25 U.S.C. § 4192 — Security and repayment

Page 661 TITLE 25—INDIANS § 4192 proval, for the purposes of financing affordable housing activities described in section 4132 of this title and housing related community devel- opment activity as consistent with the purposes of this chapter. (b) Terms of loans Notes or other obligations guaranteed pursu- ant to this subchapter shall be in such form and denominations, have such maturities, and be subject to such conditions as may be prescribed by regulations issued by the Secretary. The Sec- retary may not deny a guarantee under this sub- chapter on the basis of the proposed repayment period for the note or other obligation, unless the period is more than 20 years or the Sec- retary determines that the period causes the guarantee to constitute an unacceptable finan- cial risk. (c) Limitation on outstanding guarantees No guarantee or commitment to guarantee shall be made with respect to any note or other obligation if the total outstanding notes or obli- gations of the issuer guaranteed under this sub- chapter (excluding any amount defeased under the contract entered into under section 4192(a)(1) of this title) would thereby exceed an amount equal to 5 times the amount of the grant approval for the issuer pursuant to sub- chapter III. (d) Limitation on percentage A guarantee made under this subchapter shall guarantee repayment of 95 percent of the unpaid principal and interest due on the notes or other obligations guaranteed. (Pub. L. 104–330, title VI, § 601, Oct. 26, 1996, 110 Stat. 4046; Pub. L. 107–292, § 7, Nov. 13, 2002, 116 Stat. 2054; Pub. L. 108–393, § 2, Oct. 30, 2004, 118 Stat. 2246.) Editorial Notes REFERENCES IN TEXT The United States Housing Act of 1937, referred to in subsec. (a), is act Sept. 1, 1937, ch. 896, as revised gen- erally by Pub. L. 93–383, title II, Aug. 22, 1974, 88 Stat. 653, which is classified generally to chapter 8 (§ 1437 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 1437 of Title 42 and Tables. This chapter, referred to in subsec. (a), was in the original ‘‘this Act’’, meaning Pub. L. 104–330, Oct. 26, 1996, 110 Stat. 4016, known as the Native American Housing Assistance and Self-Determination Act of 1996. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of this title and Tables. AMENDMENTS 2004—Subsec. (d). Pub. L. 108–393 added subsec. (d). 2002—Subsec. (a). Pub. L. 107–292, § 7(1), inserted ‘‘and housing related community development activity as consistent with the purposes of this chapter’’ after ‘‘section 4132 of this title’’. Subsecs. (b) to (d). Pub. L. 107–292, § 7(2), (3), redesig- nated subsecs. (c) and (d) as (b) and (c), respectively, and struck out heading and text of former subsec. (b). Text read as follows: ‘‘A guarantee under this sub- chapter may be used to assist an Indian tribe or hous- ing entity in obtaining financing only if the Indian tribe or housing entity has made efforts to obtain such financing without the use of such guarantee and cannot complete such financing consistent with the timely execution of the program plans without such guar- antee.’’ Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 104–330, title VI, § 606, Oct. 26, 1996, 110 Stat. 4048, provided that: ‘‘This title [enacting this sub- chapter] shall take effect on the date of the enactment of this Act [Oct. 26, 1996].’’ [Another section 606 of Pub. L. 104–330 is classified to section 4196 of this title.] § 4192. Security and repayment (a) Requirements on issuer To assure the repayment of notes or other ob- ligations and charges incurred under this sub- chapter and as a condition for receiving such guarantees, the Secretary shall require the In- dian tribe or housing entity issuing such notes or obligations to— (1) enter into a contract, in a form accept- able to the Secretary, for repayment of notes or other obligations guaranteed under this subchapter; (2) pledge any grant for which the issuer may become eligible under this chapter; (3) demonstrate that the extent of such issuance and guarantee under this subchapter is within the financial capacity of the tribe and is not likely to impair the ability to use grant amounts under subchapter I, taking into consideration the requirements under section 4133(b) of this title; and (4) furnish, at the discretion of the Sec- retary, such other security as may be deemed appropriate by the Secretary in making such guarantees, including increments in local tax receipts generated by the activities assisted under this chapter or disposition proceeds from the sale of land or rehabilitated prop- erty. (b) Repayment from grant amounts Notwithstanding any other provision of this chapter— (1) the Secretary may apply grants pledged pursuant to subsection (a)(2) to any repay- ments due the United States as a result of such guarantees; and (2) grants allocated under this chapter for an Indian tribe or housing entity (including pro- gram income derived therefrom) may be used to pay principal and interest due (including such servicing, underwriting, and other costs as may be specified in regulations issued by the Secretary) on notes or other obligations guaranteed pursuant to this subchapter. (c) Full faith and credit The full faith and credit of the United States is pledged to the payment of all guarantees made under this subchapter. Any such guarantee made by the Secretary shall be conclusive evi- dence of the eligibility of the obligations for such guarantee with respect to principal and in- terest, and the validity of any such guarantee so made shall be incontestable in the hands of a holder of the guaranteed obligations. (Pub. L. 104–330, title VI, § 602, Oct. 26, 1996, 110 Stat. 4046.) Page 662 TITLE 25—INDIANS § 4193 Editorial Notes REFERENCES IN TEXT This chapter, referred to in subsecs. (a) and (b), was in the original ‘‘this Act’’, meaning Pub. L. 104–330, Oct. 26, 1996, 110 Stat. 4016, known as the Native Amer- ican Housing Assistance and Self-Determination Act of 1996. For complete classification of this Act to the Code, see Short Title note set out under section 4101 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 26, 1996, see section 606 of Pub. L. 104–330, set out as a note under section 4191 of this title. § 4193. Payment of interest The Secretary may make, and contract to make, grants, in such amounts as may be ap- proved in appropriations Acts, to or on behalf of an Indian tribe or housing entity issuing notes or other obligations guaranteed under this sub- chapter, to cover not to exceed 30 percent of the net interest cost (including such servicing, un- derwriting, or other costs as may be specified in regulations of the Secretary) to the borrowing entity or agency of such obligations. The Sec- retary may also, to the extent approved in ap- propriations Acts, assist the issuer of a note or other obligation guaranteed under this sub- chapter in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary deter- mines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer. (Pub. L. 104–330, title VI, § 603, Oct. 26, 1996, 110 Stat. 4047.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 26, 1996, see section 606 of Pub. L. 104–330, set out as a note under section 4191 of this title. § 4194. Training and information The Secretary, in cooperation with eligible public entities, shall carry out training and in- formation activities with respect to the guar- antee program under this subchapter. (Pub. L. 104–330, title VI, § 604, Oct. 26, 1996, 110 Stat. 4047.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 26, 1996, see section 606 of Pub. L. 104–330, set out as a note under section 4191 of this title. § 4195. Limitations on amount of guarantees (a) Aggregate fiscal year limitation Notwithstanding any other provision of law and subject only to the absence of qualified ap- plicants or proposed activities and to the au- thority provided in this subchapter, to the ex- tent approved or provided in appropriations Acts, the Secretary may enter into commit- ments to guarantee notes and obligations under this subchapter with an aggregate principal amount not to exceed $400,000,000 for each of fis- cal years 2009 through 2013. (b) Authorization of appropriations for credit subsidy There are authorized to be appropriated to cover the costs (as such term is defined in sec- tion 661a of title 2) of guarantees under this sub- chapter such sums as may be necessary for each of fiscal years 2009 through 2013. (c) Aggregate outstanding limitation The total amount of outstanding obligations guaranteed on a cumulative basis by the Sec- retary pursuant to this subchapter shall not at any time exceed $2,000,000,000 or such higher amount as may be authorized to be appropriated for this subchapter for any fiscal year. (d) Fiscal year limitations on tribes The Secretary shall monitor the use of guar- antees under this subchapter by Indian tribes. If the Secretary finds that 50 percent of the aggre- gate guarantee authority under subsection (c) has been committed, the Secretary may— (1) impose limitations on the amount of guarantees any one Indian tribe may receive in any fiscal year of $50,000,000; or (2) request the enactment of legislation in- creasing the aggregate outstanding limitation on guarantees under this subchapter. (Pub. L. 104–330, title VI, § 605, Oct. 26, 1996, 110 Stat. 4047; Pub. L. 107–292, § 2(b), Nov. 13, 2002, 116 Stat. 2053; Pub. L. 110–411, title VII, § 701(b), Oct. 14, 2008, 122 Stat. 4334.) Editorial Notes AMENDMENTS 2008—Subsecs. (a), (b). Pub. L. 110–411 substituted ‘‘2009 through 2013’’ for ‘‘1997 through 2007’’. 2002—Subsecs. (a), (b). Pub. L. 107–292 substituted ‘‘1997 through 2007’’ for ‘‘1997, 1998, 1999, 2000, and 2001’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective Oct. 26, 1996, see section 606 of Pub. L. 104–330, set out as a note under section 4191 of this title. § 4196. Demonstration program for guaranteed loans to finance tribal community and eco- nomic development activities (a) Authority (1) In general Subject to paragraph (2), to the extent and in such amounts as are provided in appropria- tion Acts, subject to the requirements of this section, and in accordance with such terms and conditions as the Secretary may pre- scribe, the Secretary may guarantee and make commitments to guarantee the notes and obli- gations issued by Indian tribes or tribally des- ignated housing entities with tribal approval, for the purposes of financing activities carried out on Indian reservations and in other Indian areas that, under the first sentence of section 5308(a) of title 42, are eligible for financing