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Title 25, IndiansRelease 119-102

§5135 Mortgages and Deeds of Trust by Individual Indian Owners; Removal From Trust or Restricted Status; Application to Secretary

Title 25 › CHAPTER 45 — PROTECTION OF INDIANS AND CONSERVATION OF RESOURCES › § 5135

Last updated Aug 21, 2026|Official source

Summary

Native American owners of land held in trust by the United States, or land the U.S. has limited from being sold, may use that land as collateral for a loan if the Secretary of the Interior agrees. If the borrower defaults, the land can be foreclosed or sold under the tribe’s laws, or the state law if the tribe has no foreclosure law. For that process the owner is treated as if they fully own the land, the United States does not have to be part of the case, and a sale ends the United States’ title. Mortgages already approved by the Secretary are confirmed. If an Indian or a tribe acquires such land, it stays in trust or restricted status unless they apply to the Secretary under existing law to remove it.

Full Legal Text

Title 25, §5135

Indians, Source: USLM XML via OLRC

(a)The individual Indian owners of any land which either is held by the United States in trust for them or is subject to a restriction against alienation imposed by the United States are authorized, subject to approval by the Secretary of the Interior, to execute a mortgage or deed of trust to such land. Such land shall be subject to foreclosure or sale pursuant to the terms of such mortgage or deed of trust in accordance with the laws of the tribe which has jurisdiction over such land or, in the case where no tribal foreclosure law exists, in accordance with the laws of the State or Territory in which the land is located. For the purpose of any foreclosure or sale proceeding the Indian owners shall be regarded as vested with an unrestricted fee simple title to the land, the United States shall not be a necessary party to the proceeding, and any conveyance of the land pursuant to the proceeding shall divest the United States of title to the land. All mortgages and deeds of trust to such land heretofore approved by the Secretary of the Interior are ratified and confirmed.
(b)In the event such land is acquired by an Indian or an Indian tribe, such land shall not be removed from trust or restricted status except upon application to the Secretary under existing law.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 483a of this title prior to editorial reclassification and renumbering as this section.

Amendments

1990—Subsec. (a). Pub. L. 101–644 inserted “tribe which has jurisdiction over such land or, in the case where no tribal foreclosure law exists, in accordance with the laws of the” before “State” in second sentence. 1984—Pub. L. 98–608 designated existing provisions as subsec. (a) and added subsec. (b).

Reference

Citations & Metadata

Citation

25 U.S.C. § 5135

Title 25, Indians

Last Updated

Aug 21, 2026

Release point: 119-102