25 USC 5142 - Reduction of unpaid principal

U.S Code last checked for updates: Oct 19, 2024

§ 5142.

Reduction of unpaid principal

(a)

In general

The Secretary of Agriculture may, on the application of the borrower of a loan or loans made under sections 5136 to 5143 of this title, reduce the unpaid principal balance of such loan or loans to the current fair market value of the land purchased with the proceeds of the loan or loans if—

(1)

the fair market value of the land has declined by at least 25 percent since such land was purchased by the borrower;

(2)

the land has been held by the borrower for a period of at least 5 years; and

(3)

the Secretary of the Interior finds that the borrower has insufficient income to both repay the loan or loans and provide normal tribal governmental services.

(b)

Fair market value

(1)

Appraisal

(2)

Costs

(c)

Appeals

(d)

Future applications

(Pub. L. 91–229, § 6, as added Pub. L. 101–82, title III, § 303, Aug. 14, 1989, 103 Stat. 583.)

cite as: 25 USC 5142