Indian Reorganization Act as currently amended and codified in Title 25> Chapter 14 > subchapter V

Indian Reorganization Act as currently amended and codified in Title 25> Chapter

14 > subchapter V > sections 461 to 479

Sec. 461. - Allotment of land on Indian reservations

On and after June 18, 1934, no land of any Indian reservation, created or set apart by

treaty or agreement with the Indians, Act of Congress, Executive order, purchase, or

otherwise, shall be allotted in severalty to any Indian

Sec. 462. - Existing periods of trust and restrictions on alienation extended

The existing periods of trust placed upon any Indian lands and any restriction on

alienation thereof are extended and continued until otherwise directed by Congress

Sec. 463. - Restoration of lands to tribal ownership

(a) Protection of existing rights

The Secretary of the Interior, if he shall find it to be in the public interest, is authorized to

restore to tribal ownership the remaining surplus lands of any Indian reservation

heretofore opened, or authorized to be opened, to sale, or any other form of disposal by

Presidential proclamation, or by any of the public-land laws of the United States:

Provided, however, That valid rights or claims of any persons to any lands so withdrawn

existing on the date of the withdrawal shall not be affected by this Act: Provided further,

That this section shall not apply to lands within any reclamation project heretofore

authorized in any Indian reservation.

(b) Papago Indians; permits for easements, etc.

(1) ,

(2) Repealed. May 27, 1955, ch. 106, Sec. 1, 69 Stat. 67.

(3) Water reservoirs, charcos, water holes, springs, wells, or any other form of water

development by the United States or the Papago Indians shall not be used for mining

purposes under the terms of this Act, except under permit from the Secretary of the

Interior approved by the Papago Indian Council: Provided, That nothing herein shall be

construed as interfering with or affecting the validity of the water rights of the Indians of

this reservation: Provided further, That the appropriation of living water heretofore or

hereafter affected, by the Papago Indians is recognized and validated subject to all the

laws applicable thereto.

(4) Nothing herein contained shall restrict the granting or use of permits for easements or

rights-of-way; or ingress or egress over the lands for all proper and lawful purposes

Sec. 464. - Transfer of restricted Indian lands or shares in assets of Indian tribes or

corporation; exchange of lands

Except as herein provided, no sale, devise, gift, exchange, or other transfer of restricted

Indian lands or of shares in the assets of any Indian tribe or corporation organized

hereunder, shall be made or approved: Provided, however, That such lands or interests

may, with the approval of the Secretary of the Interior, be sold, devised, or otherwise

transferred to the Indian tribe in which the lands or shares are located or from which the

shares were derived or to a successor corporation; and in all instances such lands or

interests shall descend or be devised, in accordance with the then existing laws of the

State, or Federal laws where applicable, in which said lands are located or in which the

subject matter of the corporation is located, to any member of such tribe or of such

corporation or any heirs or lineal descendants of such member or, except as provided by

the Indian Land Consolidation Act (25 U.S.C. 2201 et seq.), any other Indian person for

whom the Secretary of the Interior determines that the United States may hold land in

trust: Provided further, That the Secretary of the Interior may authorize voluntary

exchanges of lands of equal value and the voluntary exchange of shares of equal value

whenever such exchange, in his judgment, is expedient and beneficial for or compatible

with the proper consolidation of Indian lands and for the benefit of cooperative

organizations

Sec. 465. - Acquisition of lands, water rights or surface rights; appropriation; title to

lands; tax exemption

The Secretary of the Interior is authorized, in his discretion, to acquire, through purchase,

relinquishment, gift, exchange, or assignment, any interest in lands, water rights, or

surface rights to lands, within or without existing reservations, including trust or

otherwise restricted allotments, whether the allottee be living or deceased, for the purpose

of providing land for Indians.

For the acquisition of such lands, interests in lands, water rights, and surface rights, and

for expenses incident to such acquisition, there is authorized to be appropriated, out of

any funds in the Treasury not otherwise appropriated, a sum not to exceed $2,000,000 in

any one fiscal year: Provided, That no part of such funds shall be used to acquire

additional land outside of the exterior boundaries of Navajo Indian Reservation for the

Navajo Indians in Arizona, nor in New Mexico, in the event that legislation to define the

exterior boundaries of the Navajo Indian Reservation in New Mexico, and for other

purposes, or similar legislation, becomes law.

The unexpended balances of any appropriations made pursuant to this section shall

remain available until expended.

Title to any lands or rights acquired pursuant to this Act or the Act of July 28, 1955 (69

Stat. 392), as amended (25 U.S.C. 608 et seq.) shall be taken in the name of the United

States in trust for the Indian tribe or individual Indian for which the land is acquired, and

such lands or rights shall be exempt from State and local taxation

Sec. 466. - Indian forestry units; rules and regulations

The Secretary of the Interior is directed to make rules and regulations for the operation

and management of Indian forestry units on the principle of sustained-yield management,

to restrict the number of livestock grazed on Indian range units to the estimated carrying

capacity of such ranges, and to promulgate such other rules and regulations as may be

necessary to protect the range from deterioration, to prevent soil erosion, to assure full

utilization of the range, and like purposes

Sec. 467. - New Indian reservations

The Secretary of the Interior is hereby authorized to proclaim new Indian reservations on

lands acquired pursuant to any authority conferred by this Act, or to add such lands to

existing reservations: Provided, That lands added to existing reservations shall be

designated for the exclusive use of Indians entitled by enrollment or by tribal

membership to residence at such reservations

Sec. 468. - Allotments or holdings outside of reservations

Nothing contained in this Act shall be construed to relate to Indian holdings of allotments

or homesteads upon the public domain outside of the geographic boundaries of any

Indian reservation now existing or established hereafter

Sec. 469. - Indian corporations; appropriation for organizing

There is authorized to be appropriated, out of any funds in the Treasury not otherwise

appropriated, such sums as may be necessary, but not to exceed $250,000 in any fiscal

year, to be expended at the order of the Secretary of the Interior, in defraying the

expenses of organizing Indian chartered corporations or other organizations created under

this Act

Sec. 470. - Revolving fund; appropriation for loans

There is authorized to be appropriated, out of any funds in the Treasury not otherwise

appropriated, the sum of $20,000,000 to be established as a revolving fund from which

the Secretary of the Interior, under such rules and regulations as he may prescribe, may

make loans to Indian chartered corporations for the purpose of promoting the economic

development of such tribes and of their members, and may defray the expenses of

administering such loans. Repayment of amounts loaned under this authorization shall be

credited to the revolving fund and shall be available for the purposes for which the fund

is established

Sec. 470a. - Interest charges covered into revolving fund

Interest or other charges heretofore or hereafter collected on loans shall be credited to the

revolving fund created by section 470 of this title and shall be available for the

establishment of a revolving fund for the purpose of making and administering loans to

Indian-chartered corporations in accordance with the Act of June 18, 1934 (48 Stat. 986)

(25 U.S.C. 461 et seq.), and of making and administering loans to individual Indians and

to associations or corporate groups of Indians of Oklahoma in accordance with the Act of

June 26, 1936 (49 Stat. 1967) (25 U.S.C. 501 et seq.)

Sec. 471. - Vocational and trade schools; appropriation for tuition

There is authorized to be appropriated, out of any funds in the United States Treasury not

otherwise appropriated, a sum not to exceed $250,000 annually, together with any

unexpended balances of previous appropriations made pursuant to this section, for loans

to Indians for the payment of tuition and other expenses in recognized vocational and

trade schools: Provided, That not more than $50,000 of such sum shall be available for

loans to Indian students in high schools and colleges. Such loans shall be reimbursable

under rules established by the Commissioner of Indian Affairs

Sec. 472. - Standards for Indians appointed to Indian Office

The Secretary of the Interior is directed to establish standards of health, age, character,

experience, knowledge, and ability for Indians who may be appointed to the various

positions maintained, now or hereafter, by the Indian Office, in the administration of

functions or services affecting any Indian tribe. Such qualified Indians shall hereafter

have the preference to appointment to vacancies in any such positions

Sec. 473. - Application generally

The provisions of this Act shall not apply to any of the Territories, colonies, or insular

possessions of the United States, except that sections 9, 10, 11, 12, and 16 (25 U.S.C.

469, 470, 471, 472, 476) shall apply to the Territory of Alaska: Provided, That sections 4,

7, 16, 17, and 18 of this Act (25 U.S.C. 464, 467, 476, 477, 478) shall not apply to the

following-named Indian tribes, the members of such Indian tribes, together with members

of other tribes affiliated with such named tribes located in the State of Oklahoma, as

follows: Cheyenne, Arapaho, Apache, Comanche, Kiowa, Caddo, Delaware, Wichita,

Osage, Kaw, Otoe, Tonkawa, Pawnee, Ponca, Shawnee, Ottawa, Quapaw, Seneca,

Wyandotte, Iowa, Sac and Fox, Kickapoo, Pottawatomi, Cherokee, Chickasaw, Choctaw,

Creek, and Seminole. Section 4 of this Act (25 U.S.C. 464) shall not apply to the Indians

of the Klamath Reservation in Oregon

Sec. 473a. - Application to Alaska

Sections 461, 465, 467, 468, 475, 477, and 479 of this title shall after May 1, 1936, apply

to the Territory of Alaska: Provided, That groups of Indians in Alaska not recognized

prior to May 1, 1936, as bands or tribes, but having a common bond of occupation, or

association, or residence within a well-defined neighborhood, community, or rural

district, may organize to adopt constitutions and bylaws and to receive charters of

incorporation and Federal loans under sections 470, 476, and 477 of this title

Sec. 474. - Continuation of allowances

The Secretary of the Interior is directed to continue the allowance of the articles

enumerated in section 17 of the Act of March 2, 1889 (23 Stat. L. 894), or their

commuted cash value under the Act of June 10, 1896 (29 Stat. L. 334), to all Sioux

Indians who would be eligible, but for the provisions of this Act, to receive allotments of

lands in severalty under section 19 of the Act of May 29, 1908 (25 Stat. L. 451), or under

any prior Act, and who have the prescribed status of the head of a family or single person

over the age of eighteen years, and his approval shall be final and conclusive, claims

therefor to be paid as formerly from the permanent appropriation made by said section 17

and carried on the books of the Treasury for this purpose. No person shall receive in his

own right more than one allowance of the benefits, and application must be made and

approved during the lifetime of the allottee or the right shall lapse. Such benefits shall

continue to be paid upon such reservation until such such time as the lands available

therein for allotment on June 18, 1934, would have been exhausted by the award to each

person receiving such benefits of an allotment of eighty acres of such land

Sec. 475. - Claims or suits of Indian tribes against United States; rights unimpaired

Nothing in this Act shall be construed to impair or prejudice any claim or suit of any

Indian tribe against the United States. It is declared to be the intent of Congress that no

expenditures for the benefit of Indians made out of appropriations authorized by said

sections shall be considered as offsets in any suit brought to recover upon any claim of

such Indians against the United States

Sec. 476. - Organization of Indian tribes; constitution and bylaws and amendment

thereof; special election

(a) Adoption; effective date

Any Indian tribe shall have the right to organize for its common welfare, and may adopt

an appropriate constitution and bylaws, and any amendments thereto, which shall become

effective when -

(1) ratified by a majority vote of the adult members of the tribe or tribes at a special

election authorized and called by the Secretary under such rules and regulations as the

Secretary may prescribe; and

(2) approved by the Secretary pursuant to subsection (d) of this section.

(b) Revocation

Any constitution or bylaws ratified and approved by the Secretary shall be revocable by

an election open to the same voters and conducted in the same manner as provided in

subsection (a) of this section for the adoption of a constitution or bylaws.

findings

(1) The Secretary shall call and hold an election as required by subsection (a) of this

section -

(A) within one hundred and eighty days after the receipt of a tribal request for an election

to ratify a proposed constitution and bylaws, or to revoke such constitution and bylaws;

(B) within ninety days after receipt of a tribal request for election to ratify an amendment

to the constitution and bylaws.

(2) During the time periods established by paragraph (1), the Secretary shall -

(A) provide such technical advice and assistance as may be requested by the tribe or as the

Secretary determines may be needed; and

(B) review the final draft of the constitution and bylaws, or amendments thereto to

determine if any provision therein is contrary to applicable laws.

(3) After the review provided in paragraph (2) and at least thirty days prior to the calling

of the election, the Secretary shall notify the tribe, in writing, whether and in what

manner the Secretary has found the proposed constitution and bylaws or amendments

thereto to be contrary to applicable laws.

(d) Approval or disapproval by Secretary; enforcement

(1) If an election called under subsection (a) of this section results in the adoption by the

tribe of the proposed constitution and bylaws or amendments thereto, the Secretary shall

approve the constitution and bylaws or amendments thereto within forty-five days after

the election unless the Secretary finds that the proposed constitution and bylaws or any

amendments are contrary to applicable laws.

(2) If the Secretary does not approve or disapprove the constitution and bylaws or

amendments within the forty-five days, the Secretary's approval shall be considered as

given. Actions to enforce the provisions of this section may be brought in the appropriate

Federal district court.

(e) Vested rights and powers; advisement of presubmitted budget estimates

In addition to all powers vested in any Indian tribe or tribal council by existing law, the

constitution adopted by said tribe shall also vest in such tribe or its tribal council the

following rights and powers: To employ legal counsel; to prevent the sale, disposition,

lease, or encumbrance of tribal lands, interests in lands, or other tribal assets without the

consent of the tribe; and to negotiate with the Federal, State, and local governments. The

Secretary shall advise such tribe or its tribal council of all appropriation estimates or

Federal projects for the benefit of the tribe prior to the submission of such estimates to

the Office of Management and Budget and the Congress.

(f) Privileges and immunities of Indian tribes; prohibition on new regulations

Departments or agencies of the United States shall not promulgate any regulation or

make any decision or determination pursuant to the Act of June 18, 1934 (25 U.S.C. 461

et seq., 48 Stat. 984) as amended, or any other Act of Congress, with respect to a

federally recognized Indian tribe that classifies, enhances, or diminishes the privileges

and immunities available to the Indian tribe relative to other federally recognized tribes

by virtue of their status as Indian tribes.

(g) Privileges and immunities of Indian tribes; existing regulations

Any regulation or administrative decision or determination of a department or agency of

the United States that is in existence or effect on May 31, 1994, and that classifies,

enhances, or diminishes the privileges and immunities available to a federally recognized

Indian tribe relative to the privileges and immunities available to other federally

recognized tribes by virtue of their status as Indian tribes shall have no force or effect

Sec. 477. - Incorporation of Indian tribes; charter; ratification by election

The Secretary of the Interior may, upon petition by any tribe, issue a charter of

incorporation to such tribe: Provided, That such charter shall not become operative until

ratified by the governing body of such tribe. Such charter may convey to the incorporated

tribe the power to purchase, take by gift, or bequest, or otherwise, own, hold, manage,

operate, and dispose of property of every description, real and personal, including the

power to purchase restricted Indian lands and to issue in exchange therefor interests in

corporate property, and such further powers as may be incidental to the conduct of

corporate business, not inconsistent with law; but no authority shall be granted to sell,

mortgage, or lease for a period exceeding twenty-five years any trust or restricted lands

included in the limits of the reservation. Any charter so issued shall not be revoked or

surrendered except by Act of Congress

Sec. 478. - Acceptance optional

This Act shall not apply to any reservation wherein a majority of the adult Indians, voting

at a special election duly called by the Secretary of the Interior, shall vote against its

application. It shall be the duty of the Secretary of the Interior, within one year after June

18, 1934, to call such an election, which election shall be held by secret ballot upon thirty

days' notice

Sec. 478-1. - Mandatory application of sections 462 and 477

Notwithstanding section 478 of this title, sections 462 and 477 of this title shall apply to -

(1) all Indian tribes,

(2) all lands held in trust by the United States for Indians, and

(3) all lands owned by Indians that are subject to a restriction imposed by the United

States on alienation of the rights of the Indians in the lands

Sec. 478a. - Procedure

In any election heretofore or hereafter held under the Act of June 18, 1934 (48 Stat. 984)

(25 U.S.C. 461 et seq.), on the question of excluding a reservation from the application of

the said Act or on the question of adopting a constitution and bylaws or amendments

thereto or on the question of ratifying a charter, the vote of a majority of those actually

voting shall be necessary and sufficient to effectuate such exclusion, adoption, or

ratification, as the case may be: Provided, however, That in each instance the total vote

cast shall not be less than 30 per centum of those entitled to vote

Sec. 478b. - Application of laws and treaties

All laws, general and special, and all treaty provisions affecting any Indian reservation

which has voted or may vote to exclude itself from the application of the Act of June 18,

1934 (48 Stat. 984) (25 U.S.C. 461 et seq.), shall be deemed to have been continuously

effective as to such reservation, notwithstanding the passage of said Act of June 18, 1934.

Nothing in the Act of June 18, 1934, shall be construed to abrogate or impair any rights

guaranteed under any existing treaty with any Indian tribe, where such tribe voted not to

exclude itself from the application of said Act

Sec. 479. - Definitions

The term ''Indian'' as used in this Act shall include all persons of Indian descent who are

members of any recognized Indian tribe now under Federal jurisdiction, and all persons

who are descendants of such members who were, on June 1, 1934, residing within the

present boundaries of any Indian reservation, and shall further include all other persons of

one-half or more Indian blood. For the purposes of this Act, Eskimos and other aboriginal

peoples of Alaska shall be considered Indians. The term ''tribe'' wherever used in this Act

shall be construed to refer to any Indian tribe, organized band, pueblo, or the Indians

residing on one reservation. The words ''adult Indians'' wherever used in this Act shall be

construed to refer to Indians who have attained the age of twenty-one years

Sec. 479a. - Definitions

For the purposes of this title:

[1]

(1) The term ''Secretary'' means the Secretary of the Interior.

(2) The term ''Indian tribe'' means any Indian or Alaska Native tribe, band, nation, pueblo,

village or community that the Secretary of the Interior acknowledges to exist as an Indian

tribe.

(3) The term ''list'' means the list of recognized tribes published by the Secretary pursuant

to section 479a-1 of this title

Sec. 480. - Indians eligible for loans

On and after May 10, 1939, no individual of less than one-quarter degree of Indian blood

shall be eligible for a loan from funds made available in accordance with the provisions

of the Act of June 18, 1934 (48 Stat. 986) (25 U.S.C. 461 et seq.), and the Act of June 26,

1936 (49 Stat. 1967) (25 U.S.C. 501 et seq.)

Sec. 482. - Revolving fund; loans; regulations

The Secretary of the Interior, or his designated representative, is authorized, under such

regulations as the Secretary may prescribe, to make loans from the revolving fund

established pursuant to the Acts of June 18, 1934 (48 Stat. 984) (25 U.S.C. 461 et seq.),

and June 26, 1936 (49 Stat. 1967) (25 U.S.C. 501 et seq.), to tribes, bands, groups, and

individual Indians, not otherwise eligible for loans under said Acts: Provided, That no

portion of these funds shall be loaned to Indians of less than one-quarter Indian blood

Sec. 483. - Sale of land by individual Indian owners

The Secretary of the Interior, or his duly authorized representative, is authorized in his

discretion, and upon application of the Indian owners, to issue patents in fee, to remove

restrictions against alienation, and to approve conveyances, with respect to lands or

interests in lands held by individual Indians under the provisions of the Act of June 18,

1934 (48 Stat. 984) (25 U.S.C. 461 et seq.), or the Act of June 26, 1936 (49 Stat. 1967)

(25 U.S.C. 501 et seq.)

Sec. 483a. - Mortgages and deeds of trust by individual Indian owners; removal from

trust or restricted status; application to Secretary

(a) The individual Indian owners of any land which either is held by the United States in

trust for them or is subject to a restriction against alienation imposed by the United States

are authorized, subject to approval by the Secretary of the Interior, to execute a mortgage

or deed of trust to such land. Such land shall be subject to foreclosure or sale pursuant to

the terms of such mortgage or deed of trust in accordance with the laws of the tribe which

has jurisdiction over such land or, in the case where no tribal foreclosure law exists, in

accordance with the laws of the State or Territory in which the land is located. For the

purpose of any foreclosure or sale proceeding the Indian owners shall be regarded as

vested with an unrestricted fee simple title to the land, the United States shall not be a

necessary party to the proceeding, and any conveyance of the land pursuant to the

proceeding shall divest the United States of title to the land. All mortgages and deeds of

trust to such land heretofore approved by the Secretary of the Interior are ratified and

confirmed.

(b) In the event such land is acquired by an Indian or an Indian tribe, such land shall not

be removed from trust or restricted status except upon application to the Secretary under

existing law

Sec. 484. - Conversion of exchange assignments of tribal lands on certain Sioux

reservations into trust titles; trust and tax exemption

From and after July 14, 1954, each grant of exchange assignment of tribal lands on the

Cheyenne River Sioux Reservation and the Standing Rock Sioux Reservation shall have

the same force and effect, and shall confer the same rights, including all timber, mineral,

and water rights now vested in or held by the Cheyenne River Sioux Tribe or the

Standing Rock Sioux Tribe, upon the holder or holders thereof, that are conveyed by a

trust patent issued pursuant to section 348 of this title, as supplemented, except that the

period of trust and tax exemption shall continue until otherwise directed by Congress

Sec. 485. - Payment to assignment holders of moneys collected for use of subsurface

rights

The Cheyenne River Sioux Tribe and the Standing Rock Sioux Tribe are authorized to

pay to each holder of an exchange assignment of tribal lands all moneys collected by the

tribe for the lease or use of subsurface rights in such lands

Sec. 486. - Regulations

The Secretary of the Interior is authorized to prescribe such regulations as may be

necessary to carry out the provisions of sections 484 to 486 of this title

Sec. 487. - Spokane Indian Reservation; consolidations of land

(a) Purchase, sale, and exchange

For the purpose of effecting consolidations of land situated within the Spokane Indian

Reservation in the State of Washington into the ownership of the tribe and of individual

tribal members and for the purpose of attaining and preserving an economic land base for

Indian use, alleviating problems of Indian heirship and assisting in the productive leasing,

disposition, and other use of tribal lands, the Secretary of the Interior is authorized in his

discretion to:

(1) Purchase for the Spokane Tribe of Indians with any funds of such tribe and to

otherwise acquire by gift, exchange, or relinquishment any lands or interest in lands or

improvements thereon within the Spokane Indian Reservation.

(2) Sell or approve sales of any tribal trust lands, any interest therein or improvements

thereon.

(3) Exchange any tribal trust lands, including interests therein or improvements thereon,

for any lands situated within such reservation.

(b) Individual Indian trust lands

The Secretary of the Interior is authorized to sell and exchange individual Indian trust

lands held in multiple ownership to the Spokane Tribe or to individual members thereof if

the sale or exchange is authorized in writing by owners of at least a majority interest in

such lands; except that no greater percentage of approval of individual Indians shall be

required under this Act than in any other statute of general application approved by

Congress.

Title to lands, or any interests therein, acquired pursuant to this Act for the Spokane Tribe

or individual enrolled members thereof, shall be taken in the name of the United States of

America in trust for the tribe or individual Indian, and shall be nontaxable as other tribal

and allotted Indian trust lands of the Spokane Reservation.

(d) Lands held by mortgage or deed of trust

That any tribal land that may be sold pursuant to this Act may, with the approval of the

Secretary of the Interior, be encumbered by a mortgage or deed of trust and shall be

subject to foreclosure or sale pursuant to the terms of such a mortgage or deed of trust in

accordance with the laws of the State of Washington. The United States shall be an

indispensable party to any such proceeding with the right of removal of the clause to the

United States district court for the district in which the land is located, following the

procedure in section 1446 of title 28: Provided, That the United States shall have the right

to appeal from any order of remand in the case.

(e) Acquisition and sale procedures; land purchase and consolidation program

The acquisition and sale of lands for the Spokane Tribe pursuant to this Act shall be upon

request of the business council of the Spokane Tribe, evidenced by a resolution adopted

in accordance with the constitution and bylaws of the tribe, and shall be in accordance

with a land purchase and consolidation plan approved by the Secretary of the Interior,

and except as it may otherwise be authorized or prescribed by the Secretary, shall be

limited to lands situated within the boundary of the Spokane Reservation. Such

acquisition by the Spokane Tribe, or individual members thereof, may be achieved by

exchange of lands with Indians or non-Indians as well as outright purchase, with

adjusting payments to approximate equal value. Moneys or credits received by the tribe

in the sale of lands shall be used for the purchase of other lands, or for such other purpose

as may be consistent with the land purchase and consolidation program, approved by the

Secretary of the Interior

Sec. 488. - Agricultural loans to acquire land within reservations

The Secretary of Agriculture is authorized to make loans from the Farmers Home

Administration Direct Loan Account created by section 1988(c)

[1]

of title 7, and to make

and insure loans as provided in sections 1928

[1]

and 1929 of title 7, to any Indian tribe

recognized by the Secretary of the Interior or tribal corporation established pursuant to

the Indian Reorganization Act (25 U.S.C. 477), which does not have adequate

uncommitted funds, to acquire lands or interests therein within the tribe's reservation as

determined by the Secretary of the Interior, or within a community in Alaska

incorporated by the Secretary pursuant to the Indian Reorganization Act (25 U.S.C. 461

et seq.), for use of the tribe or the corporation or the members of either. Such loans shall

be limited to such Indian tribes or tribal corporations as have reasonable prospects of

success in their proposed operations and as are unable to obtain sufficient credit

elsewhere at reasonable rates and terms to finance the purposes authorized in sections

488 to 494 of this title.

Sec. 489. - Title in trust to United States

Title to land acquired by a tribe or tribal corporation with a loan made or insured pursuant

to sections 488 to 494 of this title may, with the approval of the Secretary of the Interior,

be taken by the United States in trust for the tribe or tribal corporation

Sec. 490. - Tribal rights and privileges in connection with loans

A tribe or tribal corporation to which a loan is made or insured pursuant to sections 488

to 494 of this title

(1) may waive in writing any immunity from suit or liability which it may possess,

(2) may mortgage or otherwise hypothecate trust or restricted property if

(a) authorized by its constitution or charter or by a tribal referendum, and

(b) approved by the Secretary of the Interior, and

(3) shall comply with rules and regulations prescribed by the Secretary of Agriculture in

connection with such loans

Sec. 491. - Mortgaged property governed by State law

Trust or restricted tribal or tribal corporation property mortgaged pursuant to sections 488

to 494 of this title shall be subject to foreclosure and sale or conveyance in lieu of

foreclosure, free of such trust or restrictions, in accordance with the laws of the State in

which the property is located

Sec. 492. - Interest rates and taxes

Loans made or insured pursuant to sections 488 to 494 of this title will be subject to the

interest rate provisions of section 307(a)(3)(B) of the Consolidated Farmers Home

Administration Act of 1961, as amended (7 U.S.C. 1927(a)(3)(B)), and to the provisions

of subtitle D of that Act (7 U.S.C. 1981 et seq.) except sections 340 (7 U.S.C. 1990), 341,

342 (7 U.S.C. 1013a), and 343 (7 U.S.C. 1991) thereof: Provided, That section 334 (7

U.S.C. 1984) thereof shall not be construed to subject to taxation any lands or interests

therein while they are held by an Indian tribe or tribal corporation or by the United States

in trust for such tribe or tribal corporation pursuant to sections 488 to 494 of this title

Sec. 493. - Reduction of unpaid principal

(a) In general

The Secretary of Agriculture may, on the application of the borrower of a loan or loans

made under sections 488 to 494 of this title, reduce the unpaid principal balance of such

loan or loans to the current fair market value of the land purchased with the proceeds of

the loan or loans if -

(1) the fair market value of the land has declined by at least 25 percent since such land

was purchased by the borrower;

(2) the land has been held by the borrower for a period of at least 5 years; and

(3) the Secretary of the Interior finds that the borrower has insufficient income to both

repay the loan or loans and provide normal tribal governmental services.

(b) Fair market value

(1) Appraisal

Current fair market value under subsection (a) of this section shall be determined through

an appraisal by an independent qualified fee appraiser, selected by mutual agreement

between the borrower and the Secretary of Agriculture.

(2) Costs

The cost of appraisals undertaken under paragraph (1) shall be paid by the borrower.

Decisions of the Secretary of Agriculture under this section shall be appealable in

accordance with the provisions of section 333B of the Consolidated Farm and Rural

Development Act.