[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: 25CFR103.28]

[Page 307-308]
 
                            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 E_Loan Transfers
 
Sec. 103.28  What if the lender transfers part of the loan to another 
person?


    (a) A lender may transfer one or more interests in a guaranteed loan 
to another person or persons, as long as the parties have in place an 
agreement that designates one person to perform all of the duties 
required of the lender under the Program and the loan guaranty 
certificate. Starting on the date of the transfer, only the person 
designated to perform the duties of the lender will be entitled to 
exercise the rights conferred by BIA's loan guaranty certificate, and 
will from that point forward be considered the lender for purposes of 
the Program. A lender under the Program must both service the guaranteed 
loan and own at least a 10 percent interest in the guaranteed loan. BIA 
will not consider more than one person at any given time to be the 
lender with respect to any loan guaranty certificate. If the person 
designated to perform the duties of the lender in an agreement among 
loan participants is not the original lender, then the provisions of 
Sec. 103.29(a) will apply (relating to sale or assignment of guaranteed 
loans), and the person designated to perform the duties of the lender 
must give BIA notice of its interest in the loan. Failure to provide 
notice in accordance with Sec. 103.29(a) will void BIA's loan guaranty 
certificate, without further action.

[[Page 308]]

    (b) Transferring any interest in an insured loan to another person 
will void the insurance coverage for that loan, except where the 
transfer is effected by a merger.