25 USC 4196 - Demonstration program for guaranteed loans to finance tribal community and economic development activities

U.S Code last checked for updates: Nov 22, 2024

§ 4196.

Demonstration program for guaranteed loans to finance tribal community and economic development activities

(a)

Authority

(1)

In general

(2)

Limitation

(b)

Low-income benefit requirement

(c)

Financial soundness

(1)

In general

(2)

Amounts of fees

(d)

Terms of obligations

(1)

In general

(2)

Limitation

The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless—

(A)

the period is more than 20 years; or

(B)

the Secretary determines that the period would cause the guarantee to constitute an unacceptable financial risk.

(e)

Limitation on percentage

(f)

Security and repayment

(1)

Requirements on issuer

To ensure the repayment of notes and other obligations and charges incurred under this section and as a condition for receiving the guarantees, the Secretary shall require the Indian tribe or housing entity issuing the notes or obligations—

(A)

to enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this section;

(B)

to demonstrate that the extent of each issuance and guarantee under this section is within the financial capacity of the Indian tribe; and

(C)

to furnish, at the discretion of the Secretary, such security as the Secretary determines to be appropriate in making the guarantees, including increments in local tax receipts generated by the activities assisted by a guarantee under this section or disposition proceeds from the sale of land or rehabilitated property, except that the security may not include any grant amounts received or for which the issuer may be eligible under subchapter I.

(2)

Full faith and credit

(A)

In general

(B)

Treatment of guarantees

(i)

In general

(ii)

Incontestable nature

(g)

Training and information

(h)

Limitations on amount of guarantees

(1)

Aggregate fiscal year limitation

(2)

Authorization of appropriations for credit subsidy

(3)

Aggregate outstanding limitation

(4)

Fiscal year limitations on Indian tribes

(A)

In general

(B)

Modifications

If the Secretary determines that 50 percent of the aggregate guarantee authority under paragraph (3) has been committed, the Secretary may—

(i)

impose limitations on the amount of guarantees pursuant to this section that any single Indian tribe may receive in any fiscal year of $25,000,000; or

(ii)

request the enactment of legislation increasing the aggregate outstanding limitation on guarantees under this section.

(i)

Report

Not later than 4 years after October 14, 2008, the Secretary shall submit to Congress a report describing the use of the authority under this section by Indian tribes and tribally designated housing entities, including—

(1)

an identification of the extent of the use and the types of projects and activities financed using that authority; and

(2)

an analysis of the effectiveness of the use in carrying out the purposes of this section.

(j)

Termination

(Pub. L. 104–330, title VI, § 606, as added Pub. L. 110–411, title VI, § 601(a), Oct. 14, 2008, 122 Stat. 4331.)

cite as: 25 USC 4196