<section xmlns="http://xml.house.gov/schemas/uslm/1.0" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dcterms="http://purl.org/dc/terms/" style="-uslm-lc:I80" id="ida504e1ee-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e"><num value="297e">§ 297e.</num><heading> Distribution of assets from loan funds</heading><subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="ida504e1ef-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/a"><num value="a" class="bold">(a)</num><heading class="bold"> Capital distribution of balance of loan fund</heading><chapeau style="-uslm-lc:I11" class="indent0">If a school terminates a loan fund established under an agreement pursuant to <ref href="/us/usc/t42/s297a/b">section 297a(b) of this title</ref>, or if the Secretary for good cause terminates the agreement with the school, there shall be a capital distribution as follows:</chapeau><paragraph style="-uslm-lc:I11" class="indent0" id="ida5050900-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/a/1"><num value="1">(1)</num><content> The Secretary 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 pursuant to <ref href="/us/usc/t42/s297a/b/2/A">section 297a(b)(2)(A) of this title</ref> bears to the total amount in such fund derived from such Federal capital contributions and from funds deposited therein pursuant to <ref href="/us/usc/t42/s297a/b/2/B">section 297a(b)(2)(B) of this title</ref>.</content>
</paragraph>
<paragraph style="-uslm-lc:I11" class="indent0" id="ida5050901-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/a/2"><num value="2">(2)</num><content> The remainder of such balance shall be paid to the school.</content>
</paragraph>
</subsection>
<subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="ida5050902-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/b"><num value="b" class="bold">(b)</num><heading class="bold"> Payment of principal or interest on loans</heading><content><p style="-uslm-lc:I11" class="indent0">If a capital distribution is made under subsection (a), the school involved shall, after such capital distribution, pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school in payment of principal or interest on loans made from the loan fund established under <ref href="/us/usc/t42/s297a/b">section 297a(b) of this title</ref> as determined by the Secretary under subsection (a).</p>
</content>
</subsection>
<subsection style="-uslm-lc:I19" class="indent2 firstIndent-2" id="ida5050903-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/c"><num value="c" class="bold">(c)</num><heading class="bold"> Payment of balance of loan fund</heading><paragraph style="-uslm-lc:I11" class="indent0" id="ida5050904-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/c/1"><num value="1">(1)</num><content> Within 90 days after the termination of any agreement with a school under <ref href="/us/usc/t42/s297a">section 297a of this title</ref> or the termination in any other manner of a school’s participation in the loan program under this part,<ref class="footnoteRef" idref="fn002279">1</ref><note type="footnote" id="fn002279"><num>1</num> See References in Text note below.</note> such school shall pay to the Secretary from the balance of the loan fund of such school established under <ref href="/us/usc/t42/s297a">section 297a of this title</ref>, an amount which bears the same ratio to the balance in such fund on the date of such termination as the total amount of the Federal capital contributions to such fund by the Secretary pursuant to <ref href="/us/usc/t42/s297a/b/2/A">section 297a(b)(2)(A) of this title</ref> bears to the total amount in such fund on such date derived from such Federal capital contributions and from funds deposited in the fund pursuant to <ref href="/us/usc/t42/s297a/b/2/B">section 297a(b)(2)(B) of this title</ref>. The remainder of such balance shall be paid to the school.</content>
</paragraph>
<paragraph style="-uslm-lc:I11" class="indent0" id="ida5050905-09a0-11eb-a85b-f5cef3d06f4d" identifier="/us/usc/t42/s297e/c/2"><num value="2">(2)</num><content> A school to which paragraph (1) applies shall pay to the Secretary after the date on which payment is made under such paragraph and not less than quarterly, the same proportionate share of amounts received by the school after the date of termination referred to in paragraph (1) in payment of principal or interest on loans made from the loan fund as was determined for the Secretary under such paragraph.</content>
</paragraph>
</subsection>
<sourceCredit id="ida5050906-09a0-11eb-a85b-f5cef3d06f4d">(<ref href="/us/act/1944-07-01/ch373">July 1, 1944, ch. 373</ref>, title VIII, § 839, formerly § 826, as added <ref href="/us/pl/88/581/s2">Pub. L. 88–581, § 2</ref>, <date date="1964-09-04">Sept. 4, 1964</date>, <ref href="/us/stat/78/916">78 Stat. 916</ref>; amended <ref href="/us/pl/89/751/s6/d">Pub. L. 89–751, § 6(d)</ref>, <date date="1966-11-03">Nov. 3, 1966</date>, <ref href="/us/stat/80/1235">80 Stat. 1235</ref>; <ref href="/us/pl/90/490/tII/s222/f">Pub. L. 90–490, title II, § 222(f)</ref>, <date date="1968-08-16">Aug. 16, 1968</date>, <ref href="/us/stat/82/785">82 Stat. 785</ref>; <ref href="/us/pl/92/52/s3/b">Pub. L. 92–52, § 3(b)</ref>, <date date="1971-07-09">July 9, 1971</date>, <ref href="/us/stat/85/145">85 Stat. 145</ref>; <ref href="/us/pl/92/158/s6/d/1">Pub. L. 92–158, § 6(d)(1)</ref>, <date date="1971-11-18">Nov. 18, 1971</date>, <ref href="/us/stat/85/478">85 Stat. 478</ref>; renumbered § 839 and amended <ref href="/us/pl/94/63/tIX">Pub. L. 94–63, title IX</ref>, §§ 936(d), 941(h)(1), (2), (4)(B), (i)(1), (5), <date date="1975-07-29">July 29, 1975</date>, <ref href="/us/stat/89/363">89 Stat. 363</ref>, 365, 366; <ref href="/us/pl/96/32/s7/j">Pub. L. 96–32, § 7(j)</ref>, <date date="1979-07-10">July 10, 1979</date>, <ref href="/us/stat/93/84">93 Stat. 84</ref>; <ref href="/us/pl/96/76/tI/s109/c">Pub. L. 96–76, title I, § 109(c)</ref>, <date date="1979-09-29">Sept. 29, 1979</date>, <ref href="/us/stat/93/580">93 Stat. 580</ref>; <ref href="/us/pl/97/35/tXXVII/s2757/d">Pub. L. 97–35, title XXVII, § 2757(d)</ref>, <date date="1981-08-13">Aug. 13, 1981</date>, <ref href="/us/stat/95/931">95 Stat. 931</ref>; <ref href="/us/pl/99/92/s8/f">Pub. L. 99–92, § 8(f)</ref>, <date date="1985-08-16">Aug. 16, 1985</date>, <ref href="/us/stat/99/399">99 Stat. 399</ref>; <ref href="/us/pl/100/607/tVII/s713/i">Pub. L. 100–607, title VII, § 713(i)</ref>, <date date="1988-11-04">Nov. 4, 1988</date>, <ref href="/us/stat/102/3161">102 Stat. 3161</ref>; <ref href="/us/pl/102/408/tII/s208/b">Pub. L. 102–408, title II, § 208(b)</ref>, <date date="1992-10-13">Oct. 13, 1992</date>, <ref href="/us/stat/106/2075">106 Stat. 2075</ref>; <ref href="/us/pl/105/392/tI/s133/e">Pub. L. 105–392, title I, § 133(e)</ref>, <date date="1998-11-13">Nov. 13, 1998</date>, <ref href="/us/stat/112/3577">112 Stat. 3577</ref>; <ref href="/us/pl/111/148/tV/s5310/b/5">Pub. L. 111–148, title V, § 5310(b)(5)</ref>, <date date="2010-03-23">Mar. 23, 2010</date>, <ref href="/us/stat/124/631">124 Stat. 631</ref>.)</sourceCredit>
<notes type="uscNote" id="ida5050907-09a0-11eb-a85b-f5cef3d06f4d">
<note style="-uslm-lc:I75" topic="referencesInText" id="ida5050908-09a0-11eb-a85b-f5cef3d06f4d">
<heading class="centered smallCaps">References in Text</heading><p style="-uslm-lc:I21" class="indent0">This part, referred to in subsec. (c)(1), was in the original “this subpart” and was translated to reflect the probable intent of Congress and the redesignation of subpart II of part B of this subchapter as part E of this subchapter by <ref href="/us/pl/105/392/tI/s123/2">Pub. L. 105–392, title I, § 123(2)</ref>, <date date="1998-11-13">Nov. 13, 1998</date>, <ref href="/us/stat/112/3562">112 Stat. 3562</ref>.</p>
</note>
<note style="-uslm-lc:I74" topic="amendments" id="ida5050909-09a0-11eb-a85b-f5cef3d06f4d"><heading class="centered smallCaps">Amendments</heading><p style="-uslm-lc:I21" class="indent0">2010—<ref href="/us/pl/111/148">Pub. L. 111–148</ref> made technical amendment to section and subsec. (a) designations resulting in no change in text.</p>
<p style="-uslm-lc:I21" class="indent0">1998—Subsec. (a). <ref href="/us/pl/105/392/s133/e/1/A">Pub. L. 105–392, § 133(e)(1)(A)</ref>, added introductory provisions and struck out former introductory provisions which read as follows: “After <date date="1996-09-30">September 30, 1996</date>, and not later than <date date="1999-12-31">December 31, 1999</date>, there shall be a capital distribution of the balance of the loan fund established under an agreement pursuant to <ref href="/us/usc/t42/s297a">section 297a of this title</ref> by each school as follows:”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (a)(1). <ref href="/us/pl/105/392/s133/e/1/B">Pub. L. 105–392, § 133(e)(1)(B)</ref>, substituted “on the date of termination of the fund” for “at the close of <date date="1999-09-30">September 30, 1999</date>,”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/105/392/s133/e/2">Pub. L. 105–392, § 133(e)(2)</ref>, amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “After <date date="1999-12-31">December 31, 1999</date>, each school with which the Secretary has made an agreement under this subpart shall pay to the Secretary, not less often than quarterly, the same proportionate share of amounts received by the school after <date date="1999-09-30">September 30, 1999</date>, in payment of principal or interest on loans made from the loan fund established pursuant to such agreement as was determined for the Secretary under subsection (a) of this section.”</p>
<p style="-uslm-lc:I21" class="indent0">1992—Subsec. (a). <ref href="/us/pl/102/408/s208/b/2">Pub. L. 102–408, § 208(b)(2)</ref>, substituted “1999” for “1994” in introductory provisions and in par. (1).</p>
<p style="-uslm-lc:I21" class="indent0"><ref href="/us/pl/102/408/s208/b/1">Pub. L. 102–408, § 208(b)(1)</ref>, substituted “1996” for “1991” in introductory provisions.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/102/408/s208/b/2">Pub. L. 102–408, § 208(b)(2)</ref>, substituted “1999” for “1994” in two places.</p>
<p style="-uslm-lc:I21" class="indent0">1988—Subsec. (a). <ref href="/us/pl/100/607/s713/i/1/A">Pub. L. 100–607, § 713(i)(1)(A)</ref>, which directed substitution of “1994” for “1991” in text preceding par. (1), was executed by making the substitution for “1991” the second time appearing to reflect the probable intent of Congress.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (a)(1). <ref href="/us/pl/100/607/s713/i/1/B">Pub. L. 100–607, § 713(i)(1)(B)</ref>, substituted “1994” for “1991”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/100/607/s713/i/2">Pub. L. 100–607, § 713(i)(2)</ref>, substituted “1994” for “1991” in two places.</p>
<p style="-uslm-lc:I21" class="indent0">1985—Subsecs. (a), (b). <ref href="/us/pl/99/92/s8/f/1">Pub. L. 99–92, § 8(f)(1)</ref>, substituted “1991” for “1987” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (c). <ref href="/us/pl/99/92/s8/f/2">Pub. L. 99–92, § 8(f)(2)</ref>, added subsec. (c).</p>
<p style="-uslm-lc:I21" class="indent0">1981—<ref href="/us/pl/97/35">Pub. L. 97–35</ref> substituted “1987” for “1983” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0">1979—Subsec. (a). <ref href="/us/pl/96/76/s109/c/1">Pub. L. 96–76, § 109(c)(1)</ref>, substituted “<date date="1983-09-30">September 30, 1983</date>, and not later than <date date="1983-12-31">December 31, 1983</date>” for “<date date="1980-09-30">September 30, 1980</date>, and not later than <date date="1981-12-31">December 31, 1981</date>”. Prior to amendment, subsec. (a) referred to “<date date="1980-12-31">December 31, 1980</date>” rather than to “<date date="1981-12-31">December 31, 1981</date>” as cited in directory language of <ref href="/us/pl/96/76">Pub. L. 96–76</ref>. See below for explanation of amendment by <ref href="/us/pl/96/32">Pub. L. 96–32</ref>.</p>
<p style="-uslm-lc:I21" class="indent0"><ref href="/us/pl/96/32">Pub. L. 96–32</ref> substituted “<date date="1980-12-31">December 31, 1980</date>” for “<date date="1977-09-30">September 30, 1977</date>”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (a)(1). <ref href="/us/pl/96/76/s109/c/2">Pub. L. 96–76, § 109(c)(2)</ref>, substituted “1983” for “1980”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/96/76/s109/c/3">Pub. L. 96–76, § 109(c)(3)</ref>, substituted “1983” for “1980” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0">1975—Subsec. (a). <ref href="/us/pl/94/63">Pub. L. 94–63</ref>, §§ 936(d), 941(h)(2), (i)(5), substituted “<date date="1980-09-30">September 30, 1980</date>” for “<date date="1977-06-30">June 30, 1977</date>” wherever appearing, struck out “of Health, Education, and Welfare” after “Secretary”, and substituted references to section 835 of the Act for references to section 822, which had previously been translated as <ref href="/us/usc/t42/s297a">section 297a of this title</ref>, requiring no further translations in text as a result of renumbering of the Public Health Service Act.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/94/63">Pub. L. 94–63</ref>, §§ 936(d), 941(h)(1), (4)(B), substituted “subpart” for “part”, “<date date="1980-09-30">September 30, 1980</date>” for “<date date="1977-06-30">June 30, 1977</date>”, and “<date date="1980-12-31">December 31, 1980</date>” for “<date date="1977-09-30">September 30, 1977</date>” and struck out provisions relating to payments from revolving fund established by <ref href="/us/usc/t42/s297f/d">section 297f(d) of this title</ref>.</p>
<p style="-uslm-lc:I21" class="indent0">1971—<ref href="/us/pl/92/158">Pub. L. 92–158</ref> substituted “1977” for “1975” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0"><ref href="/us/pl/92/52">Pub. L. 92–52</ref> substituted “1975” for “1974” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0">1968—<ref href="/us/pl/90/490">Pub. L. 90–490</ref> substituted “1974” for “1972” wherever appearing.</p>
<p style="-uslm-lc:I21" class="indent0">1966—Subsec. (a). <ref href="/us/pl/89/751/s6/d/1">Pub. L. 89–751, § 6(d)(1)</ref>, (2), substituted “an agreement pursuant to <ref href="/us/usc/t42/s297a/b">section 297a(b) of this title</ref>” for “this part” in opening provisions, and in par. (1) substituted “such balance” for “the balance”.</p>
<p style="-uslm-lc:I21" class="indent0">Subsec. (b). <ref href="/us/pl/89/751/s6/d/3">Pub. L. 89–751, § 6(d)(3)</ref>, inserted “(other than so much of such fund as relates to payments from the revolving fund established by <ref href="/us/usc/t42/s297f/d">section 297f(d) of this title</ref>)”.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="ida505301a-09a0-11eb-a85b-f5cef3d06f4d"><heading class="centered smallCaps">Effective Date of 1985 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/99/92">Pub. L. 99–92</ref> effective <date date="1985-10-01">Oct. 1, 1985</date>, see <ref href="/us/pl/99/92/s10/a">section 10(a) of Pub. L. 99–92</ref>, set out as a note under <ref href="/us/usc/t42/s297a">section 297a of this title</ref>.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="ida505301b-09a0-11eb-a85b-f5cef3d06f4d"><heading class="centered smallCaps">Effective Date of 1975 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/94/63/s936/d">section 936(d) of Pub. L. 94–63</ref> effective <date date="1975-07-01">July 1, 1975</date>, see <ref href="/us/pl/94/63/s905">section 905 of Pub. L. 94–63</ref>, set out as a note under <ref href="/us/usc/t42/s297a">section 297a of this title</ref>.</p>
<p style="-uslm-lc:I21" class="indent0">Amendment by section 941(h)(1), (2), (4)(B), (i)(1), (5) of <ref href="/us/pl/94/63">Pub. L. 94–63</ref> effective <date date="1975-07-01">July 1, 1975</date>, see <ref href="/us/pl/94/63/s942">section 942 of Pub. L. 94–63</ref>, set out as a note under <ref href="/us/usc/t42/s297a">section 297a of this title</ref>.</p>
</note>
<note style="-uslm-lc:I74" topic="effectiveDateOfAmendment" id="ida505572c-09a0-11eb-a85b-f5cef3d06f4d"><heading class="centered smallCaps">Effective Date of 1966 Amendment</heading><p style="-uslm-lc:I21" class="indent0">Amendment by <ref href="/us/pl/89/751">Pub. L. 89–751</ref> effective in the case of payments to student loan funds made after <date date="1966-11-03">Nov. 3, 1966</date>, except in the case of payments pursuant to commitments (made prior to <date date="1966-11-03">Nov. 3, 1966</date>) to make loans under <ref href="/us/usc/t42/s297f">section 297f of this title</ref> as in effect prior to <date date="1966-11-03">Nov. 3, 1966</date>, see <ref href="/us/pl/89/751/s6/e/1">section 6(e)(1) of Pub. L. 89–751</ref>, set out as a note under <ref href="/us/usc/t42/s297d">section 297d of this title</ref>.</p>
</note>
</notes>
</section>