25 U.S.C. § 1494 — Evidence of eligibility of loan for and

Page 235 TITLE 25—INDIANS § 1497 refuse to pay a valid guaranty or insurance claim on loans previously made in good faith. (Pub. L. 93–262, title II, § 213, Apr. 12, 1974, 88 Stat. 81.) § 1494. Evidence of eligibility of loan for and amount of guaranty or insurance; defenses and partial defenses against original lender Any evidence of guaranty or insurance issued by the Secretary shall be conclusive evidence of the eligibility of the loan for guaranty or insur- ance under the provisions of this chapter and the amount of such guaranty or insurance: Pro- vided, That nothing in this section shall pre- clude the Secretary from establishing, as against the original lender, defenses based on fraud or material misrepresentation or bar him from establishing, by regulations in force at the date of such issuance or disbursement, which- ever is the earlier, partial defenses to the amount payable on the guaranty or insurance. (Pub. L. 93–262, title II, § 214, Apr. 12, 1974, 88 Stat. 81.) § 1495. Land and personal property titles Title to any land purchased by a tribe or by an individual Indian with loans guaranteed or in- sured pursuant to this subchapter may be taken in trust, unless the land is located outside the boundaries of a reservation or a tribal consolida- tion area approved by the Secretary. Title to any land purchased 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 purchase, otherwise title shall be taken in the name of the purchaser without any restric- tion on alienation, control, or use. Title to any personal property purchased with loans guaran- teed or insured hereunder shall be taken in the name of the purchaser. (Pub. L. 93–262, title II, § 215, Apr. 12, 1974, 88 Stat. 81.) § 1496. Powers of Secretary; finality of financial transactions and property acquisitions, man- agement, and dispositions The financial transactions of the Secretary in- cident to or arising out of the guarantee or in- surance of loans and surety bonds, and the ac- quisition, management, and disposition of prop- erty, real, personal, or mixed, incident to such activities, shall be final and conclusive upon all officers of the Government. With respect to mat- ters arising out of the guaranty or insurance program authorized by this subchapter, and not- withstanding the provisions of any other laws, the Secretary may— (a) sue and be sued in his official capacity in any court of competent jurisdiction; (b) subject to the specific limitations in this subchapter, consent to the modification, with respect to the rate of interest, time of pay- ment on principal or interest or any portion thereof, security, or any other provisions of any note, contract, mortgage, or other instru- ment securing a loan or surety bond which has been guaranteed or insured hereunder; (c) subject to the specific limitations in this subchapter, pay, or compromise, any claim on, or arising because of any loan or surety bond guaranty or insurance; (d) subject to the specific limitations in this subchapter, pay, compromise, waive, or re- lease any right, title, claim, lien, or demand, however acquired, including, but not limited to, any equity or right of redemption; (e) purchase at any sale, public or private, upon such terms and for such prices as he de- termines to be reasonable, and take title to property, real, personal, or mixed; and simi- larly sell, at public or private sale, exchange, assign, convey, or otherwise dispose of such property; and (f) complete, administer, operate, obtain, and pay for insurance on, and maintain, ren- ovate, repair, modernize, lease, or otherwise deal with any property acquired or held pursu- ant to the guaranty or insurance program au- thorized by this subchapter. (Pub. L. 93–262, title II, § 216, Apr. 12, 1974, 88 Stat. 81; Pub. L. 100–442, § 5(c), Sept. 22, 1988, 102 Stat. 1764.) Editorial Notes AMENDMENTS 1988—Pub. L. 100–442 inserted ‘‘and surety bonds’’ after ‘‘of loans’’ in introductory text, ‘‘or surety’’ after ‘‘a loan’’ in par. (b), and ‘‘or surety’’ after ‘‘any loan’’ in par. (c). § 1497. Indian Loan Guaranty and Insurance Fund (a) Establishment of revolving fund There is hereby created an Indian Loan Guar- anty and Insurance Fund (hereinafter referred to as the ‘‘fund’’) which shall be available to the Secretary as a revolving fund without fiscal year limitation for carrying out the provisions of this subchapter. (b) Aggregate loans or surety bonds limitation The Secretary may use the fund for the pur- pose of fulfilling the obligations with respect to loans or surety bonds guaranteed or insured under this subchapter, but the aggregate of such loans or surety bonds which are insured or guar- anteed by the Secretary shall be limited to $1,500,000,000. (c) Assets, liabilities, and obligations of fund; loan and surety bond servicing and pur- chasing agreements: terms and conditions All funds, claims, notes, mortgages, contracts, and property acquired by the Secretary under this section, and all collections and proceeds therefrom, shall constitute assets of the fund; and all liabilities and obligations of such assets shall be liabilities and obligations of the fund. The Secretary is authorized to make agreements with respect to servicing loans or surety bonds held, guaranteed, or insured by him under this subchapter and purchasing such guaranteed or insured loans or surety bonds on such terms and conditions as he may prescribe. (d) Utilization of fund for diverse payments The Secretary may also utilize the fund to pay taxes, insurance, prior liens, expenses necessary