# § 5136. Loans to purchasers of highly fractioned land
**1** **In general** 7 U.S.C. 198125 U.S.C. 477[^1]25 U.S.C. 5101
The Secretary of Agriculture is authorized to make direct loans in a manner consistent with direct loans pursuant to subtitle D of the Consolidated Farm and Rural Development Act ( et seq.), to any Indian tribe recognized by the Secretary of the Interior or tribal corporation established pursuant to the Indian Reorganization Act (), which does not have adequate uncommitted funds, to acquire lands or interests therein within the tribe’s reservation as determined by the Secretary of the Interior, or within a community in Alaska incorporated by the Secretary pursuant to the Indian Reorganization Act [ et seq.], for use of the tribe or the corporation or the members of either. Such loans shall be limited to such Indian tribes or tribal corporations as have reasonable prospects of success in their proposed operations and as are unable to obtain sufficient credit elsewhere at reasonable rates and terms to finance the purposes authorized in sections 5136 to 5143 of this title.
See References in Text note below.
**(b)** **Highly fractionated land**
**(1)** **In general** section 1929 of title 7
Subject to paragraph (2), the Secretary of Agriculture may make and insure loans in accordance with to eligible purchasers of highly fractionated land or to intermediaries in order to establish revolving loan funds for the purchase of highly fractionated land under that section.
**(2)** **Exclusion** Section 5140 of this title
shall not apply to trust land, restricted tribal land, or tribal corporation land that is mortgaged in accordance with paragraph (1).
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**Source Credit**: (Pub. L. 91–229, § 1, Apr. 11, 1970, 84 Stat. 120; Pub. L. 110–234, title V, § 5501, May 22, 2008, 122 Stat. 1161; Pub. L. 110–246, § 4(a), title V, § 5501, June 18, 2008, 122 Stat. 1664, 1922; Pub. L. 113–79, title V, § 5402, Feb. 7, 2014, 128 Stat. 840.)
## Editorial Notes
### References in Text
The Consolidated Farm and Rural Development Act, referred to in subsec. (a), is title III of , , . Subtitle D of the Act is classified principally to subchapter IV (§ 1981 et seq.) of chapter 50 of Title 7, Agriculture. For complete classification of the Act to the Code, see Short Title note set out under and Tables.
Tribal corporation established by the Indian Reorganization Act (), referred to in subsec. (a), means a tribal corporation established under section 17 of , , which was classified to prior to editiorial reclassification as .
The Indian Reorganization Act, referred to in subsec. (a), is , , which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under and Tables.
### Codification
and made identical amendments to this section. The amendments by were repealed by .
Section was formerly classified to prior to editorial reclassification and renumbering as this section.
### Amendments
2014—Subsec. (a). , in first sentence, substituted “direct loans in a manner consistent with direct loans pursuant to subtitle D of the Consolidated Farm and Rural Development Act ( et seq.)” for “loans from the Farmers Home Administration Direct Loan Account created by , and to make and insure loans as provided in sections 1928 and 1929 of title 7”.
Subsec. (b)(1). , substituted “or to intermediaries in order to establish revolving loan funds for the purchase of highly fractionated land under that section” for “pursuant to ”.
2008—, inserted section catchline, designated existing provisions as subsec. (a), inserted heading, and added subsec. (b).
## Statutory Notes and Related Subsidiaries
### Effective Date of 2008 Amendment
Amendment of this section and repeal of by effective , the date of enactment of , see , set out as an Effective Date note under , Agriculture.