Page 409 TITLE 25—INDIANS § 1468

of this title. Provisions of the act relating to the revolving fund appear in section 634 of this title. For

complete classification of this Act to the Code, see

Tables.

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 sentence and inserted before period at end of third sentence ‘‘, 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’’.

1984—Pub. L. 98–449 which directed that ‘‘which are

not members of or eligible for membership in an organization 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 organization which is making loans to its members’’ before proviso.

§ 1462. Economic development; educational loans;

limitation of loans to or investments in nonIndian organizations

Loans may be made for any purpose which will

promote the economic development of (a) the individual Indian borrower, including loans for

educational purposes, and (b) the Indian organization and its members including loans by such

organizations to other organizations and investments in other organizations regardless of

whether they are organizations of Indians: Provided, 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 judgment 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 reasonable 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 determined 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: Provided, That educational loans may provide for

interest to be deferred while the borrower is in

school or in the military service.

(Pub. L. 93–262, title I, §104, Apr. 12, 1974, 88 Stat.

78.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1511 of this title.

§ 1465. Modification of amount of loan and document securing loan in collection of loan or in

best interests of the United States

The Secretary may cancel, adjust, compromise, 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 constituent funds which he determines to be uncollectable in whole or in part, or which is collectable

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, contract,

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.)

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 revolving loan fund may be taken in trust unless

the land is located outside the boundaries of a

reservation or a tribal consolidation 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 purchasers without any restriction on

alienation, control, or use. Title to any personal

property purchased with a loan from the revolving 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 securities; reasonable assurance of repayment

Any organization receiving a loan from the revolving loan fund shall be required to assign to

the United States as security for the loan all securities 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 reasonably 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 provide capital and to restore any impairment of