§ 1492. — Claims for losses; submission to Secretary; reimbursement: single and aggregate loss limitations, conditions; assignment of note or judgment; collection or cancellation by Secretary; 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: 25USC1492]
TITLE 25--INDIANS
CHAPTER 17--FINANCING ECONOMIC DEVELOPMENT OF INDIANS AND INDIAN
ORGANIZATIONS
SUBCHAPTER II--LOAN GUARANTY AND INSURANCE
Sec. 1492. Claims for losses; submission to Secretary;
reimbursement: single and aggregate loss limitations,
conditions; assignment of note or judgment; collection or
cancellation by Secretary; interest or charges cessation date
When a lender suffers a loss on a loan insured hereunder, including
accrued interest, a claim therefor shall be submitted to the Secretary.
If the Secretary finds that the loss has been suffered, he shall
reimburse the lender therefor: Provided, That the amount payable to the
lender for a loss on any one loan shall not exceed 90 per centum of such
loss: Provided further, That no reimbursement may be made for losses in
excess of 15 per centum of the aggregate of insured loans made by the
lender: Provided further, That before any reimbursement is made, all
reasonable collection efforts shall have been exhausted by the lender,
and the security for the loan shall have been liquidated to the extent
feasible, and the proceeds applied on the debt. Upon reimbursement, in
whole or in part, to the lender, the note or judgment evidencing the
debt shall be assigned to the United States, and the lender shall have
no further claim against the borrower or the United States. The
Secretary shall then take such further collection action as may be
warranted, or may cancel the uncollectable portion of any debt assigned
pursuant hereto. The Secretary may establish a date upon which accrual
of interest or charges shall cease.
(Pub. L. 93-262, title II, Sec. 212, Apr. 12, 1974, 88 Stat. 80.)
