[Code of Federal Regulations]
[Title 25, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 25CFR103.17]

[Page 304-305]
 
                            TITLE 25--INDIANS
 
     CHAPTER I--BUREAU OF INDIAN AFFAIRS, DEPARTMENT OF THE INTERIOR
 
PART 103_LOAN GUARANTY, INSURANCE, AND INTEREST SUBSIDY--Table of Contents
 
  Subpart B_How a Lender Obtains a Loan Guaranty or Insurance Coverage
 
Sec. 103.17  Must the lender follow any special procedures to close the 
loan?

    (a) BIA officials or their representatives may attend the closing of 
any loan or loan modification that BIA agrees to guarantee or insure. 
For guaranteed loans, and insured loans that BIA must individually 
review under this part, the lender must give BIA notice of the date of 
closing at least 5 business days before closing occurs.
    (b) At or prior to closing, the lender must obtain appropriate, 
satisfactory title and/or lien searches for each asset to be used as 
loan collateral.
    (c) At or prior to closing, the lender must obtain recent appraisals 
for all real property and improvements to be used as collateral for the 
loan, to the extent required by law.
    (d) At or prior to closing, the lender must document that the lender 
and borrower have complied with all applicable Federal, State, local, 
and tribal laws implicated by financing the borrower's business, for 
example by securing:
    (1) Copies of all permits and licenses required to operate the 
borrower's business;
    (2) Environmental studies required for construction and/or business 
operations under NEPA and other environmental laws;
    (3) Archeological or historical studies required by law; and
    (4) Certification by a registered surveyor or appropriate BIA 
official indicating that the proposed business will not be located in a 
special flood hazard area, as defined by applicable law.
    (e) The lender must supply BIA with copies of all final, signed loan 
closing documents within 30 days following closing. To the extent 
applicable, loan closing documents must include the following:
    (1) Promissory notes;
    (2) Security agreements, including pledge and similar agreements, 
and related financing statements (together

[[Page 305]]

with BIA's written approval of any assignment of specific tribal trust 
assets under Sec. 103.15(l), or of any security interest in an 
individual Indian money account);
    (3) Mortgage instruments or deeds of trust (together with BIA's 
written approval, if required by 25 U.S.C. 483a, or if the mortgage is 
of a leasehold interest in tribal trust property);
    (4) Guarantees (other than from BIA);
    (5) Construction contracts, and plans and specifications;
    (6) Leases related to the business (together with BIA's written 
approval, if required under 25 CFR part 162);
    (7) Attorney opinion letters;
    (8) Resolutions made by a Tribe or business entity;
    (9) Waivers or partial waivers of sovereign immunity; and
    (10) Similar instruments designed to document the loan, establish 
the basis for a security interest in loan collateral, and comply with 
applicable law.
    (f) Unless BIA indicates otherwise in writing, the lender must close 
a guaranteed or insured loan within 90 days of any approval provided 
under Sec. 103.16.