Page:United States Statutes at Large Volume 116 Part 4.djvu/408

 116 STAT. 2836 PUBLIC LAW 107-331—DEC. 13, 2002 (B) to expand the number of lenders originating loans under the Indian Financing Act of 1974 (25 U.S.C. 1451 et seq.). (b) PURPOSE.— The purpose of this Act is to reform and clarify the Indian Financing Act of 1974 (25 U.S.C. 1451 et seq.) in order to— (1) stimulate the use by lenders of secondary market investors for loans guaranteed or insured under a program administered by the Secretary of the Interior; (2) preserve the authority of the Secretary to administer the program and regulate lenders; (3) clarify that a good faith investor in loans insured or guaranteed by the Secretary will receive appropriate pa3anents; (4) provide for the appointment by the Secretary of a qualified fiscal transfer agent to establish and administer a system for the orderly transfer of those loans; and (5)(A) authorize the Secretary to promulgate regulations to encourage and expand a secondary market program for loans guaranteed or insured by the Secretary; and (B) allow the pooling of those loans as the secondary market develops. SEC. 103. AMENDMENTS TO INDIAN FINANCING ACT. (a) LIMITATION ON LOAN AMOUNTS WITHOUT PRIOR APPROVAL.— Section 204 of the Indian Financing Act of 1974 (25 U.S.C. 1484) is amended in the last sentence by striking "$100,000" and inserting "$250,000 ". (b) SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECU- RITY.— Section 205 of the Indian Financing Act of 1974 (25 U.S.C. 1485) is amended— (1) by striking "Any login guaranteed" and inserting the following: "(a) IN GENERAL. — Any loan guaranteed or insured"; and (2) by adding at the end the following: " (b) INITIAL TRANSFERS. — "(1) IN GENERAL. —The lender of a loan guaranteed or insured under this title may transfer to any individual or legal entity— "(A) all rights and obligations of the lender in the loan or in the unguaranteed or uninsured portion of the loan; and "(B) any security given for the loan. "(2) ADDITIONAL REQUIREMENTS. —With respect to a transfer described in paragraph (1)— "(A) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (i); and "(B) the lender shall give notice of the transfer to the Secretary. "(3) RESPONSIBILITIES OF TRANSFEREE.—On any transfer under paragraph (1), the transferee shall— "(A) be deemed to be the lender for the purpose of this title; "(B) become the secured party of record; and "(C) be responsible for— "(i) performing the duties of the lender; and

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