Page 411 TITLE 25—INDIANS § 1492

§ 1486. Loans ineligible for guaranty or insurance

Loans made by any agency or instrumentality

of the Federal Government, or by an organization of Indians from funds borrowed from the

United States, and loans the interest on which is

not included in gross income for the purposes of

chapter 1 of title 26 shall not be eligible for

guaranty or insurance hereunder.

(Pub. L. 93–262, title II, §206, Apr. 12, 1974, 88

Stat. 80; Pub. L. 99–514, §2, Oct. 22, 1986, 100 Stat.

2095.)

AMENDMENTS

1986—Pub. L. 99–514 substituted ‘‘Internal Revenue

Code of 1986’’ for ‘‘Internal Revenue Code of 1954’’,

which for purposes of codification was translated as

‘‘title 26’’ thus requiring no change in text.

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 1488, 1499 of this

title.

§ 1487. Loans eligible for insurance

Any loans insured hereunder shall be restricted to those made by a financial institution

subject to examination and supervision by an

agency of the United States, a State, or the District of Columbia, and to loans made by Indian

organizations from their own funds to other

tribes or organizations of Indians.

(Pub. L. 93–262, title II, §207, Apr. 12, 1974, 88

Stat. 80.)

§ 1488. Lenders authorized to make loans; decrease or increase of liability under the guaranty

Loans guaranteed hereunder may be made by

any lender satisfactory to the Secretary, except

as provided in section 1486 of this title. The liability under the guaranty shall decrease or increase pro rata with any decrease or increase in

the unpaid portion of the obligation.

(Pub. L. 93–262, title II, §208, Apr. 12, 1974, 88

Stat. 80.)

§ 1489. Loans made by certain financial institutions without regard to limitations and restrictions of other Federal statutes with respect to certain particulars

Any loan made by any national bank or Federal savings and loan association, or by any

bank, trust company, building and loan association, or insurance company authorized to do

business in the District of Columbia, at least 20

per centum of which is guaranteed hereunder,

may be made without regard to the limitations

and restrictions of any other Federal statute

with respect to (a) ratio of amount of loan to the

value of the property; (b) maturity of loans; (c)

requirement of mortgage or other security; (d)

priority of lien; or (e) percentage of assets which

may be invested in real estate loans.

(Pub. L. 93–262, title II, §209, Apr. 12, 1974, 88

Stat. 80.)

SECTION REFERRED TO IN OTHER SECTIONS

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

§ 1490. Maturity of loans

The maturity of any loan guaranteed or insured hereunder shall not exceed thirty years.

(Pub. L. 93–262, title II, §210, Apr. 12, 1974, 88

Stat. 80.)

SECTION REFERRED TO IN OTHER SECTIONS

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

§ 1491. Defaults; written notification; pro rata

payments; subrogation and assignment

rights of Secretary; cancellation of uncollectable portion of obligations; forbearance for

benefit of borrower; interest or charges cessation date

In the event of a default of a loan guaranteed

hereunder, the holder of the guaranty certificate

may immediately notify the Secretary in writing of such default and the Secretary shall

thereupon pay to such holder the pro rata portion of the amount guaranteed and shall be subrogated to the rights of the holder of the guaranty and receive an assignment of the obligation and security. The Secretary may cancel the

uncollectable portion of any obligation, to

which he has an assignment or a subrogated

right under this section. Nothing in this section

shall be construed to preclude any forbearance

for the benefit of the borrower as may be agreed

upon by the parties to the loan and approved by

the Secretary. The Secretary may establish the

date, not later than the date of judgment and

decree of foreclosure or sale, upon which accrual

of interest or charges shall cease.

(Pub. L. 93–262, title II, §211, Apr. 12, 1974, 88

Stat. 80; Pub. L. 98–449, §6, Oct. 4, 1984, 98 Stat.

1725.)

AMENDMENTS

1984—Pub. L. 98–449 struck out proviso at end of second sentence which provided that proceedings pursuant

to this section shall be effective only after following

the procedure set out in section 386a of this title.

SECTION REFERRED TO IN OTHER SECTIONS

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

§ 1492. Claims for losses; submission to Secretary;

reimbursement: single and aggregate loss

limitations, conditions; assignment of note or

judgment; collection or cancellation by Secretary; interest or charges cessation date

When a lender suffers a loss on a loan insured

hereunder, including accrued interest, a claim

therefor shall be submitted to the Secretary. If

the Secretary finds that the loss has been suffered, he shall reimburse the lender therefor:

Provided, That the amount payable to the lender

for a loss on any one loan shall not exceed 90 per

centum of such loss: Provided further, That no

reimbursement may be made for losses in excess

of 15 per centum of the aggregate of insured

loans made by the lender: Provided further, That

before any reimbursement is made, all reasonable collection efforts shall have been exhausted

by the lender, and the security for the loan shall

have been liquidated to the extent feasible, and

the proceeds applied on the debt. Upon reimbursement, in whole or in part, to the lender,

the note or judgment evidencing the debt shall