§ 1493 TITLE 25—INDIANS Page 412

be assigned to the United States, and the lender

shall have no further claim against the borrower

or the United States. The Secretary shall then

take such further collection action as may be

warranted, or may cancel the uncollectable portion of any debt assigned pursuant hereto. The

Secretary may establish a date upon which accrual of interest or charges shall cease.

(Pub. L. 93–262, title II, §212, Apr. 12, 1974, 88

Stat. 80.)

§ 1493. Loan refusal; conditions; prohibition

against acquisition of additional loans; payment of claims on loans made in good faith

Whenever the Secretary finds that any lender

or holder of a guaranty certificate fails to maintain adequate accounting records, or to demonstrate proper ability to service adequately

loans guaranteed or insured, or to exercise proper credit judgment, or has willfully or negligently engaged in practices otherwise detrimental to the interests of a borrower or of the

United States, he may refuse, either temporarily or permanently, to guarantee or insure

any further loans made by such lender or holder,

and may bar such lender or holder from acquiring additional loans guaranteed or insured hereunder: Provided, That the Secretary shall not

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.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1499 of this title.

§ 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 insurance under the provisions of this chapter and

the amount of such guaranty or insurance: Provided, That nothing in this section shall preclude 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, whichever 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.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1499 of this title.

§ 1495. Land and personal property titles

Title to any land purchased by a tribe or by an

individual Indian with loans guaranteed or insured pursuant to this subchapter 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 purchaser without any restriction on alienation, control, or use. Title to any

personal property purchased with loans guaranteed 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.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1499 of this title.

§ 1496. Powers of Secretary; finality of financial

transactions and property acquisitions, management, and dispositions

The financial transactions of the Secretary incident to or arising out of the guarantee or insurance of loans and surety bonds, and the acquisition, management, and disposition of property, real, personal, or mixed, incident to such

activities, shall be final and conclusive upon all

officers of the Government. With respect to matters arising out of the guaranty or insurance

program authorized by this subchapter, and notwithstanding 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 payment on principal or interest or any portion

thereof, security, or any other provisions of

any note, contract, mortgage, or other instrument 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 release 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 determines to be reasonable, and take title to

property, real, personal, or mixed; and similarly 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, renovate, repair, modernize, lease, or otherwise

deal with any property acquired or held pursuant to the guaranty or insurance program authorized 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.)

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).

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1499 of this title.