Page 413 TITLE 25—INDIANS § 1497a

§ 1497. Indian Loan Guaranty and Insurance

Fund

(a) Establishment of revolving fund

There is hereby created an Indian Loan Guaranty 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 purpose 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 guaranteed by the Secretary shall be limited to

$500,000,000.

(c) Assets, liabilities, and obligations of fund;

loan and surety bond servicing and purchasing 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

to make fiscal adjustments in connection with

the application and transmittal of collections,

and other expenses and advances to protect the

Secretary for loans or surety bonds which are

guaranteed or insured under this subchapter or

held by the Secretary, to acquire such security

property at foreclosure sale or otherwise, and to

pay administrative expenses.

(e) Authorization of appropriations

There are authorized to be appropriated for

each fiscal year beginning in fiscal year 1985

such sums as may be necessary to fulfill obligations with respect to losses on loans or surety

bonds guaranteed or insured under this subchapter. All collections and all moneys appropriated pursuant to the authority of this subsection shall remain available until expended.

(f) Deficiencies in fund; notice to Congress

If the Secretary determines that the amount

in the fund is not sufficient to maintain an adequate level of reserves necessary to meet the responsibilities of the fund in connection with

losses on loans or surety bonds guaranteed or insured under this subchapter, the Secretary shall

promptly submit a report notifying Congress of

the deficiencies in the fund.

(Pub. L. 93–262, title II, §217, Apr. 12, 1974, 88

Stat. 82; Pub. L. 98–449, §7, Oct. 4, 1984, 98 Stat.

1725; Pub. L. 100–442, §§3, 4(a), (b), 5(d), Sept. 22,

1988, 102 Stat. 1763, 1764.)

AMENDMENTS

1988—Subsec. (b). Pub. L. 100–442, §§3, 5(d), inserted

‘‘or surety bonds’’ after ‘‘loans’’ in two places and substituted ‘‘$500,000,000’’ for ‘‘$200,000,000’’.

Subsecs. (c), (d). Pub. L. 100–442, §5(d), inserted ‘‘or

surety bonds’’ after ‘‘loans’’ wherever appearing.

Subsec. (e). Pub. L. 100–442, §§4(a), 5(d), inserted ‘‘or

surety bonds’’ after ‘‘loans’’ and substituted ‘‘All collections and all moneys appropriated pursuant to the

authority of this subsection shall remain available’’ for

‘‘All collections shall remain’’.

Subsec. (f). Pub. L. 100–442, §4(b), added subsec. (f).

1984—Subsec. (e). Pub. L. 98–449 added subsec. (e).

LIMITATION ON NEW CREDIT AUTHORITY

Section 4(c) of Pub. L. 100–442 provided that: ‘‘Any

new credit authority (as defined in section 3 of the Congressional Budget and Impoundment Control Act of

1974 [2 U.S.C. 622]) which is provided by amendments

made by this Act [enacting sections 1497a, 1499, and 1544

of this title and amending this section and sections

1452, 1484, 1485, 1496, and 1498 of this title] shall be effective only to such extent and in such amounts as may

be approved in advance in appropriation Acts.’’

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1461, 1482, 1497a,

1499 of this title.

§ 1497a. Supplemental surety bond guarantee

(a) Amount; eligibility

The Secretary is authorized to provide a supplemental surety bond guarantee, not to exceed

20 percent of any loss, for any Indian individual

or economic enterprise eligible for a surety

guarantee under section 694b of title 15, so that

the aggregate of the two guarantees is 100 percent.

(b) Conditions

The Secretary may provide a supplemental

guarantee under this section only if the Secretary determines that—

(1) the Indian individual or economic enterprise has secured or will likely secure a surety

bond guarantee under section 694b of title 15;

(2) the supplemental guarantee is necessary

for the Indian individual or economic enterprise to secure a surety bond;

(3) no more than 25 percent of the surety’s

business is comprised of bonds guaranteed pursuant to this section; and

(4) the surety will provide appropriate technical assistance and advice to, and monitor

the performance of, the Indian individual or

economic enterprise for the prevention or

mitigation of a loss.

(c) Fees and charges

The rules and regulations promulgated by the

Secretary to carry out this section shall include

the setting of reasonable fees to be paid by the

Indian individual or economic enterprise and

reasonable premium charges to be paid by sureties. In setting fees and charges, the Secretary

may take into consideration the cost to the surety of providing the services required by paragraph (4) of subsection (b) of this section. The

receipts from the fees and charges shall be deposited in the Fund established by section

1497(a) of this title.

(Pub. L. 93–262, title II, §218, as added Pub. L.

100–442, §5(a), Sept. 22, 1988, 102 Stat. 1764.)
§ 1498 TITLE 25—INDIANS Page 414

PRIOR PROVISIONS

A prior section 218 of Pub. L. 93–262 was renumbered

section 219 by Pub. L. 100–442 and is classified to section

1498 of this title.

§ 1498. Rules and regulations

The Secretary shall promulgate rules and regulations to carry out the provisions of this subchapter.

(Pub. L. 93–262, title II, §219, formerly §218, Apr.

12, 1974, 88 Stat. 82; renumbered §219, Pub. L.

100–442, §5(a), Sept. 22, 1988, 102 Stat. 1764.)

§ 1499. Limitation on guarantee of debt issues;

approval of bond issue sale

(a) The Secretary may guarantee not to exceed 90 percent of the unpaid principal and interest due on an issue of bonds, debentures, or

similar obligations issued by an organization

satisfactory to the Secretary. Such an issue

shall be deemed a loan for purposes of sections

1482, 1483, 1484, 1485, 1486, 1489, 1490, 1491, 1493,

1494, 1495, 1496, and 1497 of this title.

(b) The method by which an issue of bonds

guaranteed under this section may be sold shall

be subject to approval by the Secretary.

(Pub. L. 93–262, title II, §220, as added Pub. L.

100–442, §6, Sept. 22, 1988, 102 Stat. 1764.)

SUBCHAPTER III—INTEREST SUBSIDIES

AND ADMINISTRATIVE EXPENSES

§ 1511. Interest subsidies; rules and regulations

The Secretary is authorized under such rules

and regulations as he may prescribe to pay as an

interest subsidy on loans which are guaranteed

or insured under the provisions of subchapter II

of this chapter amounts which are necessary to

reduce the rate payable by the borrower to the

rate determined under section 1464 of this title.

(Pub. L. 93–262, title III, §301, Apr. 12, 1974, 88

Stat. 82.)

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1461 of this title.

§ 1512. Authorization of appropriations for interest payments

There are authorized to be appropriated for

fiscal year 1985, and for each fiscal year thereafter, an amount which does not exceed

$5,500,000 for purposes of making interest payments authorized under this subchapter. Sums

appropriated under this section, shall remain

available until expended.

(Pub. L. 93–262, title III, §302, Apr. 12, 1974, 88

Stat. 82; Pub. L. 98–449, §8, Oct. 4, 1984, 98 Stat.

1725.)

AMENDMENTS

1984—Pub. L. 98–449 amended section generally, substituting provisions authorizing appropriations for payment of interest under this subchapter for provisions

authorizing appropriations for the Indian Loan Guarantee and Insurance Fund, interest subsidies and administrative expenses.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1543 of this title.

SUBCHAPTER IV—INDIAN BUSINESS

GRANTS

SUBCHAPTER REFERRED TO IN OTHER SECTIONS

This subchapter is referred to in section 1541 of this

title.

§ 1521. Indian Business Development Program;

establishment; statement of purpose

There is established within the Department of

the Interior the Indian Business Development

Program whose purpose is to stimulate and increase Indian entrepreneurship and employment

by providing equity capital through nonreimbursable grants made by the Secretary of the Interior to Indians and Indian tribes to establish

and expand profit-making Indian-owned economic enterprises on or near reservations.

(Pub. L. 93–262, title IV, §401, Apr. 12, 1974, 88

Stat. 82.)

§ 1522. Conditions

(a) Limitation of amount

No grant in excess of $100,000 in the case of an

Indian and $250,000 in the case of an Indian tribe,

or such lower amount as the Secretary may determine to be appropriate, may be made under

this subchapter.

(b) Financing from other sources; inability to obtain funds; applicant’s financial resources

A grant may be made only to an applicant

who, in the opinion of the Secretary, is unable

to obtain adequate financing for its economic

enterprise from other sources: Provided, That

prior to making any grant under this subchapter, the Secretary shall assure that, where

practical, the applicant has reasonably made

available for the economic enterprise funds from

the applicant’s own financial resources.

(c) Percentage requirement

No grant may be made to an applicant who is

unable to obtain at least 60 per centum of the

necessary funds for the economic enterprise

from other sources.

(Pub. L. 93–262, title IV, §402, Apr. 12, 1974, 88

Stat. 83; Pub. L. 98–449, §9, Oct. 4, 1984, 98 Stat.

1725.)

AMENDMENTS

1984—Subsec. (a). Pub. L. 98–449 amended subsec. (a)

generally, substituting provisions setting forth different levels of maximum grant amounts in cases of Indians and Indian tribes for provisions providing a maximum of $50,000 in cases of both Indians and Indian

tribes.

§ 1523. Authorization of appropriations

There are authorized to be appropriated not to

exceed the sum of $10,000,000 per year for fiscal

year 1986 and each fiscal year thereafter for the

purposes of this subchapter.

(Pub. L. 93–262, title IV, §403, Apr. 12, 1974, 88

Stat. 83; Pub. L. 95–68, July 20, 1977, 91 Stat. 272;

Pub. L. 98–449, §10, Oct. 4, 1984, 98 Stat. 1726.)

AMENDMENTS

1984—Pub. L. 98–449 amended section generally, substituting ‘‘$10,000,000’’ for ‘‘$14,000,000’’ and ‘‘1986 and

each fiscal year thereafter’’ for ‘‘1978 and 1979’’.