§ 1485. Sale or assignment of loans and underlying security

Footnotes

1. 1 See References in Text note below.

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1974

   Indian Financing Act of 1974

   Pub. L. 93–262 title II § 205 · [88 Stat. 77]

   Enacted · 25 U.S.C. § 1485

   Pub. L. 93–262, title II, § 205, Apr. 12, 1974, 88 Stat. 80

   Source evidence

   Code source credit
   Pub. L. 93–262, title II, § 205, Apr. 12, 1974, 88 Stat. 80

   Enacted provision · exact public law section
   Sec. 205. Any loan guaranteed hereunder, including the security given therefor, may be sold or assigned by the lender to any financial institution subject to examination and supervision by an agency of the United States or of any State or the District of Columbia.

2. 1988

   Pub. L. 100–442 § 2 · 102 Stat. 1763

   Amended · 25 U.S.C. § 1485

   Pub. L. 100–442 amended section generally. Prior to amendment, section read as follows: “Any loan guaranteed hereunder, including the security given therefor, may be sold or assigned by the lender to any financial institution subject to examination and supervision by an agency of the United States or of any State or the District of Columbia.”

   Source evidence

   Code amendment note
   Pub. L. 100–442 amended section generally. Prior to amendment, section read as follows: “Any loan guaranteed hereunder, including the security given therefor, may be sold or assigned by the lender to any financial institution subject to examination and supervision by an agency of the United States or of any State or the District of Columbia.”

   Enacted provision · exact public law section
   Sec. 2. assignment of loans Section 205 of the Indian Financing Act of 197 4 (25 U.S.C. 1485) is amended to read as follows: “Sec. 205. Any loan guaranteed under this title, including the security given for such loan, may be sold or assigned by the lender to any person.”.

3. 2002

   Pub. L. 107–331 title I § 103(b) · 116 Stat. 2834

   1. Amended · 25 U.S.C. § 1485

      Pub. L. 107–331 designated existing provisions as subsec. (a)

   2. Inserted · 25 U.S.C. § 1485

      Pub. L. 107–331 inserted heading

   3. Substituted · 25 U.S.C. § 1485

      Pub. L. 107–331 substituted “Any loan guaranteed or insured” for “Any loan guaranteed”

   4. Added · 25 U.S.C. § 1485

      Pub. L. 107–331 added subsecs. (b) to (i)

   Source evidence

   Code amendment note
   Pub. L. 107–331 designated existing provisions as subsec. (a), inserted heading and substituted “Any loan guaranteed or insured” for “Any loan guaranteed”, and added subsecs. (b) to (i).

   Enacted provision · exact public law section
   (b) Sale or Assignment of Loans and Underlying Security.— Section 205 of the Indian Financing Act of 1974 (25 U.S.C. 1485) is amended— (1) by striking “Any loan guaranteed” and inserting the following: “(a) In General.— Any loan guaranteed or insured”; and (2) by adding at the end the following: “(b) Initial Transfers.— “(1) In general.— The lender of a loan guaranteed or insured under this title may transfer to any individual or legal entity— “(A) all rights and obligations of the lender in the loan or in the unguaranteed or uninsured portion of the loan; and “(B) any security given for the loan. “(2) Additional requirements.— With respect to a transfer described in paragraph (1)— “(A) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (i); and “(B) the lender shall give notice of the transfer to the Secretary. “(3) Responsibilities of transferee.— On any transfer under paragraph (1), the transferee shall— “(A) be deemed to be the lender for the purpose of this title; “(B) become the secured party of record; and “(C) be responsible for— “(i) performing the duties of the lender; and “(ii) servicing the loan in accordance with the terms of the guarantee by the Secretary of the loan. “(c) Secondary Transfers.— “(1) In general.— Any transferee under subsection (b) of a loan guaranteed or insured under this title may transfer to any individual or legal entity— “(A) all rights and obligations of the transferee in the loan or in the unguaranteed or uninsured portion of the loan; and “(B) any security given for the loan. “(2) Additional requirements.— With respect to a transfer described in paragraph (1)— “(A) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (i); and “(B) the transferor shall give notice of the transfer to the Secretary. “(3) Acknowledgment by secretary.— On receipt of a notice of a transfer under paragraph (2XB), the Secretary shall issue to the transferee an acknowledgment by the Secretary of— “(A) the transfer; and “(B) the interest of the transferee in the guaranteed or insured portion of the loan. “(4) Responsibilities of lender.— Notwithstanding any transfer permitted by this subsection, the lender shall— “(A) remain obligated on the guarantee agreement or insurance agreement between the lender and the Secretary; “(B) continue to be responsible for servicing the loan in a manner consistent with that guarantee agreement or insurance agreement; and “(C) remain the secured creditor of record. “(d) Full Faith and Credit.— “(1) In general.— The full faith and credit of the United States is pledged to the payment of all loan guarantees and loan insurance made under this title after the date of enactment of this subsection. “(2) Validity.— “(A) In general.— Except as provided in subparagraph (B), the validity of a guarantee or insurance of a loan under this title shall be incontestable if the obligations of the guarantee or insurance held by a transferee have been acknowledged under subsection (c)(3). “(B) Exception for fraud or misrepresentation.— Subparagraph (A) shall not apply in a case in which a transferee has actual knowledge of fraud or misrepresentation, or participates in or condones fraud or misrepresentation, in connection with a loan. “(e) Damages.— Notwithstanding section 3302 of title 31, United States Code, the Secretary may recover from a lender of a loan under this title any damages suffered by the Secretary as a result of a material breach of the obligations of the lender with respect to a guarantee or insurance by the Secretary of the loan. “(f) Fees.— The Secretary may collect a fee for any loan or guaranteed or insured portion of a loan that is transferred in accordance with this section. “(g) Central Registration of Loans.— On promulgation of final regulations under subsection (i), the Secretary shall— “(1) provide for a central registration of all guaranteed or insured loans transferred under this section; and “(2) enter into 1 or more contracts with a fiscal transfer agent— “(A) to act as the designee of the Secretary under this section; and “(B) to carry out on behalf of the Secretary the central registration and fiscal transfer agent functions, and issuance of acknowledgments, under this section. “(h) Pooling of Loans.— “(1) In general.— Nothing in this title prohibits the pooling of whole loans or interests in loans transferred under this section. “(2) Regulations.— In promulgating regulations under subsection (i), the Secretary may include such regulations to effect orderly and efficient pooling procedures as the Secretary determines to be necessary. “(i) Regulations.— Deadline. Not later than 180 days after the date of enactment of this subsection, the Secretary shall develop such procedures and promulgate such regulations as are necessary to facilitate, administer, and promote transfers of loans and guaranteed and insured portions of loans under this section.”.

4. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(1) · 120 Stat. 336

   Inserted · 25 U.S.C. § 1485

   Pub. L. 109–221, § 401(b)(1), inserted section catchline

   Source evidence

   Code amendment note
   Pub. L. 109–221, § 401(b)(1), inserted section catchline.

   Enacted provision · exact public law section
   (1) by striking “Sec. 205.” and all that follows through subsection (b) and inserting the following: “SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECURITY. “(a) In General.— All or any portion of a loan guaranteed or insured under this title, including the security given for the loan— “(1) may be transferred by the lender by sale or assignment to any person; and “(2) may be retransferred by the transferee. “(b) Transfers of Loans.— With respect to a transfer described in subsection (a)— “(1) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (h); and “(2) the transferee shall give notice of the transfer to the Secretary.” ;

5. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(1) · 120 Stat. 336

   1. Added · 25 U.S.C. § 1485(a); 25 U.S.C. § 1485(b)

      Pub. L. 109–221, § 401(b)(1), added subsecs. (a) and (b)

   2. Struck · 25 U.S.C. § 1485(a); 25 U.S.C. § 1485(b)

      Pub. L. 109–221, § 401(b)(1), struck out former subsecs. (a) and (b), which authorized loan sale or assignment and set forth parameters for initial transfers

   Source evidence

   Code amendment note
   Subsecs. (a), (b). Pub. L. 109–221, § 401(b)(1), added subsecs. (a) and (b) and struck out former subsecs. (a) and (b), which authorized loan sale or assignment and set forth parameters for initial transfers.

   Enacted provision · exact public law section
   (1) by striking “Sec. 205.” and all that follows through subsection (b) and inserting the following: “SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECURITY. “(a) In General.— All or any portion of a loan guaranteed or insured under this title, including the security given for the loan— “(1) may be transferred by the lender by sale or assignment to any person; and “(2) may be retransferred by the transferee. “(b) Transfers of Loans.— With respect to a transfer described in subsection (a)— “(1) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (h); and “(2) the transferee shall give notice of the transfer to the Secretary.” ;

6. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(2) · 120 Stat. 336

   1. Redesignated · 25 U.S.C. § 1485(c)

      Pub. L. 109–221, § 401(b)(2), (3), redesignated subsec. (d) as (c)

   2. Struck · 25 U.S.C. § 1485(c)

      Pub. L. 109–221, § 401(b)(2), (3), struck out former subsec. (c) which set forth requirements for secondary transfers under this subchapter

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 109–221, § 401(b)(2), (3), redesignated subsec. (d) as (c) and struck out former subsec. (c) which set forth requirements for secondary transfers under this subchapter.

   Enacted provision · exact public law section
   (2) by striking subsection (c);

7. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(4) · 120 Stat. 336

   1. Added · 25 U.S.C. § 1485(c)(2)

      Pub. L. 109–221, § 401(b)(4), added par. (2)

   2. Struck · 25 U.S.C. § 1485(c)(2)

      Pub. L. 109–221, § 401(b)(4), struck out former par (2) which provided for the incontestability of a guarantee or insurance of a loan under this subchapter with an exception for fraud or misrepresentation

   Source evidence

   Code amendment note
   Subsec. (c)(2). Pub. L. 109–221, § 401(b)(4), added par. (2) and struck out former par (2) which provided for the incontestability of a guarantee or insurance of a loan under this subchapter with an exception for fraud or misrepresentation.

   Enacted provision · exact public law section
   (4) in subsection (c) (as redesignated by paragraph (3)), by striking paragraph (2) and inserting the following: “(2) Validity.— Except as provided in regulations in effect on the date on which a loan is made, the validity of a guarantee or insurance of a loan under this title shall be incontestable.” ;

8. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(3) · 120 Stat. 336

   Redesignated · 25 U.S.C. § 1485(d)

   Pub. L. 109–221, § 401(b)(3), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c)

   Source evidence

   Code amendment note
   Subsec. (d). Pub. L. 109–221, § 401(b)(3), redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).

   Enacted provision · exact public law section
   (3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (c), (d), (e), (f), (g), and (h), respectively;

9. 2006

   Native American Technical Corrections Act of 2006

   Pub. L. 109–221 § 401(b)(5) · 120 Stat. 336

   1. Amended · 25 U.S.C. § 1485(e)

      Pub. L. 109–221, § 401(b)(5), designated existing provisions as par. (1)

   2. Inserted · 25 U.S.C. § 1485(e)

      Pub. L. 109–221, § 401(b)(5), inserted heading

   3. Added · 25 U.S.C. § 1485(e)

      Pub. L. 109–221, § 401(b)(5), added par. (2)

   Source evidence

   Code amendment note
   Subsec. (e). Pub. L. 109–221, § 401(b)(5), designated existing provisions as par. (1), inserted heading, and added par. (2).

   Enacted provision · exact public law section
   (5) in subsection (e) (as redesignated by paragraph (3))— (A) by striking “The Secretary” and inserting the following: “(1) In general.— The Secretary” ; and (B) by adding at the end the following: “(2) Compensation of fiscal transfer agent.— A fiscal transfer agent designated under subsection (f) may be compensated through any of the fees assessed under this section and any interest earned on any funds or fees collected by the fiscal transfer agent while the funds or fees are in the control of the fiscal transfer agent and before the time at which the fiscal transfer agent is contractually required to transfer such funds to the Secretary or to transferees or other holders.” ; and

10. 2006

    Native American Technical Corrections Act of 2006

    Pub. L. 109–221 § 401(b)(3) · 120 Stat. 336

    Redesignated · 25 U.S.C. § 1485(e)

    Pub. L. 109–221, § 401(b)(3), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–221, § 401(b)(3), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).

    Enacted provision · exact public law section
    (3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (c), (d), (e), (f), (g), and (h), respectively;

11. 2006

    Native American Technical Corrections Act of 2006

    Pub. L. 109–221 § 401(b)(6) · 120 Stat. 336

    1. Substituted · 25 U.S.C. § 1485(f)

       Pub. L. 109–221, § 401(b)(6), substituted “subsection (h)” for “subsection (i)” in introductory provisions

    2. Struck · 25 U.S.C. § 1485(f)

       Pub. L. 109–221, § 401(b)(6), struck out “, and issuance of acknowledgments,” after “agent functions” in par. (2)(B)

    Source evidence

    Code amendment note
    Subsec. (f). Pub. L. 109–221, § 401(b)(6), substituted “subsection (h)” for “subsection (i)” in introductory provisions and struck out “, and issuance of acknowledgments,” after “agent functions” in par. (2)(B).

    Enacted provision · exact public law section
    (6) in subsection (f) (as redesignated by paragraph (3))— (A) by striking “subsection (i)” and inserting “subsection (h)”; and (B) in paragraph (2)(B), by striking “, and issuance of acknowledgments,”.

12. 2006

    Native American Technical Corrections Act of 2006

    Pub. L. 109–221 § 401(b)(3) · 120 Stat. 336

    Redesignated · 25 U.S.C. § 1485(f)

    Pub. L. 109–221, § 401(b)(3), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e)

    Target inherited from the preceding amendment note.

    Source evidence

    Code amendment note
    Pub. L. 109–221, § 401(b)(3), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e).

    Enacted provision · exact public law section
    (3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (c), (d), (e), (f), (g), and (h), respectively;

13. 2006

    Native American Technical Corrections Act of 2006

    Pub. L. 109–221 § 401(b)(3) · 120 Stat. 336

    Redesignated · 25 U.S.C. § 1485(g)(i)

    Pub. L. 109–221, § 401(b)(3), redesignated subsecs. (h) and (i) as (g) and (h), respectively. Former subsec. (g) redesignated (f)

    Source evidence

    Code amendment note
    Subsec. (g) to (i). Pub. L. 109–221, § 401(b)(3), redesignated subsecs. (h) and (i) as (g) and (h), respectively. Former subsec. (g) redesignated (f).

    Enacted provision · exact public law section
    (3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (c), (d), (e), (f), (g), and (h), respectively;

22 of 22 references resolved to an enrolled provision