Federal loans for State welfare programs

42 U.S. Code § 606. Federal loans for State welfare programs

(a) Loan authority
(1) In general
The Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than 3 years.
(2) Loan-eligible State
As used in paragraph (1), the term “loan-eligible State” means a State against which a penalty has not been imposed under section 609(a)(1) of this title.
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