US Code

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

25 U.S.C. § 5142

Reduction of unpaid principal

(a)

In general

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)

Fair market value

(1)

Appraisal

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)

Costs

The cost of appraisals undertaken under paragraph (1) shall be paid by the borrower.

(c)

Appeals

1

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

(d)

Future applications

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.

Pub. L. 91–229, § 6Pub. L. 101–82, title III, § 303103 Stat. 583(, as added , , .)

Editorial Notes

References in Text

7 U.S.C. 1983bsection 333B of Pub. L. 87–128Pub. L. 99–198, title XIII, § 1313(a)99 Stat. 1525Pub. L. 103–354, title II, § 281(c)108 Stat. 3233section 333B of Pub. L. 87–128Pub. L. 110–234, title V, § 5301122 Stat. 1147Pub. L. 110–246, title V, § 5301122 Stat. 1908Section 333B of the Consolidated Farm and Rural Development Act (), referred to in subsec. (c), probably means , as added by , , , and amended, which related to appeals from adverse decisions under the Act, prior to repeal by , , , and enactment of a new by , , , and , , , which established a beginning farmers’ pilot program.

Codification

section 6 of Pub. L. 91–229Pub. L. 101–624, title XVIII, § 1854(b)104 Stat. 3837section 5143 of this titleAnother was added by , , , and is classified to .

section 493 of this titleSection was formerly classified to prior to editorial reclassification and renumbering as this section.