(b) TABLE OF CONTENTS.—The table of contents for 
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. 
SEC. 2. FINDINGS AND POLICY. 
(a) FINDINGS.—Congress finds that— 
(1) a special relationship has existed between 
the United States and the Indian tribes which is rec-
ognized in clause 3, section 8, article I of the United 
States Constitution; 
(2) Congress, through statutes, treaties, and 
the exercise of administrative authorities, has imple-
mented the Federal Government’s responsibility for 
the protection and preservation of Indian tribes and 
their resources; 
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(3) despite the availability of abundant natural 
resources on Indian lands and a rich cultural legacy 
which places great value on self-determination, self- 
reliance, and independence, American Indians and 
Alaskan Natives experience poverty and unemploy-
ment, along with the associated incidences of social 
pathology, to an extent unequaled by any other 
group in the United States; 
(4) the reasons for such unparalleled poverty 
and unemployment have been widely studied and 
documented by Congress, the General Accounting 
Office, the Department of the Interior, private aca-
demic institutions, and Indian tribes, and such stud-
ies have consistently identified as fundamental ob-
stacles to balanced economic growth and progress— 
(A) the very limited availability of long- 
term development capital and sources of finan-
cial credit necessary to support the development 
of a private sector economy in Indian country 
comprised of Indian-owned business enterprises; 
(B) the lack of effective control by the In-
dians over their own lands and resources; and 
(C) the scarcity of experienced Indian 
managers and technicians; 
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(5) previous efforts of 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 their 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 inter-
mediation; and 
(6) the experience acquired by multilateral lend-
ing institutions among the ‘‘lesser developed coun-
tries’’ has demonstrated the value and necessity of 
development financing institutions in achieving eco-
nomic growth in underdeveloped economies and soci-
eties that are strikingly similar to Indian and Alas-
kan Native communities in relation to such matters 
as control over natural resource management and 
the absence of experienced, indigenous managers 
and technicians, as well as the availability of long- 
term development capital and private sources of fi-
nancial credit. 
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(b) POLICY.—It is hereby declared to be the policy 
of Congress that, in fulfillment of its special and long-
standing responsibility to the Indian tribes, the Federal 
Government should provide assistance to the Indian people 
in their 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 feder-
ally chartered, mixed ownership development financing in-
stitution which shall provide a broad range of financial 
intermediary services including working capital, direct 
loans, loan guarantees, and project development assistance 
utilizing the proven efficiencies of the private market mode 
of operation. 
SEC. 3. DEFINITIONS. 
For purposes of this Act: 
(1) INDIAN.—The term ‘‘Indian’’ means any 
person who is a member of an Indian tribe. 
(2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 
means any Indian tribe, band, nation, or other orga-
nized group or community which is recognized by 
the United States as eligible for the special pro-
grams and services provided by the United States to 
Indians because of their status as Indians, including 
any Alaska Native village or regional or village cor-
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poration as defined in, or established under, the 
Alaska Native Claims Settlement Act (43 U.S.C. 
1601 et seq.). 
(3) RESERVATION.—The term ‘‘reservation’’ 
means any Indian reservation, public domain Indian 
allotment, former Indian reservation in Oklahoma, 
or land held by any Alaska Native village or regional 
or village corporation (as defined in, or established 
under, the provisions of the Alaska Native Claims 
Settlement Act). 
(4) TRIBAL ORGANIZATION.—The term ‘‘tribal 
organization’’ means the governing body of any In-
dian tribe or any entity established, controlled, or 
owned by such governing body. 
(5) INDIAN BUSINESS ENTERPRISE.—The term 
‘‘Indian business enterprise’’ means any commercial, 
industrial, or business entity— 
(A) at least 51 percent of which is owned 
by one or more Indian tribes; 
(B) that produces or furnishes goods, serv-
ices, or facilities and is operated or organized 
on a for-profit basis; 
(C) that is chartered or controlled by any 
Indian tribe or tribal organization that is a 
shareholder of the Corporation; and 
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terprises whose activities are directed at contributing 
to such economies. 
SEC. 103. LOANS AND OBLIGATIONS. 
(a) IN GENERAL.—The Corporation may— 
(1) make loans or commitments for loans to 
any Indian business enterprise; or 
(2) purchase, insure, or discount any obliga-
tions of an Indian business enterprise, if such enter-
prise meets the requirements of subsection (b). 
(b) REQUIREMENTS.—An Indian business enterprise 
meets the requirements of this subsection if the Corpora-
tion makes an independent determination that— 
(1) such enterprise has or will have— 
(A) a sound organizational and financial 
structure; 
(B) income in excess of its operating costs; 
(C) assets in excess of its obligations; and 
(D) a reasonable expectation of a con-
tinuing demand for— 
(i) its production, goods, commodities, 
or services; or 
(ii) its facilities; and 
(2) the loan or obligation of such enterprise will 
be fully repayable in accordance with the terms and 
conditions of such loan or obligation. 
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(c) TERMS, RATES, AND CHARGES.—(1) In setting 
the terms, rates, and charges for loans made under this 
section, the objective of the Corporation shall be to provide 
the type of credit needed by Indian business enterprises 
at the lowest reasonable cost and on a sound business 
basis, taking into account— 
(A) the cost of money to the Corporation; 
(B) the necessary reserve and expenses of the 
Corporation; and 
(C) the technical and other assistance attrib-
utable to loans made available by the Corporation 
under this section. 
(2) The terms of any loan made under this subsection 
may provide for interest rates which vary from time to 
time during the repayment period of the loan in accord-
ance with the rates being charged by the Corporation for 
new loans at such times. 
(d) USE OF FUNDS.—Funds available from a loan 
made under this section may be advanced or reloaned by 
the borrower to its members or stockholders for the devel-
opment of individually owned businesses on or adjacent 
to reservations under circumstances permitted under the 
bylaws or rules of the Corporation. 
(e) LOAN GUARANTEES.—(1) The Corporation may 
guarantee all or any part of the principal and interest of 
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any loan made by any State or federally chartered lending 
institution to any Indian business enterprise if— 
(A) such loan is to an Indian business enter-
prise that meets the requirements of subsection 
(b)(2); and 
(B) such loan was made on terms and condi-
tions (including the rate of interest) which would be 
permissible terms and conditions if such loan were 
a direct loan made by the Corporation. 
(2) The Corporation may impose a charge for any 
loan guarantee made under this subsection. 
(3) No loan may be guaranteed by the Corporation 
under this subsection if the income from the loan to the 
lender is excludable from such lender’s gross income for 
purposes of chapter 1 of the Internal Revenue Code of 
1986. 
(4) Any loan guarantee made under this subsection 
shall be assignable to the extent provided in the contract 
of guarantee entered into by the Corporation. 
(5) Any guarantee made under this subsection shall 
be uncontestable, except in the case of fraud or misrepre-
sentation of which the holder had actual knowledge at the 
time the holder acquired the loan. 
(6) The Corporation, in lieu of requiring the original 
lender to service a loan guaranteed under this subsection 
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until final maturity or liquidation, may purchase such 
guaranteed loan for an amount equal to the balance of 
the principal and the amount of interest accrued thereon 
without penalty if the Corporation determines that the 
purchase would not be detrimental to the interests of the 
Corporation and— 
(A) the liquidation of such guaranteed loan 
would result in the insolvency of the borrower or de-
prive the borrower of assets essential to its contin-
ued operation; 
(B) such guaranteed loan will be repayable with 
revision of the loan rates, terms, payment periods, or 
other conditions consistent with loans made by the 
Corporation under subsection (b); and 
(C) the lender or other holder of such guaran-
teed loan is unwilling to make such revision. 
(f) PURCHASES OF EQUITY AND OWNERSHIP.—(1) 
For purposes of providing long-term capital and working 
capital to Indian business enterprises, the Corporation is 
authorized to purchase, or make commitments to pur-
chase, all, or any portion of, the equity or ownership inter-
est in any Indian business enterprise if the Corporation 
determines, after a full and complete appraisal of all 
project and business plans associated with the investment 
taking into account the criteria set forth in paragraph (2), 
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that such an investment does not expose the Corporation 
to any unreasonable business risks considering the appli-
cable standards prevailing in the field of development fi-
nance as applied to Indian economic development (or, in 
light of the socioeconomic, political, and legal conditions 
unique to Indian reservations). 
(2) The Corporation is also authorized to supervise 
or participate in the management of Indian business en-
terprises in which an investment has been made under 
paragraph (1) according to such terms and conditions as 
are agreed to by the Corporation and the principals of the 
enterprise, including the assumption of a directorship in 
the corporate body of such Indian business enterprise by 
an officer of the Corporation. 
SEC. 104. GENERAL POWERS. 
In carrying out this Act, the Corporation is author-
ized— 
(1) to adopt and alter a corporate seal, which 
shall be judicially noticed; 
(2) to make agreements and contracts with per-
sons, Indian tribes, and private or governmental en-
tities and to make payments or advance payments 
under such agreements or contracts without regard 
to section 3324 of title 31, United States Code, ex-
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