Page:United States Statutes at Large Volume 101 Part 1.djvu/1007

 PUBLIC LAW 100-175—NOV. 29, 1987

101 STAT. 977

shall establish written procedures and definitions pertaining to defaults and collections of payments under the loans which shall be subject to the review and approval of the Secretary. Such agency or organization shall provide to each applicant for a loan under subsection (a)(1)(A), at the time application for the loan is made, a written copy of such procedures and definitions. "(5) The agency or organization to which a grant is awarded under subsection (a)(1) may not lend to itself any of the funds awarded under the grant. "(6) No loan may be made from the revolving fund that is required to be established under subsection (a) after the close of the 5-year period beginning on the date of enactment of the Native American Programs Act Amendments of 1987. "(c)(1) The agency or organization to which a grant is awarded under subsection (a)(1) shall provide the Secretary at regular intervals written notice of each loan made under subsection (a)(1)(A) that is in default and the status of such loan. "(2)(A) After making reasonable efforts to collect all amounts payable under a loan made under subsection (a)(1)(A) that is in default, the agency or organization to which a grant is awarded under subsection (a)(1) shall notify the Secretary that such loan is uncoUectable or collectable only at an unreasonable cost. Such notice shall include recommendations for future action to be taken by the agency or organization. ^n.: "(B) Upon receiving such notice, the Secretary shall instruct the agency or organization— "(i) to continue with its collection activities; "(ii) to cancel, adjust, compromise, or reduce the amount of such loan; or "(iii) to modify any term or condition of such loan, including te any term or condition relating to the rate of interest or the time of payment of any installment of principal or interest, or portion thereof, that is payable under such loan. "(C) The agency or organization shall carry out all instructions received under subparagraph (B) from the Secretary. "(d)(1) The agency or organization to which a grant is awarded under subsection (a)(1) shall, out of funds available in the revolving loan fund established under such subsection— "(A) pay expenses incurred by the agency or organization in administering the revolving loan fund; and "(B) provide competent management and technical assistance to borrowers of loans made under subsection (a)(1)(A) to assist the borrowers to achieve the purposes of such loans. "(2) The Secretary shall provide to the agency or organization to which a grant is made under subsection (a)(1) such management and technical assistance as the agency or organization may request in order to carry out the provisions of this section. "(e) Not later than 120 days after the date of enactment of the Regulations. Native American Programs Act Amendments of 1987, the Secretary, in consultation with appropriate agencies of the State of Hawaii and community-based Native Hawaiian organizations, shall prescribe regulations which set forth the procedures and criteria to be used— "(1) in making loans under subsection (a)(1)(A); and "(2) in canceling, adjusting, compromising, and reducing under subsection (c) the outstanding amounts of such loans.

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