512 
property is taken into inventory, the Sec-
retary shall accept the voluntary convey-
ance of the property only if the Secretary 
determines that the conveyance is in the 
best interests of the Federal Government. 
‘‘(E) FORECLOSURE PROCEDURES.— 
‘‘(i) NOTICE
TO
BORROWER.—If an 
Indian borrower-owner does not voluntarily 
convey to the Secretary real property de-
scribed in subparagraph (A), not less than 
30 days before a foreclosure sale of the 
property, the Secretary shall provide the 
Indian borrower-owner with the option 
of— 
‘‘(I) requiring the Secretary to 
assign the loan and security instru-
ments to the Secretary of the Interior, 
if the Secretary of the Interior agrees 
to an assignment releasing the Sec-
retary of Agriculture from all further 
responsibility for collection of any 
amounts with regard to the loan se-
cured by the real property; or 
‘‘(II) requiring the Secretary to 
assign the loan and security instru-
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513 
ments to the tribe having jurisdiction 
over the reservation in which the real 
property is located, if the tribe agrees 
to assume the loan under the terms 
specified in clause (iii). 
‘‘(ii) NOTICE TO TRIBE.—If an Indian 
borrower-owner does not voluntarily convey 
to the Secretary real property described in 
subparagraph (A), not less than 30 days 
before a foreclosure sale of the property, 
the Secretary shall provide written notice 
to the Indian tribe that has jurisdiction 
over the reservation in which the real prop-
erty is located of— 
‘‘(I) the sale; 
‘‘(II) the fair market value of the 
property; and 
‘‘(III) the requirements of this 
paragraph. 
‘‘(iii) ASSUMED LOANS.—If an Indian 
tribe assumes a loan under clause (i)— 
‘‘(I) the Secretary shall not fore-
close the loan because of any default 
that occurred prior to the date of the 
assumption; 
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514 
‘‘(II) the loan shall be for the 
lesser of the outstanding principal and 
interest of the loan or the fair market 
value of the property; and 
‘‘(III) the loan shall be treated as 
though the loan was made under Pub-
lic Law 91–229 (25 U.S.C. 488 et 
seq.). 
‘‘(F) AMOUNT OF BID BY SECRETARY.— 
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), at a foreclosure sale of 
real property described in subparagraph 
(A), the Secretary shall offer a bid for the 
property that is equal to the higher of— 
‘‘(I) the fair market value of the 
property; or 
‘‘(II) the outstanding principal 
and interest on the loan. 
‘‘(ii) HAZARDOUS SUBSTANCES.—If a 
hazardous substance (as defined in section 
101(14) of the Comprehensive Environ-
mental Response, Compensation, and Li-
ability Act of 1980 (42 U.S.C. 9601(14))) 
is located on the property and the Sec-
retary takes remedial action to protect 
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515 
human health or the environment if the 
property is taken into inventory, clause (i) 
shall apply only if the Secretary determines 
that bidding is in the best interests of the 
Federal Government. 
‘‘(4) DETRIMENTAL
EFFECT
ON
VALUE
OF 
AREA FARMLAND.—The Secretary shall not offer for 
sale or sell any farmland referred to in paragraphs 
(1) through (3) if placing the farmland on the mar-
ket will have a detrimental effect on the value of 
farmland in the area. 
‘‘(5) INSTALLMENT SALES AND MULTIPLE OP-
ERATORS.— 
‘‘(A) IN
GENERAL.—The Secretary may 
sell farmland administered under this subtitle 
through an installment sale or similar device 
that contains such terms as the Secretary con-
siders necessary to protect the investment of 
the Federal Government in the land. 
‘‘(B) SALE OF CONTRACT.—The Secretary 
may subsequently sell any contract entered into 
to carry out subparagraph (A). 
‘‘(6) HIGHLY ERODIBLE LAND.—In the case of 
farmland administered under this subtitle that is 
highly erodible land (as defined in section 1201 of 
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