SEC-708 -- DISPOSITION OF INTERESTS ON INDIAN TRUST LAND. 

 
 Section 509 of the Housing Act of 1949 (42 U.S.C. 1479) is amended-
 
 (1) by redesignating subsection (d) as subsection (e); and
 
 (2) by inserting after subsection (c) the following new subsection:
 
 "(d) In the event of default involving a security interest in tribal
allotted or trust land, the Secretary shall only pursue liquidation
after offering to transfer the account to an eligible tribal member, the
tribe, or the Indian housing authority serving the tribe or tribes. If
the Secretary subsequently proceeds to liquidate the account, the
Secretary shall not sell, transfer, or otherwise dispose of or alienate
the property except to one of the entities described in the preceding
sentence.".