25 U.S.C. § 1492 — Claims for losses; submission to Secretary; reimbursement: single and aggregate loss limitations, conditions; assignment of note or judgment; collection or cancellation by Secretary; interest or charges cessation date
submitted 52 years ago by Pub. L. 93-262 to r/title-25-INDIANS · 211 words · no verdicts yet
This section provides a process for reimbursing a lender’s loss on an insured loan. It caps reimbursement for one loan and overall losses and requires collection and liquidation efforts first.
When a lender loses money, including accrued interest, on a loan insured under this subchapter, the lender must submit a claim to the Secretary*. If the Secretary finds the loss occurred, the Secretary must reimburse it, but reimbursement for one loan may not exceed 90 percent of that loss and total reimbursement may not cover losses above 15 percent of the lender’s total insured loans. Before reimbursement, the lender must exhaust reasonable collection efforts, liquidate the loan’s security as far as feasible, and apply the proceeds to the debt. After any reimbursement, the debt note or judgment must be assigned to the United States, and the lender has no further claim against the borrower or United States. The Secretary must take warranted collection action or cancel the uncollectable part of an assigned debt, and may set the date when interest or charges stop accruing.
When a lender suffers a loss on a loan insured hereunder, including accrued interest, a claim therefor shall be submitted to the Secretary*. If the Secretary finds that the loss has been suffered, he shall reimburse the lender therefor: Provided, That the amount payable to the lender for a loss on any one loan shall not exceed 90 per centum of such loss: Provided further, That no reimbursement may be made for losses in excess of 15 per centum of the aggregate of insured loans made by the lender: Provided further, That before any reimbursement is made, all reasonable collection efforts shall have been exhausted by the lender, and the security for the loan shall have been liquidated to the extent feasible, and the proceeds applied on the debt. Upon reimbursement, in whole or in part, to the lender, the note or judgment evidencing the debt shall be assigned to the United States, and the lender shall have no further claim against the borrower or the United States. The Secretary shall then take such further collection action as may be warranted, or may cancel the uncollectable portion of any debt assigned pursuant hereto. The Secretary may establish a date upon which accrual of interest or charges shall cease.
Source credit: (Pub. L. 93–262, title II, § 212, Apr. 12, 1974, 88 Stat. 80.)
- 1974Enacted · Pub. L. 93-262 · 88 Stat. 80
A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-262 on 1974-04-12.
all 0 arguments · sorted by: best
no arguments yet — make the first case