II 

109TH CONGRESS 

1ST SESSION S. 1758 

To amend the Indian Financing Act of 1974 to provide for sale and 

assignment of loans and underlying security, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 22, 2005 

Mr. MCCAIN (for himself and Mr. DORGAN) introduced the following bill; 

which was read twice, considered, read the third time, and passed 

A BILL 

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, 

3 SECTION 1. LOAN GUARANTY AND INSURANCE. 

4 (a) IN GENERAL.—Section 201 of the Indian Financ5 ing Act of 1974 (25 U.S.C. 1481) is amended— 

6 (1) by striking ‘‘SEC. 201. In order’’ and insert7 ing the following: 

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

9 ‘‘(a) IN GENERAL.—In order’’; 
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1 (2) by striking ‘‘the Secretary is authorized (a) 

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

3 ‘‘(1) guarantee’’; 

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

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

6 or 

7 ‘‘(2) insure’’; and 

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

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

10 guarantee or insure loans under subsection (a) to both for11 profit and nonprofit borrowers.’’. 

12 (b) SALE OR ASSIGNMENT OF LOANS AND UNDER13 LYING SECURITY.—Section 205 of the Indian Financing 

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

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

16 through subsection (b) and inserting the following: 

17 ‘‘SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDER18 LYING SECURITY. 

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

20 guaranteed or insured under this title, including the secu21 rity given for the loan— 

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

23 or assignment to any person; and 

24 ‘‘(2) may be retransferred by the transferee. 
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1 ‘‘(b) TRANSFERS OF LOANS.—With respect to a 

2 transfer described in subsection (a)— 

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

4 regulations as the Secretary shall promulgate under 

5 subsection (h); and 

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

7 transfer to the Secretary.’’; 

8 (2) by striking subsection (c); 

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

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

11 and (h), respectively; 

12 (4) in subsection (c) (as redesignated by para13 graph (3)), by striking paragraph (2) and inserting 

14 the following: 

15 ‘‘(2) VALIDITY.—Except as provided in regula16 tions in effect on the date on which a loan is made, 

17 the validity of a guarantee or insurance of a loan 

18 under this title shall be incontestable.’’; 

19 (5) in subsection (e) (as redesignated by para20 graph (3))— 

21 (A) by striking ‘‘The Secretary’’ and in22 serting the following: 

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

24 (B) by adding at the end the following: 
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1 ‘‘(2) COMPENSATION OF FISCAL TRANSFER

2 AGENT.—A fiscal transfer agent designated under 

3 subsection (f) may be compensated through any of 

4 the fees assessed under this section and any interest 

5 earned on any funds or fees collected by the fiscal 

6 transfer agent while the funds or fees are in the con7 trol of the fiscal transfer agent and before the time 

8 at which the fiscal transfer agent is contractually re9 quired to transfer such funds to the Secretary or to 

10 transferees or other holders.’’; and 

11 (6) in subsection (f) (as redesignated by para12 graph (3))— 

13 (A) by striking ‘‘subsection (i)’’ and insert14 ing ‘‘subsection (h)’’; and 

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

16 and issuance of acknowledgments,’’. 

17 (c) LOANS INELIGIBLE FOR GUARANTY OR INSUR18 ANCE.—Section 206 of the Indian Financing Act of 1974 

19 (25 U.S.C. 1486) is amended by inserting ‘‘(not including 

20 an eligible Community Development Finance Institution)’’ 

21 after ‘‘Government’’. 

22 (d) AGGREGATE LOANS OR SURETY BONDS LIMITA23 TION.—Section 217(b) of the Indian Financing Act of 
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1 1974 (25 U.S.C. 1497(b)) is amended by striking 

2 ‘‘$500,000,000’’ and inserting ‘‘$1,500,000,000’’. 

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