---
kind: "section"
citation: "25 C.F.R. § 103.6"
title: "25"
number: "103.6"
heading: "To what extent will BIA guarantee or insure a loan?"
url: "https://uscodex.org/cfr/25/103.6"
---

# §103.6. To what extent will BIA guarantee or insure a loan?

- (a) **BIA can guarantee up to 90 percent of the unpaid principal and accrued interest due on a loan.**
- (b) **BIA can insure up to the lesser of—**
  - (1) 90 percent of the unpaid principal and accrued interest due on a loan; or
  - (2) 15 percent of the aggregate outstanding principal amount of all loans the lender has insured under the Program as of the date the lender makes a claim under its insurance coverage.
- (c) BIA's guaranty certificate or loan insurance agreement should reflect the lowest guaranty or insurance percentage rate that satisfies the lender's risk management requirements.
- (d) Absent exceptional circumstances, BIA will allow no more than:
  - (1) Two simultaneous guarantees under the Program covering outstanding loans from the same lender to the same borrower; or
  - (2) One loan guaranty under the Program when the lender simultaneously has one or more outstanding loans insured under the Program to the same borrower.

## Notes

### Authority

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

### Source

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