[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 439 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                 S. 439

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 SENATE OF THE UNITED STATES

                           February 13, 2009

  Mr. Inouye introduced the following bill; which was read twice and 
              referred to the Committee on Indian Affairs

_______________________________________________________________________

                                 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 of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and policy.
Sec. 3. Definitions.
            TITLE I--INDIAN DEVELOPMENT FINANCE CORPORATION

Sec. 101. Establishment of Corporation.
Sec. 102. Duties and powers.
Sec. 103. Loans and obligations.
Sec. 104. Board of Directors.
Sec. 105. President of Corporation.
Sec. 106. Annual shareholder meetings.
Sec. 107. Annual reports; development plan.
                        TITLE II--CAPITALIZATION

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

Sec. 301. Authorization of appropriations.

SEC. 2. FINDINGS AND POLICY.

    (a) Findings.--Congress finds that--
            (1) a special relationship has existed between the United 
        States and Indian tribes, which is recognized in clause 3 of 
        section 8 of article I of the Constitution of the United 
        States;
            (2) pursuant to laws, treaties, and administrative 
        authority, Congress has implemented activities to fulfill the 
        responsibility of the United States for the protection and 
        preservation of Indian tribes and tribal resources;
            (3) despite the availability of abundant natural resources 
        on Indian land and a rich cultural legacy that places great 
        value on self-determination, self-reliance, and independence, 
        Indians and Alaska Natives experience poverty and unemployment, 
        together with associated incidences of social pathology, to an 
        extent unequaled by any other group in the United States;
            (4)(A) the reasons for that poverty and unemployment have 
        been widely studied and documented by Congress, the Government 
        Accountability Office, the Department of the Interior, private 
        academic institutions, and Indian tribes; and
            (B) the studies described in subparagraph (A) have 
        consistently identified as fundamental obstacles to balanced 
        economic growth and progress by Indians and Alaska Natives--
                    (i) the very limited availability of long-term 
                development capital and sources of financial credit 
                necessary to support in Indian country the development 
                of a private sector economy comprised of Indian-owned 
                business enterprises;
                    (ii) the lack of effective control by Indians over 
                their own land and resources; and
                    (iii) the scarcity of experienced Indian managers 
                and technicians;
            (5) previous efforts by 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 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 ``lesser-developed countries'' has 
        demonstrated the value and necessity of development financial 
        institutions in achieving economic growth in underdeveloped 
        economies and societies that are strikingly similar to Indian 
        and Alaska Native communities in relation to matters such as--
                    (A) control over natural resource management;
                    (B) the absence of experienced, indigenous managers 
                and technicians; and
                    (C) the availability of long-term development 
                capital and private sources of financial credit.
    (b) Policy.--It is the policy of the United States that, in 
fulfillment of the special and long-standing responsibility of the 
United States to Indian tribes, the United States should provide 
assistance to Indians in 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 to provide a broad range of 
financial intermediary services (including working capital, direct 
loans, loan guarantees, and project development assistance) using the 
proven efficiencies of the private market mode of operation.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Board.--The term ``Board'' means the Board of Directors 
        of the Corporation.
            (2) Corporation.--The term ``Corporation'' means the Indian 
        Development Finance Corporation established by section 101(a).
            (3) Indian.--The term ``Indian'' means an individual who is 
        a member of an Indian tribe.
            (4) Indian business enterprise.--
                    (A) In general.--The term ``Indian business 
                enterprise'' means any commercial, industrial, or 
                business entity--
                            (i) at least 51 percent of which is owned 
                        by 1 or more Indian tribes;
                            (ii) that produces or provides goods, 
                        services, or facilities on a for-profit basis;
                            (iii) that is chartered or controlled by an 
                        Indian tribe or tribal organization that is a 
                        shareholder/member of the Corporation;
                            (iv) the principal place of business of 
                        which is located within or adjacent to the 
                        boundaries of a reservation; and
                            (v) the principal business activities of 
                        which, in addition to the production of a 
                        stream of income, as determined by the 
                        Corporation--
                                    (I) are directly beneficial to an 
                                Indian tribe; and
                                    (II) contribute to the economy of 
                                that Indian tribe.
                    (B) Inclusion.--The term ``Indian business 
                enterprise'' includes any subsidiary entity owned and 
                controlled by an entity described in subparagraph (A).
            (5) 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).
            (6) Reservation.--The term ``reservation'' has the meaning 
        given the term in section 3 of the Indian Financing Act of 1974 
        (25 U.S.C. 1452).
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Interior.
            (8) Tribal organization.--The term ``tribal organization'' 
        means--
                    (A) the governing body of an Indian tribe; and
                    (B) any entity established, controlled, or owned by 
                such a governing body.

            TITLE I--INDIAN DEVELOPMENT FINANCE CORPORATION

SEC. 101. ESTABLISHMENT OF CORPORATION.

    (a) In General.--There is established a corporation, to be known as 
the ``Indian Development Finance Corporation''.
    (b) Powers of Congress.--Congress shall have the sole authority--
            (1) to amend the charter of the Corporation; and
            (2) to terminate the Corporation.

SEC. 102. DUTIES AND POWERS.

    (a) Duties.--The Corporation shall--
            (1) provide development capital through financial services 
        under section 103;
            (2) encourage the development of new and existing Indian 
        business enterprises eligible to receive assistance from the 
        Corporation 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 
        relative to the voting shareholders of the Corporation;
            (4) encourage active participation in the Corporation by 
        Indian tribes through ownership of equity securities of the 
        Corporation; and
            (5) otherwise assist in strengthening Indian tribal 
        economies through the development of Indian business 
        enterprises.
    (b) Powers.--In carrying out this Act, the Corporation may--
            (1) adopt and alter a corporate seal, which shall be 
        judicially noticed;
            (2)(A) enter into agreements and contracts with 
        individuals, Indian tribes, and private or governmental 
        entities; and
            (B) make payments or advance payments under those 
        agreements and 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) with respect to any real, personal, or mixed property 
        (or any interest in such property)--
                    (A) lease, purchase, accept gifts or donations of, 
                or otherwise acquire the property;
                    (B) own, hold, improve, use, or otherwise deal in 
                or with the property; and
                    (C) sell, convey, mortgage, pledge, lease, 
                exchange, or otherwise dispose of the property;
            (4)(A) sue and be sued in corporate name;
            (B) complain and defend in any court of competent 
        jurisdiction; and
            (C) represent itself, or contract for representation, in 
        any judicial, legal, or other proceeding;
            (5)(A) with the approval of the department or agency 
        concerned, make use of the services, facilities, and property 
        of any board, commission, independent establishment, or Federal 
        department or agency in carrying out this Act; and
            (B) pay for that use, with the payments to be credited to 
        the applicable appropriation that incurred the expense;
            (6) use the United States mails on the same terms and 
        conditions as a Federal department or agency;
            (7) obtain insurance or make other provisions against 
        losses;
            (8) participate with 1 or more other financial 
        institutions, agencies, instrumentalities, trusts, or 
        foundations in loans or guarantees provided under this Act on 
        such terms as may be agreed on;
            (9) accept guarantees from other agencies for which loans 
        made by the Corporation may be eligible;
            (10) establish, as soon as practicable, regional offices to 
        more efficiently serve the widely disbursed Indian population;
            (11) buy and sell--
                    (A) obligations of, or instruments insured by, the 
                Federal Government; and
                    (B) securities backed by the full faith and credit 
                of any Federal department or agency;
            (12) make such investments as the Board determines to be 
        appropriate;
            (13) establish such offices within the Corporation as are 
        necessary, including--
                    (A) project development;
                    (B) project evaluation and auditing;
                    (C) fiscal management;
                    (D) research and development; and
                    (E) such other activities as are authorized by the 
                Board; and
            (14) exercise all other authority necessarily or reasonably 
        relating to the establishment of the Corporation to carry out 
        this Act.

SEC. 103. LOANS AND OBLIGATIONS.

    (a) In General.--The Corporation may--
            (1) make loans or commitments for loans to any Indian 
        business enterprise; and
            (2) purchase, insure, or discount any obligation of an 
        Indian business enterprise, if the Indian business enterprise 
        meets the requirements of subsection (b).
    (b) Requirements.--An Indian business enterprise meets the 
requirements of this subsection if the Corporation determines that--
            (1) the Indian business enterprise has or will have--
                    (A) a sound organizational and financial structure;
                    (B) income in excess of the operating costs of the 
                Indian business enterprise;
                    (C) assets in excess of the obligations of the 
                Indian business enterprise; and
                    (D) a reasonable expectation of continuing demand 
                for--
                            (i) the products, goods, commodities, or 
                        services of the Indian business enterprise; or
                            (ii) the facilities of the Indian business 
                        enterprise; and
            (2) the loan or obligation proposed to be purchased, 
        insured, or discounted will be fully repayable by the Indian 
        business enterprise in accordance with the terms and conditions 
        of the loan or obligation.
    (c) Terms, Rates, and Charges.--
            (1) In general.--In establishing the terms, rates, and 
        charges for a loan provided under this section, the 
        Corporation, to the maximum extent practicable, shall seek to 
        provide the type of credit needed by the applicable Indian 
        business enterprise at the lowest reasonable cost and on a 
        sound business basis, taking into consideration--
                    (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) Interest rates.--The terms of a loan under this 
        subsection may provide for an interest rate that varies from 
        time to time during the repayment period of the loan in 
        accordance with the interest rates being charged by the 
        Corporation for new loans during those periods.
    (d) Advancing and Reloaning.--A loan provided under this section 
may be advanced or reloaned by the Corporation to any member or 
shareholder of the Corporation for the development of an individually 
owned business on or adjacent to a reservation, in accordance with the 
bylaws of the Corporation.
    (e) Loan Guarantees.--
            (1) In general.--The Corporation may guarantee any part of 
        the principal or interest of a loan that is provided--
                    (A) by a State-chartered or federally chartered 
                lending institution to an Indian business enterprise 
                that meets the requirements of subsection (b); and
                    (B) in accordance with such terms and conditions 
                (including the rate of interest) as would be 
                permissible if the loan was a direct loan provided by 
                the Corporation.
            (2) Charges.--The Corporation may impose a charge for a 
        loan guarantee provided under this subsection.
            (3) Limitation.--The Corporation shall not provide a loan 
        guarantee under this subsection if the income to the lender 
        from the applicable loan is excludable from the gross income of 
        the lender for purposes of chapter 1 of the Internal Revenue 
        Code of 1986.
            (4) Assignability.--A loan guarantee under this subsection 
        shall be assignable to the extent provided in the contract for 
        the loan guarantee.
            (5) Incontestability.--A loan guarantee under this 
        subsection shall be incontestable, except in any case of fraud 
        or misrepresentation of which the holder of the loan had actual 
        knowledge at the time the holder acquired the loan.
            (6) Purchase of guaranteed loans.--
                    (A) In general.--In lieu of requiring the original 
                lender to service a loan guaranteed under this 
                subsection until final maturity or liquidation, the 
                Corporation may purchase the guaranteed loan without 
                penalty, if the Corporation determines that--
                            (i) the purchase would not be detrimental 
                        to the interests of the Corporation;
                            (ii) liquidation of the guaranteed loan 
                        would--
                                    (I) result in the insolvency of the 
                                borrower; or
                                    (II) deprive the borrower of an 
                                asset essential to continued operation; 
                                and
                            (iii)(I) the guaranteed loan will be 
                        repayable on revision of the rates, terms, 
                        payment periods, or other conditions of the 
                        loan, consistent with loans made by the 
                        Corporation under subsection (a)(1); but
                            (II) the lender or other holder of the 
                        guaranteed loan is unwilling to make such a 
                        revision.
                    (B) Amount.--The amount paid by the Corporation to 
                purchase a loan under subparagraph (A) shall not exceed 
                an amount equal to the sum of--
                            (i) the balance of the principal of the 
                        loan; and
                            (ii) the amount of interest accrued on the 
                        loan as of the date of purchase.
    (f) Purchases of Equity and Ownership; Supervision and 
Participation.--
            (1) Purchases of equity and ownership.--For purposes of 
        providing long-term capital and working capital to Indian 
        business enterprises, the Corporation may purchase, or make 
        commitments to purchase, any portion of the equity or ownership 
        interest in the Indian business enterprise if the Corporation 
        determines, after a full and complete appraisal of all project 
        and business plans associated with the investment, that the 
        investment will not expose the Corporation to any unreasonable 
        business risk, taking into consideration applicable development 
        finance standards, as applied to Indian economic development in 
        light of the socioeconomic, political, and legal conditions 
        unique to reservations.
            (2) Supervision and participation.--The Corporation may 
        supervise or participate in the management of an Indian 
        business enterprise in which an investment has been made under 
        paragraph (1), in accordance with such terms and conditions as 
        are agreed to by the Corporation and the Indian business 
        enterprise, including the assumption of a directorship in the 
        corporate body of the Indian business enterprise by an officer 
        of the Corporation.

SEC. 104. BOARD OF DIRECTORS.

    (a) Membership.--The Corporation shall be headed by a board of 
directors, to be composed of 21 members, of whom--
            (1) 1 shall be a Federal official, to be appointed by the 
        Secretary;
            (2) 19 shall be representatives of the shareholders of the 
        Corporation, to be appointed by the Secretary--
                    (A) based on consultation with, and recommendations 
                from, Indian tribes;
                    (B) in accordance with subsection (b); and
                    (C) taking take into consideration the experience 
                of a representative regarding--
                            (i) private business enterprises; and
                            (ii) development or commercial financing; 
                        and
            (3) 1 shall be the president of the Corporation.
    (b) Appointment of Shareholder Representatives.--The initial 
members of the Board appointed under subsection (a)(2) shall be 
appointed by the Secretary, based on recommendations from Indian tribal 
leaders.
    (c) Terms of Shareholder Representatives.--The terms of service of 
the initial members of the Board appointed under subsection (a)(2) 
shall terminate at the beginning of the first annual meeting of 
shareholders of the Corporation held as soon as practicable after the 
date on which subscriptions have been paid for at least 10 percent of 
the common stock of the Corporation initially offered for sale to 
Indian tribes under section 201(b).
    (d) Vacancies.--
            (1) In general.--Subject to paragraph (2), a vacancy on the 
        Board resulting from the resignation or removal of a member of 
        the Board shall be filled by the Board in accordance with the 
        bylaws of the Corporation.
            (2) Term.--The term of service of a member of the Board 
        appointed under paragraph (1) shall terminate at the beginning 
        of the next annual shareholder meeting of the Corporation 
        occurring after the date of appointment.
    (e) Removal.--A member of the Board may be removed from office by 
the Board only for--
            (1) neglect of duty; or
            (2) malfeasance in office.
    (f) Administrative Duties.--
            (1) Chairperson and vice-chairperson.--The Board shall 
        annually elect from among the members of the Board described in 
        subsection (a)(2) a chairperson and vice-chairperson.
            (2) Policies and management.--The Board shall--
                    (A) establish the policies of the Corporation; and
                    (B) supervise the management of the Corporation.
            (3) Bylaws.--The Board shall adopt and amend, as necessary, 
        such bylaws as are necessary for the proper management and 
        function of the Corporation.
            (4) Meetings.--
                    (A) In general.--The Board shall meet at the call 
                of the chairperson of the Board, in accordance with the 
                bylaws of the Corporation, not less frequently than 
                once each quarter.
                    (B) Private executive sessions.--The Board may meet 
                in a private executive session if the matter involved 
                at the meeting may impinge on the right of privacy of 
                an individual.
    (g) Member Appointed by Secretary.--The member of the Board 
appointed by the Secretary under subsection (a)(1) shall--
            (1) have 20 percent of the share of votes cast at each 
        annual shareholder meeting; and
            (2) be overruled only by \2/3\ majority vote at a regular 
        meeting of the Board with respect to any matter regarding--
                    (A) a request by the Board of capital under 
                subsection (b)(3)(B) or (c)(2)(B) of section 201;
                    (B) borrowing by the Corporation of any amount in 
                excess of $10,000,000;
                    (C) a loan or investment made by the Corporation in 
                excess of $10,000,000; or
                    (D) a change to an investment or credit policy of 
                the Corporation.
    (h) Compensation.--
            (1) Non-governmental employees.--A member of the Board who 
        is 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, during which the member carries out a duty as a 
        member of the Board.
            (2) Governmental employees.--A member of the Board who is 
        an officer or employee of the Federal Government or a State 
        government shall serve without additional compensation.
            (3) Travel and other expenses.--Each member of the Board 
        shall be reimbursed for travel, subsistence, and other 
        necessary expenses incurred by the member in carrying out a 
        duty as a member of the Board.

SEC. 105. PRESIDENT OF CORPORATION.

    (a) Appointment.--The Board shall appoint a president of the 
Corporation.
    (b) Duties and Powers.--The president shall--
            (1) serve as the chief executive officer of the 
        Corporation; and
            (2) subject to the direction of the Board and the general 
        supervision of the chairperson, carry out the policies and 
        functions of the Corporation;
            (3) manage the personnel and activities of the Corporation; 
        and
            (4) on approval of the Board, appoint and fix the 
        compensation and duties of such officers and employees as may 
        be necessary for the efficient administration of the 
        Corporation, without regard to--
                    (A) the provisions of title 5, United States Code, 
                governing appointments in the competitive service; or
                    (B) chapter 51 or subchapter III of chapter 53 of 
                title 5, United States Code.

SEC. 106. ANNUAL SHAREHOLDER MEETINGS.

    (a) Meetings.--
            (1) In general.--The Corporation shall hold meetings of the 
        shareholders of the Corporation not less frequently than once 
        each year.
            (2) Openness.--A shareholder meeting under this section 
        shall be held open to the public.
            (3) Notice.--The Corporation shall provide to each 
        shareholder of the Corporation a notice of each shareholder 
        meeting under this section by not later than 30 days before the 
        date of the meeting.
    (b) Activities.--
            (1) Corporation.--At a shareholder meeting under this 
        section, the Corporation--
                    (A) shall provide to shareholders a report 
                describing--
                            (i) the activities of the Corporation 
                        during the preceding calendar year; and
                            (ii) the financial condition of the 
                        Corporation as in effect on the date of the 
                        meeting; and
                    (B) may present to the shareholders proposals for 
                future action and other matters of general concern to 
                shareholders and Indian business enterprises eligible 
                to receive services of the Corporation.
            (2) Shareholders.--At a shareholder meeting under this 
        section, a shareholder of the Corporation may--
                    (A) present a motion or resolution relating to any 
                matter within the scope of this Act; and
                    (B) participate in any discussion relating to such 
                a matter or any other matter on the agenda of the 
                meeting.
    (c) Voting.--Each Indian tribe that is a member of the Corporation 
may vote the common stock of the Indian tribe regarding--
            (1) any matter on the agenda of a meeting under this 
        section; or
            (2) any other matter relating to the election of a member 
        of the Board.

SEC. 107. ANNUAL REPORTS; DEVELOPMENT PLAN.

    (a) Annual Reports.--
            (1) In general.--Not later than 1 year after the date of 
        enactment of this Act and annually thereafter, the Board shall 
        submit to the appropriate committees of Congress a report 
        describing--
                    (A) the activities of the Corporation during the 
                preceding calendar year; and
                    (B) the capital and financial condition of the 
                Corporation as in effect on the date of submission of 
                the report.
            (2) Inclusion.--Each report under paragraph (1) shall 
        include recommendations for legislation to improve the services 
        of the Corporation.
    (b) Development Plan.--Not later than 1 year after the date of 
enactment of this Act, the Corporation shall submit to Congress a 
comprehensive, 5-year organizational development plan that includes--
            (1) financial projections for the Corporation;
            (2) a description of the corporate structure and locations 
        of the Corporation; and
            (3) operational guidelines for the Corporation, 
        particularly regarding 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.

                        TITLE II--CAPITALIZATION

SEC. 201. ISSUANCE OF STOCK.

    (a) Issuance.--
            (1) In general.--The Corporation may issue shares of stock 
        in the Corporation, in such quantity and of such class as the 
        Board determines to be appropriate, in accordance with this 
        section.
            (2) Requirement.--A share of stock under paragraph (1) may 
        be issued to, and held by, only--
                    (A) an Indian tribe; or
                    (B) the Federal Government.
            (3) Redemption and repurchase.--The Corporation may redeem 
        or repurchase a share of stock issued pursuant to paragraph (1) 
        at a price to be determined by the Board.
    (b) Initial Offering of Common Stock.--
            (1) In general.--The Corporation shall make an initial 
        offering of common stock of the Corporation to Indian tribes 
        under this section--
                    (A) in a quantity of not less than 500,000 shares; 
                and
                    (B) at a price of not less than $50 per share.
            (2) Form of payment.--Of the price paid by an Indian tribe 
        for a share of stock of the Corporation under this subsection--
                    (A) 20 percent shall be provided in cash or cash-
                equivalent securities; and
                    (B) 80 percent shall provided in the form of a 
                legally binding financial commitment that is--
                            (i) available at the request of the Board 
                        to meet the obligations of the Corporation; but
                            (ii) not available for any lending activity 
                        or administrative expenses of the Corporation.
    (c) Subscription by Secretary for Shares of Capital Stock.--
            (1) In general.--The Secretary may subscribe for not more 
        than 2,000,000 shares of capital stock of the Corporation.
            (2) Payments.--
                    (A) Initial period.--Not later than 2 years after 
                the date of enactment of this Act, the Secretary shall 
                pay to the Corporation for subscription for capital 
                stock under paragraph (1) not less than $20,000,000.
                    (B) Subsequent period.--
                            (i) In general.--Beginning in fiscal year 
                        2012, the Secretary shall pay to the 
                        Corporation for subscription for capital stock 
                        under paragraph (1)--
                                    (I) $80,000,000; or
                                    (II) such lesser amount as the 
                                Board may request, in accordance with 
                                clause (ii).
                            (ii) Requests by board.--The amount of a 
                        request by the Board under clause (i)(II) shall 
                        be determined jointly by the Secretary and the 
                        Board based on an assessment of the need of the 
                        Corporation, taking into consideration a risk 
                        analysis of the investment and credit policies 
                        and practices of the Corporation.
                            (iii) Limitations.--A payment under this 
                        subparagraph--
                                    (I) shall be subject to the 
                                availability of appropriations;
                                    (II) shall be provided only as 
                                needed to meet the obligations of the 
                                Corporation; and
                                    (III) shall not be available for 
                                any lending activity or administrative 
                                expenses of the Corporation.
            (3) Requirements.--A share of capital stock subscribed for 
        by the Secretary under this subsection--
                    (A) shall be valued at not less than $50 per share;
                    (B) shall be nonvoting stock;
                    (C) shall not accrue dividends; and
                    (D) shall not be transferred to any individual or 
                entity other than the Corporation.
    (d) Exempted Securities.--A share of stock, and any other security 
or instrument, issued by the Corporation shall be considered to be an 
exempted security for purposes of the laws (including regulations) 
administered by the Securities and Exchange Commission.

SEC. 202. BORROWING AUTHORITY.

    (a) Issuance of Obligations.--The Corporation may issue such bonds, 
notes, and other obligations at such times, bearing interest at such 
rates, and containing such terms and conditions as the Board, in 
consultation with the Secretary of the Treasury, determines to be 
appropriate.
    (b) Amount of Obligations.--The aggregate amount of the obligations 
issued pursuant to subsection (a) shall not exceed an amount equal to 
the sum of--
            (1) the product obtained by multiplying--
                    (A) the sum of--
                            (i) the paid-in capital of the Corporation; 
                        and
                            (ii) the retained earnings and profits of 
                        the Corporation; and
                    (B) 10; and
            (2) the sum of the book values of--
                    (A) the capital subject to request of the Board 
                represented by the total commitments of Indian tribal 
                shareholders under section 201(b)(2)(B); and
                    (B) the amount paid by the Secretary under section 
                201(c)(2).
    (c) Sale of Obligations.--An obligation of the Corporation under 
subsection (a) may be--
            (1) issued through an agent by negotiation, offer, bid, 
        syndicate sale, or otherwise; and
            (2) completed by book entry, wire transfer, or any other 
        appropriate method.

               TITLE III--AUTHORIZATION OF APPROPRIATIONS

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    (a) General Operational Expenses.--There are authorized to be 
appropriated--
            (1) $2,000,000 for fiscal year 2009 to carry out this Act;
            (2) $2,500,000 for each of fiscal years 2010 through 2014 
        to carry out project development activities under this Act; and
            (3) such sums as are necessary to carry out this Act (other 
        than subparagraphs (A) and (B) of section 201(c)(2)) for each 
        of fiscal years 2010 through 2014.
    (b) Paid-In Capital Stock.--There are authorized to be 
appropriated--
            (1) for each of fiscal years 2010 and 2011, $10,000,000 to 
        carry out section 201(c)(2)(A); and
            (2) for fiscal year 2011 and each fiscal year thereafter, 
        $80,000,000 to carry out section 201(c)(2)(B).
                                 <all>