95 STAT. 576
5 USC 8901 et
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PUBLIC LAW 97-35—AUG. 13, 1981 1086 of title 10, United States Code, or under any other governmental program (other than the health benefits program authorized by chapter 89 of title 5, United States Code) or any health benefits program for employees of States, political subdivision of States, and other public entities.". INITIAL OPERATION COSTS
SEC. 943. (a) Section 1805(a) (42 U.S.C. 300e-4) is amended— (1) by striking out "nonprofit" in paragraphs (1) and (2), and (2) by amending paragraph (3) to read as follows: "(3) guarantee to non-Federal lenders payment of the principal of and the interest on loans made to private health maintenance organizations for the amounts referred to in paragraphs (1) and (2).". (b) Section 1305(b)(l) is amended to read as follows: "(b)(1) Except as provided in paragraph (2), the aggregate amount of principal of loans made or guaranteed, or both, under subsection (a) for a health maintenance organization may not exceed $7,000,000. In any twelve-month period the amount disbursed to a health maintenance organization under this section (either directly by the Secretary, by an escrow agent under the terms of an escrow agreement, or by a lender under a guaranteed loan) may not exceed $3,000,000.". (c) Section 1305(d) is amended by striking out "1981" and inserting in lieu thereof "1986". (d) Subsection (e) of section 1307 (42 U.S.C. 300e-6) is repealed. AMBULATORY FACILITIES
SEC. 944. (a) Section 1305A(a) (42 U.S.C. 300e-4a(a)) is amended— (1) by striking out "nonprofit" in paragraph (1), and (2) by amending paragraph (2) to read as follows: "(2) guarantee to non-Federal lenders for their loans to private health maintenance organizations for projects described in paragraph (1) the payment of principal and interest on such loans.", (b) Subsections (b) and (c) of section 1305A are redesignated as subsections (c) and (d), respectively, and the following is inserted after subsection (a): "(b) No loan may be made to a health maintenance organization and no loan to a health maintenance organization may be guaranteed under subsection (a) unless the application of the health maintenance organization for such loan or loan guarantee contains assurances satisfactory to the Secretary that— "(1) at the time the application is made the health maintenance organization isfiscallysound; "(2) if the application is for a loan, the health maintenance organization is unable to secure a loan, at the rate of interest prevailing in the area in which the organization is located, from non-Federal lenders for the project with respect to which the application is submitted, or, if the application is for a loan guarantee, the health maintenance organization would be unable to secure a loan from such lenders for such project without the loan guarantee; and "(3) during the period of the loan or loan guarantee, the health maintenance organization will remain fiscally sound.".
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