25 U.S.C. § 1493 — Loan refusal; conditions; prohibition against acquisition of additional loans; payment of claims on loans made in good faith
submitted 52 years ago by Pub. L. 93-262 to r/title-25-INDIANS · 116 words · no verdicts yet
The Secretary may stop guaranteeing or insuring new loans from a lender or guaranty holder that fails required servicing, accounting, or credit standards or harms borrowers or the United States. Existing valid good-faith claims remain payable.
If the Secretary* finds that a lender or guaranty-certificate holder lacks adequate accounting records, cannot properly service guaranteed or insured loans, uses poor credit judgment, or willfully or negligently follows practices harmful to a borrower or the United States, the Secretary may temporarily or permanently refuse to guarantee or insure any further loans made by that lender or holder and may bar that lender or holder from acquiring additional loans guaranteed or insured under this subchapter. The Secretary may not refuse a valid guaranty or insurance claim on a loan previously made in good faith.
Whenever the Secretary* finds that any lender or holder of a guaranty certificate fails to maintain adequate accounting records, or to demonstrate proper ability to service adequately loans guaranteed or insured, or to exercise proper credit judgment, or has willfully or negligently engaged in practices otherwise detrimental to the interests of a borrower or of the United States, he may refuse, either temporarily or permanently, to guarantee or insure any further loans made by such lender or holder, and may bar such lender or holder from acquiring additional loans guaranteed or insured hereunder: Provided, That the Secretary shall not refuse to pay a valid guaranty or insurance claim on loans previously made in good faith.
Source credit: (Pub. L. 93–262, title II, § 213, Apr. 12, 1974, 88 Stat. 81.)
- 1974Enacted · Pub. L. 93-262 · 88 Stat. 81
A history note hasn’t been published yet. The record shows enactment by Pub. L. 93-262 on 1974-04-12.
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