§ 1491. — Defaults; written notification; pro rata payments; subrogation and assignment rights of Secretary; cancellation of uncollectable portion of obligations; forbearance for benefit of borrower; interest or charges cessation date.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 25USC1491]
TITLE 25--INDIANS
CHAPTER 17--FINANCING ECONOMIC DEVELOPMENT OF INDIANS AND INDIAN
ORGANIZATIONS
SUBCHAPTER II--LOAN GUARANTY AND INSURANCE
Sec. 1491. Defaults; written notification; pro rata payments;
subrogation and assignment rights of Secretary; cancellation of
uncollectable portion of obligations; forbearance for benefit of
borrower; interest or charges cessation date
In the event of a default of a loan guaranteed hereunder, the holder
of the guaranty certificate may immediately notify the Secretary in
writing of such default and the Secretary shall thereupon pay to such
holder the pro rata portion of the amount guaranteed and shall be
subrogated to the rights of the holder of the guaranty and receive an
assignment of the obligation and security. The Secretary may cancel the
uncollectable portion of any obligation, to which he has an assignment
or a subrogated right under this section. Nothing in this section shall
be construed to preclude any forbearance for the benefit of the borrower
as may be agreed upon by the parties to the loan and approved by the
Secretary. The Secretary may establish the date, not later than the date
of judgment and decree of foreclosure or sale, upon which accrual of
interest or charges shall cease.
(Pub. L. 93-262, title II, Sec. 211, Apr. 12, 1974, 88 Stat. 80; Pub. L.
98-449, Sec. 6, Oct. 4, 1984, 98 Stat. 1725.)
Amendments
1984--Pub. L. 98-449 struck out proviso at end of second sentence
which provided that proceedings pursuant to this section shall be
effective only after following the procedure set out in section 386a of
this title.
Section Referred to in Other Sections
This section is referred to in section 1499 of this title.
