---
kind: "section"
citation: "25 C.F.R. § 103.40"
title: "25"
number: "103.40"
heading: "Will BIA make exceptions to its criteria for denying payment?"
url: "https://uscodex.org/cfr/25/103.40"
---

# §103.40. Will BIA make exceptions to its criteria for denying payment?

- (a) BIA will not reduce or deny payment solely on the basis of §§ [103.39(c)](/cfr/25/103.39.md?p=c) or [(e)](/cfr/25/103.39.md?p=e) when the lender making the claim for loss:
  - (1) Is a person to whom a previous lender transferred the loan under §§ [103.28](/cfr/25/103.28.md) or [103.29](/cfr/25/103.29.md) before maturity for value;
  - (2) Notified BIA of its acquisition of the loan interest as required by §§ [103.28](/cfr/25/103.28.md) or [103.29](/cfr/25/103.29.md);
  - (3) Had no involvement in or knowledge of the actions or circumstances that would have allowed BIA to reduce or deny payment to a previous lender; and
  - (4) Has not itself violated the standards set forth in §§ [103.39(c)](/cfr/25/103.39.md?p=c) or [(e)](/cfr/25/103.39.md?p=e).
- (b) If BIA makes payment to a lender under this section, it may seek reimbursement from the previous lender or lenders who contributed to the loss by violating §§ [103.39(c)](/cfr/25/103.39.md?p=c) or [(e)](/cfr/25/103.39.md?p=e).

## Notes

### Authority

Authority: 25 U.S.C. 1498, 1511.

### Source

Source: 66 FR 3867, Jan. 17, 2001, unless otherwise noted.