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U.S. Code as of:
01/19/04
Section 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.
(b) Rate of interest
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.
(c) Use of loan
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 section 603(a) of this title may be used, including -
(1) welfare anti-fraud activities; and
(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
section 612 of this title.
(d) Limitation on total amount of loans to State
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.
(e) Limitation on total amount of outstanding loans
The total dollar amount of loans outstanding under this section
may not exceed $1,700,000,000.
(f) Appropriation
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.
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