Page:United States Statutes at Large Volume 110 Part 6.djvu/224

 110 STAT. 4046 PUBLIC LAW 104-330—OCT. 26, 1996 TITLE VI—FEDERAL GUARANTEES FOR FINANCING FOR TRIBAL HOUSING ACTIVITIES 25 USC 4191. SEC. 601. AUTHORITY AND REQUIREMENTS. (a) AUTHORITY.— To such extent or in such amounts as provided in appropriations Acts, the Secretary may, subject to the Hmitations of this title (including limitations designed to protect and maintain the viability of rental housing imits owned or operated by the recipient that were developed under a contract between the Secretary and an Indian housing authority pursuant to the United States Housing Act of 1937), and upon such terms and conditions as the Secretary may prescribe, guarantee and make commitments to guarantee, the notes or other obligations issued by Indiein tribes or tribally designated housing entities with tribal approval, for the purposes of financing affordable housing activities described in section 202. (b) LACK OF FINANCING ELSEWHERE. — A guarantee under this title may be used to assist an Indian tribe or housing entity in obtaining financing only if the Indian tribe or housing entity has made efforts to obtain such financing without the use of such guarantee and cannot complete such financing consistent with the timely execution of the program plans without such guarantee. (c) TERMS OF LOANS. —Notes or other obligations guaranteed pursuant to this title shall be in such form and denominations, have such maturities, and be subject to such conditions as may be prescribed by regulations issued by the Secretary. The Secretary may not deny a guarantee under this title on the basis of the proposed repa3anent period for the note or other obligation, unless the period is more than 20 years or the Secretary determines that the period causes the guarantee to constitute an unacceptable financial risk. (d) LIMITATION ON OUTSTANDING GUARANTEES.—NO guarantee or commitment to guarantee shall be made with respect to any note or other obligation if the total outstanding notes or obligations of the issuer guaranteed under this title (excluding any amount defeased under the contract entered into under section 602(a)(1)) would thereby exceed an amount equal to 5 times the amount of the grant approval for the issuer pursuant to title III. 25 USC 4192. SEC. 602. SECURITY AND REPAYMENT. (a) REQUIREMENTS ON ISSUER.— To assure the repayment of notes or other obligations and charges incurred under this title and as a condition for receiving such guarantees, the Secretary shall require the Indian tribe or housing entity issuing such notes or obligations to— Contracts. (1) enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this title; (2) pledge any grant for which the issuer may become eligible under this Act; (3) demonstrate that the extent of such issuance and guarantee under this title is within the financial capacity of the tribe and is not likely to impsiir the ability to use grant

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