{"identifier":"/us/usc/t42/s606","title":42,"num":"\u00a7\u202f606.","heading":"Federal loans for State welfare programs","text":"\u00a7\u202f606.\nFederal loans for State welfare programs\n(a)\nLoan authority\n(1)\nIn general\nThe Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than 3 years.\n(2)\nLoan-eligible State\nAs used in paragraph (1), the term \u201cloan-eligible State\u201d means a State against which a penalty has not been imposed under\nsection 609(a)(1) of this title\n(b)\nRate of interest\nThe Secretary shall charge and collect interest on any loan made under this section at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan.\n(c)\nUse of loan\nA State shall use a loan made to the State under this section only for any purpose for which grant amounts received by the State under\n(1) welfare anti-fraud activities; and\n(2) the provision of assistance under the State program to Indian families that have moved from the service area of an Indian tribe with a tribal family assistance plan approved under\nsection 612 of this title\n(d)\nLimitation on total amount of loans to State\nThe cumulative dollar amount of all loans made to a State under this section during fiscal years 1997 through 2003 shall not exceed 10 percent of the State family assistance grant.\n(e)\nLimitation on total amount of outstanding loans\nThe total dollar amount of loans outstanding under this section may not exceed $1,700,000,000.\n(f)\nAppropriation\nOut of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under this section.","url":"https://projectusc.org/usc/t42/s606.html","content":[{"t":"sec","id":"/us/usc/t42/s606","children":[{"t":"num","text":"\u00a7\u202f606."},{"t":"heading","text":"Federal loans for State welfare programs"},{"t":"subsec","id":"/us/usc/t42/s606/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Loan authority"},{"t":"para","id":"/us/usc/t42/s606/a/1","children":[{"t":"num","text":"(1)"},{"t":"heading","text":"In general"},{"t":"content","children":[{"t":"p","text":"The Secretary shall make loans to any loan-eligible State, for a period to maturity of not more than 3 years.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s606/a/2","children":[{"t":"num","text":"(2)"},{"t":"heading","text":"Loan-eligible State"},{"t":"content","children":[{"t":"p","text":"As used in paragraph (1), the term \u201cloan-eligible State\u201d means a State against which a penalty has not been imposed under ","children":[{"t":"ref","text":"section 609(a)(1) of this title","href":"/us/usc/t42/s609/a/1","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s606/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Rate of interest"},{"t":"content","children":[{"t":"p","text":"The Secretary shall charge and collect interest on any loan made under this section at a rate equal to the current average market yield on outstanding marketable obligations of the United States with remaining periods to maturity comparable to the period to maturity of the loan.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s606/c","children":[{"t":"num","text":"(c)"},{"t":"heading","text":"Use of loan"},{"t":"chapeau","text":"A State shall use a loan made to the State under this section only for any purpose for which grant amounts received by the State under ","children":[{"t":"ref","text":"section 603(a) of this title","href":"/us/usc/t42/s603/a","tail":" may be used, including\u2014"}]},{"t":"para","id":"/us/usc/t42/s606/c/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" welfare anti-fraud activities; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t42/s606/c/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" the provision of assistance under the State program to Indian families that have moved from the service area of an Indian tribe with a tribal family assistance plan approved under ","children":[{"t":"ref","text":"section 612 of this title","href":"/us/usc/t42/s612","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s606/d","children":[{"t":"num","text":"(d)"},{"t":"heading","text":"Limitation on total amount of loans to State"},{"t":"content","children":[{"t":"p","text":"The cumulative dollar amount of all loans made to a State under this section during fiscal years 1997 through 2003 shall not exceed 10 percent of the State family assistance grant.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s606/e","children":[{"t":"num","text":"(e)"},{"t":"heading","text":"Limitation on total amount of outstanding loans"},{"t":"content","children":[{"t":"p","text":"The total dollar amount of loans outstanding under this section may not exceed $1,700,000,000.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t42/s606/f","children":[{"t":"num","text":"(f)"},{"t":"heading","text":"Appropriation"},{"t":"content","children":[{"t":"p","text":"Out of any money in the Treasury of the United States not otherwise appropriated, there are appropriated such sums as may be necessary for the cost of loans under this section.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}