7 CFR §769.105

1. (a)Intermediary lender. Agency HFIL loan funds must be placed in the intermediary's HFIL revolving fund and used by the intermediary to provide direct loans to eligible ultimate recipients.
2. (b)Ultimate recipient. Loans from the intermediary lender to the ultimate recipient using the HFIL revolving fund:
   1. (1)Must be used to acquire and consolidate at least 50 percent of the highly fractionated Indian land parcel and interests in the land. The interests include rights-of-way, water rights, easements, and other appurtenances that would normally pass with the land or are necessary for the proposed operation of the land located within the tribe's reservation;
   2. (2)Must finance land that will be used for agricultural purposes during the term of the loan;
   3. (3)May be used to pay costs incidental to land acquisition, including, but not limited to, title clearance, legal services, archeological or land surveys, and loan closing; and
   4. (4)May be used to pay for the costs of any appraisal conducted in accordance with this part.