Page:United States Statutes at Large Volume 120.djvu/373

 120 STAT. 342

PUBLIC LAW 109–221—MAY 12, 2006

(3) by striking ‘‘members; and (b) in lieu of such guaranty, to insure’’ and inserting ‘‘members; or ‘‘(2) insure’’; and (4) by adding at the end the following: ‘‘(b) ELIGIBLE BORROWERS.—The Secretary may guarantee or insure loans under subsection (a) to both for-profit and nonprofit borrowers.’’. (b) SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECURITY.—Section 205 of the Indian Financing Act of 1974 (25 U.S.C. 1485) is amended— (1) by striking ‘‘SEC. 205.’’ and all that follows through subsection (b) and inserting the following: ‘‘SEC. 205. SALE OR ASSIGNMENT OF LOANS AND UNDERLYING SECURITY.

‘‘(a) IN GENERAL.—All or any portion of a loan guaranteed or insured under this title, including the security given for the loan— ‘‘(1) may be transferred by the lender by sale or assignment to any person; and ‘‘(2) may be retransferred by the transferee. ‘‘(b) TRANSFERS OF LOANS.—With respect to a transfer described in subsection (a)— ‘‘(1) the transfer shall be consistent with such regulations as the Secretary shall promulgate under subsection (h); and ‘‘(2) the transferee shall give notice of the transfer to the Secretary.’’; (2) by striking subsection (c); (3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (c), (d), (e), (f), (g), and (h), respectively; (4) in subsection (c) (as redesignated by paragraph (3)), by striking paragraph (2) and inserting the following: ‘‘(2) VALIDITY.—Except as provided in regulations in effect on the date on which a loan is made, the validity of a guarantee or insurance of a loan under this title shall be incontestable.’’; (5) in subsection (e) (as redesignated by paragraph (3))— (A) by striking ‘‘The Secretary’’ and inserting the following: ‘‘(1) IN GENERAL.—The Secretary’’; and (B) by adding at the end the following: ‘‘(2) COMPENSATION OF FISCAL TRANSFER AGENT.—A fiscal transfer agent designated under subsection (f) may be compensated through any of the fees assessed under this section and any interest earned on any funds or fees collected by the fiscal transfer agent while the funds or fees are in the control of the fiscal transfer agent and before the time at which the fiscal transfer agent is contractually required to transfer such funds to the Secretary or to transferees or other holders.’’; and (6) in subsection (f) (as redesignated by paragraph (3))— (A) by striking ‘‘subsection (i)’’ and inserting ‘‘subsection (h)’’; and (B) in paragraph (2)(B), by striking ‘‘, and issuance of acknowledgments,’’. (c) LOANS INELIGIBLE FOR GUARANTY OR INSURANCE.—Section 206 of the Indian Financing Act of 1974 (25 U.S.C. 1486) is amended

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