109TH CONGRESS

1ST SESSION S. 1758

AN ACT

To amend the Indian Financing Act of 1974 to provide

for sale and assignment of loans and underlying security,

and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. LOAN GUARANTY AND INSURANCE.

2 (a) IN GENERAL.—Section 201 of the Indian Financ3 ing Act of 1974 (25 U.S.C. 1481) is amended—

4 (1) by striking ‘‘SEC. 201. In order’’ and insert5 ing the following:

6 ‘‘SEC. 201. LOAN GUARANTIES AND INSURANCE.

7 ‘‘(a) IN GENERAL.—In order’’;

8 (2) by striking ‘‘the Secretary is authorized (a)

9 to guarantee’’ and inserting ‘‘the Secretary may—

10 ‘‘(1) guarantee’’;

11 (3) by striking ‘‘members; and (b) in lieu of

12 such guaranty, to insure’’ and inserting ‘‘members;

13 or

14 ‘‘(2) insure’’; and

15 (4) by adding at the end the following:

16 ‘‘(b) ELIGIBLE BORROWERS.—The Secretary may

17 guarantee or insure loans under subsection (a) to both for18 profit and nonprofit borrowers.’’.

19 (b) SALE OR ASSIGNMENT OF LOANS AND UNDER20 LYING SECURITY.—Section 205 of the Indian Financing

21 Act of 1974 (25 U.S.C. 1485) is amended—

22 (1) by striking ‘‘SEC. 205.’’ and all that follows

23 through subsection (b) and inserting the following:
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1 ‘‘SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDER2 LYING SECURITY.

3 ‘‘(a) IN GENERAL.—All or any portion of a loan

4 guaranteed or insured under this title, including the secu5 rity given for the loan—

6 ‘‘(1) may be transferred by the lender by sale

7 or assignment to any person; and

8 ‘‘(2) may be retransferred by the transferee.

9 ‘‘(b) TRANSFERS OF LOANS.—With respect to a

10 transfer described in subsection (a)—

11 ‘‘(1) the transfer shall be consistent with such

12 regulations as the Secretary shall promulgate under

13 subsection (h); and

14 ‘‘(2) the transferee shall give notice of the

15 transfer to the Secretary.’’;

16 (2) by striking subsection (c);

17 (3) by redesignating subsections (d), (e), (f),

18 (g), (h), and (i) as subsections (c), (d), (e), (f), (g),

19 and (h), respectively;

20 (4) in subsection (c) (as redesignated by para21 graph (3)), by striking paragraph (2) and inserting

22 the following:

23 ‘‘(2) VALIDITY.—Except as provided in regula24 tions in effect on the date on which a loan is made,

25 the validity of a guarantee or insurance of a loan

26 under this title shall be incontestable.’’;
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1 (5) in subsection (e) (as redesignated by para2 graph (3))—

3 (A) by striking ‘‘The Secretary’’ and in4 serting the following:

5 ‘‘(1) IN GENERAL.—The Secretary’’; and

6 (B) by adding at the end the following:

7 ‘‘(2) COMPENSATION OF FISCAL TRANSFER

8 AGENT.—A fiscal transfer agent designated under

9 subsection (f) may be compensated through any of

10 the fees assessed under this section and any interest

11 earned on any funds or fees collected by the fiscal

12 transfer agent while the funds or fees are in the con13 trol of the fiscal transfer agent and before the time

14 at which the fiscal transfer agent is contractually re15 quired to transfer such funds to the Secretary or to

16 transferees or other holders.’’; and

17 (6) in subsection (f) (as redesignated by para18 graph (3))—

19 (A) by striking ‘‘subsection (i)’’ and insert20 ing ‘‘subsection (h)’’; and

21 (B) in paragraph (2)(B), by striking ‘‘,

22 and issuance of acknowledgments,’’.

23 (c) LOANS INELIGIBLE FOR GUARANTY OR INSUR24 ANCE.—Section 206 of the Indian Financing Act of 1974

25 (25 U.S.C. 1486) is amended by inserting ‘‘(not including
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1 an eligible Community Development Finance Institution)’’

2 after ‘‘Government’’.

3 (d) AGGREGATE LOANS OR SURETY BONDS LIMITA4 TION.—Section 217(b) of the Indian Financing Act of

5 1974 (25 U.S.C. 1497(b)) is amended by striking

6 ‘‘$500,000,000’’ and inserting ‘‘$1,500,000,000’’.

Passed the Senate September 22, 2005.

Attest:

Secretary.
109TH CONGRESS

1ST SESSION S. 1758

AN ACT

To amend the Indian Financing Act of 1974 to

derlying security, and for other purposes.provide for sale and assignment of loans and un-