Indian reservation
(1) (A) (i) Except as provided in subparagraph (D), if— (I) the Secretary acquires property under this chapter that is located within an Indian reservation; and (II) the borrower-owner is the Indian tribe that has jurisdiction over the reservation in which the real property is located or the borrower-owner is a member of such Indian tribe; the Secretary shall dispose of or administer the property only as provided for in this subparagraph. (ii) For purposes of this subparagraph, the term “Indian reservation” means all land located within the limits of any Indian reservation under the jurisdiction of the United States, notwithstanding the issuance of any patent, and, including rights-of-way running through the reservation; trust or restricted land located within the boundaries of a former reservation of a federally recognized Indian tribe in the State of Oklahoma; or all Indian allotments the Indian titles to which have not been extinguished if such allotments are subject to the jurisdiction of a federally recognized Indian tribe. (iii) Not later than 90 days after acquiring the property, the Secretary shall afford an opportunity to purchase or lease the real property in accordance with the order of priority established under clause (iv) by the Indian tribe having jurisdiction over the Indian reservation within which the real property is located or, if no order of priority is established by such Indian tribe under clause (iv), in the following order: (I) to an Indian member of the Indian tribe that has jurisdiction over the reservation within which the real property is located; (II) to an Indian corporate entity; (III) to such Indian tribe. (iv) The governing body of any Indian tribe having jurisdiction over an Indian reservation may revise the order of priority provided in clause (iii) under which lands located within such reservation shall be offered for purchase or lease by the Secretary under clause (iii) and may restrict the eligibility for such purchase or lease to— (I) persons who are members of such Indian tribe, (II) Indian corporate entities that are authorized by such Indian tribe to lease or purchase lands within the boundaries of such reservation, or (III) such Indian tribe itself. (v) If real property described in clause (i) is not purchased or leased under clause (iii) and the Indian tribe having jurisdiction over the reservation within which the real property is located is unable to purchase or lease the real property, the Secretary shall transfer the real property to the Secretary of the Interior who shall administer the real property as if the real property were held in trust by the United States for the benefit of such Indian tribe. From the rental income derived from the lease of the transferred real property, and all other income generated from the transferred real property, the Secretary of the Interior shall pay those State, county, municipal, or other local taxes to which the transferred real property was subject at the time of acquisition by the Secretary, until the earlier of— (I) the expiration of the 4-year period beginning on the date on which the real property is so transferred, or (II) such time as the lands are transferred into trust pursuant to clause (viii). (vi) At any time any real property is transferred to the Secretary of the Interior under clause (v), the Secretary of Agriculture shall be deemed to have no further responsibility under this Act for collection of any amounts with regard to the farm program loan which had been secured by such real property, nor with regard to any lien arising out of such loan transaction, nor for repayments of any amount with regard to such loan transactions or liens to the Treasury of the United States, and the Secretary of the Interior shall be deemed to have succeeded to all right, title and interest of the Secretary of Agriculture in such real estate arising from the farm program loan transaction, including the obligation to remit to the Treasury of the United States, in repayment of the original loan, those amounts provided in clause (vii). (vii) After the payment of any taxes which are required to be paid under clause (v), all remaining rental income derived from the lease of the real property transferred to the Secretary of the Interior under clause (v), and all other income generated from the real property transferred to the Secretary of the Interior under clause (v), shall be deposited as miscellaneous receipts in the Treasury of the United States until the amount deposited is equal to the lesser of— (I) the amount of the outstanding lien of the United States against such real property, as of the date the real property was acquired by the Secretary; (II) the fair market value of the real property, as of the date of the transfer to the Secretary of the Interior; or (III) the capitalized value of the real property, as of the date of the transfer to the Secretary of the Interior. (viii) When the total amount that is required to be deposited under clause (vii) with respect to any real property has been deposited into the Treasury of the United States, title to the real property shall be held in trust by the United States for the benefit of the Indian tribe having jurisdiction over the Indian reservation within which the real property is located. (ix) Notwithstanding any other clause of this subparagraph, the Indian tribe having jurisdiction over the Indian reservation within which the real property described in clause (i) is located may, at any time after the real property has been transferred to the Secretary of the Interior under clause (v), offer to pay the remaining amount on the lien, or the fair market value of the real property, whichever is less. Upon payment of such amount, title to such real property shall be held by the United States in trust for the tribe and such trust or restricted lands that have been acquired by the Secretary under foreclosure or voluntary transfer under a loan made or insured under this chapter and transferred to an Indian person, entity, or tribe under the provisions of this subparagraph shall be deemed to have never lost trust or restricted status. (x) This subparagraph shall apply to all lands in the land inventory established under this chapter (as of November 28, 1990 ) that were (immediately prior to November 28, 1990 ) owned by an Indian borrower-owner described in clause (i) and that are situated within an Indian reservation (as defined in clause (ii)), regardless of the date of foreclosure or acquisition by the Secretary. The Secretary shall afford an opportunity to a tribal member, an Indian corporate entity, or the tribe to purchase or lease the real property as provided in clause (iii). If the right is not exercised or no expression of intent to exercise such right is received within 180 days after November 28, 1990 , the Secretary shall transfer the real property to the Secretary of the Interior as provided in clause (v). (B) The rights provided in this subsection shall be in addition to any such right of first refusal under the law of the State in which the property is located. (C) As used in this paragraph, the term “borrower-owner” means— (i) a borrower from whom the Secretary acquired real farm or ranch property (including the principal residence of the borrower) used to secure any loan made to the borrower under this chapter; or (ii) in any case in which an owner of property pledged the property to secure the loan and the owner is different than the borrower, the owner. (D) (i) If— (I) the real property described in subparagraph (A)(i) is located within an Indian reservation; (II) the borrower-owner is an Indian tribe that has jurisdiction over the reservation in which the real property is located or the borrower-owner is a member of an Indian tribe; (III) the borrower-owner has obtained a loan made, insured, or guaranteed under this chapter; and (IV) the borrower-owner and the Secretary have exhausted all of the procedures provided for in this chapter to permit a borrower-owner to retain title to the real property, such that it is necessary for the borrower-owner to relinquish title, the Secretary shall dispose of or administer the property only as provided in subparagraph (A), as modified by this subparagraph. (ii) The Secretary shall provide the borrower-owner of real property that is described in clause (i) with written notice of— (I) the right of the borrower-owner to voluntarily convey the real property to the Secretary; and (II) the fact that real property so conveyed will be placed in the inventory of the Secretary. (iii) The Secretary shall provide the borrower-owner of the real property with written notice of the rights and protections provided under this chapter to the borrower-owner, and the Indian tribe that has jurisdiction over the reservation in which the real property is located, from foreclosure or liquidation of the real property, including written notice of— (I) the provisions of subparagraph (A), this subparagraph, and subsection (g)(6); (II) if the borrower-owner does not voluntarily convey the real property to the Secretary, that— (aa) the Secretary may foreclose on the property; (bb) in the event of foreclosure, the property will be offered for sale; (cc) the Secretary must offer a bid for the property that is equal to the fair market value of the property or the outstanding principal and interest of the loan, whichever is higher; (dd) the property may be purchased by another party; and (ee) if the property is purchased by another party, the property will not be placed in the inventory of the Secretary and the borrower-owner will forfeit the rights and protections provided under this chapter; and (III) the opportunity of the borrower-owner to consult with the Indian tribe that has jurisdiction over the reservation in which the real property is located or counsel to determine if State or tribal law provides rights and protections that are more beneficial than those provided the borrower-owner under this chapter. (iv) (I) Except as provided in subclause (II), the Secretary shall accept the voluntary conveyance of real property described in clause (i). (II) If a hazardous substance (as defined in section 9601(14) of title 42 ) is located on the property and the Secretary takes remedial action to protect human health or the environment if the property is taken into inventory, the Secretary shall accept the voluntary conveyance of the property only if the Secretary determines that it is in the best interests of the Federal Government. (v) Foreclosure procedures.— (I) Notice to borrower .— If an Indian borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide the Indian borrower-owner with the option of— (aa) requiring the Secretary to assign the loan and security instruments to the Secretary of the Interior, if the Secretary of the Interior agrees to an assignment releasing the Secretary of Agriculture from all further responsibility for collection of any amounts with regard to the loan secured by the real property; or (bb) requiring the Secretary to assign the loan and security instruments to the tribe having jurisdiction over the reservation in which the real property is located, if the tribe agrees to the assignment. (II) Notice to tribe .— If an Indian borrower-owner does not voluntarily convey to the Secretary real property described in clause (i), not less than 30 days before a foreclosure sale of the property, the Secretary shall provide written notice to the Indian tribe that has jurisdiction over the reservation in which the real property is located of— (aa) the sale; (bb) the fair market value of the property; and (cc) the requirements of this subparagraph. (III) Assumed loans .— If an Indian tribe assumes a loan under subclause (I)— (aa) the Secretary shall not foreclose the loan because of any default that occurred prior to the date of the assumption; (bb) the loan shall be for the lesser of the outstanding principal and interest of the loan or the fair market value of the property; and (cc) the loan shall be treated as though the loan was made under sections 5136 to 5143 of title 25. (vi) (I) Except as provided in subclause (II), at a foreclosure sale of real property described in clause (i), the Secretary shall offer a bid for the property that is equal to the higher of— (aa) the fair market value of the property; or (bb) the outstanding principal and interest of the loan. (II) If a hazardous substance (as defined in section 9601(14) of title 42 ) is located on the property and the Secretary takes remedial action to protect human health or the environment if the property is taken into inventory, subclause (I) shall apply only if the Secretary determines that it is in the best interests of the Federal Government.