Page:United States Statutes at Large Volume 122.djvu/4355

 12 2 STA T .43 32 PUBLIC LA W 11 0– 411 —O CT. 14 , 200 8‘ ‘ (2)LIM I TA TI ON.—TheS e cr e ta r ym ay gu ara n tee ,o rma k e comm i tment s to guarantee, un d er p aragraph ( 1 ) the notes or o bl igations o f not more than 4I ndian tribes or tribally des - ignated housing entities located in each D epartment of H ousing and U rban De v elopment O ffice of N ative A merican P rograms region. ‘‘(b) LO W -IN C OM EB ENE F IT R E QU I R EMENT.—Not less than 70 percent of the aggregate amount received by an Indian tribe or tribally designated housing entity as a result of a guarantee under this section shall be used for the support of activities that benefit lo w -income families on Indian reservations and other Indian areas. ‘‘(c) F INANCIA L SOUN D NE S S.— ‘‘(1) IN G ENERAL.—The Secretary shall establish under- writing criteria for guarantees under this section, including fees for the guarantees, as the Secretary determines to be necessary to ensure that the program under this section is financially sound. ‘‘(2) AMOUNTS OF FEES.—Fees for guarantees established under paragraph (1) shall be established in amounts that are sufficient, but do not e x ceed the minimum amounts necessary, to maintain a negative credit subsidy for the program under this section, as determined based on the risk to the Federal G overnment under the underwriting re q uirements established under paragraph (1). ‘‘(d) TERMS OF O B LIGATIONS.— ‘‘(1) IN GENERAL.— E ach note or other obligation guaranteed pursuant to this section shall be in such form and denomina- tion, have such maturity, and be sub j ect to such conditions as the Secretary may prescribe, by regulation. ‘‘(2) LIMITATION.—The Secretary may not deny a guarantee under this section on the basis of the proposed repayment period for the note or other obligation, unless— ‘‘(A) the period is more than 20 years or ‘‘(B) the Secretary determines that the period would cause the guarantee to constitute an unacceptable financial risk. ‘‘(e) LIMITATION ON PERCENTAGE.—A guarantee made under this section shall guarantee repayment of 95 percent of the unpaid principal and interest due on the note or other obligation guaran- teed. ‘‘(f) SECURIT Y AND RE P AYMENT.— ‘‘(1) REQUIREMENTS ON ISSUER.—To ensure the repayment of notes and other obligations and charges incurred under this section and as a condition for receiving the guarantees, the Secretary shall require the Indian tribe or housing entity issuing the notes or obligations— ‘‘(A) to enter into a contract, in a form acceptable to the Secretary, for repayment of notes or other obligations guaranteed under this section; ‘‘(B) to demonstrate that the extent of each issuance and guarantee under this section is within the financial capacity of the Indian tribe; and ‘‘( C ) to furnish, at the discretion of the Secretary, such security as the Secretary determines to be appropriate in making the guarantees, including increments in local tax receipts generated by the activities assisted by a guar- antee under this section or disposition proceeds from the Contrac t s. Cr i t e ria.

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