom a loan has been made by a non-Federal lender to assist it in carrying out such project, the Secretary, during the period beginning July 1, 1971, and ending with the close of June 30, 1974. may, subject to subsection (f), pay to the holder of such loan (and for and on behalf of the entity which received such loan) amounts sufficient to reduce by not to exceed 3 per centum per annum the net effective interest rate otherwise payable on such loan. "(^^ j ^ l^r^j^ guarantee or interest subsidy payment may be made under this section only upon an application (submitted in such manner
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