25 U.S.C. § 1464 — Maturity of loans; interest rate; interest

Page 230 TITLE 25—INDIANS § 1461 1 So in original. Probably should be ‘‘(49 Stat. 1967),’’. zation, or individual because of their eligibility for assistance under this chapter. (Pub. L. 93–262, § 4, Apr. 12, 1974, 88 Stat. 77.) SUBCHAPTER I—INDIAN REVOLVING LOAN FUND § 1461. Administration as single Indian Revolving Loan Fund sums from diverse sources; avail- ability of fund for loans to Indians and for administrative expenses In order to provide credit that is not available from private money markets, or to supplement funds from private lenders, including loans guar- anteed by the Secretary pursuant to section 1481 of this title, all funds that are now or hereafter a part of the revolving fund authorized by the Act of June 18, 1934 (48 Stat. 986) [25 U.S.C. 5101 et seq.], the Act of June 26, 1936 (49 Stat. 1968),1 and the Act of April 19, 1950 (64 Stat. 44), as amended and supplemented, including sums re- ceived in settlement of debts of livestock pursu- ant to sections 1545 and 1546 of this title, and sums collected in repayment of loans heretofore or hereafter made, and as interest or other charges on loans, shall hereafter be adminis- tered as a single Indian Revolving Loan Fund. The fund shall be available for loans to Indians having a form of organization that is satisfac- tory to the Secretary and for loans to individual Indians: Provided, That, where the Secretary de- termines a rejection of a loan application from a member of an organization making loans to its membership from moneys borrowed from the fund is unwarranted, he may, in his discretion, make a direct loan to such individual from the fund. The fund shall also be available for admin- istrative expenses incurred in connection there- with, or, in the discretion of the Secretary of the Interior, as a contribution to the Indian Loan Guaranty and Insurance Fund authorized by section 1497 of this title, or for the payment of interest subsidies authorized by section 1511 of this title. (Pub. L. 93–262, title I, § 101, Apr. 12, 1974, 88 Stat. 78; Pub. L. 98–449, § 2, Oct. 4, 1984, 98 Stat. 1725; Pub. L. 101–644, title III, § 303(a), Nov. 29, 1990, 104 Stat. 4667.) Editorial Notes REFERENCES IN TEXT Act of June 18, 1934, referred to in text, is act June 18, 1934, ch. 576, 48 Stat. 984, popularly known as the In- dian Reorganization Act, which is classified generally to chapter 45 (§ 5101 et seq.) of this title. Provisions of the act establishing the revolving fund are set out in section 5113 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5101 of this title and Tables. Act of June 26, 1936, referred to in text, is act June 26, 1936, ch. 831, 49 Stat. 1967, popularly known as the Oklahoma Welfare Act, which was classified generally to subchapter VIII (§ 501 et seq.) of chapter 14 of this title prior to editorial reclassification as chapter 45A (§ 5201 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5201 of this title and Tables. Provisions of the Act relating to the revolving fund appear in section 5206 of this title. Act of April 19, 1950, referred to in text, is act Apr. 19, 1950, ch. 92, 64 Stat. 44, which was classified generally to subchapter XXI (§ 631 et seq.) of chapter 14 of this title and was omitted from the Code as being of special and not general application. AMENDMENTS 1990—Pub. L. 101–644 substituted ‘‘money markets, or to supplement funds from private lenders, including loans guaranteed by the Secretary pursuant to section 1481 of this title,’’ for ‘‘money markets,’’ in first sen- tence and inserted before period at end of third sen- tence ‘‘, or, in the discretion of the Secretary of the In- terior, as a contribution to the Indian Loan Guaranty and Insurance Fund authorized by section 1497 of this title, or for the payment of interest subsidies author- ized by section 1511 of this title’’. 1984—Pub. L. 98–449 which directed that ‘‘which are not members of or eligible for membership in an orga- nization which is making loans to its members’’ be struck out was executed by striking out ‘‘who are not members of or eligible for membership in an organiza- tion which is making loans to its members’’ before pro- viso. § 1462. Economic development; educational loans; limitation of loans to or investments in non- Indian organizations Loans may be made for any purpose which will promote the economic development of (a) the in- dividual Indian borrower, including loans for educational purposes, and (b) the Indian organi- zation and its members including loans by such organizations to other organizations and invest- ments in other organizations regardless of whether they are organizations of Indians: Pro- vided, That not more than 50 per centum of loan made to an organization shall be used by such organization for the purpose of making loans to or investments in non-Indian organizations. (Pub. L. 93–262, title I, § 102, Apr. 12, 1974, 88 Stat. 78.) § 1463. Repayment of loan; financing from other sources Loans may be made only when, in the judg- ment of the Secretary, there is a reasonable prospect of repayment, and only to applicants who in the opinion of the Secretary are unable to obtain financing from other sources on rea- sonable terms and conditions. (Pub. L. 93–262, title I, § 103, Apr. 12, 1974, 88 Stat. 78.) § 1464. Maturity of loans; interest rate; interest deferral on educational loans Loans shall be for terms that do not exceed thirty years and shall bear interest at (a) a rate determined by the Secretary of the Treasury taking into consideration the market yield on municipal bonds: Provided, That in no event shall the rate be greater than the rate deter- mined by the Secretary of the Treasury taking into consideration the current average yield on outstanding marketable obligations of the United States of comparable maturity, plus (b) such additional charge, if any, toward covering other costs of the program as the Secretary may determine to be consistent with its purpose: Pro- vided, That educational loans may provide for interest to be deferred while the borrower is in school or in the military service. Page 231 TITLE 25—INDIANS § 1482 (Pub. L. 93–262, title I, § 104, Apr. 12, 1974, 88 Stat. 78.) § 1465. Modification of amount of loan and docu- ment securing loan in collection of loan or in best interests of the United States The Secretary may cancel, adjust, com- promise, or reduce the amount of any loan or any portion thereof heretofore or hereafter made from the revolving loan fund established by this subchapter and its predecessor con- stituent funds which he determines to be un- collectable in whole or in part, or which is col- lectable only at an unreasonable cost, or when such action would, in his judgment, be in the best interests of the United States. He may also adjust, compromise, subordinate, or modify the terms of any mortgage, lease, assignment, con- tract, agreement, or other document taken to secure such loans. (Pub. L. 93–262, title I, § 105, Apr. 12, 1974, 88 Stat. 78; Pub. L. 98–449, § 3, Oct. 4, 1984, 98 Stat. 1725.) Editorial Notes AMENDMENTS 1984—Pub. L. 98–449 struck out proviso at end of first sentence which provided that proceedings pursuant to this section would be effective only after following the procedure set out in section 386a of this title. § 1466. Land and personal property title Title to any land purchased by a tribe or by an individual Indian with loans made from the re- volving loan fund may be taken in trust unless the land is located outside the boundaries of a reservation or a tribal consolidation area ap- proved by the Secretary. Title to any land pur- chased by a tribe or an individual Indian which is outside the boundaries of the reservation or approved consolidation area may be taken in trust if the purchaser was the owner of trust or restricted interests in the land before the pur- chase, otherwise title shall be taken in the name of the purchasers without any restriction on alienation, control, or use. Title to any personal property purchased with a loan from the revolv- ing loan fund shall be taken in the name of the purchaser. (Pub. L. 93–262, title I, § 106, Apr. 12, 1974, 88 Stat. 78.) § 1467. Security for loan; assignment of securi- ties; reasonable assurance of repayment Any organization receiving a loan from the re- volving loan fund shall be required to assign to the United States as security for the loan all se- curities acquired in connection with the loans made to its members from such funds unless the Secretary determines that the repayment of the loan to the United States is otherwise reason- ably assured. (Pub. L. 93–262, title I, § 107, Apr. 12, 1974, 88 Stat. 79.) § 1468. Authorization of appropriations There is authorized to be appropriated, to pro- vide capital and to restore any impairment of capital for the revolving loan fund $50,000,000 ex- clusive of prior authorizations and appropria- tions. (Pub. L. 93–262, title I, § 108, Apr. 12, 1974, 88 Stat. 79.) § 1469. Rules and regulations The Secretary shall promulgate rules and reg- ulations to carry out the provisions of this sub- chapter. (Pub. L. 93–262, title I, § 109, Apr. 12, 1974, 88 Stat. 79.) SUBCHAPTER II—LOAN GUARANTY AND INSURANCE § 1481. Loan guaranties and insurance (a) In general In order to provide access to private money sources which otherwise would not be available, the Secretary may— (1) guarantee not to exceed 90 per centum of the unpaid principal and interest due on any loan made to any organization of Indians hav- ing a form or organization satisfactory to the Secretary, and to individual Indians; or (2) insure loans under an agreement ap- proved by the Secretary whereby the lender will be reimbursed for losses in an amount not to exceed 15 per centum of the aggregate of such loans made by it, but not to exceed 90 per centum of the loss on any one loan. (b) Eligible borrowers The Secretary may guarantee or insure loans under subsection (a) to both for-profit and non- profit borrowers. (Pub. L. 93–262, title II, § 201, Apr. 12, 1974, 88 Stat. 79; Pub. L. 98–449, § 4, Oct. 4, 1984, 98 Stat. 1725; Pub. L. 109–221, title IV, § 401(a), May 12, 2006, 120 Stat. 341.) Editorial Notes AMENDMENTS 2006—Pub. L. 109–221, § 401(a)(1), (2), (4), inserted sec- tion catchline, designated existing provisions as sub- sec. (a) and inserted heading, substituted ‘‘the Sec- retary may— ‘‘(1) guarantee’’ for ‘‘Secretary is authorized (a) to guarantee’’, and added subsec. (b). Pub. L. 109–221, § 401(a)(3), which directed substitution of ‘‘members; or ‘‘(2) insure’’ for ‘‘members; and (b) in lieu of such guaranty, to in- sure’’, was executed by making the substitution for ‘‘and (b) in lieu of such guaranty, to insure’’ to reflect the probable intent of Congress and the amendment by Pub. L. 98–449. See 1984 Amendment note below. 1984—Pub. L. 98–449 struck out ‘‘who are not members of or eligible for membership in an organization which is making loans to its members’’ before ‘‘; and (b)’’. § 1482. Premium charges; deposits in Indian Loan Guaranty and Insurance Fund The Secretary shall fix such premium charges for the insurance and guarantee of loans as are in his judgment adequate to cover expenses and probable losses, and deposit receipts from such charges in the Indian Loan Guaranty and Insur- ance Fund established pursuant to section 1497(a) of this title.