§ 493. — Reduction of unpaid principal.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 25USC493]
TITLE 25--INDIANS
CHAPTER 14--MISCELLANEOUS
SUBCHAPTER V--PROTECTION OF INDIANS AND CONSERVATION OF RESOURCES
Sec. 493. 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 488 to 494 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
Current fair market value under subsection (a) of this section
shall be determined through an appraisal by an independent qualified
fee appraiser, selected by mutual agreement between the borrower and
the Secretary of Agriculture.
(2) Costs
The cost of appraisals undertaken under paragraph (1) shall be
paid by the borrower.
(c) Appeals
Decisions of the Secretary of Agriculture under this section shall
be appealable in accordance with the provisions of section 333B \1\ of
the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b).
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\1\ See References in Text note below.
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(d) Future applications
A borrower that had a loan or loans reduced under this section shall
not submit an application for another reduction on such loan or loans
for a period of 5 years after the initial reduction.
(Pub. L. 91-229, Sec. 6, as added Pub. L. 101-82, title III, Sec. 303,
Aug. 14, 1989, 103 Stat. 583.)
References in Text
Section 333B of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983b), referred to in subsec. (c), was repealed by Pub. L. 103-
354, title II, Sec. 281(c), Oct. 13, 1994, 108 Stat. 3233.
Codification
Another section 6 of Pub. L. 91-229 was added by Pub. L. 101-624,
title XVIII, Sec. 1854(b), Nov. 28, 1990, 104 Stat. 3837, and is
classified to section 494 of this title.
Section Referred to in Other Sections
This section is referred to in sections 488, 489, 490, 491, 492, 494
of this title; title 7 section 1985.
