Page 201 TITLE 25—INDIANS § 493

1See References in Text note below.

to sections 488 to 494 of this title may, with the

approval of the Secretary of the Interior, be

taken by the United States in trust for the tribe

or tribal corporation.

(Pub. L. 91–229, §2, Apr. 11, 1970, 84 Stat. 120.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 488, 490, 491, 492,

493, 494 of this title; title 7 section 1985.

§ 490. Tribal rights and privileges in connection

with loans

A tribe or tribal corporation to which a loan is

made or insured pursuant to sections 488 to 494

of this title (1) may waive in writing any immunity from suit or liability which it may possess,

(2) may mortgage or otherwise hypothecate

trust or restricted property if (a) authorized by

its constitution or charter or by a tribal referendum, and (b) approved by the Secretary of the

Interior, and (3) shall comply with rules and regulations prescribed by the Secretary of Agriculture in connection with such loans.

(Pub. L. 91–229, §3, Apr. 11, 1970, 84 Stat. 120.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 488, 489, 491, 492,

493, 494 of this title; title 7 section 1985.

§ 491. Mortgaged property governed by State law

Trust or restricted tribal or tribal corporation

property mortgaged pursuant to sections 488 to

494 of this title shall be subject to foreclosure

and sale or conveyance in lieu of foreclosure,

free of such trust or restrictions, in accordance

with the laws of the State in which the property

is located.

(Pub. L. 91–229, §4, Apr. 11, 1970, 84 Stat. 120.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 488, 489, 490, 492,

493, 494 of this title; title 7 section 1985.

§ 492. Interest rates and taxes

Loans made or insured pursuant to sections

488 to 494 of this title will be subject to the interest rate provisions of section 307(a)(3)(B) of

the Consolidated Farmers Home Administration

Act of 1961, as amended [7 U.S.C. 1927(a)(3)(B)],

and to the provisions of subtitle D of that Act [7

U.S.C. 1981 et seq.] except sections 340 [7 U.S.C.

1990], 341, 342 [7 U.S.C. 1013a], and 343 [7 U.S.C.

1991] thereof: Provided, That section 334 [7 U.S.C.

1984] thereof shall not be construed to subject to

taxation any lands or interests therein while

they are held by an Indian tribe or tribal corporation or by the United States in trust for

such tribe or tribal corporation pursuant to sections 488 to 494 of this title.

(Pub. L. 91–229, §5, Apr. 11, 1970, 84 Stat. 120; Pub.

L. 101–624, title XVIII, §1854(a), Nov. 28, 1990, 104

Stat. 3837.)

REFERENCES IN TEXT

The Consolidated Farmers Home Administration Act

of 1961, referred to in text, is now the Consolidated

Farm and Rural Development Act (Pub. L. 87–128, title

III, Aug. 8, 1961, 75 Stat. 307, as amended). Subtitle D of

the Consolidated Farm and Rural Development Act is

classified principally to subchapter IV (§1981 et seq.) of

chapter 50 of Title 7, Agriculture. For complete classification of this Act to the Code, see Short Title note

set out under section 1921 of Title 7 and Tables.

Section 341 of that Act is set out as a note under section 1921 of Title 7.

AMENDMENTS

1990—Pub. L. 101–624 substituted ‘‘section

307(a)(3)(B)’’ for ‘‘section 307(a)’’.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 488, 489, 490, 491,

493, 494 of this title; title 7 section 1985.

§ 493. Reduction of unpaid principal

(a) In general

The Secretary of Agriculture may, on the application of the borrower of a loan or loans made

under sections 488 to 494 of this title, reduce the

unpaid principal balance of such loan or loans to

the current fair market value of the land purchased with the proceeds of the loan or loans

if—

(1) the fair market value of the land has declined by at least 25 percent since such land

was purchased by the borrower;

(2) the land has been held by the borrower

for a period of at least 5 years; and

(3) the Secretary of the Interior finds that

the borrower has insufficient income to both

repay the loan or loans and provide normal

tribal governmental services.

(b) Fair market value

(1) Appraisal

Current fair market value under subsection

(a) of this section shall be determined through

an appraisal by an independent qualified fee

appraiser, selected by mutual agreement between the borrower and the Secretary of Agriculture.

(2) Costs

The cost of appraisals undertaken under

paragraph (1) shall be paid by the borrower.

(c) Appeals

Decisions of the Secretary of Agriculture

under this section shall be appealable in accordance with the provisions of section 333B 1 of the

Consolidated Farm and Rural Development Act

(7 U.S.C. 1983b).

(d) Future applications

A borrower that had a loan or loans reduced

under this section shall not submit an application for another reduction on such loan or loans

for a period of 5 years after the initial reduction.

(Pub. L. 91–229, §6, as added Pub. L. 101–82, title

III, §303, Aug. 14, 1989, 103 Stat. 583.)

REFERENCES IN TEXT

Section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b), referred to in subsec.

(c), was repealed by Pub. L. 103–354, title II, §281(c), Oct.

13, 1994, 108 Stat. 3233.

CODIFICATION

Another section 6 of Pub. L. 91–229 was added by Pub.

L. 101–624, title XVIII, §1854(b), Nov. 28, 1990, 104 Stat.

3837, and is classified to section 494 of this title.