---
kind: "section"
citation: "25 U.S.C. § 1497a"
title: "25"
title_heading: "Indians"
number: "1497a"
heading: "Supplemental surety bond guarantee"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/25/1497a"
units:
  - "Chapter 17 — Financing Economic Development of Indians and Indian Organizations"
  - "Subchapter II — Loan Guaranty and Insurance"
---

# §1497a. Supplemental surety bond guarantee

- (a) **Amount; eligibility—** The [Secretary](/usc/25/1452.md?p=a) is authorized to provide a supplemental [surety bond](/usc/25/1452.md?p=i) guarantee, not to exceed 20 percent of any loss, for any [Indian](/usc/25/1452.md?p=b) individual or [economic enterprise](/usc/25/1452.md?p=e) eligible for a surety guarantee under [section 694b of title 15](/usc/15/694b.md), so that the aggregate of the two guarantees is 100 percent.
- (b) **Conditions—** The [Secretary](/usc/25/1452.md?p=a) may provide a supplemental guarantee under this section only if the [Secretary](/usc/25/1452.md?p=a) determines that—
  - (1) the [Indian](/usc/25/1452.md?p=b) individual or [economic enterprise](/usc/25/1452.md?p=e) has secured or will likely secure a [surety bond](/usc/25/1452.md?p=i) guarantee under [section 694b of title 15](/usc/15/694b.md);
  - (2) the supplemental guarantee is necessary for the [Indian](/usc/25/1452.md?p=b) individual or [economic enterprise](/usc/25/1452.md?p=e) to secure a [surety bond](/usc/25/1452.md?p=i);
  - (3) no more than 25 percent of the surety’s business is comprised of bonds guaranteed pursuant to this section; and
  - (4) the surety will provide appropriate technical assistance and advice to, and monitor the performance of, the [Indian](/usc/25/1452.md?p=b) individual or [economic enterprise](/usc/25/1452.md?p=e) for the prevention or mitigation of a loss.
- (c) **Fees and charges—** The rules and regulations promulgated by the [Secretary](/usc/25/1452.md?p=a) to carry out this section shall include the setting of reasonable fees to be paid by the [Indian](/usc/25/1452.md?p=b) individual or [economic enterprise](/usc/25/1452.md?p=e) and reasonable premium charges to be paid by sureties. In setting fees and charges, the [Secretary](/usc/25/1452.md?p=a) may take into consideration the cost to the surety of providing the services required by [paragraph (4)](#b-4) of subsection (b). The receipts from the fees and charges shall be deposited in the Fund established by [section 1497(a) of this title](/usc/25/1497.md?p=a).

## Source credit

(Pub. L. 93–262, title II, § 218, as added Pub. L. 100–442, § 5(a), Sept. 22, 1988, 102 Stat. 1764.)

## Notes

### Editorial Notes

### Prior Provisions

A prior section 218 of Pub. L. 93–262 was renumbered section 219 by Pub. L. 100–442 and is classified to section 1498 of this title.