---
kind: "section"
citation: "25 U.S.C. § 1462"
title: "25"
title_heading: "Indians"
number: "1462"
heading: "Economic development; educational loans; limitation of loans to or investments in non-Indian organizations"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/1462"
units:
  - "Chapter 17 — Financing Economic Development of Indians and Indian Organizations"
  - "Subchapter I — Indian Revolving Loan Fund"
---

# §1462. Economic development; educational loans; limitation of loans to or investments in non-Indian organizations


Loans may be made for any purpose which will promote the economic development of (a) the individual [Indian](/usc/25/1452.md?p=b) borrower, including loans for educational purposes, and (b) the [Indian](/usc/25/1452.md?p=b) organization and its members including loans by such organizations to [other organizations](/usc/25/1452.md?p=g) and investments in [other organizations](/usc/25/1452.md?p=g) regardless of whether they are organizations of [Indians](/usc/25/1452.md?p=b): Provided, That not more than 50 per centum of loan made to an organization shall be used by such organization for the purpose of making loans to or investments in non-[Indian](/usc/25/1452.md?p=b) organizations.


## Source credit

(Pub. L. 93–262, title I, § 102, Apr. 12, 1974, 88 Stat. 78.)