A bill to amend the Indian Financing Act of 1974, and for other purposes.
PL 100-442 (S.1360), enacted 09/22/1988

PUBLIC LAW 100-442—SEPT. 22, 1988 
102 STAT. 1763 
Public Law 100-442 
100th Congress 
An Act 
To amend the Indian Financing Act of 1974, and for other purposes. 
Sept. 22, 1988 
[S. 1360] 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
Small business. 
Securities. 
LIMITATIONS ON AMOUNT OF LOANS TO INDIVIDUAL INDIANS OR 
ECONOMIC ENTERPRISES 
SECTION 1. Section 204 of the Indian Financing Act of 1974 (25 
U.S.C. 1484) is amended by striking out "$350,000" and inserting in 
lieu thereof "$500,000". 
ASSIGNMENT OF LOANS 
SEC. 2. Section 205 of the Indian Financing Act of 1974 (25 U.S.C. 
1485) is amended to read as follows: 
"SEC. 205. Any loan guaranteed under this title, including the 
security given for such loan, may be sold or assigned by the lender to 
any person.". 
AGGREGATE LOANS LIMITATION 
SEC. 3. Section 217 of the Indian Financing Act of 1974 (25 U.S.C. 
1497) is amended by striking out "$200,000,000" in subsection (b) and 
inserting in lieu thereof "$500,000,000". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 4. (a) The last sentence of subsection (e) of section 217 of the 
Indian Financing Act of 1974 (25 U.S.C. 1497(e)) is amended to read 
as follows: "All collections and all moneys appropriated pursuant to 
the authority of this subsection shall remain available until 
expended.". 
(b) Section 217 of the Indian Financing Act of 1974 is amended by 
adding at the end thereof the following new subsection: 
"(f) If the Secretary determines that the amount in the fund is not 
sufficient to maintain an adequate level of reserves necessary to 
meet the responsibilities of the fund in connection with losses on 
loans or surety bonds guaranteed or insured under this title, the 
Secretary shall promptly submit a report notifying Congress of 
the deficiencies in the fund.". 
(c) Any new credit authority (as defined in section 3 of the 
Congressional Budget and Impoundment Control Act of 1974) which 
is provided by amendments made by this Act shall be effective only 
to such extent and in such amounts as may be approved in advance 
in appropriation Acts. 
Reports. 
25 u s e 1497 
note. 
102 STAT. 1764 
PUBLIC LAW 100-442—SEPT. 22, 1988 
SUPPLEMENTAL SURETY BOND GUARANTEE 
SEC. 5. (a) The Indian Financing Act of 1974 is amended by 
25 use 1498. 
redesignating section 218 as section 219 and inserting the following 
new section 218: 
25 use 1497a. 
"SEC. 218. (a) The Secretary is authorized to provide a supple-
mental surety bond guarantee, not to exceed 20 percent of any loss, 
for any Indian individual or economic enterprise eligible for a surety 
guarantee under section 411 of the Small Business Investment Act 
of 1958, as amended (15 U.S.C. 661, 694b), so that the aggregate of 
the two guarantees is 100 percent. 
"(h) The Secretary may provide a supplemental guarantee under 
this section only if the Secretary determines that— 
"(1) the Indian individual or economic enterprise has secured 
or will likely secure a surety bond guarantee under section 411 
of the Small Business Investment Act of 1958, as amended; 
"(2) the supplemental guarantee is necessary for the Indian 
individual or economic enterprise to secure a surety bond; 
"(3) no more than 25 percent of the surety's business is 
comprised of bonds guaranteed pursuant to this section; and 
"(4) the surety will provide appropriate technical assistance 
and advice to, and monitor the performance of, the Indian 
individual or economic enterprise for the prevention or mitiga-
tion of a loss. 
Regulations. 
"(c) The rules and regulations promulgated by the Secretary to 
carry out this section shall include the setting of reasonable fees to 
be paid by the Indian individual or economic enterprise and reason-
able premium charges to be paid by sureties. In setting fees and 
charges, the Secretary may take into consideration the cost to the 
surety of providing the services required by paragraph (4) of subsec-
tion (b). The receipts from the fees and charges shall be deposited in 
the Fund established by section 217(a) of this Act.". 
25 use 1452. 
Qa) Section 3 of the Indian Financing Act of 1974 is amended by 
adding the following new paragraphs (h) and (i) at the end thereof: 
"(h) 'Surety' has the same meaning as in section 410 of the Small 
Business Investment Act of 1958, as amended (15 U.S.C. 661, 694a). 
"(i) 'Surety Bond' means a bid bond, payment bond, or perform-
ance bond as those terms are defined in section 410 of the Small 
Business Investment Act of 1958, as amended (15 U.S.C. 661, 694a).". 
25 use 1496. 
(c) Section 216 of the Indian Financing Act of 1974 is amended by: 
(1) striking the phrase "of loans" in the first sentence and 
inserting, in lieu thereof, the phrase "of loans and surety 
bonds"; 
(2) striking the phrase "a loan" in paragraph (b) and insert-
ing, in lieu thereof, the phrase "a loan or surety bond"; and 
(3) striking the phrase "any loan" in paragraph (c) and insert-
ing, in lieu thereof, the phrase "any loan or surety bond". 
25 use 1497. 
(d) Section 217 of the Indian Financing Act of 1974 is amended by 
striking the word "loans" each time it appears and inserting, in lieu 
thereof, the phrase "loans or surety bonds". 
SEC. 6. The Indian Financing Act of 1974 is amended by adding the 
following new section at the end of title II: 
25 use 1499. 
"SEC. 220. (a) The Secretary may guarantee not to exceed 90 
percent of the unpaid principal and interest due on an issue of 
bonds, debentures, or similar obligations issued by an organization 
satisfactory to the Secretary. Such an issue shall be deemed a loan 
PUBLIC LAW 100-442—SEPT. 22, 1988 
102 STAT. 1765 
for purposes of sections 202, 203, 204, 205, 206, 209, 210, 211, 218, 214, 
215, 216, and 217 of this Act. 
"(b) The method by which an issue of bonds guaranteed under this 
section may be sold shall be subject to approval by the Secretary.". 
SEC. 7. The Indian Financing Act of 1974 is amended by adding a 
new section 504 as follows: 
"SEC. 504. Notwithstanding any other provision of law, a contrac- Contracts, 
tor of a Federal agency under any Act of Congress may be allowed 
25 USC 1544. 
an additional amount of compensation equal to 5 percent of the 
amount paid, or to be paid, to a subcontractor or supplier, in 
carrying out the contract if such subcontractor or supplier is an 
Indian organization or Indian-owned economic enterprise as defined 
in this Act.". 
Approved September 22, 1988. 
" 
LEGISLATIVE HISTORY—S. 1360: 
HOUSE REPORTS: No. 100-838 (Comm. on Interior and Insular Affairs). 
SENATE REPORTS: No. 100-149 (Select Comm. on Indian Affairs). 
CONGRESSIONAL RECORD: 
Vol. 133 (1987): Nov. 5. considered and passed Senate. 
Nov. 17, passage vitiated; reconsidered and passed Senate. 
Vol. 134 (1988): Aug. 8, considered and passed House, amended. 
Sept. 9, Senate concurred in House amendments.