---
kind: "range"
citation: "25 U.S.C. §§ 5136–5143"
title: "25"
from: "5136"
to: "5143"
count: 8
release: "119-102"
url: "https://uscodex.org/usc/25/5136..5143"
---

# §5136. Loans to purchasers of highly fractioned land

- (a) **In general—** The [Secretary](/usc/25/5130.md?p=1) of Agriculture is authorized to make direct loans in a manner consistent with direct loans pursuant to subtitle D of the Consolidated Farm and Rural Development Act ([7 U.S.C. 1981](/usc/7/1981.md) et seq.), to any [Indian tribe](/usc/25/81.md?p=a-2) recognized by the [Secretary](/usc/25/5130.md?p=1) of the Interior or tribal corporation established pursuant to the [Indian](/usc/25/5129.md) Reorganization Act ([25 U.S.C. 477](/usc/25/477.md)),[^1] which does not have adequate uncommitted funds, to acquire lands or interests therein within the [tribe](/usc/25/5129.md)’s [reservation](/usc/25/2902.md?p=8) as determined by the [Secretary](/usc/25/5130.md?p=1) of the Interior, or within a community in Alaska incorporated by the [Secretary](/usc/25/5130.md?p=1) pursuant to the [Indian](/usc/25/5129.md) Reorganization Act [[25 U.S.C. 5101](/usc/25/5101.md) et seq.], for use of the [tribe](/usc/25/5129.md) or the corporation or the members of either. Such loans shall be limited to such [Indian tribes](/usc/25/81.md?p=a-2) or tribal corporations as have reasonable prospects of success in their proposed operations and as are unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance the purposes authorized in [sections 5136 to 5143](/usc/25/5136..5143.md) of this title.
- (b) **Highly fractionated land—**
  - (1) **In general—** Subject to [paragraph (2)](#b-2), the [Secretary](/usc/25/5130.md?p=1) of Agriculture may make and insure loans in accordance with [section 1929 of title 7](/usc/7/1929.md) to eligible purchasers of highly fractionated land or to intermediaries in order to establish revolving loan funds for the purchase of highly fractionated land under that section.
  - (2) **Exclusion—** [Section 5140 of this title](/usc/25/5140.md) shall not apply to trust land, restricted tribal land, or tribal corporation land that is mortgaged in accordance with [paragraph (1)](#b-1).

# §5137. Removal of duplicative appraisals


Notwithstanding any other law (including regulations), in making loans under [section 5136 of this title](/usc/25/5136.md), borrowers who are [Indian tribes](/usc/25/81.md?p=a-2), members of [Indian tribes](/usc/25/81.md?p=a-2), or tribal corporations shall only be required to obtain 1 appraisal under an appraisal standard recognized as of February 7, 2014, by the [Secretary](/usc/25/5130.md?p=1) or the [Secretary](/usc/25/5130.md?p=1) of the Interior.


# §5138. Title in trust to United States


Title to land acquired by a [tribe](/usc/25/5129.md) or tribal corporation with a loan made or insured pursuant to [sections 5136 to 5143](/usc/25/5136..5143.md) of this title may, with the approval of the [Secretary](/usc/25/5130.md?p=1) of the Interior, be taken by the United States in trust for the [tribe](/usc/25/5129.md) or tribal corporation.


# §5139. Tribal rights and privileges in connection with loans


A [tribe](/usc/25/5129.md) or tribal corporation to which a loan is made or insured pursuant to [sections 5136 to 5143](/usc/25/5136..5143.md) of this title (1) may waive in writing any immunity from suit or liability which it may possess, (2) may mortgage or otherwise hypothecate trust or restricted property if (a) authorized by its constitution or charter or by a tribal referendum, and (b) approved by the [Secretary](/usc/25/5130.md?p=1) of the Interior, and (3) shall comply with rules and regulations prescribed by the [Secretary](/usc/25/5130.md?p=1) of Agriculture in connection with such loans.


# §5140. Mortgaged property governed by State law


Trust or restricted tribal or tribal corporation property mortgaged pursuant to [sections 5136 to 5143](/usc/25/5136..5143.md) of this title shall be subject to foreclosure and sale or conveyance in lieu of foreclosure, free of such trust or restrictions, in accordance with the laws of the State in which the property is located.


# §5141. Interest rates and taxes


Loans made or insured pursuant to [sections 5136 to 5143](/usc/25/5136..5143.md) of this title will be subject to the interest rate provisions of section 307(a)(3)(B) of the Consolidated Farmers Home Administration Act of 1961, as amended [[7 U.S.C. 1927(a)(3)(B)](/usc/7/1927.md?p=a-3-B)], and to the provisions of subtitle D of that Act [[7 U.S.C. 1981](/usc/7/1981.md) et seq.] except [sections 340](/usc/25/340.md) [[7 U.S.C. 1990](/usc/7/1990.md)], 341, 342 [[7 U.S.C. 1013a](/usc/7/1013a.md)], and 343 [[7 U.S.C. 1991](/usc/7/1991.md)] thereof: Provided, That [section 334](/usc/25/334.md) [[7 U.S.C. 1984](/usc/7/1984.md)] thereof shall not be construed to subject to taxation any lands or interests therein while they are held by an [Indian tribe](/usc/25/81.md?p=a-2) or tribal corporation or by the United States in trust for such [tribe](/usc/25/5129.md) or tribal corporation pursuant to [sections 5136 to 5143](/usc/25/5136..5143.md) of this title.


# §5142. Reduction of unpaid principal

- (a) **In general—** The [Secretary](/usc/25/5130.md?p=1) of Agriculture may, on the application of the borrower of a loan or loans made under [sections 5136 to 5143](/usc/25/5136..5143.md) of this title, reduce the unpaid principal balance of such loan or loans to the current fair market value of the land purchased with the proceeds of the loan or loans if—
  - (1) the fair market value of the land has declined by at least 25 percent since such land was purchased by the borrower;
  - (2) the land has been held by the borrower for a period of at least 5 years; and
  - (3) the [Secretary](/usc/25/5130.md?p=1) of the Interior finds that the borrower has insufficient income to both repay the loan or loans and provide normal tribal governmental services.
- (b) **Fair market value—**
  - (1) **Appraisal—** Current fair market value under [subsection (a)](#a) of this section shall be determined through an appraisal by an independent qualified fee appraiser, selected by mutual agreement between the borrower and the [Secretary](/usc/25/5130.md?p=1) of Agriculture.
  - (2) **Costs—** The cost of appraisals undertaken under [paragraph (1)](#b-1) shall be paid by the borrower.
- (c) **Appeals—** Decisions of the [Secretary](/usc/25/5130.md?p=1) of Agriculture under this section shall be appealable in accordance with the provisions of section 333B[^1] of the Consolidated Farm and Rural Development Act ([7 U.S.C. 1983b](/usc/7/1983b.md)).
- (d) **Future applications—** A borrower that had a loan or loans reduced under this section shall not submit an application for another reduction on such loan or loans for a period of 5 years after the initial reduction.

# §5143. Authorization of appropriations


There are authorized to be appropriated to carry out [sections 5136 to 5143](/usc/25/5136..5143.md) of this title $8,000,000 for each of the fiscal years 1991 through 1995.