Title 25 — IndiansRelease 119-73not60
§1493 Loan Refusal; Conditions; Prohibition Against Acquisition of Additional Loans; Payment of Claims on Loans Made in Good Faith
Title 25 › Chapter 17— FINANCING ECONOMIC DEVELOPMENT OF INDIANS AND INDIAN ORGANIZATIONS › Subchapter II— LOAN GUARANTY AND INSURANCE › § 1493
Summary
The Secretary may refuse to guarantee or insure loans from a lender who keeps poor records, cannot manage loans, makes bad credit choices, or acts willfully or negligently to harm borrowers or the government, but must pay valid claims on loans made in good faith.
Full Legal Text
Title 25, §1493
Indians — Source: USLM XML via OLRC
Whenever the Secretary finds that any lender or holder of a guaranty certificate fails to maintain adequate accounting records, or to demonstrate proper ability to service adequately loans guaranteed or insured, or to exercise proper credit judgment, or has willfully or negligently engaged in practices otherwise detrimental to the interests of a borrower or of the United States, he may refuse, either temporarily or permanently, to guarantee or insure any further loans made by such lender or holder, and may bar such lender or holder from acquiring additional loans guaranteed or insured hereunder: Provided, That the Secretary shall not refuse to pay a valid guaranty or insurance claim on loans previously made in good faith.
Reference
Citations & Metadata
Citation
25 U.S.C. § 1493
Title 25 — Indians
Last Updated
Apr 5, 2026
Release point: 119-73not60