I 

111TH CONGRESS 

1ST SESSION H. R. 1607 

To provide for and promote the economic development of Indian tribes by 

furnishing the necessary capital, financial services, and technical assistance to Indian-owned business enterprises, to stimulate the development 

of the private sector of Indian tribal economies, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2009 

Mr. FALEOMAVAEGA introduced the following bill; which was referred to the 

Committee on Natural Resources 

A BILL 

To provide for and promote the economic development of 

Indian tribes by furnishing the necessary capital, financial services, and technical assistance to Indian-owned 

business enterprises, to stimulate the development of the 

private sector of Indian tribal economies, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Indian Development Finance Corporation Act’’. 


jbell on PROD1PC69 with BILLS
2 

•HR 1607 IH

1 (b) TABLE OF CONTENTS.—The table of contents for 

2 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Findings and policy. 

Sec. 3. Definitions. 

TITLE I—ESTABLISHMENT OF CORPORATION 

Sec. 101. Establishment. 

Sec. 102. Duties. 

Sec. 103. Loans and obligations. 

Sec. 104. General powers. 

Sec. 105. Board of Directors. 

Sec. 106. President of the Corporation. 

Sec. 107. Conflicts of interest and financial disclosure. 

Sec. 108. Annual meetings. 

Sec. 109. Reports and plans submitted to Congress. 

Sec. 110. Advisory Council. 

Sec. 111. Conforming amendments. 

TITLE II—CAPITALIZATION 

Sec. 201. Issuance of stock. 

Sec. 202. Borrowing authority. 

TITLE III—AUTHORIZATION OF APPROPRIATIONS 

Sec. 301. General operational expenses. 

Sec. 302. Authorizations for paid-in capital stock. 

3 SEC. 2. FINDINGS AND POLICY. 

4 (a) FINDINGS.—Congress finds that— 

5 (1) a special relationship has existed between 

6 the United States and the Indian tribes which is rec7 ognized in clause 3, section 8, article I of the United 

8 States Constitution; 

9 (2) Congress, through statutes, treaties, and 

10 the exercise of administrative authorities, has imple11 mented the Federal Government’s responsibility for 

12 the protection and preservation of Indian tribes and 

13 their resources; 


jbell on PROD1PC69 with BILLS
3 

•HR 1607 IH

1 (3) despite the availability of abundant natural 

2 resources on Indian lands and a rich cultural legacy 

3 which places great value on self-determination, self4 reliance, and independence, American Indians and 

5 Alaskan Natives experience poverty and unemploy6 ment, along with the associated incidences of social 

7 pathology, to an extent unequaled by any other 

8 group in the United States; 

9 (4) the reasons for such unparalleled poverty 

10 and unemployment have been widely studied and 

11 documented by Congress, the General Accounting 

12 Office, the Department of the Interior, private aca13 demic institutions, and Indian tribes, and such stud14 ies have consistently identified as fundamental ob15 stacles to balanced economic growth and progress— 

16 (A) the very limited availability of long17 term development capital and sources of finan18 cial credit necessary to support the development 

19 of a private sector economy in Indian country 

20 comprised of Indian-owned business enterprises; 

21 (B) the lack of effective control by the In22 dians over their own lands and resources; and 

23 (C) the scarcity of experienced Indian 

24 managers and technicians; 


jbell on PROD1PC69 with BILLS
4 

•HR 1607 IH

1 (5) previous efforts of the Federal Government 

2 directed at stimulating Indian economic development 

3 through the provision of grants, direct loans, loan 

4 guarantees, and interest subsidies have fallen far 

5 short of their objectives due to— 

6 (A) inadequate funds; 

7 (B) lack of coordination; 

8 (C) arbitrary project selection criteria; 

9 (D) politicization of the delivery system; 

10 and 

11 (E) other inefficiencies characteristic of a 

12 system of publicly administered financial inter13 mediation; and 

14 (6) the experience acquired by multilateral lend15 ing institutions among the ‘‘lesser developed coun16 tries’’ has demonstrated the value and necessity of 

17 development financing institutions in achieving eco18 nomic growth in underdeveloped economies and soci19 eties that are strikingly similar to Indian and Alas20 kan Native communities in relation to such matters 

21 as control over natural resource management and 

22 the absence of experienced, indigenous managers 

23 and technicians, as well as the availability of long24 term development capital and private sources of fi25 nancial credit. 


jbell on PROD1PC69 with BILLS
5 

•HR 1607 IH

1 (b) POLICY.—It is hereby declared to be the policy 

2 of Congress that, in fulfillment of its special and long3 standing responsibility to the Indian tribes, the Federal 

4 Government should provide assistance to the Indian people 

5 in their efforts to break free from the devastating effects 

6 of extreme poverty and unemployment and achieve lasting 

7 economic self-sufficiency through the development of the 

8 private sector of tribal economies by establishing a feder9 ally chartered, mixed ownership development financing in10 stitution which shall provide a broad range of financial 

11 intermediary services including working capital, direct 

12 loans, loan guarantees, and project development assistance 

13 utilizing the proven efficiencies of the private market mode 

14 of operation. 

15 SEC. 3. DEFINITIONS. 

16 For purposes of this Act: 

17 (1) INDIAN.—The term ‘‘Indian’’ means any 

18 person who is a member of an Indian tribe. 

19 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

20 means any Indian tribe, band, nation, or other orga21 nized group or community which is recognized by 

22 the United States as eligible for the special pro23 grams and services provided by the United States to 

24 Indians because of their status as Indians, including 

25 any Alaska Native village or regional or village corVerDate Nov 24 2008 02:01 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1607.IH H1607

jbell on PROD1PC69 with BILLS
6 

•HR 1607 IH

1 poration as defined in, or established under, the 

2 Alaska Native Claims Settlement Act (43 U.S.C. 

3 1601 et seq.). 

4 (3) RESERVATION.—The term ‘‘reservation’’ 

5 means any Indian reservation, public domain Indian 

6 allotment, former Indian reservation in Oklahoma, 

7 or land held by any Alaska Native village or regional 

8 or village corporation (as defined in, or established 

9 under, the provisions of the Alaska Native Claims 

10 Settlement Act). 

11 (4) TRIBAL ORGANIZATION.—The term ‘‘tribal 

12 organization’’ means the governing body of any In13 dian tribe or any entity established, controlled, or 

14 owned by such governing body. 

15 (5) INDIAN BUSINESS ENTERPRISE.—The term 

16 ‘‘Indian business enterprise’’ means any commercial, 

17 industrial, or business entity— 

18 (A) at least 51 percent of which is owned 

19 by one or more Indian tribes; 

20 (B) that produces or furnishes goods, serv21 ices, or facilities and is operated or organized 

22 on a for-profit basis; 

23 (C) that is chartered or controlled by any 

24 Indian tribe or tribal organization that is a 

25 shareholder of the Corporation; and 


jbell on PROD1PC69 with BILLS
7 

•HR 1607 IH

1 (D) whose— 

2 (i) principal place of business is lo3 cated within, or adjacent to, the bound4 aries of an Indian reservation; or 

5 (ii) principal business activities in ad6 dition to the production of a stream of in7 come are determined by the Corporation to 

8 be directly beneficial to an Indian tribe 

9 and contribute to the economy of such In10 dian tribe. 

11 Such term includes any subsidiary entity that is 

12 owned and controlled by any commercial, industrial, 

13 or business activity described in the preceding sen14 tence. 

15 (6) CORPORATION.—The term ‘‘Corporation’’ 

16 means the Indian Development Finance Corporation 

17 established under section 101. 

18 (7) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of the Interior. 

20 TITLE I—ESTABLISHMENT OF 

21 CORPORATION 

22 SEC. 101. ESTABLISHMENT. 

23 There is hereby established the Indian Development 

24 Finance Corporation. The Corporation shall have succes25 sion until dissolved by an Act of Congress. Congress shall 


jbell on PROD1PC69 with BILLS
8 

•HR 1607 IH

1 have the sole authority to revise or amend the charter of 

2 the Corporation. 

3 SEC. 102. DUTIES. 

4 It shall be the duty of the Corporation to— 

5 (1) provide development capital through the fi6 nancial services that the Corporation is authorized 

7 to provide under subsections (b), (c), and (d) of sec8 tion 103; 

9 (2) encourage the development of new and ex10 isting Indian business enterprises eligible for its as11 sistance by providing and coordinating the avail12 ability of— 

13 (A) long-term capital and working capital; 

14 (B) loans, loan guarantees, and other 

15 forms of specialized credit; and 

16 (C) technical and managerial assistance 

17 and training; 

18 (3) maintain broad-based control of the Cor19 poration in its voting stockholders; 

20 (4) encourage active participation in the Cor21 poration by Indian tribes by ownership of its equity 

22 securities; and 

23 (5) assist in strengthening Indian tribal econo24 mies through the development of Indian business enVerDate Nov 24 2008 02:01 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1607.IH H1607

jbell on PROD1PC69 with BILLS
9 

•HR 1607 IH

1 terprises whose activities are directed at contributing 

2 to such economies. 

3 SEC. 103. LOANS AND OBLIGATIONS. 

4 (a) IN GENERAL.—The Corporation may— 

5 (1) make loans or commitments for loans to 

6 any Indian business enterprise; or 

7 (2) purchase, insure, or discount any obliga8 tions of an Indian business enterprise, if such enter9 prise meets the requirements of subsection (b). 

10 (b) REQUIREMENTS.—An Indian business enterprise 

11 meets the requirements of this subsection if the Corpora12 tion makes an independent determination that— 

13 (1) such enterprise has or will have— 

14 (A) a sound organizational and financial 

15 structure; 

16 (B) income in excess of its operating costs; 

17 (C) assets in excess of its obligations; and 

18 (D) a reasonable expectation of a con19 tinuing demand for— 

20 (i) its production, goods, commodities, 

21 or services; or 

22 (ii) its facilities; and 

23 (2) the loan or obligation of such enterprise will 

24 be fully repayable in accordance with the terms and 

25 conditions of such loan or obligation. 


jbell on PROD1PC69 with BILLS
10 

•HR 1607 IH

1 (c) TERMS, RATES, AND CHARGES.—(1) In setting 

2 the terms, rates, and charges for loans made under this 

3 section, the objective of the Corporation shall be to provide 

4 the type of credit needed by Indian business enterprises 

5 at the lowest reasonable cost and on a sound business 

6 basis, taking into account— 

7 (A) the cost of money to the Corporation; 

8 (B) the necessary reserve and expenses of the 

9 Corporation; and 

10 (C) the technical and other assistance attrib11 utable to loans made available by the Corporation 

12 under this section. 

13 (2) The terms of any loan made under this subsection 

14 may provide for interest rates which vary from time to 

15 time during the repayment period of the loan in accord16 ance with the rates being charged by the Corporation for 

17 new loans at such times. 

18 (d) USE OF FUNDS.—Funds available from a loan 

19 made under this section may be advanced or reloaned by 

20 the borrower to its members or stockholders for the devel21 opment of individually owned businesses on or adjacent 

22 to reservations under circumstances permitted under the 

23 bylaws or rules of the Corporation. 

24 (e) LOAN GUARANTEES.—(1) The Corporation may 

25 guarantee all or any part of the principal and interest of 


jbell on PROD1PC69 with BILLS
11 

•HR 1607 IH

1 any loan made by any State or federally chartered lending 

2 institution to any Indian business enterprise if— 

3 (A) such loan is to an Indian business enter4 prise that meets the requirements of subsection 

5 (b)(2); and 

6 (B) such loan was made on terms and condi7 tions (including the rate of interest) which would be 

8 permissible terms and conditions if such loan were 

9 a direct loan made by the Corporation. 

10 (2) The Corporation may impose a charge for any 

11 loan guarantee made under this subsection. 

12 (3) No loan may be guaranteed by the Corporation 

13 under this subsection if the income from the loan to the 

14 lender is excludable from such lender’s gross income for 

15 purposes of chapter 1 of the Internal Revenue Code of 

16 1986. 

17 (4) Any loan guarantee made under this subsection 

18 shall be assignable to the extent provided in the contract 

19 of guarantee entered into by the Corporation. 

20 (5) Any guarantee made under this subsection shall 

21 be uncontestable, except in the case of fraud or misrepre22 sentation of which the holder had actual knowledge at the 

23 time the holder acquired the loan. 

24 (6) The Corporation, in lieu of requiring the original 

25 lender to service a loan guaranteed under this subsection 


jbell on PROD1PC69 with BILLS
12 

•HR 1607 IH

1 until final maturity or liquidation, may purchase such 

2 guaranteed loan for an amount equal to the balance of 

3 the principal and the amount of interest accrued thereon 

4 without penalty if the Corporation determines that the 

5 purchase would not be detrimental to the interests of the 

6 Corporation and— 

7 (A) the liquidation of such guaranteed loan 

8 would result in the insolvency of the borrower or de9 prive the borrower of assets essential to its contin10 ued operation; 

11 (B) such guaranteed loan will be repayable with 

12 revision of the loan rates, terms, payment periods, or 

13 other conditions consistent with loans made by the 

14 Corporation under subsection (b); and 

15 (C) the lender or other holder of such guaran16 teed loan is unwilling to make such revision. 

17 (f) PURCHASES OF EQUITY AND OWNERSHIP.—(1) 

18 For purposes of providing long-term capital and working 

19 capital to Indian business enterprises, the Corporation is 

20 authorized to purchase, or make commitments to pur21 chase, all, or any portion of, the equity or ownership inter22 est in any Indian business enterprise if the Corporation 

23 determines, after a full and complete appraisal of all 

24 project and business plans associated with the investment 

25 taking into account the criteria set forth in paragraph (2), 


jbell on PROD1PC69 with BILLS
13 

•HR 1607 IH

1 that such an investment does not expose the Corporation 

2 to any unreasonable business risks considering the appli3 cable standards prevailing in the field of development fi4 nance as applied to Indian economic development (or, in 

5 light of the socioeconomic, political, and legal conditions 

6 unique to Indian reservations). 

7 (2) The Corporation is also authorized to supervise 

8 or participate in the management of Indian business en9 terprises in which an investment has been made under 

10 paragraph (1) according to such terms and conditions as 

11 are agreed to by the Corporation and the principals of the 

12 enterprise, including the assumption of a directorship in 

13 the corporate body of such Indian business enterprise by 

14 an officer of the Corporation. 

15 SEC. 104. GENERAL POWERS. 

16 In carrying out this Act, the Corporation is author17 ized— 

18 (1) to adopt and alter a corporate seal, which 

19 shall be judicially noticed; 

20 (2) to make agreements and contracts with per21 sons, Indian tribes, and private or governmental en22 tities and to make payments or advance payments 

23 under such agreements or contracts without regard 

24 to section 3324 of title 31, United States Code, exVerDate Nov 24 2008 02:01 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1607.IH H1607

jbell on PROD1PC69 with BILLS
14 

•HR 1607 IH

1 cept that the Corporation shall provide financial as2 sistance only in accordance with this Act; 

3 (3) to— 

4 (A) lease, purchase, accept gifts or dona5 tions of, or otherwise to acquire; 

6 (B) own, hold, improve, use, or otherwise 

7 deal in or with; and 

8 (C) sell, convey, mortgage, pledge, lease, 

9 exchange, or otherwise dispose of; 

10 any property, real, personal, or mixed, or any inter11 est therein; 

12 (4) to sue and be sued in its corporate name 

13 and to complain and defend in any court of com14 petent jurisdiction; 

15 (5) to represent itself, or to contract for rep16 resentation, in all judicial, legal, and other pro17 ceedings; 

18 (6) to make provision for and designate such 

19 committees, and the functions thereof, as the Board 

20 of Directors may deem necessary or desirable; 

21 (7) with the approval of the agency concerned, 

22 to make use of services, facilities, and property of 

23 any board, commission, independent establishment, 

24 or executive agency or department of the executive 

25 branch in carrying out the provisions of this Act and 


jbell on PROD1PC69 with BILLS
15 

•HR 1607 IH

1 to pay for such use (such payments to be credited 

2 to the applicable appropriation that incurred the ex3 pense); 

4 (8) to use the United States mails on the same 

5 terms and conditions as the executive departments 

6 of the United States Government; 

7 (9) to obtain insurance or make other provi8 sions against losses; 

9 (10) to participate with one or more other fi10 nancial institutions, agencies, instrumentalities, 

11 trusts, or foundations in loans or guarantees made 

12 under this Act on terms as may be agreed upon; 

13 (11) to accept guarantees from other agencies 

14 for which loans made by the Corporation may be eli15 gible; 

16 (12) to establish, as soon as practicable, re17 gional offices in order to more efficiently serve the 

18 widely disbursed Indian population; 

19 (13) to buy and sell— 

20 (A) obligations of, or instruments insured 

21 by, the United States or any agency or instru22 mentalities thereof; or 

23 (B) securities backed by the full faith and 

24 credit of any such agency or instrumentality; 


jbell on PROD1PC69 with BILLS
16 

•HR 1607 IH

1 (14) to make such investments as may be au2 thorized by the Board of Directors of the Corpora3 tion; 

4 (15) to establish such offices within the Cor5 poration as may be necessary including offices for— 

6 (A) Project Development; 

7 (B) Project Evaluation and Auditing; 

8 (C) Fiscal Management; 

9 (D) Research and Development; and 

10 (E) any other offices as may from time to 

11 time be authorized by the Board of Directors; 

12 and 

13 (16) to exercise all other lawful powers nec14 essarily or reasonably related to the establishment of 

15 the Corporation in order to carry out the provisions 

16 of this Act and the exercise of its powers, purposes, 

17 functions, duties, and authorized activities. 

18 SEC. 105. BOARD OF DIRECTORS. 

19 (a) MEMBERS.—The powers of the Corporation shall 

20 be vested in the Board of Directors which shall consist 

21 of the following 21 members: 

22 (1) 1 officer of the United States Government, 

23 designated by the Secretary of the Interior. 

24 (2) 19 individuals who represent the share25 holders in the Corporation, appointed by the PresiVerDate Nov 24 2008 02:01 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1607.IH H1607

jbell on PROD1PC69 with BILLS
17 

•HR 1607 IH

1 dent by and with the advice and consent of the Sen2 ate, taking into account the experience of the indi3 vidual in private business enterprises and in develop4 ment or commercial financing and shall consult with, 

5 and receive recommendations from, Indian tribes. 

6 (3) The President of the Corporation. 

7 (b) TERMS.—The term of office for the initial mem8 bers of the Board of Directors described in subsection 

9 (a)(2) shall expire at the commencement of the first an10 nual meeting of the shareholders of the Corporation held 

11 as soon as is reasonably possible after the date on which 

12 subscriptions have been paid for at least 10 percent of the 

13 common stock initially offered for sale to Indian tribes. 

14 (c) VACANCIES.—(1) Any vacancy on the Board of 

15 Directors created by the resignation or removal of a mem16 ber described in subsection (a)(2) shall be filled by the 

17 Board in accordance with the bylaws of the Corporation 

18 except that such appointment shall only be made for a 

19 term extending to the next annual shareholders meeting 

20 of the Corporation. 

21 (2) If a vacancy occurs on the Board of Directors 

22 prior to the expiration of the term of office to which the 

23 member described in subsection (a)(2) was appointed, the 

24 President shall appoint an individual, by and with the conVerDate Nov 24 2008 02:01 Mar 27, 2009 Jkt 079200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1607.IH H1607

jbell on PROD1PC69 with BILLS
18 

•HR 1607 IH

1 sent of the Senate, to fill such vacancy until the expiration 

2 of such term of office. 

3 (d) REMOVAL.—A member of the Board of Directors 

4 may be removed from office by the Board only for neglect 

5 of duty or malfeasance in office. 

6 (e) QUORUM.—A majority of the Board of Directors 

7 shall constitute a quorum and except as provided in sub8 section (h)(2), any action of the Board of Directors shall 

9 be effected by majority vote of all members of the Board 

10 of Directors. 

11 (f) DUTIES.—The Board of Directors shall— 

12 (1) annually elect from among the members de13 scribed in subsection (a)(2) a Chairman and Vice 

14 Chairman; 

15 (2) establish the policies of the Corporation and 

16 shall supervise the management of the Corporation; 

17 (3) adopt, and may amend, such bylaws as are 

18 necessary for the proper management and func19 tioning of the Corporation; 

20 (4) keep the Council established under section 

21 110 fully informed of its activities; and 

22 (5) provide the Council with such further infor23 mation or data in its possession as the Council may 

24 deem necessary to the appropriate discharge of the 

25 responsibilities of the Council. 


jbell on PROD1PC69 with BILLS
19 

•HR 1607 IH

1 (g) MEETINGS.—The Board of Directors shall meet 

2 at any time pursuant to the call of the Chairman and as 

3 may be provided by the bylaws of the Corporation, but 

4 not less than quarterly. Subject to such rules adopted by 

5 the Board of Directors as are necessary for the orderly 

6 conduct of business, all meetings of the Board of Directors 

7 shall be open to representatives of Indian tribes, Indian 

8 business enterprises, and Indian organizations and any in9 dividual who has an identifiable interest in the affairs of 

10 the Corporation. The Board of Directors may meet in pri11 vate executive session if the matter under discussion in 

12 such session involves any matter which may impinge on 

13 the right of privacy of any individual. 

14 (h) MEMBER DESIGNATED BY THE SECRETARY.— 

15 The member designated by the Secretary shall— 

16 (1) have 20 percent of the share of votes cast 

17 at annual shareholders meetings; and 

18 (2) be overruled only by a two-thirds majority 

19 vote at regular board meetings in matters involv20 ing— 

21 (A) calling of callable capital; 

22 (B) borrowing by the Corporation of 

23 amounts in excess of $10,000,000; 

24 (C) loans or investments made by the Cor25 poration in excess of $1,000,000; or 


jbell on PROD1PC69 with BILLS
20 

•HR 1607 IH

1 (D) the adoption of changes to investment 

2 and credit policies. 

3 (i) COMPENSATION.—Each member of the Board of 

4 Directors not otherwise employed by the Federal Govern5 ment or a State government shall receive compensation at 

6 a rate equal to the daily rate for GS–18 of the General 

7 Schedule under section 5332 of title 5, United States 

8 Code, for each day, including traveling time, he or she is 

9 engaged in the actual performance of his or her duties 

10 as a member of the Board of Directors. A member of the 

11 Board of Directors who is an officer or employee of the 

12 United States Government or of a State government shall 

13 serve without additional compensation. All members of the 

14 Board of Directors shall be reimbursed for travel, subsist15 ence, and other necessary expenses incurred by them in 

16 the performance of their duties. 

17 SEC. 106. PRESIDENT OF THE CORPORATION. 

18 (a) PRESIDENT.—The Board of Directors shall ap19 point a President of the Corporation. The President of the 

20 Corporation may be removed from office by the Board of 

21 Directors in accordance with the bylaws of the Corpora22 tion. 

23 (b) DUTIES AND POWERS.—The President of the 

24 Corporation shall have the following duties and powers: 


jbell on PROD1PC69 with BILLS
21 

•HR 1607 IH

1 (1) Serve as the chief executive officer of the 

2 Corporation. 

3 (2) Subject to the direction of the Board of Di4 rectors and the general supervision of the Chairman, 

5 carry out the policies and functions of the Corpora6 tion. 

7 (3) Have authority over all personnel and ac8 tivities of the Corporation. 

9 (4) With the approval of the Board of Direc10 tors, have the authority to appoint and fix the com11 pensation and duties of such officers and employees 

12 as may be necessary for the efficient administration 

13 of the Corporation. Such appointments and com14 pensation may be made without regard to the provi15 sions of title 5, United States Code, governing ap16 pointments in the competitive service, and chapter 

17 51 and subchapter III of chapter 53 of title 5, 

18 United States Code. 

19 SEC. 107. CONFLICTS OF INTEREST AND FINANCIAL DIS20 CLOSURE. 

21 (a) APPLICABILITY.—The financial disclosure provi22 sions of the Ethics in Government Act of 1978 (92 Stat. 

23 1824; Public Law 95–521) applicable to individuals occu24 pying positions compensated under the Executive Schedule 

25 shall apply— 


jbell on PROD1PC69 with BILLS
22 

•HR 1607 IH

1 (1) to the members of the Board of Directors; 

2 (2) to the officers of the Corporation; 

3 (3) to employees of the Corporation whose posi4 tion is compensated at a rate equivalent to that pay5 able for grade GS–16 or above of the General Sched6 ule established by chapter 53 of title 5, United 

7 States Code; and 

8 (4) to the Corporation as if it were a Federal 

9 agency. 

10 (b) FINANCIAL INTERESTS.—(1) Except as permitted 

11 by paragraph (3), no member of the Board of Directors 

12 shall vote on any matter respecting any application, con13 tract, claim, or other particular matter pending before the 

14 Corporation, in which, to the member’s knowledge, a fi15 nancial interest is held by— 

16 (A) the member; 

17 (B) the member’s spouse, child, or partner; 

18 (C) an organization other than the Corporation 

19 in which the member is serving as officer, director, 

20 trustee, partner, or employee; or 

21 (D) any person or organization with whom the 

22 member is negotiating, or has any arrangement con23 cerning, prospective employment. 

24 (2) Action by any member of the Board of Directors 

25 contrary to the prohibition under paragraph (1) shall be 


jbell on PROD1PC69 with BILLS
23 

•HR 1607 IH

1 cause for removal of such member pursuant to section 

2 105(d), but shall not impair or otherwise affect the valid3 ity of any otherwise lawful action by the Corporation in 

4 which such member participated. 

5 (3) The prohibition contained in paragraph (1) shall 

6 not apply if the member first advises the Board of Direc7 tors of the nature of the particular matter in which he 

8 or she proposes to participate and makes full disclosure 

9 of such financial interest, and the Board of Directors de10 termines by majority vote that the financial interest is too 

11 remote or too inconsequential to affect the integrity of 

12 such member’s services for the Corporation in that matter. 

13 The member involved shall not participate in such deter14 mination. 

15 (c) APPLICABILITY OF CERTAIN LAW.—Subsection 

16 (a) of section 207 of title 18, United States Code (and 

17 subsections (f), (h), and (j) of such section to the extent 

18 they relate to subsection (a)), shall apply to former mem19 bers of the Board of Directors, officers, and employees of 

20 the Corporation as if they were former officers or employ21 ees of the executive branch of the United States Govern22 ment. Such section shall apply to the Corporation as if 

23 it were an agency of the executive branch of the United 

24 States Government. 


jbell on PROD1PC69 with BILLS
24 

•HR 1607 IH

1 SEC. 108. ANNUAL MEETINGS. 

2 (a) IN GENERAL.—The Corporation shall hold an an3 nual meeting of its shareholders which shall be open to 

4 the public. At such meeting, the Corporation shall give a 

5 full report of its activities during the year and its financial 

6 condition and may present proposals for future action and 

7 other matters of general concern to shareholders and In8 dian business enterprises eligible for services from the 

9 Corporation. 

10 (b) SHAREHOLDERS AND REPRESENTATIVES.— 

11 Shareholders and representatives of Indian business enter12 prises may— 

13 (1) present motions or resolutions at the annual 

14 meeting of shareholders relating to matters within 

15 the scope of this Act; and 

16 (2) participate in the discussion thereof and 

17 other matters on the agenda of such meeting. 

18 (c) NOTICE.—Not less than 30 days notice of the 

19 time and place of the annual meeting required under sub20 section (a) shall be given to all shareholders. 

21 (d) VOTING.—Each member Indian tribe may vote its 

22 common stock on all matters before the annual share23 holders meeting and on all matters pertaining to election 

24 of the Board of Directors. Shareholders may cumulate 

25 their votes based on the number of director positions that 

26 are standing for election. 


jbell on PROD1PC69 with BILLS
25 

•HR 1607 IH

1 SEC. 109. REPORTS AND PLANS SUBMITTED TO CONGRESS. 

2 (a) ANNUAL REPORTS.—The Board of Directors of 

3 the Corporation shall report annually to the appropriate 

4 committees of the Congress on the Corporation’s capital, 

5 operations, and financial condition. Such report shall in6 clude recommendations for legislation needed to improve 

7 the services of the Corporation. 

8 (b) DEVELOPMENT PLAN.—Not later than 1 year 

9 after the date of the enactment of this Act, the Corpora10 tion shall submit to the Congress a comprehensive, 5-year 

11 organizational development plan that includes— 

12 (1) financial projections; 

13 (2) a description of a corporate structure and 

14 locations; and 

15 (3) operational guidelines, particularly the co16 ordinating relationship the Corporation has, or plans 

17 to have, with Federal domestic assistance programs 

18 that allocate financial resources and services to In19 dian tribes and reservations for economic and busi20 ness development purposes. 

21 SEC. 110. ADVISORY COUNCIL. 

22 (a) ESTABLISHMENT.—There is hereby established 

23 the Advisory Council to the Indian Development Finance 

24 Corporation (hereafter in this section referred to as the 

25 ‘‘Council’’), which shall provide advice on the policies and 

26 operations of the Corporation. 


jbell on PROD1PC69 with BILLS
26 

•HR 1607 IH

1 (b) MEMBERSHIP.—The Council shall consist of— 

2 (1) the Comptroller of the Currency; 

3 (2) the Secretary of the Interior; and 

4 (3) the Chairman of the Board of Governors of 

5 the Federal Reserve System. 

6 (c) DUTIES.—The Council shall— 

7 (1) recommend to the Board of Directors of the 

8 Corporation general policy directives; 

9 (2) be available to provide financial and tech10 nical assistance upon request of the Board of Direc11 tors; 

12 (3) transmit to the Board of Directors and the 

13 Congress an annual report with respect to the poli14 cies of the Corporation that contains data on the op15 erations and policies of the Corporation, rec16 ommendations concerning the Corporation, and such 

17 other data and material as the Council may deem 

18 appropriate; and 

19 (4) make reports and recommendations to the 

20 Board of Directors as it may from time to time re21 quest or as the Council may consider necessary to 

22 more effectively or efficiently accomplish the pur23 poses of this section or the purposes for which the 

24 Council is created. 


jbell on PROD1PC69 with BILLS
27 

•HR 1607 IH

1 SEC. 111. CONFORMING AMENDMENTS. 

2 (a) TITLE 31.—Title 31, United States Code, is 

3 amended as follows: 

4 (1) In paragraph (2) of section 9101, by adding 

5 at the end the following new subparagraph: 

6 ‘‘(K) the Indian Development Finance Cor7 poration.’’. 

8 (2) In paragraph (3) of section 9107(c), by in9 serting ‘‘the Indian Development Finance Corpora10 tion,’’ after ‘‘the Regional Banks for Cooperatives,’’. 

11 (3) In paragraph (2) of section 9108(d), by in12 serting ‘‘the Indian Development Finance Corpora13 tion,’’ after ‘‘the Regional Banks for Cooperatives,’’. 

14 (b) TITLE 5.—Section 5315 of title 5, United States 

15 Code, is amended by adding at the end the following new 

16 item: 

17 ‘‘President, Indian Development Finance Corpora18 tion.’’. 

19 TITLE II—CAPITALIZATION 

20 SEC. 201. ISSUANCE OF STOCK. 

21 (a) IN GENERAL.—(1) The Corporation is authorized 

22 to issue shares of stock in the Corporation in an amount 

23 and of such class as may be determined by the Board of 

24 Directors subject to the provisions of this section. 


jbell on PROD1PC69 with BILLS
28 

•HR 1607 IH

1 (2) Shares of stock in the Corporation may only be 

2 issued to and may only be held by Indian tribes and the 

3 United States. 

4 (3) The Corporation is authorized to redeem or re5 purchase any share of stock issued by the Corporation at 

6 a price determined by the Board of Directors. 

7 (b) INITIAL OFFERING.—(1) The Corporation shall 

8 make an initial offering of a total of 500,000 shares of 

9 common stock of the Corporation for sale at $50 per share 

10 to Indian tribes. 

11 (2) The number of such shares of stock required to 

12 be purchased by each Indian tribe in order to become a 

13 member of the Corporation shall be determined on the 

14 basis of an equitable formula established by the Board of 

15 Directors taking into account indicators of the economic 

16 condition of each Indian tribe applying for membership. 

17 Such economic indicators shall be developed by the Board 

18 and applied on a uniform basis. 

19 (3) Twenty percent of the value of the stock to be 

20 purchased by each tribe as a condition of membership 

21 shall be paid into the Corporation in the form of cash or 

22 cash equivalent securities, and 80 percent shall be in the 

23 form of a legally binding commitment available for call 

24 by the Board to meet the obligations of the Corporation 


jbell on PROD1PC69 with BILLS
29 

•HR 1607 IH

1 but not for use of the Corporation in lending activities or 

2 for administrative expenses. 

3 (c) NUMBER OF SHARES.—(1) The Secretary is au4 thorized to subscribe to 2,000,000 shares of capital stock 

5 in the Corporation. 

6 (2) The Secretary— 

7 (A) shall pay $20,000,000, representing 20 per8 cent of the value of the shares of capital stock in the 

9 Corporation subscribed under paragraph (1), to the 

10 Corporation within a 2-year period beginning on the 

11 date of enactment of this Act; and 

12 (B) beginning in fiscal year 2012, is authorized 

13 to agree on behalf of the United States to pay up 

14 to $80,000,000, representing 80 percent of the value 

15 of the shares of capital stock in the Corporation sub16 scribed under paragraph (1), or any portion thereof, 

17 to the Corporation upon call of the Board of Direc18 tors of the Corporation. The amount of this request 

19 for funds to establish a reserve for loss will be deter20 mined by the Secretary of the Interior and the 

21 Board of Directors based upon an assessment of 

22 need, taking into account a risk analysis of the in23 vestment and credit policies and practices of the 

24 Corporation. Any commitment to make such con25 tributions shall be made subject to obtaining the 


jbell on PROD1PC69 with BILLS
30 

•HR 1607 IH

1 necessary appropriations, and shall be made when 

2 funds are required to meet obligations of the Cor3 poration for funds borrowed by the Corporation or 

4 for loans guaranteed by the Corporation, but not for 

5 use of the Corporation in lending activities of the 

6 Corporation or for administrative expenses of the 

7 Corporation. 

8 (3) The capital stock subscribed by the Secretary on 

9 behalf of the United States under paragraph (1)— 

10 (A) shall be valued at $50 per share; 

11 (B) shall be nonvoting stock; 

12 (C) shall not accrue dividends; and 

13 (D) may not be transferred to any person or 

14 entity other than the Corporation. 

15 (d) PAYMENT OF DIVIDENDS.—The Board shall es16 tablish policies for payment of dividends to the Corpora17 tion’s shareholders to be based on sound business prac18 tices and fiscal management principles and which shall 

19 give a priority to providing a return on investment based 

20 on shareholders pro rata interest in income generated 

21 from the capital contribution of common stock share22 holders as compared to income attributable to capital con23 tributed by the United States. 

24 (e) EXEMPTED SECURITIES.—The stock or other se25 curities or instruments issued by the Corporation shall, 


jbell on PROD1PC69 with BILLS
31 

•HR 1607 IH

1 to the same extent as securities which are the direct obli2 gations of the United States, be exempted securities within 

3 the meaning of the laws administered by the Securities 

4 and Exchange Commission. 

5 SEC. 202. BORROWING AUTHORITY. 

6 (a) IN GENERAL.—The Corporation is authorized to 

7 issue bonds, notes, and other evidence of indebtedness. 

8 Such obligations shall be issued at such times, bear inter9 est at such rates, and contain such terms and conditions 

10 as the Board of Directors shall determine after consulta11 tion with the Secretary of the Treasury. 

12 (b) AMOUNT OF OBLIGATIONS.—The aggregate 

13 amount of obligations issued under subsection (a) shall 

14 not exceed an amount equal to— 

15 (1) the product of 10 multiplied by the sum 

16 of— 

17 (A) the paid-in capital of the Corporation; 

18 plus 

19 (B) retained earnings and profits of the 

20 Corporation; plus 

21 (2) the book value of callable capital rep22 resented by the total commitments of tribal share23 holders and the $80,000,000 subscribed to by the 

24 United States as provided for in section 

25 201(c)(2)(B) of this Act. 


jbell on PROD1PC69 with BILLS
32 

•HR 1607 IH

1 (c) SALE OF OBLIGATIONS.—An obligation issued 

2 under subsection (a) may be sold through an agent by ne3 gotiation, offer, bid, syndicate sale, or otherwise and such 

4 transaction completed by book entry, wire transfer, or 

5 such other means as may be appropriate. 

6 TITLE III—AUTHORIZATION OF 

7 APPROPRIATIONS 

8 SEC. 301. GENERAL OPERATIONAL EXPENSES. 

9 In addition to amounts authorized to be appropriated 

10 under section 302, there are authorized to be appro11 priated— 

12 (1) $2,000,000 for fiscal year 2010 for the pur13 pose of carrying out the provisions of this Act; 

14 (2) $2,500,000 for each of the fiscal years 

15 2010, 2011, 2012, 2013, and 2014 for the purpose 

16 of project development activities; and 

17 (3) such sums as may be necessary to carry out 

18 the provisions of this Act for each of the fiscal years 

19 2010, 2011, 2012, 2013, and 2014. 

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

21 There are authorized to be appropriated for each of 

22 the fiscal years 2010 and 2011, $10,000,000 for the pur23 pose of carrying out the provisions of section 201(c)(2)(A). 

24 Such sums shall remain available until expended. Begin25 ning in fiscal year 2011, such amounts, not to exceed a 


jbell on PROD1PC69 with BILLS
33 

•HR 1607 IH

1 total of $80,000,000, are authorized to be appropriated 

2 for the purpose of carrying out the provisions of section 

3 201(c)(2)(B). 

Æ 


jbell on PROD1PC69 with BILLS