[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1758 Considered and Passed Senate (CPS)]


109th CONGRESS
  1st Session
                                S. 1758

   To amend the Indian Financing Act of 1974 to provide for sale and 
  assignment of loans and underlying security, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2005

Mr. McCain (for himself and Mr. Dorgan) introduced the following bill; 
   which was read twice, considered, read the third time, and passed

_______________________________________________________________________

                                 A BILL


 
   To amend the Indian Financing Act of 1974 to provide for sale and 
  assignment of loans and underlying security, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. LOAN GUARANTY AND INSURANCE.

    (a) In General.--Section 201 of the Indian Financing Act of 1974 
(25 U.S.C. 1481) is amended--
            (1) by striking ``Sec. 201. In order'' and inserting the 
        following:

``SEC. 201. LOAN GUARANTIES AND INSURANCE.

    ``(a) In General.--In order'';
            (2) by striking ``the Secretary is authorized (a) to 
        guarantee'' and inserting ``the Secretary may--
            ``(1) guarantee'';
            (3) by striking ``members; and (b) in lieu of such 
        guaranty, to insure'' and inserting ``members; or
            ``(2) insure''; and
            (4) by adding at the end the following:
    ``(b) Eligible Borrowers.--The Secretary may guarantee or insure 
loans under subsection (a) to both for-profit and nonprofit 
borrowers.''.
    (b) Sale or Assignment of Loans and Underlying Security.--Section 
205 of the Indian Financing Act of 1974 (25 U.S.C. 1485) is amended--
            (1) by striking ``Sec. 205.'' and all that follows through 
        subsection (b) and inserting the following:

``SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECURITY.

    ``(a) In General.--All or any portion of a loan guaranteed or 
insured under this title, 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.'';
            (2) by striking subsection (c);
            (3) by redesignating subsections (d), (e), (f), (g), (h), 
        and (i) as subsections (c), (d), (e), (f), (g), and (h), 
        respectively;
            (4) in subsection (c) (as redesignated by paragraph (3)), 
        by striking paragraph (2) and inserting the following:
            ``(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 title shall be 
        incontestable.'';
            (5) in subsection (e) (as redesignated by paragraph (3))--
                    (A) by striking ``The Secretary'' and inserting the 
                following:
            ``(1) In general.--The Secretary''; and
                    (B) by adding at the end the following:
            ``(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.''; and
            (6) in subsection (f) (as redesignated by paragraph (3))--
                    (A) by striking ``subsection (i)'' and inserting 
                ``subsection (h)''; and
                    (B) in paragraph (2)(B), by striking ``, and 
                issuance of acknowledgments,''.
    (c) Loans Ineligible for Guaranty or Insurance.--Section 206 of the 
Indian Financing Act of 1974 (25 U.S.C. 1486) is amended by inserting 
``(not including an eligible Community Development Finance 
Institution)'' after ``Government''.
    (d) Aggregate Loans or Surety Bonds Limitation.--Section 217(b) of 
the Indian Financing Act of 1974 (25 U.S.C. 1497(b)) is amended by 
striking ``$500,000,000'' and inserting ``$1,500,000,000''.
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