[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1607 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 1607

To provide for and promote the economic development of Indian tribes by 
  furnishing the necessary capital, financial services, and technical 
   assistance to Indian-owned business enterprises, to stimulate the 
 development of the private sector of Indian tribal economies, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 19, 2009

 Mr. Faleomavaega introduced the following bill; which was referred to 
                   the Committee on Natural Resources

_______________________________________________________________________

                                 A BILL


 
To provide for and promote the economic development of Indian tribes by 
  furnishing the necessary capital, financial services, and technical 
   assistance to Indian-owned business enterprises, to stimulate the 
 development of the private sector of Indian tribal economies, 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 ``Indian Development 
Finance Corporation Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and policy.
Sec. 3. Definitions.
                 TITLE I--ESTABLISHMENT OF CORPORATION

Sec. 101. Establishment.
Sec. 102. Duties.
Sec. 103. Loans and obligations.
Sec. 104. General powers.
Sec. 105. Board of Directors.
Sec. 106. President of the Corporation.
Sec. 107. Conflicts of interest and financial disclosure.
Sec. 108. Annual meetings.
Sec. 109. Reports and plans submitted to Congress.
Sec. 110. Advisory Council.
Sec. 111. Conforming amendments.
                        TITLE II--CAPITALIZATION

Sec. 201. Issuance of stock.
Sec. 202. Borrowing authority.
               TITLE III--AUTHORIZATION OF APPROPRIATIONS

Sec. 301. General operational expenses.
Sec. 302. Authorizations for paid-in capital stock.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--Congress finds that--
            (1) a special relationship has existed between the United 
        States and the Indian tribes which is recognized in clause 3, 
        section 8, article I of the United States Constitution;
            (2) Congress, through statutes, treaties, and the exercise 
        of administrative authorities, has implemented the Federal 
        Government's responsibility for the protection and preservation 
        of Indian tribes and their resources;
            (3) despite the availability of abundant natural resources 
        on Indian lands and a rich cultural legacy which places great 
        value on self-determination, self-reliance, and independence, 
        American Indians and Alaskan Natives experience poverty and 
        unemployment, along with the associated incidences of social 
        pathology, to an extent unequaled by any other group in the 
        United States;
            (4) the reasons for such unparalleled poverty and 
        unemployment have been widely studied and documented by 
        Congress, the General Accounting Office, the Department of the 
        Interior, private academic institutions, and Indian tribes, and 
        such studies have consistently identified as fundamental 
        obstacles to balanced economic growth and progress--
                    (A) the very limited availability of long-term 
                development capital and sources of financial credit 
                necessary to support the development of a private 
                sector economy in Indian country comprised of Indian-
                owned business enterprises;
                    (B) the lack of effective control by the Indians 
                over their own lands and resources; and
                    (C) the scarcity of experienced Indian managers and 
                technicians;
            (5) previous efforts of the Federal Government directed at 
        stimulating Indian economic development through the provision 
        of grants, direct loans, loan guarantees, and interest 
        subsidies have fallen far short of their objectives due to--
                    (A) inadequate funds;
                    (B) lack of coordination;
                    (C) arbitrary project selection criteria;
                    (D) politicization of the delivery system; and
                    (E) other inefficiencies characteristic of a system 
                of publicly administered financial intermediation; and
            (6) the experience acquired by multilateral lending 
        institutions among the ``lesser developed countries'' has 
        demonstrated the value and necessity of development financing 
        institutions in achieving economic growth in underdeveloped 
        economies and societies that are strikingly similar to Indian 
        and Alaskan Native communities in relation to such matters as 
        control over natural resource management and the absence of 
        experienced, indigenous managers and technicians, as well as 
        the availability of long-term development capital and private 
        sources of financial credit.
    (b) Policy.--It is hereby declared to be the policy of Congress 
that, in fulfillment of its special and longstanding responsibility to 
the Indian tribes, the Federal Government should provide assistance to 
the Indian people in their efforts to break free from the devastating 
effects of extreme poverty and unemployment and achieve lasting 
economic self-sufficiency through the development of the private sector 
of tribal economies by establishing a federally chartered, mixed 
ownership development financing institution which shall provide a broad 
range of financial intermediary services including working capital, 
direct loans, loan guarantees, and project development assistance 
utilizing the proven efficiencies of the private market mode of 
operation.

SEC. 3. DEFINITIONS.

    For purposes of this Act:
            (1) Indian.--The term ``Indian'' means any person who is a 
        member of an Indian tribe.
            (2) Indian tribe.--The term ``Indian tribe'' means any 
        Indian tribe, band, nation, or other organized group or 
        community which is recognized by the United States as eligible 
        for the special programs and services provided by the United 
        States to Indians because of their status as Indians, including 
        any Alaska Native village or regional or village corporation as 
        defined in, or established under, the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.).
            (3) Reservation.--The term ``reservation'' means any Indian 
        reservation, public domain Indian allotment, former Indian 
        reservation in Oklahoma, or land held by any Alaska Native 
        village or regional or village corporation (as defined in, or 
        established under, the provisions of the Alaska Native Claims 
        Settlement Act).
            (4) Tribal organization.--The term ``tribal organization'' 
        means the governing body of any Indian tribe or any entity 
        established, controlled, or owned by such governing body.
            (5) Indian business enterprise.--The term ``Indian business 
        enterprise'' means any commercial, industrial, or business 
        entity--
                    (A) at least 51 percent of which is owned by one or 
                more Indian tribes;
                    (B) that produces or furnishes goods, services, or 
                facilities and is operated or organized on a for-profit 
                basis;
                    (C) that is chartered or controlled by any Indian 
                tribe or tribal organization that is a shareholder of 
                the Corporation; and
                    (D) whose--
                            (i) principal place of business is located 
                        within, or adjacent to, the boundaries of an 
                        Indian reservation; or
                            (ii) principal business activities in 
                        addition to the production of a stream of 
                        income are determined by the Corporation to be 
                        directly beneficial to an Indian tribe and 
                        contribute to the economy of such Indian tribe.
        Such term includes any subsidiary entity that is owned and 
        controlled by any commercial, industrial, or business activity 
        described in the preceding sentence.
            (6) Corporation.--The term ``Corporation'' means the Indian 
        Development Finance Corporation established under section 101.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.

                 TITLE I--ESTABLISHMENT OF CORPORATION

SEC. 101. ESTABLISHMENT.

    There is hereby established the Indian Development Finance 
Corporation. The Corporation shall have succession until dissolved by 
an Act of Congress. Congress shall have the sole authority to revise or 
amend the charter of the Corporation.

SEC. 102. DUTIES.

    It shall be the duty of the Corporation to--
            (1) provide development capital through the financial 
        services that the Corporation is authorized to provide under 
        subsections (b), (c), and (d) of section 103;
            (2) encourage the development of new and existing Indian 
        business enterprises eligible for its assistance by providing 
        and coordinating the availability of--
                    (A) long-term capital and working capital;
                    (B) loans, loan guarantees, and other forms of 
                specialized credit; and
                    (C) technical and managerial assistance and 
                training;
            (3) maintain broad-based control of the Corporation in its 
        voting stockholders;
            (4) encourage active participation in the Corporation by 
        Indian tribes by ownership of its equity securities; and
            (5) assist in strengthening Indian tribal economies through 
        the development of Indian business enterprises whose activities 
        are directed at contributing to such economies.

SEC. 103. LOANS AND OBLIGATIONS.

    (a) In General.--The Corporation may--
            (1) make loans or commitments for loans to any Indian 
        business enterprise; or
            (2) purchase, insure, or discount any obligations of an 
        Indian business enterprise, if such enterprise meets the 
        requirements of subsection (b).
    (b) Requirements.--An Indian business enterprise meets the 
requirements of this subsection if the Corporation makes an independent 
determination that--
            (1) such enterprise has or will have--
                    (A) a sound organizational and financial structure;
                    (B) income in excess of its operating costs;
                    (C) assets in excess of its obligations; and
                    (D) a reasonable expectation of a continuing demand 
                for--
                            (i) its production, goods, commodities, or 
                        services; or
                            (ii) its facilities; and
            (2) the loan or obligation of such enterprise will be fully 
        repayable in accordance with the terms and conditions of such 
        loan or obligation.
    (c) Terms, Rates, and Charges.--(1) In setting the terms, rates, 
and charges for loans made under this section, the objective of the 
Corporation shall be to provide the type of credit needed by Indian 
business enterprises at the lowest reasonable cost and on a sound 
business basis, taking into account--
            (A) the cost of money to the Corporation;
            (B) the necessary reserve and expenses of the Corporation; 
        and
            (C) the technical and other assistance attributable to 
        loans made available by the Corporation under this section.
    (2) The terms of any loan made under this subsection may provide 
for interest rates which vary from time to time during the repayment 
period of the loan in accordance with the rates being charged by the 
Corporation for new loans at such times.
    (d) Use of Funds.--Funds available from a loan made under this 
section may be advanced or reloaned by the borrower to its members or 
stockholders for the development of individually owned businesses on or 
adjacent to reservations under circumstances permitted under the bylaws 
or rules of the Corporation.
    (e) Loan Guarantees.--(1) The Corporation may guarantee all or any 
part of the principal and interest of any loan made by any State or 
federally chartered lending institution to any Indian business 
enterprise if--
            (A) such loan is to an Indian business enterprise that 
        meets the requirements of subsection (b)(2); and
            (B) such loan was made on terms and conditions (including 
        the rate of interest) which would be permissible terms and 
        conditions if such loan were a direct loan made by the 
        Corporation.
    (2) The Corporation may impose a charge for any loan guarantee made 
under this subsection.
    (3) No loan may be guaranteed by the Corporation under this 
subsection if the income from the loan to the lender is excludable from 
such lender's gross income for purposes of chapter 1 of the Internal 
Revenue Code of 1986.
    (4) Any loan guarantee made under this subsection shall be 
assignable to the extent provided in the contract of guarantee entered 
into by the Corporation.
    (5) Any guarantee made under this subsection shall be 
uncontestable, except in the case of fraud or misrepresentation of 
which the holder had actual knowledge at the time the holder acquired 
the loan.
    (6) The Corporation, in lieu of requiring the original lender to 
service a loan guaranteed under this subsection until final maturity or 
liquidation, may purchase such guaranteed loan for an amount equal to 
the balance of the principal and the amount of interest accrued thereon 
without penalty if the Corporation determines that the purchase would 
not be detrimental to the interests of the Corporation and--
            (A) the liquidation of such guaranteed loan would result in 
        the insolvency of the borrower or deprive the borrower of 
        assets essential to its continued operation;
            (B) such guaranteed loan will be repayable with revision of 
        the loan rates, terms, payment periods, or other conditions 
        consistent with loans made by the Corporation under subsection 
        (b); and
            (C) the lender or other holder of such guaranteed loan is 
        unwilling to make such revision.
    (f) Purchases of Equity and Ownership.--(1) For purposes of 
providing long-term capital and working capital to Indian business 
enterprises, the Corporation is authorized to purchase, or make 
commitments to purchase, all, or any portion of, the equity or 
ownership interest in any Indian business enterprise if the Corporation 
determines, after a full and complete appraisal of all project and 
business plans associated with the investment taking into account the 
criteria set forth in paragraph (2), that such an investment does not 
expose the Corporation to any unreasonable business risks considering 
the applicable standards prevailing in the field of development finance 
as applied to Indian economic development (or, in light of the 
socioeconomic, political, and legal conditions unique to Indian 
reservations).
    (2) The Corporation is also authorized to supervise or participate 
in the management of Indian business enterprises in which an investment 
has been made under paragraph (1) according to such terms and 
conditions as are agreed to by the Corporation and the principals of 
the enterprise, including the assumption of a directorship in the 
corporate body of such Indian business enterprise by an officer of the 
Corporation.

SEC. 104. GENERAL POWERS.

    In carrying out this Act, the Corporation is authorized--
            (1) to adopt and alter a corporate seal, which shall be 
        judicially noticed;
            (2) to make agreements and contracts with persons, Indian 
        tribes, and private or governmental entities and to make 
        payments or advance payments under such agreements or contracts 
        without regard to section 3324 of title 31, United States Code, 
        except that the Corporation shall provide financial assistance 
        only in accordance with this Act;
            (3) to--
                    (A) lease, purchase, accept gifts or donations of, 
                or otherwise to acquire;
                    (B) own, hold, improve, use, or otherwise deal in 
                or with; and
                    (C) sell, convey, mortgage, pledge, lease, 
                exchange, or otherwise dispose of;
        any property, real, personal, or mixed, or any interest 
        therein;
            (4) to sue and be sued in its corporate name and to 
        complain and defend in any court of competent jurisdiction;
            (5) to represent itself, or to contract for representation, 
        in all judicial, legal, and other proceedings;
            (6) to make provision for and designate such committees, 
        and the functions thereof, as the Board of Directors may deem 
        necessary or desirable;
            (7) with the approval of the agency concerned, to make use 
        of services, facilities, and property of any board, commission, 
        independent establishment, or executive agency or department of 
        the executive branch in carrying out the provisions of this Act 
        and to pay for such use (such payments to be credited to the 
        applicable appropriation that incurred the expense);
            (8) to use the United States mails on the same terms and 
        conditions as the executive departments of the United States 
        Government;
            (9) to obtain insurance or make other provisions against 
        losses;
            (10) to participate with one or more other financial 
        institutions, agencies, instrumentalities, trusts, or 
        foundations in loans or guarantees made under this Act on terms 
        as may be agreed upon;
            (11) to accept guarantees from other agencies for which 
        loans made by the Corporation may be eligible;
            (12) to establish, as soon as practicable, regional offices 
        in order to more efficiently serve the widely disbursed Indian 
        population;
            (13) to buy and sell--
                    (A) obligations of, or instruments insured by, the 
                United States or any agency or instrumentalities 
                thereof; or
                    (B) securities backed by the full faith and credit 
                of any such agency or instrumentality;
            (14) to make such investments as may be authorized by the 
        Board of Directors of the Corporation;
            (15) to establish such offices within the Corporation as 
        may be necessary including offices for--
                    (A) Project Development;
                    (B) Project Evaluation and Auditing;
                    (C) Fiscal Management;
                    (D) Research and Development; and
                    (E) any other offices as may from time to time be 
                authorized by the Board of Directors; and
            (16) to exercise all other lawful powers necessarily or 
        reasonably related to the establishment of the Corporation in 
        order to carry out the provisions of this Act and the exercise 
        of its powers, purposes, functions, duties, and authorized 
        activities.

SEC. 105. BOARD OF DIRECTORS.

    (a) Members.--The powers of the Corporation shall be vested in the 
Board of Directors which shall consist of the following 21 members:
            (1) 1 officer of the United States Government, designated 
        by the Secretary of the Interior.
            (2) 19 individuals who represent the shareholders in the 
        Corporation, appointed by the President by and with the advice 
        and consent of the Senate, taking into account the experience 
        of the individual in private business enterprises and in 
        development or commercial financing and shall consult with, and 
        receive recommendations from, Indian tribes.
            (3) The President of the Corporation.
    (b) Terms.--The term of office for the initial members of the Board 
of Directors described in subsection (a)(2) shall expire at the 
commencement of the first annual meeting of the shareholders of the 
Corporation held as soon as is reasonably possible after the date on 
which subscriptions have been paid for at least 10 percent of the 
common stock initially offered for sale to Indian tribes.
    (c) Vacancies.--(1) Any vacancy on the Board of Directors created 
by the resignation or removal of a member described in subsection 
(a)(2) shall be filled by the Board in accordance with the bylaws of 
the Corporation except that such appointment shall only be made for a 
term extending to the next annual shareholders meeting of the 
Corporation.
    (2) If a vacancy occurs on the Board of Directors prior to the 
expiration of the term of office to which the member described in 
subsection (a)(2) was appointed, the President shall appoint an 
individual, by and with the consent of the Senate, to fill such vacancy 
until the expiration of such term of office.
    (d) Removal.--A member of the Board of Directors may be removed 
from office by the Board only for neglect of duty or malfeasance in 
office.
    (e) Quorum.--A majority of the Board of Directors shall constitute 
a quorum and except as provided in subsection (h)(2), any action of the 
Board of Directors shall be effected by majority vote of all members of 
the Board of Directors.
    (f) Duties.--The Board of Directors shall--
            (1) annually elect from among the members described in 
        subsection (a)(2) a Chairman and Vice Chairman;
            (2) establish the policies of the Corporation and shall 
        supervise the management of the Corporation;
            (3) adopt, and may amend, such bylaws as are necessary for 
        the proper management and functioning of the Corporation;
            (4) keep the Council established under section 110 fully 
        informed of its activities; and
            (5) provide the Council with such further information or 
        data in its possession as the Council may deem necessary to the 
        appropriate discharge of the responsibilities of the Council.
    (g) Meetings.--The Board of Directors shall meet at any time 
pursuant to the call of the Chairman and as may be provided by the 
bylaws of the Corporation, but not less than quarterly. Subject to such 
rules adopted by the Board of Directors as are necessary for the 
orderly conduct of business, all meetings of the Board of Directors 
shall be open to representatives of Indian tribes, Indian business 
enterprises, and Indian organizations and any individual who has an 
identifiable interest in the affairs of the Corporation. The Board of 
Directors may meet in private executive session if the matter under 
discussion in such session involves any matter which may impinge on the 
right of privacy of any individual.
    (h) Member Designated by the Secretary.--The member designated by 
the Secretary shall--
            (1) have 20 percent of the share of votes cast at annual 
        shareholders meetings; and
            (2) be overruled only by a two-thirds majority vote at 
        regular board meetings in matters involving--
                    (A) calling of callable capital;
                    (B) borrowing by the Corporation of amounts in 
                excess of $10,000,000;
                    (C) loans or investments made by the Corporation in 
                excess of $1,000,000; or
                    (D) the adoption of changes to investment and 
                credit policies.
    (i) Compensation.--Each member of the Board of Directors not 
otherwise employed by the Federal Government or a State government 
shall receive compensation at a rate equal to the daily rate for GS-18 
of the General Schedule under section 5332 of title 5, United States 
Code, for each day, including traveling time, he or she is engaged in 
the actual performance of his or her duties as a member of the Board of 
Directors. A member of the Board of Directors who is an officer or 
employee of the United States Government or of a State government shall 
serve without additional compensation. All members of the Board of 
Directors shall be reimbursed for travel, subsistence, and other 
necessary expenses incurred by them in the performance of their duties.

SEC. 106. PRESIDENT OF THE CORPORATION.

    (a) President.--The Board of Directors shall appoint a President of 
the Corporation. The President of the Corporation may be removed from 
office by the Board of Directors in accordance with the bylaws of the 
Corporation.
    (b) Duties and Powers.--The President of the Corporation shall have 
the following duties and powers:
            (1) Serve as the chief executive officer of the 
        Corporation.
            (2) Subject to the direction of the Board of Directors and 
        the general supervision of the Chairman, carry out the policies 
        and functions of the Corporation.
            (3) Have authority over all personnel and activities of the 
        Corporation.
            (4) With the approval of the Board of Directors, have the 
        authority to appoint and fix the compensation and duties of 
        such officers and employees as may be necessary for the 
        efficient administration of the Corporation. Such appointments 
        and compensation may be made without regard to the provisions 
        of title 5, United States Code, governing appointments in the 
        competitive service, and chapter 51 and subchapter III of 
        chapter 53 of title 5, United States Code.

SEC. 107. CONFLICTS OF INTEREST AND FINANCIAL DISCLOSURE.

    (a) Applicability.--The financial disclosure provisions of the 
Ethics in Government Act of 1978 (92 Stat. 1824; Public Law 95-521) 
applicable to individuals occupying positions compensated under the 
Executive Schedule shall apply--
            (1) to the members of the Board of Directors;
            (2) to the officers of the Corporation;
            (3) to employees of the Corporation whose position is 
        compensated at a rate equivalent to that payable for grade GS-
        16 or above of the General Schedule established by chapter 53 
        of title 5, United States Code; and
            (4) to the Corporation as if it were a Federal agency.
    (b) Financial Interests.--(1) Except as permitted by paragraph (3), 
no member of the Board of Directors shall vote on any matter respecting 
any application, contract, claim, or other particular matter pending 
before the Corporation, in which, to the member's knowledge, a 
financial interest is held by--
            (A) the member;
            (B) the member's spouse, child, or partner;
            (C) an organization other than the Corporation in which the 
        member is serving as officer, director, trustee, partner, or 
        employee; or
            (D) any person or organization with whom the member is 
        negotiating, or has any arrangement concerning, prospective 
        employment.
    (2) Action by any member of the Board of Directors contrary to the 
prohibition under paragraph (1) shall be cause for removal of such 
member pursuant to section 105(d), but shall not impair or otherwise 
affect the validity of any otherwise lawful action by the Corporation 
in which such member participated.
    (3) The prohibition contained in paragraph (1) shall not apply if 
the member first advises the Board of Directors of the nature of the 
particular matter in which he or she proposes to participate and makes 
full disclosure of such financial interest, and the Board of Directors 
determines by majority vote that the financial interest is too remote 
or too inconsequential to affect the integrity of such member's 
services for the Corporation in that matter. The member involved shall 
not participate in such determination.
    (c) Applicability of Certain Law.--Subsection (a) of section 207 of 
title 18, United States Code (and subsections (f), (h), and (j) of such 
section to the extent they relate to subsection (a)), shall apply to 
former members of the Board of Directors, officers, and employees of 
the Corporation as if they were former officers or employees of the 
executive branch of the United States Government. Such section shall 
apply to the Corporation as if it were an agency of the executive 
branch of the United States Government.

SEC. 108. ANNUAL MEETINGS.

    (a) In General.--The Corporation shall hold an annual meeting of 
its shareholders which shall be open to the public. At such meeting, 
the Corporation shall give a full report of its activities during the 
year and its financial condition and may present proposals for future 
action and other matters of general concern to shareholders and Indian 
business enterprises eligible for services from the Corporation.
    (b) Shareholders and Representatives.--Shareholders and 
representatives of Indian business enterprises may--
            (1) present motions or resolutions at the annual meeting of 
        shareholders relating to matters within the scope of this Act; 
        and
            (2) participate in the discussion thereof and other matters 
        on the agenda of such meeting.
    (c) Notice.--Not less than 30 days notice of the time and place of 
the annual meeting required under subsection (a) shall be given to all 
shareholders.
    (d) Voting.--Each member Indian tribe may vote its common stock on 
all matters before the annual shareholders meeting and on all matters 
pertaining to election of the Board of Directors. Shareholders may 
cumulate their votes based on the number of director positions that are 
standing for election.

SEC. 109. REPORTS AND PLANS SUBMITTED TO CONGRESS.

    (a) Annual Reports.--The Board of Directors of the Corporation 
shall report annually to the appropriate committees of the Congress on 
the Corporation's capital, operations, and financial condition. Such 
report shall include recommendations for legislation needed to improve 
the services of the Corporation.
    (b) Development Plan.--Not later than 1 year after the date of the 
enactment of this Act, the Corporation shall submit to the Congress a 
comprehensive, 5-year organizational development plan that includes--
            (1) financial projections;
            (2) a description of a corporate structure and locations; 
        and
            (3) operational guidelines, particularly the coordinating 
        relationship the Corporation has, or plans to have, with 
        Federal domestic assistance programs that allocate financial 
        resources and services to Indian tribes and reservations for 
        economic and business development purposes.

SEC. 110. ADVISORY COUNCIL.

    (a) Establishment.--There is hereby established the Advisory 
Council to the Indian Development Finance Corporation (hereafter in 
this section referred to as the ``Council''), which shall provide 
advice on the policies and operations of the Corporation.
    (b) Membership.--The Council shall consist of--
            (1) the Comptroller of the Currency;
            (2) the Secretary of the Interior; and
            (3) the Chairman of the Board of Governors of the Federal 
        Reserve System.
    (c) Duties.--The Council shall--
            (1) recommend to the Board of Directors of the Corporation 
        general policy directives;
            (2) be available to provide financial and technical 
        assistance upon request of the Board of Directors;
            (3) transmit to the Board of Directors and the Congress an 
        annual report with respect to the policies of the Corporation 
        that contains data on the operations and policies of the 
        Corporation, recommendations concerning the Corporation, and 
        such other data and material as the Council may deem 
        appropriate; and
            (4) make reports and recommendations to the Board of 
        Directors as it may from time to time request or as the Council 
        may consider necessary to more effectively or efficiently 
        accomplish the purposes of this section or the purposes for 
        which the Council is created.

SEC. 111. CONFORMING AMENDMENTS.

    (a) Title 31.--Title 31, United States Code, is amended as follows:
            (1) In paragraph (2) of section 9101, by adding at the end 
        the following new subparagraph:
                    ``(K) the Indian Development Finance 
                Corporation.''.
            (2) In paragraph (3) of section 9107(c), by inserting ``the 
        Indian Development Finance Corporation,'' after ``the Regional 
        Banks for Cooperatives,''.
            (3) In paragraph (2) of section 9108(d), by inserting ``the 
        Indian Development Finance Corporation,'' after ``the Regional 
        Banks for Cooperatives,''.
    (b) Title 5.--Section 5315 of title 5, United States Code, is 
amended by adding at the end the following new item:
    ``President, Indian Development Finance Corporation.''.

                        TITLE II--CAPITALIZATION

SEC. 201. ISSUANCE OF STOCK.

    (a) In General.--(1) The Corporation is authorized to issue shares 
of stock in the Corporation in an amount and of such class as may be 
determined by the Board of Directors subject to the provisions of this 
section.
    (2) Shares of stock in the Corporation may only be issued to and 
may only be held by Indian tribes and the United States.
    (3) The Corporation is authorized to redeem or repurchase any share 
of stock issued by the Corporation at a price determined by the Board 
of Directors.
    (b) Initial Offering.--(1) The Corporation shall make an initial 
offering of a total of 500,000 shares of common stock of the 
Corporation for sale at $50 per share to Indian tribes.
    (2) The number of such shares of stock required to be purchased by 
each Indian tribe in order to become a member of the Corporation shall 
be determined on the basis of an equitable formula established by the 
Board of Directors taking into account indicators of the economic 
condition of each Indian tribe applying for membership. Such economic 
indicators shall be developed by the Board and applied on a uniform 
basis.
    (3) Twenty percent of the value of the stock to be purchased by 
each tribe as a condition of membership shall be paid into the 
Corporation in the form of cash or cash equivalent securities, and 80 
percent shall be in the form of a legally binding commitment available 
for call by the Board to meet the obligations of the Corporation but 
not for use of the Corporation in lending activities or for 
administrative expenses.
    (c) Number of Shares.--(1) The Secretary is authorized to subscribe 
to 2,000,000 shares of capital stock in the Corporation.
    (2) The Secretary--
            (A) shall pay $20,000,000, representing 20 percent of the 
        value of the shares of capital stock in the Corporation 
        subscribed under paragraph (1), to the Corporation within a 2-
        year period beginning on the date of enactment of this Act; and
            (B) beginning in fiscal year 2012, is authorized to agree 
        on behalf of the United States to pay up to $80,000,000, 
        representing 80 percent of the value of the shares of capital 
        stock in the Corporation subscribed under paragraph (1), or any 
        portion thereof, to the Corporation upon call of the Board of 
        Directors of the Corporation. The amount of this request for 
        funds to establish a reserve for loss will be determined by the 
        Secretary of the Interior and the Board of Directors based upon 
        an assessment of need, taking into account a risk analysis of 
        the investment and credit policies and practices of the 
        Corporation. Any commitment to make such contributions shall be 
        made subject to obtaining the necessary appropriations, and 
        shall be made when funds are required to meet obligations of 
        the Corporation for funds borrowed by the Corporation or for 
        loans guaranteed by the Corporation, but not for use of the 
        Corporation in lending activities of the Corporation or for 
        administrative expenses of the Corporation.
    (3) The capital stock subscribed by the Secretary on behalf of the 
United States under paragraph (1)--
            (A) shall be valued at $50 per share;
            (B) shall be nonvoting stock;
            (C) shall not accrue dividends; and
            (D) may not be transferred to any person or entity other 
        than the Corporation.
    (d) Payment of Dividends.--The Board shall establish policies for 
payment of dividends to the Corporation's shareholders to be based on 
sound business practices and fiscal management principles and which 
shall give a priority to providing a return on investment based on 
shareholders pro rata interest in income generated from the capital 
contribution of common stock shareholders as compared to income 
attributable to capital contributed by the United States.
    (e) Exempted Securities.--The stock or other securities or 
instruments issued by the Corporation shall, to the same extent as 
securities which are the direct obligations of the United States, be 
exempted securities within the meaning of the laws administered by the 
Securities and Exchange Commission.

SEC. 202. BORROWING AUTHORITY.

    (a) In General.--The Corporation is authorized to issue bonds, 
notes, and other evidence of indebtedness. Such obligations shall be 
issued at such times, bear interest at such rates, and contain such 
terms and conditions as the Board of Directors shall determine after 
consultation with the Secretary of the Treasury.
    (b) Amount of Obligations.--The aggregate amount of obligations 
issued under subsection (a) shall not exceed an amount equal to--
            (1) the product of 10 multiplied by the sum of--
                    (A) the paid-in capital of the Corporation; plus
                    (B) retained earnings and profits of the 
                Corporation; plus
            (2) the book value of callable capital represented by the 
        total commitments of tribal shareholders and the $80,000,000 
        subscribed to by the United States as provided for in section 
        201(c)(2)(B) of this Act.
    (c) Sale of Obligations.--An obligation issued under subsection (a) 
may be sold through an agent by negotiation, offer, bid, syndicate 
sale, or otherwise and such transaction completed by book entry, wire 
transfer, or such other means as may be appropriate.

               TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. GENERAL OPERATIONAL EXPENSES.

    In addition to amounts authorized to be appropriated under section 
302, there are authorized to be appropriated--
            (1) $2,000,000 for fiscal year 2010 for the purpose of 
        carrying out the provisions of this Act;
            (2) $2,500,000 for each of the fiscal years 2010, 2011, 

        2012, 2013, and 2014 for the purpose of project development 
        activities; and
            (3) such sums as may be necessary to carry out the 
        provisions of this Act for each of the fiscal years 2010, 2011, 
        2012, 2013, and 2014.

SEC. 302. AUTHORIZATIONS FOR PAID-IN CAPITAL STOCK.

    There are authorized to be appropriated for each of the fiscal 
years 2010 and 2011, $10,000,000 for the purpose of carrying out the 
provisions of section 201(c)(2)(A). Such sums shall remain available 
until expended. Beginning in fiscal year 2011, such amounts, not to 
exceed a total of $80,000,000, are authorized to be appropriated for 
the purpose of carrying out the provisions of section 201(c)(2)(B).
                                 <all>