Page:United States Statutes at Large Volume 110 Part 6.djvu/225

 PUBLIC LAW 104-330 —OCT. 26, 1996 110 STAT. 4047 amounts under title I, taking into consideration the requirements under section 203(b); and (4) furnish, at the discretion of the Secretary, such other security as may be deemed appropriate by the Secretary in making such guarantees, including increments in local tax receipts generated by the activities assisted under this Act or disposition proceeds from the sale of land or rehabilitated property. (b) REPAYMENT FROM GRANT AMOUNTS. —Notwithstanding any other provision of this Act— (1) the Secretary may apply grants pledged pursuant to subsection (a)(2) to any repayments due the United States as a result of such guarantees; and (2) grants allocated under this Act for an Indian tribe or housing entity (including program income derived therefrom) may be used to pay principal and interest due (including such servicing, underwriting, and other costs as may be specified in regulations issued by the Secretary) on notes or other obligations guaranteed pursuant to this title. (c) FULL FAITH AND CREDIT.— The full faith and credit of the United States is pledged to the payment of all guarantees made under this title. Any such guarantee made by the Secretary shall be conclusive evidence of the eligibility of the obligations for such guarantee with respect to principal and interest, and the validity of any such guarantee so made shall be incontestable in the hands of a holder of the guaranteed obligations. SEC. 603. PAYMENT OF INTEREST. 25 USC 4193. The Secretary may make, and contract to make, grants, in such amounts as may be approved in appropriations Acts, to or on behalf of an Indian tribe or housing entity issuing notes or other obligations guaranteed under this title, to cover not to exceed 30 percent of the net interest cost (including such servicing, underwriting, or other costs as may be specified in regulations of the Secretary) to the borrowing entity or agency of such obligations. The Secretary may also, to the extent approved in appropriations Acts, assist the issuer of a note or other obligation guaranteed under this title in the payment of all or a portion of the principal and interest amount due under the note or other obligation, if the Secretary determines that the issuer is unable to pay the amount because of circumstances of extreme hardship beyond the control of the issuer. SEC. 604. TRAINING AND INFORMATION. 25 USC 4194. The Secretary, in cooperation with eligible public entities, shall carry out training and information activities with respect to the guarantee program under this title. SEC. 605. LIMITATIONS ON AMOUNT OF GUARANTEES. 25 USC 4195. (a) AGGREGATE FISCAL YEAR LIMITATION. —Notwithstanding any other provision of law and subject only to the absence of qualified applicants or proposed activities and to the authority provided in this title, to the extent approved or provided in appropriations Acts, the Secretary may enter into commitments to guarantee notes and obligations under this title with an aggregate principal amount not to exceed $400,000,000 for each of fiscal years 1997, 1998, 1999, 2000, and 2001. 29-194O-96 -8;QL3Part6

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