---
kind: "section"
citation: "42 C.F.R. § 417.934"
title: "42"
number: "417.934"
heading: "Reserve requirement."
url: "https://uscodex.org/cfr/42/417.934"
---

# §417.934. Reserve requirement.

- (a) **Timing.** Unless the Secretary approved a longer period, an entity that received a loan or loan guarantee under section 1305 of the PHS Act was required to establish a restricted reserve account on the earlier of the following:
  - (1) **When the HMO's revenues and costs of operation reached the break-even point.**
  - (2) **At the end of the 60-month period following the Secretary's endorsement of the loan or loan guarantee.**
- (b) **Purpose and amount of reserve.** The reserve had to be constituted so as to accumulate, no later than 12 years after endorsement of the loan or loan guarantee, an amount equal to 1 year's principal and interest.

## Notes

### Amendments

[59 FR 49842, Sept. 30, 1994]

### Authority

Authority: 42 U.S.C. 1302 and 1395hh, and 300e, 300e-5, and 300e-9, and 31 U.S.C. 9701.

### Amendments

[59 FR 49842, Sept. 30, 1994]