---
kind: "section"
citation: "42 U.S.C. § 291j–4"
title: "42"
title_heading: "The Public Health and Welfare"
number: "291j–4"
heading: "Payment of interest on guaranteed loans"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/291j-4"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter IV — Construction and Modernization of Hospitals and Other Medical Facilities"
  - "Part B — Loan Guarantees and Loans for Modernization and Construction of Hospitals and Other Medical Facilities"
---

# §291j–4. Payment of interest on guaranteed loans

- (a) Subject to the provisions of [subsection (b)](#b), in the case of a guarantee of any loan to a [nonprofit](/usc/42/300s–3.md?p=3) private [agency](/usc/42/8262.md?p=1) under this part with respect to a [hospital](/usc/42/300s–3.md?p=1) or other [medical facility](/usc/42/300s–3.md?p=11), the [Secretary](/usc/42/201.md?p=c) shall pay, to the holder of such loan and for and on behalf of such [hospital](/usc/42/300s–3.md?p=1) or other [medical facility](/usc/42/300s–3.md?p=11) amounts sufficient to reduce by 3 per centum per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan, to a [nonprofit](/usc/42/300s–3.md?p=3) private [agency](/usc/42/8262.md?p=1), which is guaranteed under this part shall have a contractual right to receive from the United States interest payments required by the preceding sentence.
- (b) Contracts to make the payments provided for in this section shall not carry an aggregate amount greater than such amount as may be provided in appropriations Acts.

## Source credit

(July 1, 1944, ch. 373, title VI, § 624, as added Pub. L. 91–296, title II, § 201, June 30, 1970, 84 Stat. 347.)