PUBLIC LAW 102-550—OCT. 28, 1992

106 STAT. 3739

amounts are insufficient for the Secretary to recover the full
amount of the loan made under this section, the second mort-
gage held by the Secretary under subsection (bXD shall be
cancelled.

"(3) PROFIT.—Any amounts remaining after distribution
under paragraphs (1) and (2) shall be paid to the seller or
transferor.".

(b) CONFORMING AMENDMENTS.—Section 606(eX5) of the Hous-
ing and Community Development Act of 1987 (12 U.S.C. 17151
note) is amended—

(1) by inserting "subject to the provisions of section 604(c),"
after the comma; and

(2) by striking "(in which case" and all that follows through
"repaid)".

(c) APPLICABILITY.—The amendments made by this section shall
apply to any loan made under section 604 of the Housing and
Community Development Act of 1987 after July 1,1990.

SEC. 184. LOAN GUARANTEES FOR INDIAN HOUSING.

(a) AUTHORITY.—To provide access to sources of private financ-
ing to Indian families and Indian housing authorities who otherwise
could not acquire housing financing because of the unique legal
status of Indian trust land, the Secretary may guarantee not to
exceed 100 percent of the unpaid principal and interest due on
any loan eligible under subsection (b) made to an Indian family
or Indian housing authority.

(b) ELIGIBLE LOANS.—Loans guaranteed pursuant to this sec-
tion shall meet the following requirements:

(1) ELIGIBLE BORROWERS.—The loans shall be made only
to borrowers who are Indian families or Indian housing
authorities.

(2) ELIGIBLE HOUSING.—The loan shall be used to construct,
acquire, or rehabilitate 1- to 4-family dwellings that are stand-
ard housing and are located on trust land or land located
in an Indian or Alaska Native area.

(3) SECURITY.—The loan may be secured by any collateral
authorized under existing Federal law or applicable State or
tribal law.

(4) LENDERS.—The loan shall be made only by a lender
approved by and meeting qualifications established by the Sec-
retary, except that loans otherwise insured or guaranteed by
an agency of the Federal Government or made by an organiza-
tion of Indians from amounts borrowed from the United States
shall not be eligible for guarantee under this section. The
following lenders are deemed to be approved under this
paragraph:

(A) Any mortgagee approved by the Secretary of Hous-
ing and Urban Development for participation in the single
family mortgage insurance program under title II of the
National Housing Act.

(B) Any lender whose housing loans under chapter
37 of title 38, United States Code are automatically guaran-
teed pursuant to section 1802(d) of such title.

(C) Any lender approved by the Secretary of Agri-
culture to make guaranteed loans for single family housing
under the Housing Act of 1949.

12 USC 1715J
note.

12 USC 1715/
note.

12 USC
1715z-13a.