---
kind: "section"
citation: "20 U.S.C. § 3605"
title: "20"
title_heading: "Education"
number: "3605"
heading: "Asbestos Hazards Control Loan Program"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/20/3605"
units:
  - "Chapter 49 — Asbestos School Hazard Detection and Control"
---

# §3605. Asbestos Hazards Control Loan Program

- (a) **Establishment; administration; loans to local educational agencies for share of project costs; proj­ect criteria; increase in amount of loans—**
  - (1) There is established within the [Department](/usc/20/1221.md?p=c-3) of Education an [Asbestos](/usc/20/3610.md?p=1) Hazards Control Loan Program (hereinafter in this chapter referred to as the “Loan Program”), which shall be administered by the [Secretary](/usc/20/3610.md?p=7) in accordance with this section.
  - (2) The [Secretary](/usc/20/3610.md?p=7) may make loans under this section to [local educational agencies](/usc/20/3610.md?p=4) in an amount equal to 50 percent of the costs of carrying out projects for—
    - (A) the containment or removal of any materials containing [asbestos](/usc/20/3610.md?p=1) in [school buildings](/usc/20/3610.md?p=6) in which such materials pose an [imminent hazard to the health and safety](/usc/20/3610.md?p=3) of children or employees;
    - (B) the replacement of the [asbestos](/usc/20/3610.md?p=1) materials removed from [school buildings](/usc/20/3610.md?p=6) with other appropriate building materials; and
    - (C) making repairs which the [Secretary](/usc/20/3610.md?p=7) determines to be necessary to restore [school buildings](/usc/20/3610.md?p=6) to conditions comparable to those existing before containment or removal activities were undertaken under [subparagraph (A)](#a-2-A).

    Loans may be made under this section only for projects affecting more than 2,500 square feet of surface and in which the [asbestos](/usc/20/3610.md?p=1) material to be contained or removed consists of a minimum [asbestos](/usc/20/3610.md?p=1) level, as determined by the [Secretary](/usc/20/3610.md?p=7) under [section 3606(a)(2) of this title](/usc/20/3606.md?p=a-2).

  - (3) If the [Secretary](/usc/20/3610.md?p=7) determines that an applicant has limited fiscal resources and would be unable to carry out the projects described in [paragraph (2)](#a-2) without receiving a loan under this section for an amount greater than the amount permitted under such paragraph, the [Secretary](/usc/20/3610.md?p=7) may increase the amount of the loan payable to such applicant to an amount the [Secretary](/usc/20/3610.md?p=7) considers appropriate to enable the applicant to carry out such projects.
- (b) **Loan agreements; required terms; additional terms and conditions—** Loans under this section shall be made pursuant to loan agreements which shall provide for the following terms:
  - (1) The loan shall not bear any interest except as otherwise provided under paragraph (5).
  - (2) The loan shall have a maturity period of not more than 20 years (as determined by the [Secretary](/usc/20/3610.md?p=7)) and shall be repayable during such period at such times and in such amounts as the [Secretary](/usc/20/3610.md?p=7) may specify in the loan agreement.
  - (3) Repayment of the loan shall be made to the [Secretary](/usc/20/3610.md?p=7) of the Treasury for deposit in the general fund of the Treasury.

  Such loans shall be subject to such other terms and conditions as the [Secretary](/usc/20/3610.md?p=7) may establish for the protection of the financial interest of the United States and in furtherance of the purposes of this chapter.

- (c) **Application for loans; procedures applicable for approval; projects completed before January 1, 1976—**
  - (1) No loan may be made under this section unless an application has been submitted to and approved by the [Secretary](/usc/20/3610.md?p=7), after consultation with the Task Force, within the two-year period beginning on June 14, 1980. The [Secretary](/usc/20/3610.md?p=7) may not approve an application unless—
    - (A) the application contains such information as the [Secretary](/usc/20/3610.md?p=7) may require, including information describing—
      - (i) the nature of the [asbestos](/usc/20/3610.md?p=1) problem for which the loan is sought;
      - (ii) the [asbestos](/usc/20/3610.md?p=1) content of the material to be contained or removed by the [local educational agency](/usc/20/3610.md?p=4), as determined under preliminary testing which was conducted in accordance with the standards established by the [Secretary](/usc/20/3610.md?p=7) under [section 3606(a)(1) of this title](/usc/20/3606.md?p=a-1), or, in the case of testing conducted before June 14, 1980, was conducted in a manner which substantially conforms to such standards; and
      - (iii) the methods which will be used to contain or remove the [asbestos](/usc/20/3610.md?p=1) materials, in accordance with [section 3606(b) of this title](/usc/20/3606.md?p=b), and any other pertinent details relating to the project or projects to be conducted by the applicant (as described in [subsection (a)(2)](#a-2)); and
    - (B) the application contains assurances that—
      - (i) any employee engaged in any activity to carry out programs under this section shall be notified in writing by the [local educational agency](/usc/20/3610.md?p=4) conducting the program of the hazards of working with [asbestos](/usc/20/3610.md?p=1), and shall be required to utilize all appropriate safety procedures to minimize health risks;
      - (ii) no child or school employee shall be permitted in the vicinity of any [asbestos](/usc/20/3610.md?p=1) containment or removal activity; and
      - (iii) the [local educational agency](/usc/20/3610.md?p=4) shall pay employees engaged in containment, removal, or replacement activities to carry out programs under this section at reasonable rates of pay, as established by the [Secretary](/usc/20/3610.md?p=7) on the basis of prevailing wage rates in the location of such work.
  - (2) The [Secretary](/usc/20/3610.md?p=7) shall provide the Task Force with a copy of any application submitted to the [Secretary](/usc/20/3610.md?p=7) under [paragraph (1)](#c-1).
  - (3) No loans may be made by the [Secretary](/usc/20/3610.md?p=7) under this section for projects described in [subsection (a)(2)](#a-2) which commenced before the availability of loans under the Loan Program unless the [local educational agency](/usc/20/3610.md?p=4) submits to the [Secretary](/usc/20/3610.md?p=7) an application which—
    - (A) meets the requirements of [paragraph (1)](#c-1); and
    - (B) contains assurances that any work already completed by the applicant has been carried out in substantial conformity with [section 3606(b) of this title](/usc/20/3606.md?p=b).

    No loan may be awarded under this section for any project described in [subsection (a)(2)](#a-2) which was completed before January 1, 1976.

- (d) **Reporting requirements for Secretary—** During each of the three calendar years after 1980, the [Secretary](/usc/20/3610.md?p=7) shall submit before February 1 of such year a report to the appropriate committees of the House of Representatives and the Senate, which shall—
  - (1) describe the number of loans made in the preceding calendar year and specify each applicant for and recipient of a loan;
  - (2) describe the nature of the [asbestos](/usc/20/3610.md?p=1) problem of each applicant;
  - (3) describe the types of programs for which loans were made;
  - (4) specify the estimated total costs of such programs to the recipients of loans and specify the amount of loans made under the Loan Program; and
  - (5) specify the number of loan applications which were disapproved during the preceding calendar year and describe the reasons for such disapprovals.

## Source credit

(Pub. L. 96–270, § 6, June 14, 1980, 94 Stat. 492.)