Collapse to view only § 4193. Payment of interest
- § 4191. Authority and requirements
- § 4192. Security and repayment
- § 4193. Payment of interest
- § 4194. Training and information
- § 4195. Limitations on amount of guarantees
- § 4196. Demonstration program for guaranteed loans to finance tribal community and economic development activities
§ 4191. Authority and requirements
(a) Authority
(b) Terms of loans
(c) Limitation on outstanding guarantees
(d) Limitation on percentage
(Pub. L. 104–330, title VI, § 601, Oct. 26, 1996, 110 Stat. 4046; Pub. L. 107–292, § 7, Nov. 13, 2002, 116 Stat. 2054; Pub. L. 108–393, § 2, Oct. 30, 2004, 118 Stat. 2246.)
§ 4192. Security and repayment
(a) Requirements on issuer
To assure the repayment of notes or other obligations and charges incurred under this subchapter and as a condition for receiving such guarantees, the Secretary shall require the Indian tribe or housing entity issuing such notes or obligations to—
(1) enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this subchapter;
(2) pledge any grant for which the issuer may become eligible under this chapter;
(3) demonstrate that the extent of such issuance and guarantee under this subchapter is within the financial capacity of the tribe and is not likely to impair the ability to use grant amounts under subchapter I, taking into consideration the requirements under section 4133(b) of this title; and
(4) furnish, at the discretion of the Secretary, such other security as may be deemed appropriate by the Secretary in making such guarantees, including increments in local tax receipts generated by the activities assisted under this chapter or disposition proceeds from the sale of land or rehabilitated property.
(b) Repayment from grant amounts
Notwithstanding any other provision of this chapter—
(1) the Secretary may apply grants pledged pursuant to subsection (a)(2) to any repayments due the United States as a result of such guarantees; and
(2) grants allocated under this chapter for an Indian tribe or housing entity (including program income derived therefrom) may be used to pay principal and interest due (including such servicing, underwriting, and other costs as may be specified in regulations issued by the Secretary) on notes or other obligations guaranteed pursuant to this subchapter.
(c) Full faith and credit
(Pub. L. 104–330, title VI, § 602, Oct. 26, 1996, 110 Stat. 4046.)
§ 4193. Payment of interest
The Secretary may make, and contract to make, grants, in such amounts as may be approved in appropriations Acts, to or on behalf of an Indian tribe or housing entity issuing notes or other obligations guaranteed under this subchapter, to cover not to exceed 30 percent of the net interest cost (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) to the borrowing entity or agency of such obligations. The Secretary may also, to the extent approved in appropriations Acts, assist the issuer of a note or other obligation guaranteed under this subchapter in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer.
(Pub. L. 104–330, title VI, § 603, Oct. 26, 1996, 110 Stat. 4047.)
§ 4194. Training and information
The Secretary, in cooperation with eligible public entities, shall carry out training and information activities with respect to the guarantee program under this subchapter.
(Pub. L. 104–330, title VI, § 604, Oct. 26, 1996, 110 Stat. 4047.)
§ 4195. Limitations on amount of guarantees
(a) Aggregate fiscal year limitation
(b) Authorization of appropriations for credit subsidy
(c) Aggregate outstanding limitation
(d) Fiscal year limitations on tribes
The Secretary shall monitor the use of guarantees under this subchapter by Indian tribes. If the Secretary finds that 50 percent of the aggregate guarantee authority under subsection (c) has been committed, the Secretary may—
(1) impose limitations on the amount of guarantees any one Indian tribe may receive in any fiscal year of $50,000,000; or
(2) request the enactment of legislation increasing the aggregate outstanding limitation on guarantees under this subchapter.
(Pub. L. 104–330, title VI, § 605, Oct. 26, 1996, 110 Stat. 4047; Pub. L. 107–292, § 2(b), Nov. 13, 2002, 116 Stat. 2053; Pub. L. 110–411, title VII, § 701(b), Oct. 14, 2008, 122 Stat. 4334.)
§ 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.)