[Congressional Record Volume 151, Number 120 (Thursday, September 22, 2005)]
[Senate]
[Pages S10388-S10389]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                   AMENDING THE INDIAN FINANCING ACT

  Mr. FRIST. I ask unanimous consent the Senate proceed to the 
immediate consideration of S. 1758, introduced earlier today.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The legislative clerk read as follows:

       A bill (S. 1758) to amend the Indian Financing Act of 1974 
     to provide for sale and assignment of loans and other 
     security and for other purposes.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. McCAIN. Mr. President, today I rise in support of the Indian 
Fianancing Act Amendments of 2005, originally introduced as a component 
of the Native American Omnibus Act of 2005. I'm pleased to be joined by 
the vice chairman of the Senate Indian Affairs Committee, Byron Dorgan, 
on this bill.
  The Indian financing act amendments, amends the Indian finance act of 
1974 to clarify that non-profit tribal entities are eligible for the 
BIA Loan Guaranty program. The amendments also raises the limit on the 
amount of loans to $1.5 billion from $500 million.
  I look forward to working with my respective colleagues on both sides 
of the aisle to enact this legislation.
  Mr. FRIST. Mr. President, I ask unanimous consent the bill be read a 
third time and passed, the motion to reconsider be laid on the table, 
and any statements be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1758) was read the third time and passed, as follows:

                                S. 1758

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

[[Page S10389]]

     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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