RESIDENTIAL LEASE OF TRIBAL OWNED LAND

Lease No.\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Contract No. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

THIS Lease is made and entered into by and between
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ for and on behalf of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_Tribe of Indians, hereinafter designated
as \"Lessor,\" and
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
members of the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Tribe and residing
upon the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Indian Reservation,
hereinafter designated as \"Lessee.\"

WITNESSETH

1\. SECRETARIAL APPROVAL; FEDERAL AGENCY APPROVAL; DEFINITIONS OF
FEDERAL AGENCY, TRIBE, and LENDER. As used in this Lease, the term
\"Secretary\" means the Secretary of the Interior or his or her duly
authorized representative. This Lease is subject to the approval of the
Secretary pursuant to the Act of August 9, 1955, 69 Stat. 539, as
amended, 25 U.S.C. § 415, as implemented by Title 25, Code of Federal
Regulations, Part 162. The form of this Lease has been accepted by the
Secretary of Housing and Urban Development (HUD) pursuant to 24 C.F.R. §
203.43h(c), which implements Section 248 of the National Housing Act,
12 U.S.C. § 1715z-13, for use in connection with Federal Housing
Administration (FHA) insurance of a mortgage on the interest created by
this Lease, and pursuant to 24 C.F.R. § 1005.107, which implements
Section 184 of the Housing and Community Development Act of 1992 (Pub.
L.102-550) for use in connection with HUD\'s issuance of a loan
guarantee of a mortgage on the interest created by this Lease. The form
of this Lease has also been accepted by the Secretary of the United
States Department of Agriculture (USDA) for use in connection with the
issuance by USDA or its Rural Housing Service (RHS) of a direct or
guaranteed loan pursuant to section 502 of the Housing Act of 1949 as
amended, 42 U.S.C. § 1472, and accepted by the Secretary of the Veterans
Affairs (VA) for use in connection with the issuance by VA of a direct
or guaranteed loan pursuant to chapter 37 of Title 38, United States
Code, secured by the interest created by this Lease. As used in the
context of this Lease, the term "Tribe or Tribal" refers to the
respective Tribe who enters into this Lease as the "Lessor". For future
reference, "Federal Agency refers to HUD, VA, and ­­USDA. When used in
this Lease, the "lender" is any mortgagee that a Federal Agency has
approved or a Federal Agency which makes a direct loan. With respect to
mortgages which are insured under Section 248 of the National Housing
Act, the lender must be approved by the Federal Housing Administration.
The term "lender" also includes any of the lender's successors or
assigns of the lender's right, title to, or interest in, the Mortgage
and any subsequent noteholder secured by the Mortgage. The assignment of
the mortgage or any interest therein does not require the consent of the
Tribe.

2\. PREMISES. Lessor hereby Leases to the Lessee all that tract or
parcel of land situated on the \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Indian
Reservation, County of \_\_\_\_\_\_\_\_\_\_\_, State of
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, and described as follows
(the Leased Premises):

> \[description\], \_\_\_\_\_\_\_\_\_\_\_\_ County,
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ Indian Reservation,
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, approximately \_\_\_\_\_\_ acres.

3\. USE OF PREMISES. The purpose of this Lease is to enable the Lessee
to construct, improve, and maintain a dwelling and related structures on
the Leased Premises, and otherwise to use said premises as a principal
residence. The Lessee agrees not to use any part of the Leased Premises
for any unlawful conduct or purposes and will comply with all applicable
Federal Laws.

4\. TERM. Lessee shall have and hold the Leased Premises for a term of
\_\_\_\_ years beginning on the effective date of this Lease. This Lease
may not be terminated by either or both parties during its term if, and
as long as, the Lease and/or any improvements on the premises, or any
interest therein, is mortgaged or otherwise pledged as security for any
loan in accordance with the provisions hereof, unless consent in writing
to such termination is given by the lender and, if the loan is
guaranteed, insured, or made by a Federal Agency, a written consent of
that agency is also required. This Lease shall not be subject to any
forfeiture or reversion and shall not be otherwise terminable, if such
event would adversely affect any interest in the Leased Premises,
including improvements thereon, acquired in accordance with the
provisions hereof by the holder of any mortgage or other lien, or of any
purchaser at a foreclosure sale under such mortgage (or lien) or under
any conveyance given in lieu of foreclosure, or of any holder subsequent
to such purchase. In the event a Federal Agency acquires a mortgage on
the interest created by this Lease by assignment from a lender, the
Lessor shall not terminate the Lease without the written consent of the
respective Federal Agency, as long as the mortgage is in force.

5\. RENT. The improvement of housing for Tribal families is a public
purpose of the Lessor. The consideration for this Lease is (1) the
obligation of Lessee to further said purpose, (2) the promise hereby
given by Lessee to pay the Lessor rent at the rate of \$\_\_\_\_\_\_per
\_\_\_\_\_\_, (3) the extinguishment, hereby agreed to by Lessee, of any
and all use rights heretofore held by Lessee in the Leased Premises, so
that Lessee shall hereafter hold rights only by virtue of this Lease,
and (4) other good and valuable considerations, the receipt of which is
hereby acknowledged by Lessor. Rent may be subject to adjustment
pursuant to 25 CFR 162.

6\. IMPROVEMENTS. All buildings or other improvements now existing or
hereafter constructed on the Leased Premises shall be the leasehold
property of the Lessee during the term of this Lease, including any
extension or renewal thereof. During the term of this Lease, Lessee
shall obtain any necessary governmental permits, approvals or
authorization required for the construction and use of all improvements
he or she (they) places or cause(s) to be placed on the Leased Premises,
and shall comply with all laws applicable to the construction and use of
improvements.

7\. USE RIGHT. Upon expiration of this Lease, or upon its termination in
accordance with the terms hereof, unless such termination is due to
default upon the part of Lessee, Lessee or any successors in interest
shall be entitled to use rights in the Leased Premises if qualified
under the laws of the Tribe. If not so eligible, Lessee, his or her
(their) subLessee and any successors in interest shall, upon demand,
surrender to Lessor upon expiration or other termination of this Lease
complete and peaceable possession of the Leased Premises and all
improvements thereon which have not been relocated as permitted under
Paragraph 23 of this Lease*,* which shall be the property of the Tribe.

8\. FEDERAL SUPERVISION.

> \(a\) Nothing contained in this Lease shall operate to delay or
> prevent a termination of Federal responsibilities with respect to the
> Leased Premises by the issuance of a fee patent, the lifting of
> restrictions on alienation, or otherwise during the term of the Lease;
> such termination, however, shall not serve to abrogate the Lease.
>
> \(b\) No member of Congress or any delegate thereto or any Resident
> Commissioner shall be admitted to any share or part of this Lease or
> to any benefit that may arise herefrom.

9\. QUIET ENJOYMENT. Lessor agrees to defend the title to the Leased
Premises and also agrees that Lessee and any successors in interest
shall peaceably and quietly hold, enjoy and occupy the Leased Premises
for the duration of this Lease without any hindrance, interruption,
ejection or molestation by Lessor or by any other persons whomsoever,
except if the requirements of any part of this Lease are not kept by the
Lessee. Notwithstanding the foregoing, Lessee and his or her (their)
assigns is (are) subject to all the laws of the Tribe to the same extent
as any other Tribal member or resident.

10\. ASSIGNMENT AND SUBLEASE. (a) Except as otherwise provided herein,
Lessee shall not assign or sublet this Lease without the prior written
consent of the Lessor and sureties (as found in 25 CFR 162 ), and
approval of the Secretary of the Interior. If this Lease and/or any
improvements on the Leased Premises are mortgaged or pledged as security
for a loan, Lessee shall not assign or sublet this Lease without the
written approval of the lender and the respective Federal Agency. Lessee
may assign the Lease and deliver possession of the Leased Premises,
including any improvements thereon, to the lender or its successors, or
Federal Agency guaranteeing or insuring the loan, if Lessee default(s)
in any mortgage or other loan agreement for which the Lease and/or
improvements on the Leased Premises are pledged as security, and, in
such event, the lender or its successors in interest may transfer this
Lease or possession of the Leased Premises to a successor Lessee;
provided, however, that the Lease may only be transferred to another
member of the Tribe or tribal entity. Nothing in this Lease shall
prevent the Lessee, with the approval of the Secretary of the Interior
and the Secretary of HUD (for Section 248 insured loans), from executing
and recording a mortgage, declaration of trust and/or other security
instrument as may be necessary to obtain financing for the purchase of a
dwelling, refinancing of an existing mortgage*,* construction and/or
improvement of a dwelling and related structures, or shall prevent the
mortgagee or other lender from foreclosing or instituting other
appropriate proceedings under law in the event of default of any
mortgage or other loan agreement by the Lessee, or assigns. Except in
cases involving loans for home construction or home improvement by a
bank, recognized lending institution, or a lending agency of the United
States Government, where no such consent or approval of Lessor shall be
required, Lessee may not execute a mortgage, declaration of trust or
other security instrument pledging their interest in this Lease or any
improvements on the Leased Premises without the prior written consent of
Lessor and the approval of the Secretary.

Notwithstanding the provisions contained above, the following additional
requirements shall be applicable to a Lease which secures a mortgage
insured, guaranteed or held by a Federal Agency:

\(b\) Notwithstanding that the term sublease is used herein, the Lessee
shall not sublease the premises if the Lease is the security for a
mortgage insured under Section 248. The lessee may assign the lease in
accordance with the terms hereunder.

In the event a Federal Agency is the lender or acquires the mortgage
secured by this Lease, and subsequently acquires said Lease by
foreclosure, or by the assignment of said Lease by Lessee, his or her
(their) Lessees or assigns (for which the approval of the Tribe is not
required), then:

\(1\) The appropriate Federal Agency, (the Agency involved in this
transaction) will notify the Tribe of the availability of the Lease for
sale, the sales price of the home and other terms of sale.

> \(2\) The Lease may only be assigned to another tribal member or
> tribal entity, except that the appropriate Federal Agency may lease
> the Leased Premises to a non-member under the conditions specified
> herein. Any such sublease or assignment shall be executed consistent
> with tribal law and Federal law.

\(3\) If a purchaser is found, the Lease will be transferred by the
Federal Agency, to the purchaser, with the prior written consent of the
appropriate Tribe.

> \(4\) If a purchaser cannot be found, the appropriate Federal Agency,
> shall be entitled to sublease the Leased Premises and improvements
> without the prior written approval of the Tribe. Such sublease shall
> be to a member of the Tribe, unless a tribal member Lessee cannot be
> found, in which case the Federal Agency may sub-Lease to any
> individual. The term of the initial Lease period and any succeeding
> period shall not exceed one year each. Any purchase of the Lease shall
> be subject to any sublease by the Federal Agency pursuant to this
> subsection.

5.  No mortgagee (except a Federal Agency as mortgagee or assignee of a
    mortgagee)

> may obtain title to the interest created by this Lease without the
> prior written consent

of the Tribe.

> In the event that the lender is the entity responsible for acquiring
> the Lease and the leasehold estate by foreclosure, the lender shall
> have the rights of the Federal Agency who had insured or guaranteed
> the foreclosed mortgage under subparagraphs (1) through (5) above,
> provided this sentence does not apply to loans insured under HUD/FHA's
> Section 248 program.

11. OPTION. Subsequent to Lessee\'s breach of any covenant or agreement
    under a mortgage or other security instrument for which the Lease or
    any improvements on the Leased Premises are pledged as security, and
    upon the expiration of any applicable cure period, the Lessor shall
    have an option (the "option" herein) to acquire the Lessee's
    Leasehold interest, (subject to all valid liens and encumbrances)
    upon either payment in full of all sums secured by the mortgage or
    assumption of the loan with the approval of the lender or the
    applicable Federal Agency as evidenced by the note and mortgage and
    execution of an assumption agreement acceptable in all respects to
    the Lender. Such option is subject to the following conditions:

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a.  If the Lessee or any assignee of Lessee fails to cure the default,
    The lender shall give written notice to the Lessor and any
    applicable Tribal housing authority of Lessee's of its assignee's
    failure,

b.  If the Lessee fails to cure the default, and said notice shall be
    given before the lender or successor invokes any other remedies
    provided under the mortgage or by law. Thereafter, the lender may
    issue an acceleration notice to the Lessee, its Lessees or assigns,
    under the mortgage or other security instrument, requiring the
    Lessee, its Lessees or assigns to pay all sums secured by the
    mortgage or other security instrument. If the Lessee, its Lessees or
    assigns fail to cure the default in accordance with the terms of the
    lender\'s acceleration notice, the lender shall give the Lessor
    written notice of said failure to cure. The Lessor may exercise its
    option at any time within thirty (30) days of the date of the
    lender\'s written notice to the Tribe of said failure to cure. This
    option shall be exercised by notice in writing from the Lessor to
    the Lessee and the lender.

c.  Notwithstanding the Lessor's option to acquire the Lessee\'s
    interest in the Leased Premises, such option shall be subject to any
    right the Lessee may have under the mortgage or by law to
    reinstatement after the acceleration, and the right to bring
    appropriate court action to assert the non-existence of a default or
    any other defense to acceleration and sale or foreclosure.

d.  The estate acquired by the Lessor through the exercise of the option
    shall not merge with any other estate or title held by the Lessor as
    long as the leasehold interest or any improvements on the Leased
    Premises, or any interest therein, are mortgaged or otherwise
    pledged as security for any loan, and the leasehold interest shall
    remain subject to any valid and subsisting mortgage or other
    security instrument.

12\. RESERVATIONS: Lessee shall use the premises exclusively for
residential purposes, except as otherwise agreed to by the parties. Any
rights not expressly provided are reserved by the Lessor.

> Minerals: The Lessor reserves all rights, as owned by the Lessor, to
> all mineral rights, including but not limited to oil, gas, or
> hydrocarbon substances. The Lessor shall not exercise surface entry in
> connection with reserved mineral rights without prior consent of the
> Lessee and sureties (as found in 25 CFR 162 ).
>
> Timber: The Lessor reserves all rights, as owned by the Lessor to
> timber and forest products on the premises.
>
> Water: The Lessor reserves all rights, as owned by the Lessor, to
> water on the premises, except that which is needed for residential
> purposes.

13\. EFFECTIVE DATE. This Lease and all its terms and provisions shall
be binding upon the successors, and assigns of the Lessee and any
successor in interest to the Lessor, and shall take effect on the
\_\_\_\_\_ day of \_\_\_\_\_\_, \_\_\_\_\_, or upon the date of approval
by the Secretary, whichever is later.

14\. OBLIGATION TO THE UNITED STATES. It is understood and agreed that
while the Leased Premises are in trust or restricted status, all of the
Lessee\'s obligations under this Lease, and the obligation of his, hers
(theirs) sureties, are to the United States as well as to the owner of
the land.

15\. ASSENT NOT WAIVER OF FUTURE BREACH OF COVENANTS. No assent, express
or implied, to any breach of any of the Lessee\'s covenants, shall be
deemed to be a waiver of any succeeding breach of any covenants.

16. VIOLATIONS OF Lease. It is understood and agreed that violations of
    this Lease shall be acted

upon in accordance with the regulations in 25 C.F.R. Part 162.

17\. CARE OF PREMISES. It is understood and agreed that the Lessee is to
keep the premises covered by this lease in good repair. Lessee shall not
commit or permit to be committed any waste whatever on said premises and
shall not remove or tear down any building or other improvements
thereto, but shall keep the same in good repair. Lessee shall not
destroy or permit to be destroyed any trees, except with the consent of
the Lessor and the approval of the Secretary, and shall not permit the
premises to become unsightly. The Lessee will be held financially
responsible for all unrepaired damages to buildings, fences,
improvements or appearance, except for the usual wear and decay.

18\. FORCE MAJEURE. Whenever under this instrument a time is stated
within which or by which original construction, repairs or
re-construction of said improvements shall be completed, and if during
such period any cause reasonably beyond the Lessee's power to control
occurs, the period of delay so caused shall be added to the period
allowed herein for the completion of such work.

19\. INSPECTION OF THE PREMISES. The Secretary, lender, applicable
Federal Agency, and the Lessor and their authorized representative shall
have the rights, at any reasonable times during the term of this lease,
and with reasonable notice, to enter upon the leased premises, or any
part thereof, to inspect the same and all buildings and other
improvements erected and placed thereon.

20\. INDEMNIFICATION. Neither the Lessor nor the United States, nor
their officers, agents, and employees shall be liable for any loss,
damage, or injury of any kind whatsoever to the person or property of
the Lessee or sublessees or any other person whomsoever, caused by any
use of the leased premises, or by any defect in any structure erected
thereon, or arising from any accident, fire, or other casualty on said
premises or from any other cause whatsoever; and Lessee, as a material
part of the consideration for this lease, hereby waives on Lessee's
behalf all claims against Lessor and/or the United States and agrees to
hold Lessor and/or the United States free and harmless from liability
for all claims for any loss, damage, or injury arising from the use for
the premises by Lessee, together with all costs and expenses in
connection therewith.

21\. UTILITIES. Neither the Lessor nor the United States shall have any
obligation to provide utilities as of the commencement of this Lease. In
the event that the Lessee requires utilities, the installation and
maintenance thereof shall be the Lessee's sole obligation, provided that
such installation shall be subject to the written consent of the Lessor,
which the Lessor will not unreasonably withhold. The Lessee shall pay,
as they become due, all bills for electricity and other utilities that
are furnished to the leased premises.

22\. LATE PAYMENT INTEREST. It is understood and agreed between the
parties hereto that, if any installment of rental is not paid within 30
days after becoming due, interest will be assessed at the existing prime
rate, plus three (3) percent, times the amount owned for the period
during which payments are delinquent. Interest will become due and
payable from the date such rental becomes due and will run until said
rental is paid. The interest rate formula is Interest = (Prime rate +
3%) times (x) amount due.

23. RIGHT OF REMOVAL. Upon the termination of the lease, the Lessee of a
    one-unit single family

dwelling shall be entitled, within \_\_\_\_\_ days, to remove the
dwelling and related structures from the leased premises and relocate
such improvements to an alternative site, not located on the leased
premises. Any Lessee who exercises such a right shall be required to pay
all costs related to the relocation of the dwelling unit. Lessee shall
leave the land in good order and condition. All other improvements shall
become the property of the Lessor at the expiration of this lease. This
paragraph does not apply to Section 248 insured mortgage loans

24\. INSURANCE. The Lessee agrees, so long as this lease is in effect,
to keep buildings and improvements on the leased premises insured
against loss or damage by fire with extended coverage endorsements in an
amount equal to the full insurable value of the buildings and
improvements insured. Said policy is to be made payable to the Bureau of
Indian Affairs for the benefit of the Lessor. Said policy or policies
shall be deposited with the Secretary and Lessee shall pay all premiums
and other charges payable in respect to such insurance and shall deposit
with the Secretary the receipt for each premium or other charge as paid
or satisfactory evidence thereof. Except, during such time that a
mortgage is in effect against this Leasehold interest, that said policy
is to be made jointly payable to the Lessee and the Lender, and premium
payments provided for per specific requirements of the Lender.

25\. ADDITIONS. Prior to execution of this Lease, provision (s) number
(s) \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

has (have) been added hereto and by reference is (are) made a part
hereof.

WITNESS: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
Lessor

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

WITNESS:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Lessee
>
> \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

APPROVED:

SECRETARY OF THE INTERIOR

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

BY: Date

This lease is approved pursuant to the authority delegated by

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Approving Official

\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_

Date