§5142 — Title 25 Indians | U.S. Code

Summary

The Secretary of Agriculture can cut the unpaid principal of a loan made under sections 5136–5143 down to the land’s current fair market value if three things are true: the land’s value fell by at least 25% since purchase, the borrower has owned the land for at least 5 years, and the Secretary of the Interior finds the borrower does not have enough income to both repay the loan and provide normal tribal government services. The value must come from an appraisal by an independent qualified fee appraiser chosen by both the borrower and the Secretary, and the borrower pays that cost. The Secretary’s decision can be appealed under the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b). A borrower who gets a reduction cannot apply for another reduction on the same loan for 5 years after the first one.

Title 25, §5142

Indians — Source: USLM XML via OLRC

(a)The Secretary of Agriculture may, on the application of the borrower of a loan or loans made under sections 5136 to 5143 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)(1)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)The cost of appraisals undertaken under paragraph (1) shall be paid by the borrower.

(c)Decisions of the Secretary of Agriculture under this section shall be appealable in accordance with the provisions of section 333B 11 See References in Text note below. of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b).

(d)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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 333B of the Consolidated Farm and Rural Development Act (7 U.S.C. 1983b), referred to in subsec. (c), probably means section 333B of Pub. L. 87–128, as added by Pub. L. 99–198, title XIII, § 1313(a), Dec. 23, 1985, 99 Stat. 1525, and amended, which related to appeals from adverse decisions under the Act, prior to repeal by Pub. L. 103–354, title II, § 281(c), Oct. 13, 1994, 108 Stat. 3233, and enactment of a new section 333B of Pub. L. 87–128 by Pub. L. 110–234, title V, § 5301,

May 22, 2008, 122 Stat. 1147, and Pub. L. 110–246, title V, § 5301,

June 18, 2008, 122 Stat. 1908, which established a beginning farmers’ pilot program. Codification Another section 6 of Pub. L. 91–229 was added by Pub. L. 101–624, title XVIII, § 1854(b), Nov. 28, 1990, 104 Stat. 3837, and is classified to section 5143 of this title. Section was formerly classified to section 493 of this title prior to editorial reclassification and renumbering as this section.

§5142 Reduction of unpaid principal

Summary

Title 25, §5142

Notes & Related Subsidiaries

Editorial Notes

References in Text

Citations & Metadata