US Code

Public Law 119-73 (01/23/2026)

25 U.S.C. § 1485

Sale or assignment of loans and underlying security

(a)

In general

All or any portion of a loan guaranteed or insured under this subchapter, including the security given for the loan—
(1)
may be transferred by the lender by sale or assignment to any person; and
(2)
may be retransferred by the transferee.
(b)

Transfers of loans

With respect to a transfer described in subsection (a)—
(1)
the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (h); and
(2)
the transferee shall give notice of the transfer to the Secretary.
(c)

Full faith and credit

(1)

In general

The full faith and credit of the United States is pledged to the payment of all loan guarantees and loan insurance made under this subchapter after .

(2)

Validity

Except as provided in regulations in effect on the date on which a loan is made, the validity of a guarantee or insurance of a loan under this subchapter shall be incontestable.

(d)

Damages

section 3302 of title 31Notwithstanding , the Secretary may recover from a lender of a loan under this subchapter any damages suffered by the Secretary as a result of a material breach of the obligations of the lender with respect to a guarantee or insurance by the Secretary of the loan.

(e)

Fees

(1)

In general

The Secretary may collect a fee for any loan or guaranteed or insured portion of a loan that is transferred in accordance with this section.

(2)

Compensation of fiscal transfer agent

A fiscal transfer agent designated under subsection (f) may be compensated through any of the fees assessed under this section and any interest earned on any funds or fees collected by the fiscal transfer agent while the funds or fees are in the control of the fiscal transfer agent and before the time at which the fiscal transfer agent is contractually required to transfer such funds to the Secretary or to transferees or other holders.

(f)

Central registration of loans

On promulgation of final regulations under subsection (h), the Secretary shall—
(1)
provide for a central registration of all guaranteed or insured loans transferred under this section; and
(2)
enter into 1 or more contracts with a fiscal transfer agent—
(A)
to act as the designee of the Secretary under this section; and
(B)
to carry out on behalf of the Secretary the central registration and fiscal transfer agent functions under this section.
(g)

Pooling of loans

(1)

In general

Nothing in this subchapter prohibits the pooling of whole loans or interests in loans transferred under this section.

(2)

Regulations

1

1 See References in Text note below.
In promulgating regulations under subsection (i), the Secretary may include such regulations to effect orderly and efficient pooling procedures as the Secretary determines to be necessary.

(h)

Regulations

Not later than 180 days after , the Secretary shall develop such procedures and promulgate such regulations as are necessary to facilitate, administer, and promote transfers of loans and guaranteed and insured portions of loans under this section.

Pub. L. 93–262, title II, § 20588 Stat. 80Pub. L. 100–442, § 2102 Stat. 1763Pub. L. 107–331, title I, § 103(b)116 Stat. 2836Pub. L. 109–221, title IV, § 401(b)120 Stat. 342(, , ; , , ; , , ; , , .)

Editorial Notes

References in Text

Pub. L. 109–221, title IV, § 401(b)(3)120 Stat. 342Subsection (i), referred to in subsec. (g)(2), was redesignated as subsection (h) of this section by , , .

Amendments

Pub. L. 109–221, § 401(b)(1)2006—, inserted section catchline.

Pub. L. 109–221, § 401(b)(1)Subsecs. (a), (b). , added subsecs. (a) and (b) and struck out former subsecs. (a) and (b), which authorized loan sale or assignment and set forth parameters for initial transfers.

Pub. L. 109–221, § 401(b)(2)Subsec. (c). , (3), redesignated subsec. (d) as (c) and struck out former subsec. (c) which set forth requirements for secondary transfers under this subchapter.

Pub. L. 109–221, § 401(b)(4)Subsec. (c)(2). , added par. (2) and struck out former par (2) which provided for the incontestability of a guarantee or insurance of a loan under this subchapter with an exception for fraud or misrepresentation.

Pub. L. 109–221, § 401(b)(3)Subsec. (d). , redesignated subsec. (e) as (d). Former subsec. (d) redesignated (c).

Pub. L. 109–221, § 401(b)(5)Subsec. (e). , designated existing provisions as par. (1), inserted heading, and added par. (2).

Pub. L. 109–221, § 401(b)(3), redesignated subsec. (f) as (e). Former subsec. (e) redesignated (d).

Pub. L. 109–221, § 401(b)(6)Subsec. (f). , substituted “subsection (h)” for “subsection (i)” in introductory provisions and struck out “, and issuance of acknowledgments,” after “agent functions” in par. (2)(B).

Pub. L. 109–221, § 401(b)(3), redesignated subsec. (g) as (f). Former subsec. (f) redesignated (e).

Pub. L. 109–221, § 401(b)(3)Subsec. (g) to (i). , redesignated subsecs. (h) and (i) as (g) and (h), respectively. Former subsec. (g) redesignated (f).

Pub. L. 107–3312002— designated existing provisions as subsec. (a), inserted heading and substituted “Any loan guaranteed or insured” for “Any loan guaranteed”, and added subsecs. (b) to (i).

Pub. L. 100–4421988— amended section generally. Prior to amendment, section read as follows: “Any loan guaranteed hereunder, including the security given therefor, may be sold or assigned by the lender to any financial institution subject to examination and supervision by an agency of the United States or of any State or the District of Columbia.”

Statutory Notes and Related Subsidiaries

Findings and Purpose

Pub. L. 107–331, title I, § 102116 Stat. 2835

“(a)

Findings .—

Congress finds that—
“(1)
25 U.S.C. 1451 the Indian Financing Act of 1974 ( et seq.) was intended to provide Native American borrowers with access to commercial sources of capital that otherwise would not be available through the guarantee or insurance of loans by the Secretary of the Interior;
“(2)
although the Secretary of the Interior has made loan guarantees and insurance available, use of those guarantees and that insurance by lenders to benefit Native American business borrowers has been limited;
“(3)
25 U.S.C. 1451Pub. L. 93–262 twenty-seven years after the date of enactment of the Indian Financing Act of 1974 ( et seq.) [, which was approved ], the promotion and development of Native American-owned business remains an essential foundation for growth of economic and social stability of Native Americans;
“(4)
use by commercial lenders of the available loan insurance and guarantees may be limited by liquidity and other capital market-driven concerns; and
“(5)
it is in the best interest of the insured and guaranteed loan program of the Department of the Interior—
“(A)
to encourage the orderly development and expansion of a secondary market for loans guaranteed or insured by the Secretary of the Interior; and
“(B)
25 U.S.C. 1451 to expand the number of lenders originating loans under the Indian Financing Act of 1974 ( et seq.).
“(b)

Purpose .—

section 1451 of this title25 U.S.C. 1451The purpose of this Act [see Short Title of 2002 Amendment note set out under ] is to reform and clarify the Indian Financing Act of 1974 ( et seq.) in order to—
“(1)
stimulate the use by lenders of secondary market investors for loans guaranteed or insured under a program administered by the Secretary of the Interior;
“(2)
preserve the authority of the Secretary to administer the program and regulate lenders;
“(3)
clarify that a good faith investor in loans insured or guaranteed by the Secretary will receive appropriate payments;
“(4)
provide for the appointment by the Secretary of a qualified fiscal transfer agent to establish and administer a system for the orderly transfer of those loans; and
“(5)
(A)
authorize the Secretary to promulgate regulations to encourage and expand a secondary market program for loans guaranteed or insured by the Secretary; and
“(B)
allow the pooling of those loans as the secondary market develops.”
, , , provided that: