United States v. NBC Bank-Rockdale

PATRICK E. HIGGINBOTHAM, Circuit Judge:

Federal grants to a hospital under the Hill-Burton Act are conditioned on the hospital maintaining its non-profit status for the twenty years following the grant. A transferee within the twenty year period failing to abide the non-profit condition faces certain repayment obligations. Today we decide that such a transfer after the twenty year period does not carry to the transferee the liability to repay.

I

In the early sixties, Newton Memorial Hospital, Inc., a non-profit corporation, received $182,694.67, as a grant under Title VI of the Public Health…