§ 941i. — Tribal trust funds.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 25USC941i]
TITLE 25--INDIANS
CHAPTER 14--MISCELLANEOUS
SUBCHAPTER XLIII-A--CATAWBA INDIAN TRIBE OF SOUTH CAROLINA; RESTORATION
OF FEDERAL TRUST RELATIONSHIP
Sec. 941i. Tribal trust funds
(a) Purposes of trust funds
All funds paid pursuant to section 941c of this title, except for
payments made pursuant to section 941d(g) of this title, shall be
deposited with the Secretary in trust for the benefit of the Tribe.
Separate trust funds shall be established for the following purposes:
economic development, land acquisition, education, social services and
elderly assistance, and per capita payments. Except as provided in this
section, the Tribe, in consultation with the Secretary, shall determine
the share of settlement payments to be deposited in each Trust Fund, and
define, consistently with the provisions of this section, the purposes
of each Trust Fund and provisions for administering each, specifically
including provisions for periodic distribution of current and
accumulated income, and for invasion and restoration of principal.
(b) Outside management option
(1) The Tribe, in consultation with and subject to the approval of
the Secretary, as set forth in this section, is authorized to place any
of the Trust Funds under professional management, outside the Department
of the Interior.
(2) If the Tribe elects to place any of the Trust Funds under
professional management outside the Department of the Interior, it may
engage a consulting or advisory firm to assist in the selection of an
independent professional investment management firm, and it shall
engage, with the approval of the Secretary, an independent investment
management firm of proven competence and experience established in the
business of counseling large endowments, trusts, or pension funds.
(3) The Secretary shall have 45 days to approve or reject any
independent investment management firm selected by the Tribe. If the
Secretary fails to approve or reject the firm selected by the Tribe
within 45 days, the investment management firm selected by the Tribe
shall be deemed to have been approved by the Secretary.
(4) Secretarial approval of an investment management firm shall not
be unreasonably withheld, and any Secretarial disapproval of an
investment management firm shall be accompanied by a detailed
explanation setting forth the Secretary's reasons for such disapproval.
(5)(A) For funds placed under professional management, the Tribe, in
consultation with the Secretary and its investment manager, shall
develop--
(i) current operating and long-term capital budgets; and
(ii) a plan for managing, investing, and distributing income and
principal from the Trust Funds to match the requirements of the
Tribe's operating and capital budgets.
(B) For each Trust Fund which the Tribe elects to place under
outside professional management, the investment plan shall provide for
investment of Trust Fund assets so as to serve the purposes described in
this section and in the Trust Fund provisions which the Tribe shall
establish in consultation with the Secretary and the independent
investment management firm.
(C) Distributions from each Trust Fund shall not exceed the limits
on the use of principal and income imposed by the applicable provisions
of this subchapter for that particular Trust Fund.
(D)(i) The Tribe's investment management plan shall not become
effective until approved by the Secretary.
(ii) Upon submission of the plan by the Tribe to the Secretary for
approval, the Secretary shall have 45 days to approve or reject the
plan. If the Secretary fails to approve or disapprove the plan within 45
days, the plan shall be deemed to have been approved by the Secretary
and shall become effective immediately.
(iii) Secretarial approval of the plan shall not be unreasonably
withheld and any secretarial rejection of the plan shall be accompanied
by a detailed explanation setting forth the Secretary's reasons for
rejecting the plan.
(E) Until the selection of an established investment management firm
of proven competence and experience, the Tribe shall rely on the
management, investment, and administration of the Trust Funds by the
Secretary pursuant to the provisions of this section.
(c) Transfer of trust funds; exculpation of Secretary
Upon the Secretary's approval of the Tribe's investment management
firm and an investment management plan, all funds previously deposited
in trust funds held by the Secretary and all funds subsequently paid
into the trust funds, which are chosen for outside management, shall be
transferred to the accounts established by an investment management firm
in accordance with the approved investment management plan. The
Secretary shall be exculpated by the Tribe from liability for any loss
of principal or interest resulting from investment decisions made by the
investment management firm. Any Trust Fund transferred to an investment
management firm shall be returned to the Secretary upon written request
of the Tribe, and the Secretary shall manage such funds for the benefit
of the Tribe.
(d) Land Acquisition Trust
(1) The Secretary shall establish and maintain a Catawba Land
Acquisition Trust Fund, and until the Tribe engages an outside firm for
investment management of this trust fund, the Secretary shall manage,
invest, and administer this trust fund. The original principal amount of
the Land Acquisition Trust Fund shall be determined by the Tribe in
consultation with the Secretary.
(2) The principal and income of the Land Acquisition Trust Fund may
be used for the purchase and development of Reservation and non-
Reservation land pursuant to the Settlement Agreement, costs related to
land acquisition, and costs of construction of infrastructure and
development of the Reservation and non-Reservation land.
(3)(A) Upon acquisition of the maximum amount of land allowed for
expansion of the Reservation, or upon request of the Tribe and approval
of the Secretary pursuant to the Secretarial approval provisions set
forth in subsection (b)(5)(D) of this section, all or part of the
balance of this trust fund may be merged into one or more of the
Economic Development Trust Fund, the Education Trust Fund, or the Social
Services and Elderly Assistance Trust Fund.
(B) Alternatively, at the Tribe's election, the Land Acquisition
Trust Fund may remain in existence after all the Reservation land is
purchased in order to pay for the purchase of non-Reservation land.
(4)(A) The Tribe may pledge or hypothecate the income and principal
of the Land Acquisition Trust Fund to secure loans for the purchase of
Reservation and non-Reservation lands.
(B) Following the effective date of this subchapter and before the
final annual disbursement is made as provided in section 941c of this
title, the Tribe may pledge or hypothecate up to 50 percent of the
unpaid annual installments required to be paid to this Trust Fund, the
Economic Development Trust Fund and the Social Services and Elderly
Assistance Trust Fund by section 941c of this title and by section 5 of
the Settlement Agreement, to secure loans to finance the acquisition of
Reservation or non-Reservation land or infrastructure improvements on
such lands.
(e) Economic Development Trust
(1) The Secretary shall establish and maintain a Catawba Economic
Development Trust Fund, and until the Tribe engages an outside firm for
investment management of this Trust Fund, the Secretary shall manage,
invest, and administer this Trust Fund. The original principal amount of
the Economic Development Trust Fund shall be determined by the Tribe in
consultation with the Secretary. The principal and income of this Trust
Fund may be used to support tribal economic development activities,
including but not limited to infrastructure improvements and tribal
business ventures and commercial investments benefiting the Tribe.
(2) The Tribe, in consultation with the Secretary, may pledge or
hypothecate future income and up to 50 percent of the principal of this
Trust Fund to secure loans for economic development. In defining the
provisions for administration of this Trust Fund, and before pledging or
hypothecating future income or principal, the Tribe and the Secretary
shall agree on rules and standards for the invasion of principal and for
repayment or restoration of principal, which shall encourage
preservation of principal, and provide that, if feasible, a portion of
all profits derived from activities funded by principal be applied to
repayment of the Trust Fund.
(3) Following the effective date of this subchapter and before the
final annual disbursement is made as provided in section 941c of this
title, the Tribe may pledge or hypothecate up to 50 percent of the
unpaid annual installments required to be paid by section 941c of this
title and by section 5 of the Settlement Agreement to secure loans to
finance economic development activities of the Tribe, including (but not
limited to) infrastructure improvements on Reservation and non-
Reservation lands.
(4) If the Tribe develops sound lending guidelines approved by the
Secretary, a portion of the income from this Trust Fund may also be used
to fund a revolving credit account for loans to support tribal
businesses or business enterprises of tribal members.
(f) Education Trust
The Secretary shall establish and maintain a Catawba Education Trust
Fund, and until the Tribe engages an outside firm for investment
management of this Trust Fund, the Secretary shall manage, invest, and
administer this Trust Fund. The original principal amount of this Trust
Fund shall be determined by the Tribe in consultation with the
Secretary; subject to the requirement that upon completion of all
payments into the Trust Funds, an amount equal to at least \1/3\ of all
State, local, and private contributions made pursuant to the Settlement
Agreement shall have been paid into the Education Trust Fund. Income
from this Trust Fund shall be distributed in a manner consistent with
the terms of the Settlement Agreement. The principal of this Trust Fund
shall not be invaded or transferred to any other Trust Fund, nor shall
it be pledged or encumbered as security.
(g) Social Services and Elderly Assistance Trust
(1) The Secretary shall establish and maintain a Catawba Social
Services and Elderly Assistance Trust Fund and, until the Tribe engages
an outside firm for investment management of this Trust Fund, the
Secretary shall manage, invest, and administer the Social Services and
Elderly Assistance Trust Fund. The original principal amount of this
Trust Fund shall be determined by the Tribe in consultation with the
Secretary.
(2) The income of this Trust Fund shall be periodically distributed
to the Tribe to support social services programs, including (but not
limited to) housing, care of elderly, or physically or mentally disabled
Members, child care, supplemental health care, education, cultural
preservation, burial and cemetery maintenance, and operation of tribal
government.
(3) The Tribe, in consultation with the Secretary, shall establish
eligibility criteria and procedures to carry out this subsection.
(h) Per Capita Payment Trust Fund
(1) The Secretary shall establish and maintain a Catawba Per Capita
Payment Trust Fund in an amount equal to 15 percent of the settlement
funds paid pursuant to section 5 of the Settlement Agreement. Until the
Tribe engages an outside firm for investment management of this Trust
Fund, the Secretary shall manage, invest, and administer the Catawba Per
Capita Payment Trust Fund.
(2) Each person (or their estate) whose name appears on the final
base membership roll of the Tribe published by the Secretary pursuant to
section 941e(c) of this title will receive a one-time, non-recurring
payment from this Trust Fund.
(3) The amount payable to each member \1\ shall be determined by
dividing the trust principal and any accrued interest thereon by the
number of Members on the final base membership roll.
---------------------------------------------------------------------------
\1\ So in original. Probably should be capitalized.
---------------------------------------------------------------------------
(4)(A) Subject to the provisions of this paragraph, each enrolled
member \1\ who has reached the age of 21 years on the date the final
roll is published shall receive the payment on the date of distribution,
which shall be as soon as practicable after date of publication of the
final base membership roll. Adult Members shall be paid their pro rata
share of this Trust Fund on the date of distribution unless they elect
in writing to leave their pro rata share in the Trust Fund, in which
case such share shall not be distributed.
(B) The pro rata share of adult Members who elect not to withdraw
their payment from this Trust Fund shall be managed, invested and
administered, together with the funds of Members who have not attained
the age of 21 years on the date the final base membership roll is
published, until such Member requests in writing that their pro rata
share be distributed, at which time such Member's pro rata share shall
be paid, together with the net income of the Trust Fund allocable to
such Member's share as of the date of distribution.
(C) No member \1\ may elect to have their pro rata share managed by
this Trust Fund for a period of more than 21 years after the date of
publication of the final base membership roll.
(5)(A) Subject to the provisions of this paragraph, the pro rata
share of any Member who has not attained the age of 21 years on the date
the final base membership roll is published shall be managed, invested
and administered pursuant to the provisions of this section until such
Member has attained the age of 21 years, at which time such Member's pro
rata share shall be paid, together with the net income of the Trust Fund
allocable to such Member's share as of the date of payment. Such Members
shall be paid their pro rata share of this Trust Fund on the date they
attain 21 years of age unless they elect in writing to leave their pro
rata share in the Trust Fund, in which case such share shall not be
distributed.
(B) The pro rata share of such Members who elect not to withdraw
their payment from this Trust Fund shall be managed, invested and
administered, together with the funds of members \1\ who have not
attained the age of 21 years on the date the final base membership roll
is published, until such Member requests in writing that their pro rata
share be distributed, at which time such Member's pro rata share shall
be paid, together with the net income of the Trust Fund allocable to
such Member's share as of the date of distribution.
(C) No Member may elect to have their pro rata share retained and
managed by this Trust Fund beyond the expiration of the period of 21
years after the date of publication of the final base membership roll.
(6) After payments have been made to all Members entitled to receive
payments, this Trust Fund shall terminate, and any balance remaining in
this Trust Fund shall be merged into the Economic Development Trust
Fund, the Education Trust Fund, or the Social Services and Elderly
Assistance Trust Fund, as the Tribe may determine.
(i) Duration of trust funds
Subject to the provisions of this section and with the exception of
the Catawba Per Capita Payment Trust Fund, the Trust Funds established
in accordance with this section shall continue in existence so long as
the Tribe exists and is recognized by the United States. The principal
of these Trust Funds shall not be invaded or distributed except as
expressly authorized in this subchapter or in the Settlement Agreement.
(j) Transfer of money among trust funds
The Tribe, in consultation with the Secretary, shall have the
authority to transfer principal and accumulated income between Trust
Funds only as follows:
(1) Funds may be transferred among the Catawba Economic
Development Trust Fund, the Catawba Land Acquisition Trust Fund, and
the Catawba Social Services and Elderly Assistance Trust Fund, and
from any of those three Trust Funds into the Catawba Education Trust
Fund; except, that the mandatory share of State, local, and private
sector funds invested in the original corpus of the Catawba
Education Trust Fund shall not be transferred to any other Trust
Fund.
(2) Any Trust Fund, except for the Catawba Education Trust Fund,
may be dissolved by a vote of two-thirds of those Members eligible
to vote, and the assets in such Trust Fund shall be transferred to
the remaining Trust Funds; except, that (A) no assets shall be
transferred from any of the Trust Funds into the Catawba Per Capita
Payment Trust Fund, and (B) the mandatory share of State, local and
private funds invested in the original corpus of the Catawba
Education Trust Fund may not be transferred or used for any non-
educational purposes.
(3) The dissolution of any Trust Fund shall require the approval
of the Secretary pursuant to the Secretarial approval provisions set
forth in subsection (b)(5)(D) of this section.
(k) Trust fund accounting
(1) The Secretary shall account to the Tribe periodically, and at
least annually, for all Catawba Trust Funds being managed and
administered by the Secretary. The accounting shall--
(A) identify the assets in which the Trust Funds have been
invested during the relevant period;
(B) report income earned during the period, distinguishing
current income and capital gains;
(C) indicate dates and amounts of distributions to the Tribe,
separately distinguishing current income, accumulated income, and
distributions of principal; and
(D) identify any invasions or repayments of principal during the
relevant period and record provisions the Tribe has made for
repayment or restoration of principal.
(2)(A) Any outside investment management firm engaged by the Tribe
shall account to the Tribe and separately to the Secretary at periodic
intervals, at least quarterly. Its accounting shall--
(i) identify the assets in which the Trust Funds have been
invested during the relevant period;
(ii) report income earned during the period, separating current
income and capital gains;
(iii) indicate dates and amounts of distributions to the Tribe,
distinguishing current income, accumulated income, and distributions
of principal; and
(iv) identify any invasions or repayments of principal during
the relevant period and record provisions the Tribe has made for
repayment or restoration of principal.
(B) Prior to distributing principal from any Trust Fund, the
investment management firm shall notify the Secretary of the proposed
distribution and the Tribe's proposed use of such funds, following
procedures to be agreed upon by the investment management firm, the
Secretary, and the Tribe. The Secretary shall have 15 days within which
to object in writing to any such invasion of principal. Failure to
object will be deemed approval of the distribution.
(C) All Trust Funds held and managed by any investment management
firm shall be audited annually by a certified public accounting firm
approved by the Secretary, and a copy of the annual audit shall be
submitted to the Tribe and to the Secretary within four months following
the close of the Trust Funds' fiscal year.
(l) Replacement of investment management firm and modification of
investment management plan
The Tribe shall not replace the investment management firm approved
by the Secretary without prior written notification to the Secretary and
approval by the Secretary of any investment management firm chosen by
the Tribe as a replacement. Such Secretarial approval shall be given or
denied in accordance with the Secretarial approval provisions contained
in subsection (b)(5)(D) of this section. The Tribe and its investment
management firm shall also notify the Secretary in writing of any
revisions in the investment management plan which materially increase
investment risk or significantly change the investment management plan,
or the agreement, made in consultation with the Secretary pursuant to
which the outside management firm was retained.
(m) Trust funds not counted for certain purposes; use as matching funds
None of the funds, assets, income, payments, or distributions from
the Trust Funds established pursuant to this section shall at any time
affect the eligibility of the Tribe or its Members for, or be used as a
basis for denying or reducing funds to the Tribe or its Members under
any Federal, State, or local program. Distributions from these Trust
Funds may be used as matching funds, where appropriate, for Federal
grants or loans.
(Pub. L. 103-116, Sec. 11, Oct. 27, 1993, 107 Stat. 1127.)
References in Text
For the effective date of this subchapter, referred to in subsecs.
(d)(4)(B) and (e)(3), see Effective Date note set out under section 941
of this title.
Section Referred to in Other Sections
This section is referred to in sections 941a, 941c, 941e of this
title.
