I 
109TH CONGRESS 
2D SESSION 
H. R. 5780 
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 HOUSE OF REPRESENTATIVES 
JULY 12, 2006 
Mr. UDALL of Colorado introduced the following bill; which was referred to 
the Committee on Resources 
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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. LOAN GUARANTY AND INSURANCE. 
(a) IN GENERAL.—Section 201 of the Indian Financ-
ing Act of 1974 (25 U.S.C. 1481) is amended— 
(1) by striking ‘‘SEC. 201. In order’’ and in-
serting the following: 
‘‘SEC. 201. LOAN GUARANTIES AND INSURANCE. 
‘‘(a) IN GENERAL.—In order’’; 
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(2) by striking ‘‘the Secretary is authorized (a) 
to guarantee’’ and inserting ‘‘the Secretary may— 
‘‘(1) guarantee’’; 
(3) by striking ‘‘members; and (b) in lieu of 
such guaranty, to insure’’ and inserting ‘‘members; 
or 
‘‘(2) insure’’; and 
(4) by adding at the end the following: 
‘‘(b) ELIGIBLE BORROWERS.—The Secretary may 
guarantee or insure loans under subsection (a) to both for- 
profit and nonprofit borrowers.’’. 
(b) SALE OR ASSIGNMENT OF LOANS AND UNDER-
LYING SECURITY.—Section 205 of the Indian Financing 
Act of 1974 (25 U.S.C. 1485) is amended— 
(1) by striking ‘‘SEC. 205.’’ and all that follows 
through subsection (b) and inserting the following: 
‘‘SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDER-
LYING SECURITY. 
‘‘(a) IN GENERAL.—All or any portion of a loan 
guaranteed or insured under this title, including the secu-
rity given for the loan— 
‘‘(1) may be transferred by the lender by sale 
or assignment to any person; and 
‘‘(2) may be retransferred by the transferee. 
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‘‘(b) TRANSFERS
OF LOANS.—With respect to a 
transfer described in subsection (a)— 
‘‘(1) the transfer shall be consistent with such 
regulations as the Secretary shall promulgate under 
subsection (h); and 
‘‘(2) the transferee shall give notice of the 
transfer to the Secretary.’’; 
(2) by striking subsection (c); 
(3) by redesignating subsections (d), (e), (f), 
(g), (h), and (i) as subsections (c), (d), (e), (f), (g), 
and (h), respectively; 
(4) in subsection (c) (as redesignated by para-
graph (3)), by striking paragraph (2) and inserting 
the following: 
‘‘(2) VALIDITY.—Except as provided in regula-
tions in effect on the date on which a loan is made, 
the validity of a guarantee or insurance of a loan 
under this title shall be incontestable.’’; 
(5) in subsection (e) (as redesignated by para-
graph (3))— 
(A) by striking ‘‘The Secretary’’ and in-
serting the following: 
‘‘(1) IN GENERAL.—The Secretary’’; and 
(B) by adding at the end the following: 
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‘‘(2) COMPENSATION
OF
FISCAL
TRANSFER 
AGENT.—A fiscal transfer agent designated under 
subsection (f) may be compensated through any of 
the fees assessed under this section and any interest 
earned on any funds or fees collected by the fiscal 
transfer agent while the funds or fees are in the con-
trol of the fiscal transfer agent and before the time 
at which the fiscal transfer agent is contractually re-
quired to transfer such funds to the Secretary or to 
transferees or other holders.’’; and 
(6) in subsection (f) (as redesignated by para-
graph (3))— 
(A) by striking ‘‘subsection (i)’’ and insert-
ing ‘‘subsection (h)’’; and 
(B) in paragraph (2)(B), by striking ‘‘, 
and issuance of acknowledgments,’’. 
(c) LOANS INELIGIBLE FOR GUARANTY OR INSUR-
ANCE.—Section 206 of the Indian Financing Act of 1974 
(25 U.S.C. 1486) is amended by inserting ‘‘(not including 
an eligible Community Development Finance Institution)’’ 
after ‘‘Government’’. 
(d) AGGREGATE LOANS OR SURETY BONDS LIMITA-
TION.—Section 217(b) of the Indian Financing Act of 
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1974 (25 U.S.C. 1497(b)) is amended by striking 
‘‘$500,000,000’’ and inserting ‘‘$1,500,000,000’’. 
Æ 
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