§298b–5. Recovery for construction assistance

(a) Conditions for recovery by United States of base amount and interest

If at any time within 20 years (or within such shorter period as the Secretary may prescribe by regulation for an interim facility) after the completion of construction of a facility with respect to which funds have been paid under subpart I of part A of this subchapter (as such subpart was in effect on September 30, 1985)-

(1) the owner of the facility ceases to be a public or nonprofit school,

(2) the facility ceases to be used for the training purposes for which it was constructed, or

(3) the facility is used for sectarian instruction or as a place for religious worship,

the United States shall be entitled to recover from the owner of the facility the base amount prescribed by subsection (c)(1) of this section plus the interest (if any) prescribed by subsection (c)(2) of this section.

(b) Notice by owner of cessation or change of use of facility

The owner of a facility which ceases to be a public or nonprofit school as described in paragraph (1) of subsection (a) of this section, or the owner of a facility the use of which changes as described in paragraph (2) or (3) of such subsection shall provide the Secretary written notice of such cessation or change of use within 10 days after the date on which such cessation or change of use occurs or within 30 days after October 22, 1985, whichever is later.

(c) Computation of base amount and interest

(1) The base amount that the United States is entitled to recover under subsection (a) of this section is the amount bearing the same ratio to the then value (as determined by the agreement of the parties or in an action brought in the district court of the United States for the district in which the facility is situated) of the facility as the amount of the Federal participation bore to the cost of the construction.

(2)(A) The interest that the United States is entitled to recover under subsection (a) of this section is the interest for the period (if any) described in subparagraph (B) at a rate (determined by the Secretary) based on the average of the bond equivalent rates of 91-day Treasury bills auctioned during such period.

(B) The period referred to in subparagraph (A) is the period beginning-

(i) if notice is provided as prescribed by subsection (b) of this section, 191 days after the date on which the owner of the facility ceases to be a public or nonprofit school as described in paragraph (1) of subsection (a) of this section, or 191 days after the date on which the use of the facility changes as described in paragraph (2) or (3) of such subsection, or

(ii) if notice is not provided as prescribed by subsection (b) of this section, 11 days after the date on which such cessation or change of use occurs,

and ending on the date the amount the United States is entitled to recover is collected.

(d) Waiver of recovery rights of United States

The Secretary may waive the recovery rights of the United States under subsection (a)(2) of this section with respect to a facility (under such conditions as the Secretary may establish by regulation) if the Secretary determines that there is good cause for waiving such rights.

(e) Nature of prejudgment right of recovery

The right of recovery of the United States under subsection (a) of this section shall not, prior to judgment, constitute a lien on any facility.

(July 1, 1944, ch. 373, title VIII, §858, formerly §804, as added Sept. 4, 1964, Pub. L. 88–581, §2, 78 Stat. 911 ; amended Nov. 18, 1971, Pub. L. 92–158, §§2(d)(3), 13, 85 Stat. 468 , 480; July 29, 1975, Pub. L. 94–63, title IX, §941(c), 89 Stat. 364 ; renumbered §858 and amended Aug. 16, 1985, Pub. L. 99–92, §9(c)(1), 99 Stat. 400 ; Oct. 22, 1985, Pub. L. 99–129, title II, §207(e)(1)–(3), 99 Stat. 529 .)

References in Text

Subpart I of part A of this subchapter, referred to in subsec. (a), which consisted of sections 296 to 296d of this title was repealed (except for section 296c which was transferred to this section) by section 9(a)(1), (b)(1), (c)(1) of Pub. L. 99–92.

Codification

Provisions of this section were classified to section 296c of this title prior to renumbering by Pub. L. 99–92.

Amendments

1985-Subsec. (a). Pub. L. 99–92, in amending section generally, designated existing provisions as subsec. (a) and substituted provisions relating to recovery of funds paid under subpart I of part A, as in effect on Sept. 30, 1985, of the base amount and interest prescribed by subsec. (c), for provisions relating to recovery of funds paid under subpart I of part A of the amount bearing the same ratio to the value, as determined by the parties or in a judicial action, which the amount of the Federal participation bore to the cost of construction of the facility.

Subsec. (b). Pub. L. 99–129, §207(e)(1), substituted "within" for "not later than" and inserted "or within 30 days after October 22, 1985, whichever is later".

Pub. L. 99–92 added subsec. (b).

Subsec. (c). Pub. L. 99–92 added subsec. (c).

Subsec. (c)(2)(B)(i). Pub. L. 99–129, §207(e)(2), substituted designation "(i)" for "(1)" before "if notice is provided".

Subsec. (d). Pub. L. 99–129, §207(e)(3), substituted "subsection (a)(2) of this section" for "subsection (a) of this section".

Pub. L. 99–92 added subsec. (d).

Subsec. (e). Pub. L. 99–92 added subsec. (e).

1975-Pub. L. 94–63 substituted "subpart" for "part" and redesignated pars. (a), (b), and (c) as (1), (2), and (3), respectively.

1971-Pub. L. 92–158, in text preceding subsec. (a), inserted "(or in the case of interim facilities, within such shorter period as the Secretary shall by regulation prescribe)" after "twenty years" and in subsec. (b), substituted "Secretary" for "Surgeon General".

Effective Date of 1985 Amendment

Amendment by Pub. L. 99–92 effective Aug. 16, 1985, see section 10(b)(1) of Pub. L. 99–92, set out as a note under section 296k of this title.

Effective Date of 1975 Amendment

Amendment by Pub. L. 94–63 effective July 1, 1975, see section 942 of Pub. L. 94–63, set out as a note under section 296a of this title.

Interest Period for Facility Constructed On or Before August 16, 1985, or Within 180 Days After August 16, 1985

Section 9(c)(2) of Pub. L. 99–92 as amended by Pub. L. 99–129, title II, §207(e)(4), Aug. 16, 1985, 99 Stat. 529 , provided that: "In the case of any facility that was or is constructed on or before the date of enactment of this Act [Aug. 16, 1985] or within 180 days after the date of enactment of this Act, the period described in clause (i) or (ii), as the case may be, of section 858(c)(2)(B) of the Public Health Service Act [subsec. (c)(2)(B)(i), (ii) of this section] (as amended by paragraph (1) of this subsection) shall begin no earlier than 181 days after the date of enactment of this Act."

Preservation of Legal Rights of United States

Section 9(c)(3) of Pub. L. 99–92 provided that: "The amendments made by paragraph (1) of this subsection [transferring section 296c of this title to section 298b–5 of this title and amending section 298b–5 of this title] shall not adversely affect other legal rights of the United States."