§ 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

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 § 211 · [88 Stat. 77]

   Enacted · 25 U.S.C. § 1491

   Pub. L. 93–262, title II, § 211, Apr. 12, 1974, 88 Stat. 80

   Source evidence

   Code source credit
   Pub. L. 93–262, title II, § 211, Apr. 12, 1974, 88 Stat. 80

   Enacted provision · exact public law section
   Sec. 211. 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: Provided, That proceedings pursuant to this sentence shall be effective only after following the procedure prescribed by the Act of July 1, 1932 (47 Stat. 564, 25 U.S.C. 386a). 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.

2. 1984

   Indian Financing Act Amendments of 1984

   Pub. L. 98–449 § 6 · 98 Stat. 1725

   Struck · 25 U.S.C. § 1491

   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

   Source evidence

   Code amendment note
   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.

   Enacted provision · exact public law section
   Sec. 6. Section 211 of the Indian Financing Act of 1974 (25 U.S.C. 1491) is amended by striking out “section: Provided, That proceedings pursuant to this sentence shall be effective only after following the procedure prescribed by the Act of July 1, 1932 (47 Stat. 564; 25 U.S.C. 386a)” and inserting in lieu thereof “section”.

2 of 2 references resolved to an enrolled provision