---
kind: "section"
citation: "7 C.F.R. § 769.105"
title: "7"
number: "769.105"
heading: "Authorized loan purposes."
url: "https://uscodex.org/cfr/7/769.105"
---

# §769.105. Authorized loan purposes.

- (a) **Intermediary lender.** Agency HFIL loan funds must be placed in the intermediary's HFIL revolving fund and used by the intermediary to provide direct loans to eligible ultimate recipients.
- (b) **Ultimate recipient.** Loans from the intermediary lender to the ultimate recipient using the HFIL revolving fund:
  - (1) Must be used to acquire and consolidate at least 50 percent of the highly fractionated Indian land parcel and interests in the land. The interests include rights-of-way, water rights, easements, and other appurtenances that would normally pass with the land or are necessary for the proposed operation of the land located within the tribe's reservation;
  - (2) Must finance land that will be used for agricultural purposes during the term of the loan;
  - (3) May be used to pay costs incidental to land acquisition, including, but not limited to, title clearance, legal services, archeological or land surveys, and loan closing; and
  - (4) **May be used to pay for the costs of any appraisal conducted in accordance with this part.**

## Notes

### Authority

Authority: 5 U.S.C. 301, 7 U.S.C. 1989, and 25 U.S.C. 488.

### Source

Source: 80 FR 74970, Dec. 1, 2015, unless otherwise noted.