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§ 162.460 - How will BIA decide whether to approve a leasehold mortgage of a business lease?

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We may disapprove a leasehold mortgage of a business lease only if at least one of the following is true:

The Indian landowners have not consented and their consent is required;

The lessee's mortgagees or sureties have not consented;

The requirements of this subpart have not been met; or

We find a compelling reason to withhold our approval in order to protect the best interests of the Indian landowners.

In making the finding required by paragraph (a)(4) of this section, we may consider whether:

The leasehold mortgage proceeds would be used for purposes unrelated to the leased premises; and

The leasehold mortgage is limited to the leasehold.

We will defer, to the maximum extent possible, to the Indian landowners' determination that the leasehold mortgage is in their best interest.

We may not unreasonably withhold approval of a leasehold mortgage.

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