[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 818 Introduced in Senate (IS)]







105th CONGRESS
  1st Session
                                 S. 818

  To improve the economic conditions and supply of housing in Native 
American communities by creating the Native American Financial Services 
                 Organization, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 1997

  Mr. Campbell (for himself and Mr. Inouye) introduced the following 
  bill; which was read twice and referred to the Committee on Indian 
                                Affairs

_______________________________________________________________________

                                 A BILL


 
  To improve the economic conditions and supply of housing in Native 
American communities by creating the Native American Financial Services 
                 Organization, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Native American 
Financial Services Organization Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Findings.
Sec. 3. Policy.
Sec. 4. Purposes.
Sec. 5. Definitions.
        TITLE I--NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION

Sec. 101. Establishment of the Organization.
Sec. 102. Authorized assistance and service functions.
Sec. 103. Native American lending services grant.
Sec. 104. Audits.
Sec. 105. Annual housing and economic development reports.
Sec. 106. Advisory Council.
                TITLE II--CAPITALIZATION OF ORGANIZATION

Sec. 201. Capitalization of the Organization.
            TITLE III--REGULATION, EXAMINATION, AND REPORTS

Sec. 301. Regulation, examination, and reports.
Sec. 302. Authority of the Secretary of Housing and Urban Development.
                 TITLE IV--FORMATION OF NEW CORPORATION

Sec. 401. Formation of new corporation.
Sec. 402. Adoption and approval of merger plan.
Sec. 403. Consummation of merger.
Sec. 404. Transition.
Sec. 405. Effect of merger.
               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

Sec. 501. Authorization of appropriations for Native American Financial 
                            Institutions.
Sec. 502. Authorization of appropriations for Organization.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) clause 3 of section 8 of article I of the United States 
        Constitution recognizes the special relationship between the 
        United States and Indian tribes;
            (2) Congress has carried the responsibility of the United 
        States for the protection and preservation of Indian tribes and 
        the resources of Indian tribes through the endorsement of 
        treaties, and the enactment of other laws, including laws that 
        provide for the exercise of administrative authorities;
            (3) despite the availability of abundant natural resources 
        on Indian lands and a rich cultural legacy that accords great 
        value to self-determination, self-reliance, and independence, 
        American Indians, Alaska Natives, and Native Hawaiians suffer 
        rates of unemployment, poverty, poor health, substandard 
        housing, and associated social ills to a greater degree than 
        any other group in the United States;
            (4) the economic success and material well-being of 
        American Indian, Alaska Native, and Native Hawaiian communities 
        depends on the combined efforts of the Federal Government, 
        tribal governments, the private sector, and individuals;
            (5) the lack of employment opportunities and affordable 
        homes in the communities referred to in paragraph (4) is 
        grounded in the almost complete absence of available private 
        capital and private capital institutions to serve those 
        communities;
            (6) the lack of capital referred to in paragraph (5) has 
        resulted in a multigenerational dependence on Federal 
        assistance that is--
                    (A) insufficient to address the magnitude of needs; 
                and
                    (B) unreliable in availability;
            (7) a review of the history of the United States bears out 
        the fact that solutions to social and economic problems that 
        have been crafted by the Federal Government without the active 
        involvement of local communities and the private sector fail at 
        unacceptably high rates; and
            (8) the twin goals of economic self-sufficiency and 
        political self-determination for American Indians, Alaska 
        Natives, and Native Hawaiians can best be served by making 
        available to address the challenges faced by those groups--
                    (A) the resources of the private market;
                    (B) adequate capital; and
                    (C) technical expertise.

SEC. 3. POLICY.

    (a) In General.--Based upon the findings and recommendations of the 
Commission on American Indian, Alaska Native and Native Hawaiian 
Housing established by the Department of Housing and Urban Development 
Reform Act of 1989, Congress has determined that--
            (1) housing shortages and deplorable living conditions are 
        at crisis proportions in Native American communities throughout 
        the United States; and
            (2) the lack of private capital to finance housing and 
        economic development for Native Americans and Native American 
        communities seriously exacerbates these housing shortages and 
        poor living conditions.
    (b) Policy of the United States To Address Native American Housing 
Shortage.--It is the policy of the United States to improve the 
economic conditions and supply of housing in Native American 
communities throughout the United States by creating the Native 
American Financial Services Organization to address the housing 
shortages and poor living conditions described in subsection (a).

SEC. 4. PURPOSES.

    The purposes of this Act are--
            (1) to help serve the mortgage and other lending needs of 
        Native Americans by assisting in the establishment and 
        organization of Native American Financial Institutions, 
        developing and providing financial expertise and technical 
        assistance to Native American Financial Institutions, including 
        assistance concerning overcoming--
                    (A) barriers to lending with respect to Native 
                American lands; and
                    (B) the past and present impact of discrimination;
            (2) to promote access to mortgage credit in Native American 
        communities in the United States by increasing the liquidity of 
        financing for housing and improving the distribution of 
        investment capital available for such financing, primarily 
        through Native American Financial Institutions; and
            (3) to promote the infusion of public capital into Native 
        American communities throughout the United States and to direct 
        sources of public and private capital into housing and economic 
        development for Native American individuals and families, 
        primarily through Native American Financial Institutions.

SEC. 5. DEFINITIONS.

    In this Act:
            (1) Alaska native.--The term ``Alaska Native'' has the 
        meaning given the term ``Native'' by section 3(b) of the Alaska 
        Native Claims Settlement Act.
            (2) Board.--The term ``Board'' means the Board of Directors 
        of the Organization established under section 101(a)(2).
            (3) Chairperson.--The term ``Chairperson'' means the 
        chairperson of the Board.
            (4) Council.--The term ``Council'' means the Advisory 
        Council established under section 106.
            (5) Designated merger date.--The term ``designated merger 
        date'' means the specific calendar date and time of day 
        designated by the Board under section 402(b).
            (6) Department of hawaiian home lands.--The term 
        ``Department of Hawaiian Home Lands'' means the agency that is 
        responsible for the administration of the Hawaiian Homes 
        Commission Act, 1920 (42 Stat. 108 et seq.).
            (7) Fund.--The term ``Fund'' means the Community 
        Development Financial Institutions Fund established under 
        section 104 of the Riegle Community Development and Regulatory 
        Improvement Act of 1994 (12 U.S.C. 4703).
            (8) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act that is recognized as 
        eligible for the special programs and services provided by the 
        Federal Government to Indians because of their status as 
        Indians.
            (9) Merger plan.--The term ``merger plan'' means the plan 
        of merger adopted by the Board under section 402(a).
            (10) Native american.--The term ``Native American'' means 
        any member of an Indian tribe or a Native Hawaiian.
            (11) Native american financial institution.--The term 
        ``Native American Financial Institution'' means a person (other 
        than an individual) that--
                    (A) qualifies as a community development financial 
                institution under section 103 of the Riegle Community 
                Development and Regulatory Improvement Act of 1994 (12 
                U.S.C. 4702);
                    (B) satisfies the requirements established by 
                subtitle A of title I of the Riegle Community 
                Development and Regulatory Improvement Act of 1994 (12 
                U.S.C. 4701 et seq.) and the Fund for applicants for 
                assistance from the Fund;
                    (C) demonstrates a special interest and expertise 
                in serving the primary economic development and 
                mortgage lending needs of the Native American 
                community; and
                    (D) demonstrates that the person has the 
                endorsement of the Native American community that the 
                person intends to serve.
            (12) Native american lender.--The term ``Native American 
        lender'' means a Native American governing body, Native 
        American housing authority, or other Native American Financial 
        Institution that acts as a primary mortgage or economic 
        development lender in a Native American community.
            (13) Native hawaiian.--The term ``Native Hawaiian'' has the 
        meaning given that term in section 201 of the Hawaiian Homes 
        Commission Act, 1920 (42 Stat. 108).
            (14) New corporation.--The term ``new corporation'' means 
        the corporation formed in accordance with title IV.
            (15) Organization.--The term ``Organization'' means the 
        Native American Financial Services Organization established 
        under section 101.
            (16) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (17) Transition period.--The term ``transition period'' 
        means the period beginning on the date on which the merger plan 
        is approved by the Secretary and ending on the designated 
        merger date.

        TITLE I--NATIVE AMERICAN FINANCIAL SERVICES ORGANIZATION

SEC. 101. ESTABLISHMENT OF THE ORGANIZATION.

    (a) Creation; Board of Directors; Policies; Principal Office; 
Membership; Vacancies.--
            (1) Creation.--
                    (A) In general.--There is established and chartered 
                a corporation to be known as the Native American 
                Financial Services Organization.
                    (B) Period of time.--The Organization shall be a 
                congressionally chartered body corporate until the 
                earlier of--
                            (i) the designated merger date; or
                            (ii) the date on which the charter is 
                        surrendered by the Organization.
                    (C) Changes to charter.--The right to revise, 
                amend, or modify the Organization charter is 
                specifically and exclusively reserved to Congress.
            (2) Board of directors; principal office.--
                    (A) Board.--The powers of the Organization shall be 
                vested in a Board of Directors. The Board shall 
                determine the policies that govern the operations and 
                management of the Organization.
                    (B) Principal office; residency.--The principal 
                office of the Organization shall be in the District of 
                Columbia. For purposes of venue, the Organization shall 
                be considered to be a resident of the District of 
                Columbia.
            (3) Membership.--
                    (A) In general.--
                            (i) Nine members.--Except as provided in 
                        clause (ii), the Board shall consist of 9 
                        members, 3 of whom shall be appointed by the 
                        President and 6 of whom shall be elected by the 
                        class A stockholders, in accordance with the 
                        bylaws of the Organization.
                            (ii) Thirteen members.--If class B stock is 
                        issued under section 201(b), the Board shall 
                        consist of 13 members, 9 of whom shall be 
                        appointed and elected in accordance with clause 
                        (i) and 4 of whom shall be elected by the class 
                        B stockholders, in accordance with the bylaws 
                        of the Organization.
                    (B) Terms.--Each member of the Board shall be 
                elected or appointed for a 4-year term, except that the 
                members of the initial Board shall be elected or 
                appointed for the following terms:
                            (i) Of the 3 members appointed by the 
                        President--
                                    (I) 1 member shall be appointed for 
                                a 2-year term;
                                    (II) 1 member shall be appointed 
                                for a 3-year term; and
                                    (III) 1 member shall be appointed 
                                for a 4-year term;
                        as designated by the President at the time of 
                        the appointments.
                            (ii) Of the 6 members elected by the class 
                        A stockholders--
                                    (I) 2 members shall each be elected 
                                for a 2-year term;
                                    (II) 2 members shall each be 
                                elected for a 3-year term; and
                                    (III) 2 members shall each be 
                                elected for a 4-year term.
                            (iii) If class B stock is issued and 4 
                        additional members are elected by the class B 
                        stockholders--
                                    (I) 1 member shall be elected for a 
                                2-year term;
                                    (II) 1 member shall be elected for 
                                a 3-year term; and
                                    (III) 2 members shall each be 
                                elected for a 4-year term.
                    (C) Qualifications.--Each member appointed by the 
                President shall have expertise in 1 or more of the 
                following areas:
                            (i) Native American housing and economic 
                        development programs.
                            (ii) Financing in Native American 
                        communities.
                            (iii) Native American governing bodies and 
                        court systems.
                            (iv) Restricted and trust land issues, 
                        economic development, and small consumer loans.
                    (D) Members of indian tribes.--Not less than 2 of 
                the members appointed by the President shall each be a 
                member of an Indian tribe who is enrolled in accordance 
                with the applicable requirements of that Indian tribe.
                    (E) Chairperson.--The Board shall select a 
                Chairperson from among its members, except that the 
                initial Chairperson shall be selected from among the 
                members of the initial Board who have been appointed or 
                elected to serve for a 4-year term.
                    (F) Vacancies.--
                            (i) Appointed members.--Any vacancy in the 
                        appointed membership of the Board shall be 
                        filled by appointment by the President, but 
                        only for the unexpired portion of the term.
                            (ii) Elected members.--Any vacancy in the 
                        elected membership of the Board shall be filled 
                        by appointment by the Board, but only for the 
                        unexpired portion of the term.
                    (G) Transitions.--Any member of the Board may 
                continue to serve after the expiration of the term for 
                which the member was appointed or elected until a 
                qualified successor has been appointed or elected.
    (b) Powers of the Organization.--The Organization--
            (1) shall adopt bylaws, consistent with this Act, 
        regulating, among other things, the manner in which--
                    (A) the business of the Organization shall be 
                conducted;
                    (B) the elected members of the Board shall be 
                elected;
                    (C) the stock of the Organization shall be issued, 
                held, and disposed of;
                    (D) the property of the Organization shall be 
                disposed of; and
                    (E) the powers and privileges granted to the 
                Organization by this Act and other law shall be 
                exercised;
            (2) may make and perform contracts, agreements, and 
        commitments, including entering into a cooperative agreement 
        with the Secretary;
            (3) may prescribe and impose fees and charges for services 
        provided by the Organization;
            (4) may, if such settlement, adjustment, compromise, 
        release, or waiver is not adverse to the interests of the 
        United States--
                    (A) settle, adjust, and compromise; and
                    (B) with or without consideration or benefit to the 
                Organization, release or waive in whole or in part, in 
                advance or otherwise, any claim, demand, or right of, 
                by, or against the Organization;
            (5) may sue and be sued, complain and defend, in any 
        tribal, Federal, State, or other court;
            (6) may acquire, take, hold, and own, and to deal with and 
        dispose of any property;
            (7) may determine the necessary expenditures of the 
        Organization and the manner in which such expenditures shall be 
        incurred, allowed, and paid, and appoint, employ, and fix and 
        provide for the compensation and benefits of officers, 
        employees, attorneys, and agents as the Board determines 
        reasonable and not inconsistent with this section;
            (8) may incorporate a new corporation under State, District 
        of Columbia, or tribal law, as provided in section 401;
            (9) may adopt a plan of merger, as provided in section 402;
            (10) may consummate the merger of the Organization into the 
        new corporation, as provided in section 403; and
            (11) may have succession until the designated merger date 
        or any earlier date on which the Organization surrenders its 
        Federal charter.
    (c) Investment of Funds; Designation as Depositary, Custodian, or 
Agent.--
            (1) Investment of funds.--Funds of the Organization that 
        are not required to meet current operating expenses shall be 
        invested in obligations of, or obligations guaranteed by, the 
        United States or any agency thereof, or in obligations, 
        participations, or other instruments that are lawful 
        investments for fiduciary, trust, or public funds.
            (2) Designation as depositary, custodian, or agent.--Any 
        Federal Reserve bank or Federal home loan bank, or any bank as 
        to which at the time of its designation by the Organization 
        there is outstanding a designation by the Secretary of the 
        Treasury as a general or other depositary of public money, 
        may--
                    (A) be designated by the Organization as a 
                depositary or custodian or as a fiscal or other agent 
                of the Organization; and
                    (B) act as such depositary, custodian, or agent.
    (d) Actions by and Against the Organization.--Notwithstanding 
section 1349 of title 28, United States Code, or any other provision of 
law--
            (1) the Organization shall be deemed to be an agency 
        covered under sections 1345 and 1442 of title 28, United States 
        Code;
            (2) any civil action to which the Organization is a party 
        shall be deemed to arise under the laws of the United States, 
        and the appropriate district court of the United States shall 
        have original jurisdiction over any such action, without regard 
        to amount or value; and
            (3) in any case in which all remedies have been exhausted 
        in accordance with the applicable ordinances of an Indian 
        tribe, in any civil or other action, case, or controversy in a 
        tribal court, court of a State, or in any court other than a 
        district court of the United States, to which the Organization 
        is a party, may at any time before the commencement of the 
        trial be removed by the Organization, without the giving of any 
        bond or security and by following any procedure for removal of 
        causes in effect at the time of the removal--
                    (A) to the district court of the United States for 
                the district and division in which the action is 
                pending; or
                    (B) if there is no such district court, to the 
                district court of the United States for the District of 
                Columbia.

SEC. 102. AUTHORIZED ASSISTANCE AND SERVICE FUNCTIONS.

    The Organization may--
            (1) assist in the planning establishment and organization 
        of Native American Financial Institutions;
            (2) develop and provide financial expertise and technical 
        assistance to Native American Financial Institutions, including 
        methods of underwriting, securing, servicing, packaging, and 
        selling mortgage and small commercial and consumer loans;
            (3) develop and provide specialized technical assistance on 
        overcoming barriers to primary mortgage lending on Native 
        American lands, including issues related to trust lands, 
        discrimination, high operating costs, and inapplicability of 
        standard underwriting criteria;
            (4) provide mortgage underwriting assistance (but not in 
        originating loans) under contract to Native American Financial 
        Institutions;
            (5) work with the Federal National Mortgage Association, 
        the Federal Home Loan Mortgage Corporation, and other 
        participants in the secondary market for home mortgage 
        instruments in identifying and eliminating barriers to the 
        purchase of Native American mortgage loans originated by Native 
        American Financial Institutions and other lenders in Native 
        American communities;
            (6) obtain capital investments in the Organization from 
        Indian tribes, Native American organizations, and other 
        entities;
            (7) act as an information clearinghouse by providing 
        information on financial practices to Native American Financial 
        Institutions;
            (8) monitor and report to Congress on the performance of 
        Native American Financial Institutions in meeting the economic 
        development and housing credit needs of Native Americans; and
            (9) provide any of the services described in this section 
        directly, or under a contract authorizing another national or 
        regional Native American financial services provider to assist 
the Organization in carrying out the purposes of this Act.

SEC. 103. NATIVE AMERICAN LENDING SERVICES GRANT.

    (a) Initial Grant Payment.--If the Secretary and the Organization 
enter into a cooperative agreement for the Organization to provide 
technical assistance and other services to Native American Financial 
Institutions, such agreement shall, to the extent that funds are 
available as provided in section 502, provide that the initial grant 
payment, anticipated to be $5,000,000, shall be made when all members 
of the initial Board have been appointed under section 101.
    (b) Payment of Grant Balance.--The payment of the grant balance of 
$5,000,000 shall be made to the Organization not later than 1 year 
after the date on which the initial grant payment is made under 
subsection (a).

SEC. 104. AUDITS.

    (a) Independent Audits.--
            (1) In general.--The Organization shall have an annual 
        independent audit made of its financial statements by an 
        independent public accountant in accordance with generally 
        accepted auditing standards.
            (2) Determinations.--In conducting an audit under this 
        subsection, the independent public accountant shall determine 
        and report on whether the financial statements of the 
        Organization--
                    (A) are presented fairly in accordance with 
                generally accepted accounting principles; and
                    (B) to the extent determined necessary by the 
                Secretary, comply with any disclosure requirements 
                imposed under section 301.
    (b) GAO Audits.--
            (1) In general.--Beginning after the first 2 years of the 
        operation of the Organization, unless an earlier date is 
        required by any other statute, grant, or agreement, the 
        programs, activities, receipts, expenditures, and financial 
        transactions of the Organization shall be subject to audit by 
        the Comptroller General of the United States under such rules 
        and regulations as may be prescribed by the Comptroller 
        General.
            (2) Access.--To carry out this subsection, the 
        representatives of the General Accounting Office shall--
                    (A) have access to all books, accounts, financial 
                records, reports, files, and all other papers, things, 
                or property belonging to or in use by the Organization 
                and necessary to facilitate the audit;
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositaries, fiscal agents, and custodians; and
                    (C) have access, upon request to the Organization 
                or any auditor for an audit of the Organization under 
                subsection (a), to any books, accounts, financial 
                records, reports, files, or other papers, or property 
                belonging to or in use by the Organization and used in 
                any such audit and to any papers, records, files, and 
                reports of the auditor used in such an audit.
            (3) Reports.--The Comptroller General of the United States 
        shall submit to Congress a report on each audit conducted under 
        this subsection.
            (4) Reimbursement.--The Organization shall reimburse the 
        General Accounting Office for the full cost of any audit 
        conducted under this subsection.

SEC. 105. ANNUAL HOUSING AND ECONOMIC DEVELOPMENT REPORTS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Organization shall collect, maintain, and 
provide to the Secretary, in a form determined by the Secretary, such 
data as the Secretary determines to be appropriate with respect to the 
activities of the Organization relating to economic development.

SEC. 106. ADVISORY COUNCIL.

    (a) Establishment.--The Board shall establish an Advisory Council 
in accordance with this section.
    (b) Membership.--
            (1) In general.--The Council shall consist of 13 members, 
        who shall be appointed by the Board, including 1 representative 
        from each of the 12 districts established by the Bureau of 
        Indian Affairs and 1 representative from the State of Hawaii.
            (2) Qualifications.--Not less than 6 of the members of the 
        Council shall have financial expertise, and not less than 9 
        members of the Council shall be Native Americans.
            (3) Terms.--Each member of the Council shall be appointed 
        for a 4-year term, except that the initial Council shall be 
        appointed, as designated by the Board at the time of 
        appointment, as follows:
                    (A) Four members shall each be appointed for a 2-
                year term.
                    (B) Four members shall each be appointed for a 3-
                year term.
                    (C) Five members shall each be appointed for a 4-
                year term.
    (c) Duties.--The Council shall advise the Board on all policy 
matters of the Organization. Through the regional representation of its 
members, the Council shall provide information to the Board from all 
sectors of the Native American community.

                TITLE II--CAPITALIZATION OF ORGANIZATION

SEC. 201. CAPITALIZATION OF THE ORGANIZATION.

    (a) Class A Stock.--The class A stock of the Organization shall--
            (1) be issued only to Indian tribes and the Department of 
        Hawaiian Home Lands;
            (2) be allocated--
                    (A) with respect to Indian tribes, on the basis of 
                Indian tribe population, as determined by the Secretary 
                in consultation with the Secretary of the Interior, in 
                such manner as to issue 1 share for each member of an 
                Indian tribe; and
                    (B) with respect to the Department of Hawaiian Home 
                Lands, on the basis of the number of current leases at 
                the time of allocation;
            (3) have such par value and other characteristics as the 
        Organization shall provide;
            (4) be issued in such manner as voting rights may only be 
        vested upon purchase of those rights from the Organization by 
        an Indian tribe or the Department of Hawaiian Home Lands, each 
        share being entitled to 1 vote; and
            (5) be nontransferable.
    (b) Class B Stock.--
            (1) In general.--The Organization may issue class B stock 
        evidencing capital contributions in the manner and amount, and 
        subject to any limitations on concentration of ownership, as 
        may be established by the Organization.
            (2) Characteristics.--Any class B stock issued under 
        paragraph (1) shall--
                    (A) be available for purchase by investors;
                    (B) be entitled to such dividends as may be 
                declared by the Board in accordance with subsection 
                (c);
                    (C) have such par value and other characteristics 
                as the Organization shall provide;
                    (D) be vested with voting rights, each share being 
                entitled to 1 vote; and
                    (E) be transferable only on the books of the 
                Organization.
    (c) Charges and Fees; Earnings.--
            (1) Charges and fees.--The Organization may impose charges 
        or fees, which may be regarded as elements of pricing, with the 
        objectives that--
                    (A) all costs and expenses of the operations of the 
                Organization should be within the income of the 
                Organization derived from such operations; and
                    (B) such operations would be fully self-supporting.
            (2) Earnings.--All earnings from the operations of the 
        Organization shall be annually transferred to the general 
        surplus account of the Organization. At any time, funds in the 
        general surplus account may, in the discretion of the Board, be 
        transferred to the reserves of the Organization.
    (d) Capital Distributions.--
            (1) In general.--Except as provided in paragraph (2), the 
        Organization may make such capital distributions (as such term 
        is defined in section 1303 of the Federal Housing Enterprise 
        Financial Safety and Soundness Act of 1992 (12 U.S.C. 4502)) as 
        may be declared by the Board. All capital distributions shall 
        be charged against the general surplus account of the 
        Organization.
            (2) Restriction.--The Organization may not make any capital 
        distribution that would decrease the total capital (as such 
        term is defined in section 1303 of the Federal Housing 
        Enterprise Financial Safety and Soundness Act of 1992 (12 
        U.S.C. 4502)) of the Organization to an amount less than the 
        capital level for the Organization established under section 
        301, without prior written approval of the distribution by the 
        Secretary.

            TITLE III--REGULATION, EXAMINATION, AND REPORTS

SEC. 301. REGULATION, EXAMINATION, AND REPORTS.

    (a) In General.--The Organization shall be subject to the 
regulatory authority of the Department of Housing and Urban Development 
with respect to all matters relating to the financial safety and 
soundness of the Organization.
    (b) Duty of Secretary.--The Secretary shall ensure that the 
Organization is adequately capitalized and operating safely as a 
congressionally chartered body corporate.
    (c) Reports to Secretary.--
            (1) Annual reports.--Not later than 1 year after the date 
        of enactment of this Act, and annually thereafter, the 
        Organization shall submit to the Secretary a report describing 
        the financial condition and operations of the Organization. The 
        report shall be in such form, contain such information, and be 
        submitted on such date as the Secretary shall require.
            (2) Contents of reports.--Each report submitted under this 
        subsection shall contain a declaration by the president, vice 
        president, treasurer, or any other officer of the Organization 
        designated by the Board to make such declaration, that the 
        report is true and correct to the best of the knowledge and 
        belief of that officer.

SEC. 302. AUTHORITY OF THE SECRETARY OF HOUSING AND URBAN DEVELOPMENT.

    The Secretary shall--
            (1) have general regulatory power over the Organization; 
        and
            (2) issue such rules and regulations applicable to the 
        Organization as the Secretary determines to be necessary or 
        appropriate to ensure that the purposes specified in section 4 
        are accomplished.

                 TITLE IV--FORMATION OF NEW CORPORATION

SEC. 401. FORMATION OF NEW CORPORATION.

    (a) In General.--In order to continue the accomplishment of the 
purposes specified in section 3 beyond the terms of the charter of the 
Organization, the Board shall, not later than 10 years after the date 
of enactment of this Act, cause the formation of a new corporation 
under the laws of any tribe, any State, or the District of Columbia.
    (b) Powers of New Corporation Not Prescribed.--Except as provided 
in this section, the new corporation may have any corporate powers and 
attributes permitted under the laws of the jurisdiction of its 
incorporation which the Board shall determine, in its business 
judgment, to be appropriate.
    (c) Use of NAFSO Name Prohibited.--The new corporation may not use 
in any manner the name ``Native American Financial Services 
Organization'' or ``NAFSO'' or any variation thereof.

SEC. 402. ADOPTION AND APPROVAL OF MERGER PLAN.

    (a) In General.--Not later than 10 years after the date of 
enactment of this Act and after consultation with the Indian tribes 
that are stockholders of class A stock referred to in section 201(a), 
the Board shall prepare, adopt, and submit to the Secretary for 
approval, a plan for merging the Organization into the new corporation.
    (b) Designated Merger Date.--
            (1) In general.--The Board shall establish the designated 
        merger date in the merger plan as a specific calendar date on 
        which, and time of day at which, the merger of the Organization 
        into the new corporation shall take effect.
            (2) Changes.--The Board may change the designated merger 
        date in the merger plan by adopting an amended plan of merger.
            (3) Restriction.--Except as provided in paragraph (4), the 
        designated merger date in the merger plan or any amended merger 
        plan shall not be later than 11 years after the date of 
        enactment of this Act.
            (4) Exception.--Subject to the restriction contained in 
        paragraph (5), the Board may adopt an amended plan of merger 
        that designates a date later than 11 years after the date of 
        enactment of this Act if the Board submits to the Secretary a 
        report--
                    (A) stating that an orderly merger of the 
                Organization into the new corporation is not feasible 
                before the latest date designated by the Board;
                    (B) explaining why an orderly merger of the 
                Organization into the new corporation is not feasible 
                before the latest date designated by the Board;
                    (C) describing the steps that have been taken to 
                consummate an orderly merger of the Organization into 
                the new corporation not later than 11 years after the 
                date of enactment of this Act; and
                    (D) describing the steps that will be taken to 
                consummate an orderly and timely merger of the 
                Organization into the new corporation.
            (5) Limitation.--The date designated by the Board in an 
        amended merger plan shall not be later than 12 years after the 
        date of enactment of this Act.
            (6) Consummation of merger.--The consummation of an orderly 
        and timely merger of the Organization into the new corporation 
        shall not occur later than 13 years after the date of enactment 
        of this Act.
    (c) Governmental Approvals of Merger Plan Required.--The merger 
plan or any amended merger plan shall take effect on the date on which 
the plan is approved by the Secretary.
    (d) Revision of Disapproved Merger Plan Required.--If the Secretary 
disapproves the merger plan or any amended merger plan--
            (1) the Secretary shall--
                    (A) notify the Organization of such disapproval; 
                and
                    (B) indicate the reasons for the disapproval; and
            (2) not later than 30 days after the date of notification 
        of disapproval under paragraph (1), the Organization shall 
        submit to the Secretary for approval, an amended merger plan 
        responsive to the reasons for the disapproval indicated in that 
        notification.
    (e) No Stockholder Approval of Merger Plan Required.--The approval 
or consent of the stockholders of the Organization shall not be 
required to accomplish the merger of the Organization into the new 
corporation.

SEC. 403. CONSUMMATION OF MERGER.

    The Board shall ensure that the merger of the Organization into the 
new corporation is accomplished in accordance with--
            (1) a merger plan approved by the Secretary under section 
        402; and
            (2) all applicable laws of the jurisdiction in which the 
        new corporation is incorporated.

SEC. 404. TRANSITION.

    Except as provided in this section, the Organization shall, during 
the transition period, continue to have all of the rights, privileges, 
duties, and obligations, and shall be subject to all of the limitations 
and restrictions, set forth in this Act.

SEC. 405. EFFECT OF MERGER.

    (a) Transfer of Assets and Liabilities.--On the designated merger 
date, all property, real, personal, and mixed, all debts due on any 
account, and any other interest, of or belonging to or due to the 
Organization, shall be transferred to and vested in the new corporation 
without further act or deed, and title to any property, whether real, 
personal, or mixed, shall not in any way be impaired by reason of the 
merger.
    (b) Termination of the Organization and its Federal Charter.--On 
the designated merger date--
            (1) the surviving corporation of the merger shall be the 
        new corporation;
            (2) the Federal charter of the Organization shall 
        terminate; and
            (3) the separate existence of the Organization shall 
        terminate.
    (c) References to the Organization in Law.--After the designated 
merger date, any reference to the Organization in any law or regulation 
shall be deemed to refer to the new corporation.
    (d) Savings Clause.--
            (1) Proceedings.--The merger of the Organization into the 
        new corporation shall not abate any proceeding commenced by or 
        against the Organization before the designated merger date, 
        except that the new corporation shall be substituted for the 
        Organization as a party to any such proceeding as of the 
        designated merger date.
            (2) Contracts and agreements.--All contracts and agreements 
        to which the Organization is a party and which are in effect on 
        the day before the designated merger date shall continue in 
        effect according to their terms, except that the new 
        corporation shall be substituted for the Organization as a 
        party to those contracts and agreements as of the designated 
        merger date.

               TITLE V--AUTHORIZATIONS OF APPROPRIATIONS

SEC. 501. AUTHORIZATION OF APPROPRIATIONS FOR NATIVE AMERICAN FINANCIAL 
              INSTITUTIONS.

    (a) In General.--There are authorized to be appropriated to the 
Fund, without fiscal year limitation, $20,000,000 to provide financial 
assistance to Native American Financial Institutions.
    (b) Not Matching Funds.--To the extent that a Native American 
Financial Institution receives a portion of an appropriation made under 
subsection (a), such funds shall not be considered to be matching funds 
required of the Native American Financial Institution under section 
108(e) of the Riegle Community Development and Regulatory Improvement 
Act of 1994 (12 U.S.C. 4707(e)).

SEC. 502. AUTHORIZATION OF APPROPRIATIONS FOR ORGANIZATION.

    The Secretary may, subject to the availability of appropriations, 
provide not more than $10,000,000 for the funding of a cooperative 
agreement to be entered into by the Secretary and the Organization for 
technical assistance and other services to be provided by the 
Organization to Native American Financial Institutions.
                                 <all>