I
103D CONGRESS
2D SESSION
H. R. 5277
To address the need for private financing of home ownership and economic
development on and near reservation lands, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 7, 1994
Mr. RICHARDSON (for himself and Ms. FURSE) (both by request) introduced
the following bill; which was referred to the Committee on Banking, Fi-
nance and Urban Affairs
A BILL
To address the need for private financing of home ownership
and economic development on and near reservation lands,
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 101. POLICY.
Based upon the findings and recommendations by the
Commission on American Indian, Alaska Native and Na-
tive Hawaiian Housing established by Public Law 101–
235, the Congress has determined that housing shortages
and deplorable living conditions are at crisis proportions
in Native American communities throughout the United
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States. The lack of private capital to finance housing and
economic development for Native Americans and Native
American communities seriously exacerbates this problem.
To begin to address this crisis, it is the policy of the
United States to improve the economic conditions and sup-
ply of Housing in Native American communities through-
out the United States by creating the Native American
Financial Services Organization. It is anticipated that
when the Native American Financial Services Organiza-
tion is no longer a Congressionally chartered body cor-
porate, it will function as a tribal, State or District of Co-
lumbia corporation.
SEC. 102. SHORT TITLE AND STATEMENT OF PURPOSES.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Native American Financial Services Organization Act of
1994’’.
(b) PURPOSES.—It is the purpose of this Act—
(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 on how to overcome barriers to lending on Na-
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tive American lands, and the past and present im-
pact of discrimination;
(2) to promote access to mortgage credit in Na-
tive American communities in the Nation by increas-
ing the liquidity of financing for housing and im-
proving the distribution of investment capital avail-
able for such financing, primarily through Native
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.
(a) The term ‘‘Board of Directors’’ means the board
of directors of the Organization.
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(b) The term ‘‘Chairperson’’ means the chairperson
of the Board of Directors.
(c) The term ‘‘designated merger date’’ means the
specific calendar date and time of day designated by the
Board of Directors under section 502(b).
(d) The term ‘‘Fund’’ means the Community Devel-
opment Financial Institutions Fund established by the
Community Development Banking and Financial Institu-
tions Act of 1994.
(e) The term ‘‘Indian Tribe’’ means any Indian tribe,
band, nation, or other organized group or community, in-
cluding any Alaska Native village or regional or village
corporation as defined in or established pursuant to the
Alaska Native Claims Settlement Act, which is recognized
as eligible for the special programs and services provided
by the United States to Indians because of their status
as Indians.
(f) The term ‘‘merger plan’’ means the plan of merg-
er adopted by the Board of Directors according to section
502(a).
(g) The term ‘‘Native American’’ means any member
of an Indian Tribe.
(h) The term ‘‘Native American Financial Institu-
tion’’ means a person (other than an individual) that—
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(l) The term ‘‘qualifying mortgage loan’’ means a
mortgage loan deemed by the Organization to be of such
quality, type, class or principal amount as to meet the pur-
chase standards of the Federal National Mortgage Asso-
ciation or the Federal Home Loan Mortgage Corporation
in effect on September 30, 1994.
(m) The term ‘‘transition period’’ means the period
of time between the approval of the merger plan by both
the Secretary of Housing and Urban Development and the
Secretary of the Treasury and the designated merger date.
SEC. 201. ESTABLISHMENT OF THE ORGANIZATION.
(a) CREATION; BOARD OF DIRECTORS; POLICIES;
PRINCIPAL OFFICE; MEMBERSHIP; TERM; VACANCIES.—
(1) There is established and chartered a body
corporate to be known as the Native American Fi-
nancial Services Organization (‘‘Organization’’). The
Organization shall have existence as a Congression-
ally chartered body corporate until the designated
merger date, at which time its charter shall termi-
nate, unless such charter is earlier surrendered by
the Organization. The right to revise, amend or
modify the Organization charter is specifically and
exclusively reserved to the Congress.
(2) The powers of the Organization shall be
vested in a Board of Directors. The Board of Direc-
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tors shall determine the policies that govern the op-
erations and management of the Organization. The
principal office of the Organization shall be in the
District of Columbia. For purposes of venue, Orga-
nization shall be considered a resident of the District
of Columbia.
(3)(A) The Board of Directors of the Organiza-
tion shall consist of nine persons, three of whom
shall be appointed by the President of the United
States to serve at the President’s pleasure and six
of whom shall be elected by the class A stockholders,
all in accordance with the bylaws of the Organiza-
tion. If class B stock is issued under section 301(b),
the Board of Directors shall consist of 13 persons,
and the four additional members shall be elected by
the class B stockholders in accordance with the by-
laws of the Organization. Each member of the
Board of Directors shall be elected or appointed for
a term of four years, except that the members of the
initial Board of Directors shall have the following
terms: of the three members appointed by the Presi-
dent, one will have a two-year term, one will have a
three-year term, and one will have a four-year term,
all as designated by the President at the time of
their appointments; of the six members elected by
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the class A stockholders, two will have two-year
terms, two will have three-year terms, and the re-
maining two will have four-year terms; and if class
B stock is issued and four additional members are
elected by the class B stockholders, one will have a
two-year term, one will have a three-year term, and
the remaining two will have four-year terms. All
members appointed by the President shall have ex-
pertise in one or more of the following areas—Na-
tive American housing and economic development
programs, financing in Native American commu-
nities, Native American governing bodies and court
systems, restricted and trust land issues, economic
development, and small consumer loans.
(B) The Board of Directors shall select a
Chairperson from among its members, except that
the initial Chairperson shall be selected from among
the members of the initial Board of Directors who
have been appointed or elected to four-year terms.
(C)(i) Any appointed directorship that becomes
vacant shall be filled by appointment by the Presi-
dent of the United States, but only for the unexpired
portion of the term.
(ii) Any elected directorship that becomes va-
cant shall be filled by appointment by the Board of
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Directors, but only for the unexpired portion of the
term.
(D) Any member of the Board of Directors may
continue to serve after the expiration of the term of
office to which the director was appointed or elected
until a successor has been appointed or elected, and
qualified.
(b) POWERS OF THE ORGANIZATION.—The Organi-
zation shall have power—
(1) to adopt, alter, and use a corporate seal;
(2) to adopt bylaws, consistent with this Act,
regulating, among other things, the manner in
which—
(A) the business of the Organization shall
be conducted;
(B) the elected directors of the Organiza-
tion 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 and enjoyed;
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(3) to make and perform contracts, agreements,
and commitments, including entering into a coopera-
tive agreement with the Fund;
(4) to prescribe and impose fees and charges
for services provided by the Organization;
(5) to settle, adjust, and compromise, and with
or without consideration or benefit to the Organiza-
tion to release or waive in whole or in part, in ad-
vance or otherwise, any claim, demand, or right of,
by, or against the Organization, provided that such
settlement, adjustment, compromise, release or waiv-
er shall not be adverse to the interests of the United
States;
(6) to sue and be sued, complain and defend, in
any tribal, State, Federal, or other court;
(7) to acquire, take, hold, and own, and to deal
with and dispose of any property;
(8) to determine its necessary expenditures and
the manner in which the same shall be incurred, al-
lowed, and paid, and appoint, employ, and fix and
provide for the compensation and benefits of offi-
cers, employees, attorneys, and agents as the Board
of Directors determines reasonable and not incon-
sistent with the provisions of this section;
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(9) to incorporate a new corporation under
State, District of Columbia, or tribal law, as pro-
vided in section 501;
(10) to adopt a plan of merger, as provided in
section 502;
(11) to consummate the merger of the Organi-
zation into the new corporation, as provided in sec-
tion 503; and
(12) to have succession until the designated
merger date or any earlier date on which the Orga-
nization surrenders its Federal charter.
(c) INVESTMENT OF FUNDS; DESIGNATION AS DE-
POSITARY, CUSTODIAN, OR AGENT FOR ORGANIZATION OF
ANY FEDERAL RESERVE BANK, FEDERAL HOME LOAN
BANK, OR ANY BANK DESIGNATED AS DEPOSITARY OF
PUBLIC MONEY.—Moneys of the Organization not re-
quired to meet current operating expenses shall be in-
vested in obligations of, or obligations guaranteed by, the
United States or any agency thereof, or in obligations,
participations or other instruments that are lawful invest-
ments for fiduciary, trust or public funds. Any Federal
Reserve bank or Federal home loan bank, or any bank
as to which at the time of its designation by the Organiza-
tion there is outstanding a designation by the Secretary
of the Treasury as a general or other depositary of public
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money, may be designated by the Organization as a depos-
itary or custodian or as a fiscal or other agent of the Orga-
nization, and is hereby authorized to act as such deposi-
tary, custodian, or agent.
(d) ACTIONS BY AND AGAINST THE ORGANIZATION;
JURISDICTION; REMOVAL OF ACTIONS; ATTACHMENT OR
EXECUTION ISSUED AGAINST THE ORGANIZATION.—Not-
withstanding section 1349 of title 28 of the United States
Code or any other provision of law—
(1) the Organization shall be deemed to be an
agency included in sections 1345 and 1442 of such
title 28;
(2) all civil actions to which the Organization is
a party shall be deemed to arise under the laws of
the United States, and the district courts of the
United States shall have original jurisdiction of all
such actions, without regard to amount or value;
and,
(3) any civil or other action, case or controversy
in a tribal court, court of a State, or in any court
other than a district court of the United States, to
which the Organization is a party may at any time
before the trial thereof be removed by the Organiza-
tion, without the giving of any bond or security, to
the district court of the United States for the dis-
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trict and division embracing the place where the
same is pending, or, if there is no such district
court, to the district court of the United States for
the District of Columbia, by following any procedure
for removal of causes in effect at the time of that
removal.
SEC. 202. AUTHORIZED ASSISTANCE AND SERVICE FUNC-
TIONS.
(a) TECHNICAL ASSISTANCE AND SERVICES.—The
Organization is authorized to—
(1) assist the Fund in the establishment and
organization of Native American Financial Institu-
tions;
(2) assist the Fund in developing and providing
financial expertise and technical assistance to Native
American Financial Institutions, including methods
of underwriting, securing, servicing, packaging, and
selling 
mortgage 
and 
small 
commercial 
and
consumer loans;
(3) develop and provide specialized technical as-
sistance on how to overcome barriers to primary
mortgage lending on Native American lands, includ-
ing issues related to trust lands, discrimination, high
operating costs, and inapplicability of standard un-
derwriting criteria;
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(4) assist the Fund in providing mortgage un-
derwriting assistance (but not originate loans) under
contract to Native American Financial Institutions;
(5) work with the Federal National Mortgage
Association, the Federal Home Loan Mortgage Cor-
poration, and participants in the secondary market
for home mortgage instruments in identifying and
eliminating barriers to their purchase of Native
American mortgage loans originated by Native
American Financial Institutions and other lenders;
(6) obtain capital investments in the Organiza-
tion from Indian tribes, Native American organiza-
tions, and others;
(7) assist the Fund in its operation as an infor-
mation clearinghouse, providing information on fi-
nancial practices to Native American Financial In-
stitutions; and
(8) assist the Fund in monitoring and reporting
to the Congress on the performance of Native Amer-
ican Financial Institutions in meeting the economic
development and housing credit needs of Native
Americans.
(b) PURCHASES AND SALES OF MORTGAGES AND
MORTGAGE-BACKED SECURITIES.—In the event that the
Secretary of Housing and Urban Development determines
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that the combined purchases by the Federal National
Mortgage Association and the Federal Home Loan Mort-
gage Corporation of residential one- to four-family Native
American nonqualifying mortgage loans originated by Na-
tive American Financial Institutions and other lenders (1)
in the second year following the establishment of the Orga-
nization total less than $20,000,000, unless it can be dem-
onstrated to the Secretary of Housing and Urban Develop-
ment that such purchase goal could not be met, or (2)
in any succeeding year, total less than that amount which
the Secretary of Housing and Urban Development has de-
termined and published as a reasonable Native American
mortgage purchase goal for such combined purchases by
the Federal National Mortgage Association and the Fed-
eral Home Loan Mortgage Corporation in such year; the
Organization shall thereafter be permitted to make such
purchases. In determining such goal, the Secretary shall
take into account the Fund’s study of Native American
lending and investment required by the Community Devel-
opment Banking and Financial Institutions Act of 1994.
The Organization, upon receiving written confirmation
from the Secretary of Housing and Urban Development,
is thereafter authorized, without restriction as to time,
to—
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(1) with respect to residential mortgage loans
originated by Native American Financial Institutions
which are qualifying mortgage loans—
(A) purchase such qualifying mortgage
loans;
(B) hold such qualifying mortgage loans
for a period of time not to exceed twelve
months; and
(C) resell such qualifying mortgage loans
to the Federal National Mortgage Association,
the Federal Home Loan Mortgage Corporation
or other secondary market participants, as pro-
vided in section 303(b);
(2) with respect to residential mortgage loans
originated by the Native American Financial Institu-
tions which are nonqualifying mortgage loans—
(A) purchase such nonqualifying mortgage
loans from the Native American Financial In-
stitutions for such term as the Organization
deems appropriate including the life of the
mortgage loan, provided that—
(i) the Organization has reasonable
assurance that the loan will be repaid with-
in the time agreed;
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(ii) the Native American Financial In-
stitution selling the loan retains a partici-
pation of not less than 10 per centum in
the mortgage;
(iii) the Native American Financial
Institution selling the loan agrees for such
period of time and under such cir-
cumstances as the Organization may re-
quire, to repurchase or replace the mort-
gage upon demand of the Organization in
the event that the loan is in default; or
(iv) that portion of the outstanding
principal balance of the loan which exceeds
80 per centum of the value of the property
securing such loan is guaranteed or in-
sured by a qualified insurer as determined
by the Organization; and
(B) issue mortgage-backed securities or
other forms of participants based on pools of
such nonqualifying mortgage loans, as provided
in section 303(c);
(3) to purchase, service, sell, lend on the secu-
rity of, and otherwise deal in (i) residential mort-
gages that are secured by a subordinate lien against
a one- or four-family residence that is the principal
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residence of the mortgagor; and (ii) residential mort-
gages that are secured by a subordinate lien against
a property comprising five or more family dwelling
units; and
(4) rights and remedies of the Organization, in-
cluding without limitation on the generality of the
foregoing any rights and remedies of the Organiza-
tion on, under, or with respect to any mortgage or
any obligation secured thereby, shall be immune
from impairment, limitation, or restriction by or
under (1) any law (except laws enacted by the Con-
gress expressly in limitation of this sentence) which
becomes effective after the acquisition by the Orga-
nization of the subject or property on, under, or with
respect to which such right or remedy arises or ex-
ists or would so arise or exist in the absence of such
law, or (2) any administrative or other action which
becomes effective after such acquisition. The Organi-
zation is authorized to conduct its business without
regard to any qualification or similar statute in the
District of Columbia, or any State or tribal jurisdic-
tion.
SEC. 203. NATIVE AMERICAN LENDING SERVICES GRANT.
To the extent funds are available as provided in sec-
tion 602, and the Fund and the Organization enter into
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a cooperative agreement for the Organization to provide
technical assistance and other services to Native American
Financial Institutions, such agreement shall provide that
the initial grant payment, anticipated to be $5,000,000,
shall be made when the initial Organization Board of Di-
rectors takes office. The payment of the balance of
$5,000,000 shall be made to the Organization not later
than one year from the date of the initial grant payment.
SEC. 204. AUDITS.
(a) INDEPENDENT AUDITS.—
(1) The Organization shall have an annual
independent audit made of its financial statements
by an independent public accountant in accordance
with generally accepted auditing standards.
(2) In conducting an audit under this sub-
section, the independent public accountant shall de-
termine and report on whether the financial state-
ments of the Organization (A) are presented fairly
in accordance with generally accepted accounting
principles, and (B) to the extent determined nec-
essary by the Director of the Office of Federal
Housing Enterprise Oversight of the Department of
Housing and Urban Development, comply with any
disclosure requirements imposed under section 401.
(b) GAO AUDITS.—
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(1) Beginning after the first two years of the
Organization’s operation, unless earlier required by
any other statute, grant or agreement, the pro-
grams, activities, receipts, expenditures, and finan-
cial transactions of the Organization shall be subject
to audit by the Comptroller General of the United
States under such rules and regulations as may be
prescribed by the Comptroller General.
(2) To carry out this subsection, the represent-
atives of the General Accounting Office shall have
access to all books, accounts, financial records, re-
ports, files and all other papers, things, or property
belonging to or in use by the Organization and nec-
essary to facilitate the audit, and they shall be af-
forded full facilities for verifying transactions with
the balances or securities held by depositaries, fiscal
agents, and custodians. The representatives of the
General Accounting Office shall also have access,
upon request to the Organization or any auditor for
an audit of the Organization under subsection (a),
to any books, accounts, financial records, reports,
files, or other papers, things, or property belonging
to or in use by the Organization and used in any
such audit and to any papers, records, files, and re-
ports of the auditor used in such an audit.
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(3) A report on each such audit shall be made
by the Comptroller General to the Congress.
(4) The Organization shall reimburse the Gen-
eral Accounting Office for the full cost of any such
audit as billed therefor by the Comptroller General.
SEC. 205. ANNUAL HOUSING AND ECONOMIC DEVELOP-
MENT REPORTS.
The Organization shall collect, maintain, and provide
to the Secretary of Housing and Urban Development, in
a form determined by the Secretary, such data relating
to its mortgages on housing consisting of one to four
dwelling units and of more than four dwelling units and
to its activities relating to economic development as the
Secretary deems appropriate.
SEC. 206. ADVISORY COUNCIL.
(a) ESTABLISHMENT.—The Board of Directors shall
establish an Advisory Council.
(b) MEMBERSHIP.—The Advisory Council shall con-
sist of thirteen members, one representative from each of
the twelve districts established by the Bureau of Indian
Affairs and one from Hawaii. Each member shall be ap-
pointed by the Board of Directors. No fewer than six of
the members of the Advisory Council shall have financial
expertise. No fewer than nine of the Advisory Council shall
be Native Americans. Each member shall be appointed for
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a term of four years; except that the initial council shall
be appointed as follows: four members will have a two-
year term, four members will have a three-year term, and
the remaining five members will have a four-year term,
all as designated by the Board of Directors at the time
of their appointments.
(c) DUTIES.—The Advisory Council shall advise the
Board of Directors on all policy matters of the Organiza-
tion. Through the regional representation of its members,
the Council shall provide information to the Board from
all sectors of the Native American community.
SEC. 301. CAPITALIZATION OF THE ORGANIZATION.
(a) CLASS A STOCK.—The Class A stock of the Orga-
nization shall be issued to Indian Tribes. The allocation
shall be by population as determined by the Secretary of
Housing and Urban Development in consultation with the
Secretary of the Interior. The class A stock shall have
such par value and other characteristics as the Organiza-
tion provides. The class A stock shall be vested with voting
rights, each share being entitled to one vote. The class
A stock is nontransferable only and it shall be surrendered
to the Organization in the event the holder is no longer
recognized as an Indian Tribe under this Act.
(b) CLASS B STOCK.—The Organization is author-
ized to issue class B stock evidencing capital contributions
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in the manner and amount, and subject to any limitations
on concentration of ownership, as may be established by
the Organization. When authorized to be issued, the class
B stock shall be available for purchase by investors, and
shall be entitled to such dividends as may be declared by
the Board of Directors in accordance with subsection (c).
The class B stock shall have such par value and other
characteristics as the Organization provides. The class B
stock shall be vested with voting rights, each share being
entitled to one vote. The class B stock is transferable only
on the books of the Organization.
(c) CHARGES AND FEES; EARNINGS.—
(1) The Organization may impose charges or
fees, which may be regarded as elements of pricing,
with the objective that all costs and expenses of the
operations of the Organization should be within its
income derived from such operations and that such
operations would be fully self-supporting.
(2) All earnings from the operations of the Or-
ganization shall be annually transferred to the gen-
eral surplus account of the Organization. At any
time, funds in the general surplus account may, in
the discretion of the Board of Directors, be trans-
ferred to reserves.
(d) CAPITAL DISTRIBUTIONS.—
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(1) Except as provided in paragraph (2), the
Organization may make such capital distributions
(as such term is defined in section 1303 of the Fed-
eral Housing Enterprises Financial Safety and
Soundness Act of 1992) as may be declared by the
Board of Directors. All capital distributions shall be
charged against the general surplus account of the
Organization.
(2) The Organization may not make any capital
distribution that would decrease the total capital (as
such term is defined in section 1303 of the Federal
Housing Enterprises Financial Safety and Sound-
ness Act of 1992) of the Organization to an amount
less than the capital level for the Organization estab-
lished under section 401 without prior written ap-
proval of the distribution by the Director of the Of-
fice of Federal Housing Enterprise Oversight of the
Department of Housing and Urban Development.
SEC. 302. OBLIGATIONS AND SECURITIES OF THE ORGANI-
ZATION.
(a) OBLIGATIONS.—The Organization is authorized
to borrow money, to give security, to pay interest or other
return, and to issue upon the approval of the Secretary
of the Treasury, notes, debentures, bonds, or other obliga-
tions having maturities and bearing such rate or rates of
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interest as may be determined by the Organization with
the approval of the Secretary of the Treasury, provided
that such borrowing and issuing of obligations qualifies
as a transaction by an issuer not involving any public of-
fering under section 4(2) of the Securities Act of 1933.
Obligations issued by the Organization under this section
shall not be obligations of, nor shall payment of the prin-
cipal of or interest on such obligations be guaranteed by,
the United States or any agency thereof, and the obliga-
tions shall so plainly state.
(b) RESALES OF QUALIFYING MORTGAGE LOANS.—
The sale or other disposition by the Organization of quali-
fying mortgage loans under section 202(b)(1) shall be
upon such terms and conditions relating to resale, repur-
chase, substitution, replacement or otherwise as the Orga-
nization may prescribe, except that the Organization may
not guarantee or insure the payment of any mortgage loan
sold under section 202(b)(1).
(c) SECURITIES BACKED BY NONQUALIFYING MORT-
GAGE LOANS.—Securities in the form of debt obligations
or trust certificates of beneficial interest, or both, and
based upon nonqualifying mortgage loans held and set
aside by the Organization under section 202(b)(2), may
be issued upon the approval of the Secretary of the Treas-
ury and shall have such maturities and shall bear such
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rate or rates of interest as may be determined by the Or-
ganization with the approval of the Secretary of the Treas-
ury provided that such issuing of securities qualifies as
a transaction by an issuer not involving any public offering
under section 4(2) of the Securities Act of 1933.
(d) PROHIBITIONS AND RESTRICTIONS; CREATION
OF LIENS AND CHARGES; RANK AND PRIORITY; CAUSES
OF ACTION TO ENFORCE; JURISDICTION; SERVICE OF
PROCESS.—The Organization may, by regulation or by
writing executed by the Organization, establish prohibi-
tions or restrictions upon the creation of indebtedness or
obligations of the Organization or of liens or charges upon
property of the Organization, including after-acquired
property, and create liens and charges, which may be
floating liens or charges, upon all or any part or parts
of the property of the Organization, including after-ac-
quired property. Such prohibitions, restrictions, liens, and
charges shall have such effect, including without limitation
on the generality of the foregoing such rank and priority,
as may be provided by regulations of the Organization or
by writings executed by the Organization, and shall create
causes of action which may be enforced by action in the
United States District Court for the District of Columbia
or in the United States district court for any judicial dis-
trict in which any of the property affected is located. Proc-
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ess in any such action may run to and be served in any
judicial district or any place subject to the jurisdiction of
the United States.
(e) VALIDITY
OF PROVISIONS; VALIDITY
OF RE-
STRICTIONS, PROHIBITIONS, LIENS, OR CHARGES.—The
provisions of this section and of any restriction, prohibi-
tion, lien, or charge referred to in subsection (b) shall be
fully effective notwithstanding any other law, including
without limitation on the generality of the foregoing any
law of or relating to sovereign immunity or priority.
SEC. 303. LIMIT ON TOTAL ASSETS AND LIABILITIES.
The aggregate of—
(1) the total equity of the Organization, includ-
ing all capital from any issuance of class B stock;
and
(2) the total liabilities of the Organization, in-
cluding all obligations issued or incurred by the Or-
ganization,
shall not at any time exceed $20,000,000.
SEC. 401. REGULATION, EXAMINATION, REPORTS—OFHEO.
(a) EFFECTIVE DATE OF SECTION.—The provisions
of this section shall be effective on the date the Secretary
of Housing and Urban Development makes the determina-
tion in accordance with the provisions of section 202(b),
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that the Organization is authorized to purchase and sell
mortgages and mortgage-backed securities.
(b) IN GENERAL.—The Organization shall be subject
to the regulatory authority of the Office of Federal Hous-
ing Enterprise Oversight of the Department of Housing
and Urban Development with respect to all matters relat-
ing to the financial safety and soundness of the Organiza-
tion.
(c) DUTY OF DIRECTOR OF OFHEO.—The duty of
the Director of the Office of Federal Housing Enterprise
Oversight shall be to ensure that the Organization is ade-
quately capitalized and operating safely as a Congression-
ally chartered body corporate.
(d) POWERS OF DIRECTOR OF OFHEO.—The Direc-
tor of the Office of Federal Housing Enterprise Oversight
shall have all of the exclusive powers granted the Director
under section 1313 (b), (d), and (e) of the Housing and
Community Development Act of 1992, as determined by
the Director to be necessary or appropriate to regulate the
operations of the Organization.
(e) REPORTS TO DIRECTOR OF OFHEO.—
(1) The Organization shall submit to the Direc-
tor of the Office of Federal Housing Enterprise
Oversight annual reports of the financial condition
and operations of the Organization which shall be in
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such form, contain such information, and be submit-
ted on such dates as the Director shall require.
(2) The Organization shall also submit to the
Director any other reports required by the Director
pursuant to section 1314 of the Housing and Com-
munity Development Act of 1992.
(3) Each report shall contain a declaration by
the president, vice president, treasurer, or any other
officer designated by the Board of Directors of the
Organization to make such declaration, that the re-
port is true and correct to the best of such officer’s
knowledge and belief.
(f) FUNDING OFHEO OVERSIGHT.—
(1) The Director of the Office of Federal Hous-
ing Enterprise Oversight shall assess and collect
from the Organization such amounts as are nec-
essary to reimburse the Office for the reasonable
costs and expenses of the activities undertaken by
the Office to carry out the duty of the Director
under paragraph (2), including the costs of examina-
tions and overhead expenses.
(2) Annual assessments imposed by the Direc-
tor shall be—
(A) imposed prior to October 1 of each
year;
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(B) collected at such time or times during
each assessment year as determined necessary
or appropriate by the Director;
(C) deposited into the Federal Housing
Enterprises Oversight Fund established by sec-
tion 1316(f) of the Housing and Community
Development Act of 1992; and
(D) available, to the extent provided in ap-
propriations Acts, for carrying out the Direc-
tor’s responsibilities under this section.
SEC. 402. REGULATION OF THE SECRETARY OF HUD.
Except for the authority of the Director of the Office
of Federal Housing Enterprise Oversight as provided in
section 401, the Secretary of Housing and Urban Develop-
ment shall have general regulatory power over the Organi-
zation and shall make such rules and regulations applica-
ble to the Organization as determined necessary or appro-
priate by the Secretary of Housing and Urban Develop-
ment to ensure that the purposes of this Act are accom-
plished.
SEC. 501. FORMATION OF NEW CORPORATION.
(a) IN GENERAL.—In order to continue the accom-
plishment of the purposes of this Act beyond the terms
of the Federal charter of the Organization, the Board of
Directors shall, not later than 10 years after the date of
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enactment of this Act, cause the formation of a new cor-
poration under the laws of any Tribe, any State of the
United States or the District of Columbia.
(b) POWERS
OF NEW CORPORATION NOT PRE-
SCRIBED.—Except as provided in this section, the new
corporation may have whatever corporate powers and at-
tributes permitted under the laws of the jurisdiction of its
incorporation which the Board of Directors shall deter-
mine, in its business judgment, to be appropriate.
(c) USE OF NAFSO NAME PROHIBITED.—The new
corporation may not use in any manner the names ‘‘Native
American Financial Services Organization’’, ‘‘NAFSO’’ or
any variation of either thereof.
SEC. 502. ADOPTION AND APPROVAL OF MERGER PLAN.
(a) IN GENERAL.—Not later than ten years after the
date of enactment of this Act, the Board of Directors shall
prepare, adopt, and submit to the Secretary of Housing
and Urban Development and the Secretary of the Treas-
ury for approval, a plan for merging the Congressionally
chartered Organization into the nonfederally chartered
new corporation.
(b) DESIGNATED MERGER DATE.—
(1) The Board of Directors shall establish the
designated merger date in the merger plan as a spe-
cific calendar date and time of day at which the