I
104TH CONGRESS
1ST SESSION
H. R. 2412
To improve the economic conditions and supply of housing in Native American
communities by creating the Native American Financial Services Organi-
zation, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
SEPTEMBER 27, 1995
Mr. YOUNG of Alaska introduced the following bill; which was referred to the
Committee on Banking and Financial Services, and in addition to the
Committee on Resources, for a period to be subsequently determined by
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned
A BILL
To improve the economic conditions and supply of housing
in Native American communities by creating the Native
American Financial Services Organization, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Native American Financial Services Organization Act of
1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title.
TITLE I—STATEMENT OF POLICY; DEFINITIONS
Sec. 101. Policy.
Sec. 102. Statement of purposes.
Sec. 103. Definitions.
TITLE II—NATIVE AMERICAN FINANCIAL SERVICES
ORGANIZATION
Sec. 201. Establishment of the organization.
Sec. 202. Authorized assistance and service functions.
Sec. 203. Native American lending services grant.
Sec. 204. Audits.
Sec. 205. Annual housing and economic development reports.
Sec. 206. Advisory Council.
TITLE III—CAPITALIZATION OF ORGANIZATION
Sec. 301. Capitalization of the organization.
Sec. 302. Obligations and securities of the organization.
Sec. 303. Limit on total assets and liabilities.
TITLE IV—REGULATION, EXAMINATION, AND REPORTS
Sec. 401. Regulation, examination, and reports.
Sec. 402. Authority of the Secretary of Housing and Urban Development.
TITLE V—FORMATION OF NEW CORPORATION
Sec. 501. Formation of new corporation.
Sec. 502. Adoption and approval of merger plan.
Sec. 503. Consummation of merger.
Sec. 504. Transition.
Sec. 505. Effect of merger.
TITLE VI—AUTHORIZATIONS OF APPROPRIATIONS
Sec. 601. Authorization of appropriations for Native American Financial Insti-
tutions.
Sec. 602. Authorization of appropriations for organization.
TITLE I—STATEMENT OF
POLICY; DEFINITIONS
SEC. 101. POLICY.
(a) IN GENERAL.—Based upon the findings and rec-
ommendations of the Commission on American Indian,
Alaska Native and Native Hawaiian Housing established
by the Department of Housing and Urban Development
Reform Act of 1989, the Congress has determined that—
(1) housing shortages and deplorable living con-
ditions are at crisis proportions in Native American
communities throughout the United States; and
(2) the lack of private capital to finance hous-
ing and economic development for Native Americans
and Native American communities seriously exacer-
bates these housing shortages and poor living condi-
tions.
(b) POLICY OF THE UNITED STATES TO ADDRESS
NATIVE AMERICAN HOUSING SHORTAGE.—It is the policy
of the United States to improve the economic conditions
and supply of housing in Native American communities
throughout the United States by creating the Native
American Financial Services Organization to address the
housing shortages and poor living conditions described in
subsection (a).
SEC. 102. STATEMENT OF PURPOSES.
The purposes of this Act are—
(1) to help serve the mortgage and other lend-
ing needs of Native Americans by assisting in the es-
tablishment and organization of Native American
Financial Institutions, developing and providing fi-
nancial expertise and technical assistance to Native
American Financial Institutions, including assist-
ance concerning overcoming—
(A) barriers to lending with respect to Na-
tive American lands; and
(B) the past and present impact of dis-
crimination;
(2) to promote access to mortgage credit in Na-
tive American communities in the United States by
increasing the liquidity of financing for housing and
improving the distribution of investment capital
available for such financing, primarily through Na-
tive American Financial Institutions;
(3) to promote the infusion of public capital
into Native American communities throughout the
United States and to direct sources of public and
private capital into housing and economic develop-
ment for Native American individuals and families,
primarily through Native American Financial Insti-
tutions; and
(4) to provide ongoing assistance to the second-
ary market for residential mortgages and economic
development loans for Native American individuals
and families, Native American Financial Institu-
tions, and other borrowers by increasing the liquidity
of such investments and improving the distribution
of investment capital available for such financing.
SEC. 103. DEFINITIONS.
For purposes of this Act, the following definitions
shall apply:
(1) ALASKA NATIVE.—The term ‘‘Alaska Na-
tive’’ has the meaning given the term ‘‘Native’’ by
section 3(b) of the Alaska Native Claims Settlement
Act.
(2) BOARD.—The term ‘‘Board’’ means the
Board of Directors of the Organization established
under section 201(a)(2).
(3) CHAIRPERSON.—The term ‘‘Chairperson’’
means the chairperson of the Board.
(4) COUNCIL.—The term ‘‘Council’’ means the
Advisory Council established under section 206.
(5) DESIGNATED
MERGER
DATE.—The term
‘‘designated merger date’’ means the specific cal-
endar date and time of day designated by the Board
under section 502(b).
(6) DIRECTOR.—The term ‘‘Director’’ means
the Director of the Office of Federal Housing Enter-
prise Oversight of the Department of Housing and
Urban Development.
(7) FUND.—The term ‘‘Fund’’ means the Com-
munity Development Financial Institutions Fund es-
tablished under section 104 of the Riegle Commu-
nity Development and Regulatory Improvement Act
of 1994.
(8) INDIAN TRIBE.—The term ‘‘Indian tribe’’
means any Indian tribe, band, nation, or other orga-
nized group or community, including any Alaska Na-
tive village or regional or village corporation as de-
fined in or established pursuant to the Alaska Na-
tive Claims Settlement Act that is recognized as eli-
gible for the special programs and services provided
by the Federal Government to Indians because of
their status as Indians.
(9) MERGER PLAN.—The term ‘‘merger plan’’
means the plan of merger adopted by the Board
under section 502(a).
(10) NATIVE
AMERICAN.—The term ‘‘Native
American’’ means any member of an Indian tribe.
(11) NATIVE
AMERICAN
FINANCIAL
INSTITU-
TION.—The term ‘‘Native American Financial Insti-
tution’’ means a person (other than an individual)
that—
(A) qualifies as a community development
financial institution under section 103 of the
Riegle Community Development and Regulatory
Improvement Act of 1994;
(B) satisfies the requirements established
by the Riegle Community Development and
Regulatory Improvement Act of 1994 and the
Fund for applicants for assistance from the
Fund;
(C) demonstrates a special interest and ex-
pertise in serving the primary economic develop-
ment and mortgage lending needs of the Native
American community; and
(D) demonstrates that the person has the
endorsement of the Native American commu-
nity that the person intends to serve.
(12) NATIVE
AMERICAN
LENDER.—The term
‘‘Native American lender’’ means a Native American
governing body, Native American housing authority,
or other Native American Financial Institution that
acts as a primary mortgage or economic develop-
ment lender in a Native American community.
(13) NEW CORPORATION.—The term ‘‘new cor-
poration’’ means the corporation formed in accord-
ance with title V.
(14) NONQUALIFYING MORTGAGE LOAN.—The
term ‘‘nonqualifying mortgage loan’’ means a mort-
gage loan that is determined by the Organization, on
the basis of the quality, type, class, or principal
amount of the loan, to fail to meet the purchase
standards of the Federal National Mortgage Asso-
ciation or the Federal Home Loan Mortgage Cor-
poration in effect on September 30, 1994.
(15) ORGANIZATION.—The term ‘‘Organiza-
tion’’ means the Native American Financial Services
Organization established under section 201.
(16) QUALIFYING MORTGAGE LOAN.—The term
‘‘qualifying mortgage loan’’ means a mortgage loan
that is determined by the Organization, on the basis
of the quality, type, class or principal amount of the
loan, to meet the purchase standards of the Federal
National Mortgage Association or the Federal Home
Loan Mortgage Corporation in effect on September
30, 1994.
(17) TRANSITION PERIOD.—The term ‘‘transi-
tion period’’ means the period beginning on the date
on which the merger plan is approved by both the
Secretary of Housing and Urban Development and
the Secretary of the Treasury and ending on the
designated merger date.
TITLE II—NATIVE AMERICAN FI-
NANCIAL SERVICES ORGANI-
ZATION
SEC. 201. ESTABLISHMENT OF THE ORGANIZATION.
(a) CREATION; BOARD OF DIRECTORS; POLICIES;
PRINCIPAL OFFICE; MEMBERSHIP; VACANCIES.—
(1) CREATION.—
(A) IN
GENERAL.—There is established
and chartered a corporation to be known as the
Native American Financial Services Organiza-
tion.
(B) PERIOD OF TIME.—The Organization
shall be a congressionally chartered body cor-
porate until the earlier of—
(i) the designated merger date; or
(ii) the date on which the charter is
surrendered by the Organization.
(C) CHANGES TO CHARTER.—The right to
revise, amend, or modify the Organization char-
ter is specifically and exclusively reserved to the
Congress.
(2) BOARD
OF
DIRECTORS; PRINCIPAL
OF-
FICE.—
(A) BOARD.—The powers of the Organiza-
tion shall be vested in a Board of Directors.
The Board shall determine the policies that
govern the operations and management of the
Organization.
(B) PRINCIPAL OFFICE; RESIDENCY.—The
principal office of the Organization shall be in
the District of Columbia. For purposes of
venue, the Organization shall be considered to
be a resident of the District of Columbia.
(3) MEMBERSHIP.—
(A) IN GENERAL.—
(i) NINE MEMBERS.—Except as pro-
vided in clause (ii), the Board shall consist
of 9 members, 3 of whom shall be ap-
pointed by the President and 6 of whom
shall be elected by the class A stockhold-
ers, in accordance with the bylaws of the
Organization.
(ii) THIRTEEN MEMBERS.—If class B
stock is issued under section 301(b), the
Board shall consist of 13 members, 9 of
whom shall be appointed and elected in ac-
cordance with clause (i) and 4 of whom
shall be elected by the class B stockhold-
ers, in accordance with the bylaws of the
Organization.
(B) TERMS.—Each member of the Board
shall be elected or appointed for a 4-year term,
except that the members of the initial Board
shall be elected or appointed for the following
terms:
(i) Of the 3 members appointed by
the President—
(I) 1 member shall be appointed
for a 2-year term;
(II) 1 member shall be appointed
for a 3-year term; and
(III) 1 member shall be ap-
pointed for a 4-year term;
as designated by the President at the time
of the appointments.
(ii) Of the 6 members elected by the
class A stockholders—
(I) 2 members shall each be
elected for a 2-year term;
(II) 2 members shall each be
elected for a 3-year term; and
(III) 2 members shall each be
elected for a 4-year term.
(iii) If class B stock is issued and 4
additional members are elected by the class
B stockholders—
(I) 1 member shall be elected for
a 2-year term;
(II) 1 member shall be elected
for a 3-year term; and
(III) 2 members shall each be
elected for a 4-year term.
(C) QUALIFICATIONS.—Each member ap-
pointed by the President shall have expertise in
1 or more of the following areas:
(i) Native American housing and eco-
nomic development programs.
(ii) Financing in Native American
communities.
(iii) Native American governing bodies
and court systems.
(iv) Restricted and trust land issues,
economic development, and small consumer
loans.
(D) CHAIRPERSON.—The Board shall se-
lect a Chairperson from among its members, ex-
cept that the initial Chairperson shall be se-
lected from among the members of the initial
Board who have been appointed or elected to
serve for a 4-year term.
(E) VACANCIES.—
(i) APPOINTED
MEMBERS.—Any va-
cancy in the appointed membership of the
Board shall be filled by appointment by the
President, but only for the unexpired por-
tion of the term.
(ii) ELECTED
MEMBERS.—Any va-
cancy in the elected membership of the
Board shall be filled by appointment by the
Board, but only for the unexpired portion
of the term.
(F) TRANSITIONS.—Any member of the
Board may continue to serve after the expira-
tion of the term for which the member was ap-
pointed or elected until a qualified successor
has been appointed or elected.
(b) POWERS OF THE ORGANIZATION.—The Organi-
zation may—
(1) adopt, alter, and use a corporate seal;
(2) adopt bylaws, consistent with this Act, regu-
lating, among other things, the manner in which—
(A) the business of the Organization shall
be conducted;
(B) the elected members of the Board shall
be elected;
(C) the stock of the Organization shall be
issued, held, and disposed of;
(D) the property of the Organization shall
be disposed of; and
(E) the powers and privileges granted to
the Organization by this Act and other law
shall be exercised;
(3) make and perform contracts, agreements,
and commitments, including entering into a coopera-
tive agreement with the Fund;
(4) prescribe and impose fees and charges for
services provided by the Organization;
(5)(A) settle, adjust, and compromise; and
(B) with or without consideration or benefit to
the Organization, release or waive in whole or in
part, in advance or otherwise, any claim, demand, or
right of, by, or against the Organization;
if such settlement, adjustment, compromise, release,
or waiver is not adverse to the interests of the Unit-
ed States;
(6) sue and be sued, complain and defend, in
any tribal, Federal, State, or other court;
(7) acquire, take, hold, and own, and to deal
with and dispose of any property;
(8) determine the necessary expenditures of the
Organization and the manner in which such expendi-
tures shall be incurred, allowed, and paid, and ap-
point, employ, and fix and provide for the compensa-
tion and benefits of officers, employees, attorneys,
and agents as the Board determines reasonable and
not inconsistent with this section;
(9) incorporate a new corporation under State,
District of Columbia, or tribal law, as provided in
section 501;
(10) adopt a plan of merger, as provided in sec-
tion 502;
(11) consummate the merger of the Organiza-
tion into the new corporation, as provided in section
503; and
(12) have succession until the designated merg-
er date or any earlier date on which the Organiza-
tion surrenders its Federal charter.
(c) INVESTMENT OF FUNDS; DESIGNATION AS DE-
POSITARY, CUSTODIAN, OR AGENT.—
(1) INVESTMENT OF FUNDS.—Funds of the Or-
ganization that are not required to meet current op-
erating expenses shall be invested in obligations of,