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42 U.S. Code § 291j-7. Loans to public facilities
(a) Interest rates; security; equitable geographical distribution
(1)
Any loan made by the Secretary to a public agency under this part for the modernization or construction of a public hospital or other health facility shall require such public agency to pay interest thereon at a rate comparable to the current rate of interest prevailing with respect to loans, to nonprofit private agencies, which are guaranteed under this part, for the modernization or construction of similar facilities in the same or similar areas, minus 3 per centum per annum.
(2)
(A) No loan to a public agency shall be made under this part unless—
(i)
the Secretary is reasonably satisfied that such agency will be able to make payments of principal and interest thereon when due, and
(ii)
such agency provides the Secretary with reasonable assurances that there will be available to such agency such additional funds as may be necessary to complete the project with respect to which such loan is requested.
(B)
Any loan to a public agency shall have such security, have such maturity date, be repayable in such installments, and be subject to such other terms and conditions (including provision for recovery in case of default) as the Secretary determines to be necessary to carry out the purposes of this part while adequately protecting the financial interests of the United States.