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Title 25, IndiansRelease 119-110

§1481 Loan Guaranties and Insurance

Title 25 › CHAPTER 17 — FINANCING ECONOMIC DEVELOPMENT OF INDIANS AND INDIAN ORGANIZATIONS › SUBCHAPTER II — LOAN GUARANTY AND INSURANCE › § 1481

Last updated Sep 22, 2026|Official source

Summary

The Secretary can help Indian groups and individual Indians get private loans by either backing part of a loan or by buying insurance for the lender. The Secretary may guarantee up to 90 percent of the unpaid principal and interest on a loan to an Indian organization that the Secretary accepts or to an individual Indian. Or the Secretary may insure loans so a lender is paid for losses up to 15 percent of the total loans it made, but never more than 90 percent of the loss on any single loan. Both for-profit and nonprofit borrowers can use these guarantees or insurance.

Full Legal Text

Title 25, §1481

Indians, Source: USLM XML via OLRC

(a)In general
In order to provide access to private money sources which otherwise would not be available, the Secretary may—
(1)guarantee not to exceed 90 per centum of the unpaid principal and interest due on any loan made to any organization of Indians having a form or organization satisfactory to the Secretary, and to individual Indians; or
(2)insure loans under an agreement approved by the Secretary whereby the lender will be reimbursed for losses in an amount not to exceed 15 per centum of the aggregate of such loans made by it, but not to exceed 90 per centum of the loss on any one loan.
(b)Eligible borrowers
The Secretary may guarantee or insure loans under subsection (a) to both for-profit and nonprofit borrowers.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Pub. L. 109–221, § 401(a)(1), (2), (4), inserted section catchline, designated existing provisions as subsec. (a) and inserted heading, substituted “the Secretary may— “(1) guarantee” for “Secretary is authorized (a) to guarantee”, and added subsec. (b). Pub. L. 109–221, § 401(a)(3), which directed substitution of “members; or “(2) insure” for “members; and (b) in lieu of such guaranty, to insure”, was executed by making the substitution for “and (b) in lieu of such guaranty, to insure” to reflect the probable intent of Congress and the amendment by Pub. L. 98–449. See 1984 Amendment note below. 1984—Pub. L. 98–449 struck out “who are not members of or eligible for membership in an organization which is making loans to its members” before “; and (b)”.

Reference

Citations & Metadata

Citation

25 U.S.C. § 1481

Title 25, Indians

Last Updated

Sep 22, 2026

Release point: 119-110