---
kind: "section"
citation: "42 U.S.C. § 292x"
title: "42"
title_heading: "The Public Health and Welfare"
number: "292x"
heading: "Distribution of assets from loan funds"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/292x"
units:
  - "Chapter 6A — Public Health Service"
  - "Subchapter V — Health Professions Education"
  - "Part A — Student Loans"
  - "Subpart ii — federally-supported student loan funds"
---

# §292x. Distribution of assets from loan funds

- (a) **Distribution after termination of fund—** If a [school](/usc/42/300j–21.md?p=6) terminates a loan fund established under an agreement pursuant to [section 292q(b) of this title](/usc/42/292q.md?p=b), or if the [Secretary](/usc/42/292o.md?p=6) for good cause terminates the agreement with the [school](/usc/42/300j–21.md?p=6), there shall be a capital distribution as follows:
  - (1) The [Secretary](/usc/42/292o.md?p=6) shall first be paid an amount which bears the same ratio to such balance in such fund on the date of termination of the fund as the total amount of the Federal capital contributions to such fund by the [Secretary](/usc/42/292o.md?p=6) pursuant to [section 292q(b)(2)(A) of this title](/usc/42/292q.md?p=b-2-A) bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to [section 292q(b)(2)(B) of this title](/usc/42/292q.md?p=b-2-B).
  - (2) The remainder of such balance shall be paid to the [school](/usc/42/300j–21.md?p=6).
- (b) **Payment of proportionate share to Secretary—** If a capital distribution is made under [subsection (a)](#a), the [school](/usc/42/300j–21.md?p=6) involved shall, after the capital distribution, pay to the [Secretary](/usc/42/292o.md?p=6), not less often than quarterly, the same proportionate share of amounts received by the [school](/usc/42/300j–21.md?p=6) in payment of principal or interest on loans made from the loan fund established pursuant to [section 292q(b) of this title](/usc/42/292q.md?p=b) as was determined by the [Secretary](/usc/42/292o.md?p=6) under [subsection (a)](#a).

## Source credit

(July 1, 1944, ch. 373, title VII, § 728, as added Pub. L. 102–408, title I, § 102, Oct. 13, 1992, 106 Stat. 2021.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 728 of act July 1, 1944, was classified to section 294a of this title prior to the general revision of this subchapter by Pub. L. 102–408.

Another prior section 728 of act July 1, 1944, was classified to section 293h of this title prior to renumbering by Pub. L. 94–484.