[Congressional Record Volume 155, Number 30 (Friday, February 13, 2009)]
[Senate]
[Pages S2326-S2329]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. INOUYE:
  S. 439. 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; to the Committee on Indian Affairs.
  Mr. INOUYE. Mr. President, I rise today to introduce a bill to 
establish an Indian Development Finance Corporation as an independent, 
Federally-chartered corporation that is modeled after the family of 
Development Banks established by the World Bank in lesser-developed 
countries around the world.
  Mr. President, in my more than 30 years of service on the U.S. Senate 
Committee on Indian Affairs, I have visited many Indian communities and 
Alaska Native villages, and I have seen that in many parts of Indian 
country, there are economic and social conditions that are as dire as 
those conditions found in the so-called ``lesser developed countries'' 
around the world. And although we have seen some economic success in 
recent years across Native America as a result of the Indian Gaming 
Regulatory Act, most Indian tribes and Native villages are not engaged 
in the conduct of gaming, nor have tribal governments found the means 
to overcome the challenges associated with their remote locations from 
populations centers and market places that serve the commercially-
successful tribal gambling operations.
  In those rurally-isolated areas, there is real potential to succeed 
in developing viable local economies based on agricultural and fishery 
resources, and the development of the vast energy resources that are 
located on Indian lands. What these Native communities need is the type 
of development financing services that the World Bank has successfully 
established--institutions empowered to make small, leveraged capital 
investments and economic infrastructure development to support tailored 
industrial programs, internet-based communication services, national 
and international trade agreements, and economic research capabilities. 
An Indian Development Finance Corporation could provide these kinds of 
services through a network of centers that would be based in Indian 
Country.
  Under this bill, the Corporation would be authorized to issue 500,000 
shares of common stock at $50 per share to every Tribal Nation in 
Indian Country and Alaska. The Corporation would be managed by a Board 
elected by the Tribal shareholders and the Board would be charged with 
hiring a President and a team of managers as well as set operating 
policies. Seed capital would be injected into the Indian Development 
Finance Corporation (IDFC) by the U.S. Treasury in exchange for the 
issuance of capital stock. Initially, $20 million in start-up funds 
would be invested and after the majority of common stock was purchased 
by tribes, another $80 million would be authorized.
  I believe that the IDFC can take advantage of opportunities to 
integrate the economic stimulus activities soon to be created by the 
American Recovery and Reinvestment Act, and. I am confident that there 
will be support forthcoming from those tribal governments and Alaska 
Native corporations that have the resources to invest in the economic 
infrastructure initiatives that will be established by the IDFC in this 
period of our greatest need.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 439

       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.

[[Page S2327]]

       (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.

[[Page S2328]]

       (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

[[Page S2329]]

     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).
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