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U.S. Code as of:
01/19/04
Section 162a. Deposit of tribal funds in banks; bond or collateral security; investments; collections from irrigation projects; affirmative action required
(a) Deposit of tribal trust funds in banks
The Secretary of the Interior is hereby authorized in his
discretion, and under such rules and regulations as he may
prescribe, to withdraw from the United States Treasury and to
deposit in banks to be selected by him the common or community
funds of any Indian tribe which are, or may hereafter be, held in
trust by the United States and on which the United States is not
obligated by law to pay interest at higher rates than can be
procured from the banks. The said Secretary is also authorized,
under such rules and regulations as he may prescribe, to withdraw
from the United States Treasury and to deposit in banks to be
selected by him the funds held in trust by the United States for
the benefit of individual Indians: Provided, That no individual
Indian money shall be deposited in any bank until the bank shall
have agreed to pay interest thereon at a reasonable rate, subject,
however, to the regulations of the Board of Governors of the
Federal Reserve System in the case of member banks, and of the
Board of Directors of the Federal Deposit Insurance Corporation in
the case of insured nonmember banks, except that the payment of
interest may be waived in the discretion of the Secretary of the
Interior on any deposit which is payable on demand: Provided
further, That no tribal or individual Indian money shall be
deposited in any bank until the bank shall have furnished an
acceptable bond or pledged collateral security therefor in the form
of any public-debt obligations of the United States and any bonds,
notes, or other obligations which are unconditionally guaranteed as
to both interest and principal by the United States, except that no
such bond or collateral shall be required to be furnished by any
such bank which is entitled to the benefits of section 12B of the
Federal Reserve Act, with respect to any deposits of such tribal or
individual funds to the extent that such deposits are insured under
such section: Provided, however, That nothing contained in this
section, or in section 12B of the Federal Reserve Act, shall
operate to deprive any Indian having unrestricted funds on deposit
in any such bank of the full protection afforded by section 12B of
the Federal Reserve Act, irrespective of any interest such Indian
may have in any restricted Indian funds on deposit in the same bank
to the credit of a disbursing agent of the United States. For the
purpose of this section and said Act, said unrestricted funds shall
constitute a separate and distinct basis for an insurance claim:
Provided further, That the Secretary of the Interior, if he deems
it advisable and for the best interest of the Indians, may invest
the trust funds of any tribe or individual Indian in any
public-debt obligations of the United States and in any bonds,
notes, or other obligations which are unconditionally guaranteed as
to both interest and principal by the United States: And provided
further, That the foregoing shall apply to the funds of the Osage
Tribe of Indians, and the individual members thereof, only with
respect to the deposit of such funds in banks.
(b) Investment of collections from irrigation projects and power
operations on irrigation projects
The Secretary of the Interior is authorized to invest any
operation and maintenance collections from Indian irrigation
projects and revenue collections from power operations on Indian
irrigation projects in -
(1) any public-debt obligations of the United States;
(2) any bonds, notes, or other obligations which are
unconditionally guaranteed as to both principal and interest by
the United States; or
(3) any obligations which are lawful investments for trust
funds under the authority or control of the United States.
The Secretary of the Interior is authorized to use earning (!1)
from investments under this subsection to pay operation and
maintenance expenses of the project involved.
(c) Investment of tribal trust funds in public debt obligations
(1) Notwithstanding subsection (a) of this section, the Secretary
of the Interior, at the request of any Indian tribe, in the case of
trust funds of such tribe, or any individual Indian, in the case of
trust funds of such individual, is authorized to invest such funds,
or any part thereof, in guaranteed or public debt obligations of
the United States or in a mutual fund, otherwise known as an
open-ended diversified investment management company if -
(A) the portfolio of such mutual fund consists entirely of
public-debt obligations of the United States, or bonds, notes, or
other obligations which are unconditionally guaranteed as to both
interest and principal by the United States, or a combination
thereof;
(B) the trust funds to be invested exceed $50,000;
(C) the mutual fund is registered by the Securities and
Exchange Commission; and
(D) the Secretary is satisfied with respect to the security and
protection provided by the mutual fund against loss of the
principal of such trust funds.
(2) The Secretary, as a condition to complying with a request
pursuant to paragraph (1) of this subsection, is authorized to
require such tribe or individual Indian, as the case may be, to
enter into an agreement with the Secretary for the purpose of
relieving the United States of any liability in connection with the
interest, or amount thereof, payable in connection with such trust
funds so invested during the period of that investment.
(3) Investments pursuant to paragraph (1) of this subsection
shall be deemed to be the same as cash or a bank deposit for
purposes of section 955 of this title.
(d) Trust responsibilities of Secretary of the Interior
The Secretary's proper discharge of the trust responsibilities of
the United States shall include (but are not limited to) the
following:
(1) Providing adequate systems for accounting for and reporting
trust fund balances.
(2) Providing adequate controls over receipts and
disbursements.
(3) Providing periodic, timely reconciliations to assure the
accuracy of accounts.
(4) Determining accurate cash balances.
(5) Preparing and supplying account holders with periodic
statements of their account performance and with balances of
their account which shall be available on a daily basis.
(6) Establishing consistent, written policies and procedures
for trust fund management and accounting.
(7) Providing adequate staffing, supervision, and training for
trust fund management and accounting.
(8) Appropriately managing the natural resources located within
the boundaries of Indian reservations and trust lands.
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