25 USC § 5142 - Reduction of unpaid principal

---
identifier: "/us/usc/t25/s5142"
source: "usc"
legal_status: "official_prima_facie"
title: "25 USC § 5142 - Reduction of unpaid principal"
title_number: 25
title_name: "INDIANS"
section_number: "5142"
section_name: "Reduction of unpaid principal"
chapter_number: 45
chapter_name: "PROTECTION OF INDIANS AND CONSERVATION OF RESOURCES"
positive_law: false
currency: "119-84"
last_updated: "2025-07-14"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Pub. L. 91–229, § 6, as added Pub. L. 101–82, title III, § 303, Aug. 14, 1989, 103 Stat. 583.)"
---


# § 5142. Reduction of unpaid principal

**(a)** **In general** The Secretary of Agriculture may, on the application of the borrower of a loan or loans made under sections 5136 to 5143 of this title, reduce the unpaid principal balance of such loan or loans to the current fair market value of the land purchased with the proceeds of the loan or loans if—

**(1)** the fair market value of the land has declined by at least 25 percent since such land was purchased by the borrower;

**(2)** the land has been held by the borrower for a period of at least 5 years; and

**(3)** the Secretary of the Interior finds that the borrower has insufficient income to both repay the loan or loans and provide normal tribal governmental services.

**(b)** **Fair market value**

**(1)** **Appraisal** Current fair market value under subsection (a) of this section shall be determined through an appraisal by an independent qualified fee appraiser, selected by mutual agreement between the borrower and the Secretary of Agriculture.

**(2)** **Costs** The cost of appraisals undertaken under paragraph (1) shall be paid by the borrower.

**1** **Appeals** [^1]7 U.S.C. 1983b

Decisions of the Secretary of Agriculture under this section shall be appealable in accordance with the provisions of section 333B  of the Consolidated Farm and Rural Development Act ().

See References in Text note below.

**(d)** **Future applications** A borrower that had a loan or loans reduced under this section shall not submit an application for another reduction on such loan or loans for a period of 5 years after the initial reduction.

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**Source Credit**: (Pub. L. 91–229, § 6, as added Pub. L. 101–82, title III, § 303, Aug. 14, 1989, 103 Stat. 583.)

## Editorial Notes

### References in Text

Section 333B of the Consolidated Farm and Rural Development Act (), referred to in subsec. (c), probably means , as added by , , , and amended, which related to appeals from adverse decisions under the Act, prior to repeal by , , , and enactment of a new  by , , , and , , , which established a beginning farmers’ pilot program.

### Codification

Another  was added by , , , and is classified to .

Section was formerly classified to  prior to editorial reclassification and renumbering as this section.