Another approach to providing a lender or investor with security is to pledge some particular source of funds or property as collateral. Some banks have accepted a security interest in gaming revenues, for instance. Unique Methods of Financing Projects For proposed renewable energy projects, some of the financing mechanisms used elsewhere in the country may work in Indian Country, but some standard options present complications. One example is bond financing. Some options are unique to Indian Country.
Some tribes have revenues from gaming or from sources such as judgments against the United States.
In this case, if they do not have locally available renewable resources, tribes could choose to invest in projects on other reservations. In addition, the BIA administers a loan guarantee program for economic development projects. Of course, the availability of funding for such programs depends on congressional appropriations. Another arrangement that may be unique to Indian Country makes use of the tax status of tribal governments. Tribal governments and tribal corporations chartered under section 17 of the Indian Reorganization Act are not subject to federal income tax.