[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 519 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 519
To establish a Native American-owned financial entity to provide
financial services to Indian tribes, Native American organizations, and
Native Americans, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 5, 2003
Mr. Campbell introduced the following bill; which was read twice and
referred to the Committee on Indian Affairs
_______________________________________________________________________
A BILL
To establish a Native American-owned financial entity to provide
financial services to Indian tribes, Native American organizations, and
Native Americans, 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; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Native American
Capital Formation and Economic Development Act of 2003''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. Purposes.
Sec. 4. Definitions.
TITLE I--NATIVE AMERICAN CAPITAL DEVELOPMENT CORPORATION
Sec. 101. Establishment of the Corporation.
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 CORPORATION
Sec. 201. Capitalization of the Corporation.
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--OTHER NATIVE AMERICAN FUNDS
Sec. 501. Native American Economies Diagnostic Studies Fund.
Sec. 502. Native American Economic Incubation Center Fund.
TITLE VI--AUTHORIZATIONS OF APPROPRIATIONS
Sec. 601. Native American financial institutions.
Sec. 602. Corporation.
Sec. 603. Other Native American funds.
SEC. 2. FINDINGS.
Congress finds that--
(1) there is a special legal and political relationship
between the United States and the Indian tribes, as grounded in
treaties, the Constitution, Federal statutes and court
decisions, executive orders, and course of dealing;
(2) despite the availability of abundant natural resources
on Indian land and a rich cultural legacy that accords great
value to self-determination, self-reliance, and independence,
Native Americans 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;
(3) the economic success and material well-being of Native
Americans depends on the combined efforts and resources of the
United States, Indian tribal governments, the private sector,
and individuals;
(4) the poor performance of moribund Indian economies is
due in part to the near-complete absence of private capital and
private capital institutions; and
(5) the goals of economic self-sufficiency and political
self-determination for Native Americans can best be achieved by
making available the resources and discipline of the private
market, adequate capital, and technical expertise.
SEC. 3. PURPOSES.
The purposes of this Act are--
(1) to establish an entity dedicated to capital development
and economic growth policies in Native American communities;
(2) to provide the necessary resources of the United
States, Native Americans, and the private sector on endemic
problems such as fractionated and unproductive Indian land;
(3) to provide a center for economic development policy and
analysis with particular emphasis on diagnosing the systemic
weaknesses with, and inhibitors to greater levels of investment
in, Native American economies;
(4) to establish a Native-owned financial entity to provide
financial services to Indian tribes, Native American
organizations, and Native Americans; and
(5) to improve the material standard of living of Native
Americans.
SEC. 4. DEFINITIONS.
In this Act:
(1) Alaska native.--The term ``Alaska Native'' has the
meaning given the term ``Native'' in section 3 of the Alaska
Native Claims Settlement Act (43 U.S.C. 1602).
(2) Board.--The term ``Board'' means the Board of Directors
of the Corporation.
(3) Capital distribution.--The term ``capital
distribution'' has the meaning given the term in section 1303
of the Federal Housing Enterprise Financial Safety and
Soundness Act of 1992 (12 U.S.C. 4502).
(4) Chairperson.--The term ``Chairperson'' means the
chairperson of the Board.
(5) Corporation.--The term ``Corporation'' means the Native
American Capital Development Corporation established by section
101(a)(1)(A).
(6) Council.--The term ``Council'' means the Advisory
Council established under section 106(a).
(7) Designated merger date.--The term ``designated merger
date'' means the specific calendar date and time of day
designated by the Board under this Act.
(8) 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.).
(9) 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).
(10) Indian tribe.--The term ``Indian tribe'' has the
meaning given the term in section 4 of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450b).
(11) Merger plan.--The term ``merger plan'' means the plan
of merger adopted by the Board under this Act.
(12) Native american.--The term ``Native American'' means--
(A) a member of an Indian tribe; or
(B) a Native Hawaiian.
(13) 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--
(i) 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
(ii) requirements applicable to persons
seeking 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.
(14) 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.
(15) Native hawaiian.--The term ``Native Hawaiian'' has the
meaning given the term in section 201 of the Hawaiian Homes
Commission Act, 1920 (42 Stat. 108).
(16) New corporation.--The term ``new corporation'' means
the corporation formed in accordance with title IV.
(17) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(18) Total capital.--The term ``total capital'' has the
meaning given the term in section 1303 of the Federal Housing
Enterprise Financial Safety and Soundness Act of 1992 (12
U.S.C. 4502).
(19) 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 CAPITAL DEVELOPMENT CORPORATION
SEC. 101. ESTABLISHMENT OF THE CORPORATION.
(a) Establishment; Board of Directors; Policies; Principal Office;
Membership; Vacancies.--
(1) Establishment.--
(A) In general.--There is established and chartered
a corporation, to be known as the ``Native American
Capital Development Corporation''.
(B) Period of time.--The Corporation 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 Corporation.
(C) Changes to charter.--The right to revise,
amend, or modify the Corporation charter is
specifically and exclusively reserved to Congress.
(2) Board of directors; principal office.--
(A) Board.--The powers of the Corporation shall be
vested in a Board of Directors, which Board shall
determine the policies that govern the operations and
management of the Corporation.
(B) Principal office; residency.--
(i) Principal office.--The principal office
of the Corporation shall be in the District of
Columbia.
(ii) Venue.--For purposes of venue, the
Corporation 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, of which--
(I) 3 members shall be appointed by
the President; and
(II) 6 members shall be elected by
the class A stockholders, in accordance
with the bylaws of the Corporation.
(ii) Thirteen members.--If class B stock is
issued under section 201(b), the Board shall
consist of 13 members, of which--
(I) 9 members shall be appointed
and elected in accordance with clause
(i); and
(II) 4 members shall be elected by
the class B stockholders, in accordance
with the bylaws of the Corporation.
(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 matters.
(ii) Financing in Native American
communities.
(iii) Native American governing bodies,
legal infrastructure, and judicial 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 be members
of different, federally-recognized Indian tribes
enrolled in accordance with the applicable requirements
of the Indian tribes.
(E) Chairperson.--The Board shall select a
Chairperson from among the members of the Board, 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 Corporation.--The Corporation--
(1) shall adopt bylaws, consistent with this Act,
regulating, among other things, the manner in which--
(A) the business of the Corporation shall be
conducted;
(B) the elected members of the Board shall be
elected;
(C) the stock of the Corporation shall be issued,
held, and disposed of;
(D) the property of the Corporation shall be
disposed of; and
(E) the powers and privileges granted to the
Corporation by this Act and other law shall be
exercised;
(2) may make and execute 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 Corporation;
(4) may, if a settlement, adjustment, compromise, release,
or waiver of a claim, demand, or right of, by, or against the
Corporation, is not adverse to the interests of the United
States--
(A) settle, adjust, and compromise on the claim,
demand, or right; and
(B) with or without consideration or benefit to the
Corporation, release or waive, in whole or in part, in
advance or otherwise, the claim, demand, or right;
(5) may sue and be sued, complain and defend, in any
Federal, State, tribal, or other court;
(6) may acquire, take, hold, and own, manage, and dispose
of any property;
(7) may--
(A) determine the necessary expenditures of the
Corporation and the manner in which those expenditures
shall be incurred, allowed, and paid; and
(B) appoint, employ, and fix and provide for the
compensation and benefits of such 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 this Act;
(9) may adopt a plan of merger, as provided in this Act;
(10) may consummate the merger of the Corporation into the
new corporation, as provided in this Act; and
(11) may have succession until the designated merger date
or any earlier date on which the Corporation surrenders the
Federal charter of the Corporation.
(c) Investment of Funds; Designation as Depositary, Custodian, or
Agent.--
(1) Investment of funds.--Funds of the Corporation that are
not required to meet current operating expenses shall be
invested in--
(A) obligations of, or obligations guaranteed by,
the United States (or any agency of the United States);
or
(B) 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 Corporation
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 Corporation as a
depositary or custodian or as a fiscal or other agent
of the Corporation; and
(B) act as such a depositary, custodian, or agent.
(d) Actions By and Against the Corporation.--Notwithstanding
section 1349 of title 28, United States Code, or any other provision of
law--
(1) the Corporation 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 Corporation 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, State court, or in any court other than a
district court of the United States, to which the Corporation
is a party, may at any time before the commencement of the
civil action be removed by the Corporation, 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
United States District Court for the District of
Columbia.
SEC. 102. AUTHORIZED ASSISTANCE AND SERVICE FUNCTIONS.
The Corporation 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 land, including issues relating to--
(A) trust land;
(B) discrimination;
(C) high operating costs; and
(D) 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 Corporation 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--
(A) directly; or
(B) under a contract authorizing another national
or regional Native American financial services provider
to assist the Corporation in carrying out the purposes
of this Act.
SEC. 103. NATIVE AMERICAN LENDING SERVICES GRANT.
(a) Initial Grant Payment.--If the Secretary and the Corporation
enter into a cooperative agreement for the Corporation to provide
technical assistance and other services to Native American financial
institutions, the agreement shall, to the extent that funds are
available as provided in this Act, provide that the initial grant
payment, anticipated to be $5,000,000, shall be made at the time at
which all members of the initial Board have been appointed under this
Act.
(b) Payment of Grant Balance.--The payment of the remainder of the
grant shall be made to the Corporation 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 Corporation shall have an annual
independent audit made of the financial statements of the
Corporation 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 submit to the Secretary a report on whether the financial
statements of the Corporation--
(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 on the date that is 2 years
after the date of commencement of operation of the Corporation,
unless an earlier date is required by any other law, grant, or
agreement, the programs, activities, receipts, expenditures,
and financial transactions of the Corporation 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 Corporation
that are 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, on request to the Corporation or
any auditor for an audit of the Corporation under
subsection (a), to any books, accounts, financial
records, reports, files, or other papers, or property
belonging to or in use by the Corporation 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 Corporation 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 Corporation 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 Corporation 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--
(A) 1 representative from each of the 12 districts
established by the Bureau of Indian Affairs; and
(B) 1 representative from the State of Hawaii.
(2) Qualifications.--Of the members of the Council--
(A) not less than 6 members shall have expertise in
financial matters; and
(B) not less than 9 members 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) Each of 4 members shall be appointed for a 2-
year term.
(B) Each of 4 members shall be appointed for a 3-
year term.
(C) Each of 5 members shall be appointed for a 4-
year term.
(c) Duties.--The Council shall--
(1) advise the Board on all policy matters of the
Corporation; and
(2) through the regional representation of members of the
Council, provide information to the Board from all sectors of
the Native American community.
TITLE II--CAPITALIZATION OF CORPORATION
SEC. 201. CAPITALIZATION OF THE CORPORATION.
(a) Class A Stock.--The class A stock of the Corporation 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
Corporation shall provide;
(4) be issued in such a manner as to ensure that voting
rights may be vested only on purchase of those rights from the
Corporation by an Indian tribe or the Department of Hawaiian
Home Lands, with each share being entitled to 1 vote; and
(5) be nontransferable.
(b) Class B Stock.--
(1) In general.--The Corporation 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 Corporation.
(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 Corporation shall provide;
(D) be vested with voting rights, with each share
being entitled to 1 vote; and
(E) be transferable only on the books of the
Corporation.
(c) Charges and Fees; Earnings.--
(1) Charges and fees.--The Corporation 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
Corporation should be within the income of the
Corporation derived from such operations; and
(B) those operations would be fully self-
supporting.
(2) Earnings.--
(A) In general.--All earnings from the operations
of the Corporation shall be annually transferred to the
general surplus account of the Corporation.
(B) Transfer of general surplus funds.--At any
time, funds in the general surplus account may, in the
discretion of the Board, be transferred to the reserves
of the Corporation.
(d) Capital Distributions.--
(1) Distributions.--
(A) In general.--Except as provided in paragraph
(2), the Corporation may make such capital
distributions as may be declared by the Board.
(B) Charging of distributions.--All capital
distributions under subparagraph (A) shall be charged
against the general surplus account of the Corporation.
(2) Restriction.--The Corporation may not make any capital
distribution that would decrease the total capital of the
Corporation to an amount less than the capital level for the
Corporation 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 Corporation 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 Corporation.
(b) Duty of Secretary.--The Secretary shall ensure that the
Corporation is adequately capitalized and operating safely as a
congressionally chartered body corporate.
(c) Reports to Secretary.--
(1) Annual reports.--On such date as the Secretary shall
require, but not later than 1 year after the date of enactment
of this Act, and annually thereafter, the Corporation shall
submit to the Secretary a report in such form and containing
such information with respect to the financial condition and
operations of the Corporation 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 Corporation
designated by the Board to make the 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 Corporation; and
(2) promulgate such rules and regulations applicable to the
Corporation as the Secretary determines to be appropriate to
ensure that the purposes specified in section 3 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
Corporation, 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 such corporate powers and
attributes permitted under the laws of the jurisdiction of in which the
new corporation is incorporated as the Board determines to be
appropriate.
(c) Use of Name Prohibited.--The new corporation may not use in any
manner the names ``Native American Capital Development Corporation'' or
``NACDCO'', or any variation of those names.
SEC. 402. ADOPTION AND APPROVAL OF MERGER PLAN.
(a) In General.--Not later than 10 years after the date of
enactment of this Act, 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 Corporation 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 Corporation
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 under paragraph (3) that is 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
Corporation into the new corporation is not feasible
before the latest date designated by the Board;
(B) explaining why an orderly merger of the
Corporation 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 Corporation 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
Corporation 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 Corporation 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 Corporation of the 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 Corporation shall
submit to the Secretary for approval, an amended merger plan
that responds 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 Corporation shall not be required
to accomplish the merger of the Corporation into the new corporation.
SEC. 403. CONSUMMATION OF MERGER.
The Board shall ensure that the merger of the Corporation 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 Corporation 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--
(1) all real, personal, and mixed property, all debts due
on any account, and any other interest, of or belonging to or
due to the Corporation, shall be transferred to and vested in the new
corporation without further act or deed; and
(2) no title to any real, personal, or mixed property shall
be impaired in any way by reason of the merger.
(b) Termination of the Corporation and 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 Corporation shall terminate;
and
(3) the separate existence of the Corporation shall
terminate.
(c) References to the Corporation in Law.--After the designated
merger date, any reference to the Corporation in any law or regulation
shall be deemed to refer to the new corporation.
(d) Savings Clause.--
(1) Proceedings.--The merger of the Corporation into the
new corporation shall not abate any proceeding commenced by or
against the Corporation before the designated merger date,
except that the new corporation shall be substituted for the
Corporation as a party to any such proceeding as of the
designated merger date.
(2) Contracts and agreements.--All contracts and agreements
to which the Corporation 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 Corporation as a party
to those contracts and agreements as of the designated merger
date.
TITLE V--OTHER NATIVE AMERICAN FUNDS
SEC. 501. NATIVE AMERICAN ECONOMIES DIAGNOSTIC STUDIES FUND.
(a) Establishment.--There is established within the Corporation a
fund to be known as the ``Native American Economies Diagnostic Studies
Fund'' (referred to in this section as the ``Diagnostic Fund''), to be
used to strengthen Indian tribal economies by supporting investment
policy reforms and technical assistance to eligible Indian tribes,
consisting of--
(1) any interest earned on investment of amounts in the
Fund under subsection (d); and
(2) such amounts as are appropriated to the Diagnostic Fund
under subsection (f).
(b) Use of Amounts From Diagnostic Fund.--
(1) In general.--The Corporation shall use amounts in the
Diagnostic Fund to establish an interdisciplinary mechanism by
which the Corporation and interested Indian tribes may
jointly--
(A) conduct diagnostic studies of Native economic
conditions; and
(B) provide recommendations for reforms in the
policy, legal, regulatory, and investment areas and
general economic environment of the interested Indian
tribes.
(2) Conditions for studies.--A diagnostic study conducted
jointly by the Corporation and an Indian tribe under paragraph
(1)--
(A) shall be conducted in accordance with an
agreement between the Corporation and the Indian tribe;
and
(B) at a minimum, shall identify inhibitors to
greater levels of private sector investment and job
creation with respect to the Indian tribe.
(c) Expenditures From Diagnostic Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Corporation, the Secretary of the Treasury shall transfer
from the Diagnostic Fund to the Corporation such amounts as the
Corporation determines are necessary to carry out this section.
(2) Administrative expenses.--An amount not exceeding 12
percent of the amounts in the Diagnostic Fund shall be
available in each fiscal year to pay the administrative
expenses necessary to carry out this section.
(d) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such portion of the Diagnostic Fund as is not, in the judgment
of the Secretary of the Treasury, required to meet current
withdrawals. Investments may be made only in interest-bearing
obligations of the United States.
(2) Acquisition of obligations.--For the purpose of
investments under paragraph (1), obligations may be acquired--
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations at the
market price.
(3) Sale of obligations.--Any obligation acquired by the
Diagnostic Fund may be sold by the Secretary of the Treasury at
the market price.
(4) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Diagnostic Fund shall be credited to and form a part of the
Diagnostic Fund.
(e) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Diagnostic Fund under this section shall be transferred at
least monthly from the general fund of the Treasury to the
Diagnostic Fund on the basis of estimates made by the Secretary
of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
(f) Transfers to Diagnostic Fund.--There are appropriated to the
Diagnostic Fund, out of funds made available under section 603, such
sums as are necessary to carry out this section.
SEC. 502. NATIVE AMERICAN ECONOMIC INCUBATION CENTER FUND.
(a) Establishment.--There is established within the Corporation a
fund to be known as the ``Native American Economic Incubation Center
Fund'' (referred to in this section as the ``Economic Fund''),
consisting of--
(1) any interest earned on investment of amounts in the
Economic Fund under subsection (d); and
(2) such amounts as are appropriated to the Economic Fund
under subsection (f).
(b) Use of Amounts From Economic Fund.--
(1) In general.--The Corporation shall use amounts in the
Economic Fund to ensure that Federal development assistance and
other resources dedicated to Native American economic
development are provided only to Native American communities
with demonstrated commitments to--
(A) sound economic and political policies;
(B) good governance; and
(C) practices that promote increased levels of
economic growth and job creation.
(c) Expenditures From Economic Fund.--
(1) In general.--Subject to paragraph (2), on request by
the Corporation, the Secretary of the Treasury shall transfer
from the Economic Fund to the Corporation such amounts as the
Corporation determines are necessary to carry out this section.
(2) Administrative expenses.--An amount not exceeding 12
percent of the amounts in the Economic Fund shall be available
in each fiscal year to pay the administrative expenses
necessary to carry out this section.
(d) Investment of Amounts.--
(1) In general.--The Secretary of the Treasury shall invest
such portion of the Economic Fund as is not, in the judgment of
the Secretary of the Treasury, required to meet current
withdrawals. Investments may be made only in interest-bearing
obligations of the United States.
(2) Acquisition of obligations.--For the purpose of
investments under paragraph (1), obligations may be acquired--
(A) on original issue at the issue price; or
(B) by purchase of outstanding obligations at the
market price.
(3) Sale of obligations.--Any obligation acquired by the
Economic Fund may be sold by the Secretary of the Treasury at
the market price.
(4) Credits to fund.--The interest on, and the proceeds
from the sale or redemption of, any obligations held in the
Economic Fund shall be credited to and form a part of the
Economic Fund.
(e) Transfers of Amounts.--
(1) In general.--The amounts required to be transferred to
the Economic Fund under this section shall be transferred at
least monthly from the general fund of the Treasury to the
Economic Fund on the basis of estimates made by the Secretary
of the Treasury.
(2) Adjustments.--Proper adjustment shall be made in
amounts subsequently transferred to the extent prior estimates
were in excess of or less than the amounts required to be
transferred.
(f) Transfers to Economic Fund.--There are appropriated to the
Economic Fund, out of funds made available under section 603, such sums
as are necessary to carry out this section.
TITLE VI--AUTHORIZATIONS OF APPROPRIATIONS
SEC. 601. NATIVE AMERICAN FINANCIAL INSTITUTIONS.
(a) In General.--There are authorized to be appropriated to the
Fund, without fiscal year limitation, such sums as are necessary to
provide financial assistance to Native American financial institutions.
(b) No Consideration as Matching Funds.--To the extent that a
Native American financial institution receives funds under subsection
(a), the funds shall not be considered to be matching funds required
under section 108(e) of the Riegle Community Development and Regulatory
Improvement Act of 1994 (12 U.S.C. 4707(e)).
SEC. 602. CORPORATION.
There are authorized to be appropriated to the Secretary, for
transfer to the Corporation, such sums as are necessary to carry out
activities of the Corporation.
SEC. 603. OTHER NATIVE AMERICAN FUNDS.
There are authorized to be appropriated such sums as are necessary
to carry out sections 501 and 502.
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