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U.S. Code as of:
01/19/04
Section 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.
(c) Appeals
Decisions of the Secretary of Agriculture under this section
shall be appealable in accordance with the provisions of section
333B (!1) of the Consolidated Farm and Rural Development Act (7
U.S.C. 1983b).
(d) Future applications
A borrower that had a loan or loans reduced under this section
shall not submit an application for another reduction on such loan
or loans for a period of 5 years after the initial reduction.
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