§ 1629d. — Dissenters rights.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 43USC1629d]
TITLE 43--PUBLIC LANDS
CHAPTER 33--ALASKA NATIVE CLAIMS SETTLEMENT
Sec. 1629d. Dissenters rights
(a) Coverage
(1) Notwithstanding the laws of the State, if the shareholders of a
Native Corporation--
(A) fail to approve an amendment authorized by section 1629c(b)
of this title to terminate alienability restrictions, a shareholder
who voted for the amendment may demand payment from the corporation
for all of his or her shares of Settlement Common Stock; or
(B) approve an amendment authorized by section 1629c(d) of this
title to continue alienability restrictions without issuing
alienable common stock pursuant to section 1629c(d)(6) of this
title, a shareholder who voted against the amendment may demand
payment from the corporation for all of his or her shares of
Settlement Common Stock.
(2)(A) A demand for payment made pursuant to paragraph (1)(A) shall
be honored only if at the same time as the vote giving rise to the
demand, the shareholders of the corporation approved a resolution
providing for the purchase of Settlement Common Stock from dissenting
shareholders.
(B) A demand for payment made pursuant to paragraph (1)(B) shall be
honored.
(b) Relationship to State procedure
(1) Except as otherwise provided in this section, the laws of the
State governing the right of a dissenting shareholder to demand and
receive payment for his or her shares shall apply to demands for payment
honored pursuant to subsection (a)(2) of this section.
(2) The board of directors of a Native Corporation may approve a
resolution to provide a dissenting shareholder periods of time longer
than those provided under the laws of the State to take actions required
to demand and receive payment for his or her shares.
(c) Valuation of stock
(1) Prior to a vote described in subsection (a)(1) of this section,
the board of directors of a Native Corporation may approve a resolution
to provide that one or more of the following conditions will apply in
the event a demand for payment is honored pursuant to subsection (a)(2)
of this section--
(A) the Settlement Common Stock shall be valued as restricted
stock; and
(B) the value of--
(i) any land conveyed to the corporation pursuant to section
1613(h)(1) of this title or any other land used as a cemetery;
and
(ii) the surface estate of any land that is both--
(I) exempt from real estate taxation pursuant to section
1636(d)(1)(A) of this title, and
(II) used by the shareholders of the corporation for
subsistence uses (as defined in section 3113 of title 16);
or
(iii) any land or interest in land which the board of
directors believes to be only of speculative value;
shall be excluded by the shareholder making the demand for payment,
the corporation purchasing the Settlement Common Stock of the
shareholder, and any court determining the fair value of the shares
of Settlement Common Stock to be purchased.
(2) No person shall have a claim against a Native Corporation or its
board of directors based upon the failure of the board to approve a
resolution authorized by this subsection.
(d) Form of payment
(1) Prior to a vote described in subsection (a)(1) of this section,
the board of directors of a Native Corporation may approve a resolution
to provide that in the event a demand for payment is honored pursuant to
subsection (a)(2) of this section payments to each dissenting
shareholder shall be made by the corporation through the issuance of a
negotiable note in the principal amount of the payment due, which shall
be secured by--
(A) a payment bond issued by an insurance company or financial
institution;
(B) the deposit in escrow of securities or property having a
fair market value equal to at least 125 per centum of the face value
of the note; or
(C) a lien upon real property interests of the corporation
valued at 125 percent or more of the face amount of the note, except
that no such lien shall be applicable to--
(i) land conveyed to the corporation pursuant to section
1613(h)(1) of this title, or any other land used as a cemetery;
(ii) the percentage interest in the corporation's timber
resources and subsurface estate that exceeds its percentage
interest in revenues from such property under section 1606(i) of
this title; or
(iii) the surface estate of land that is both--
(I) exempt from real estate taxation pursuant to section
1636(d)(1)(A) of this title; and
(II) used by the shareholders of the corporation for
subsistence uses (as defined in section 3113 of title 16),
unless the Board of Directors \1\ of the corporation acts so as to
make such lien applicable to such surface estate.
---------------------------------------------------------------------------
\1\ So in original. Probably should not be capitalized.
(2) A note issued pursuant to paragraph (1) shall provide that--
(A) interest shall be paid semi-annually, beginning as of the
date on which the vote described in subsection (a)(1) of this
section occurred, at the rate applicable on such date to obligations
of the United States having a maturity date of one year, and
(B) the principal amount and accrued interest on such note shall
be payable to the holder at a time specified by the corporation but
in no event later than the date that is five years after the date of
the vote described in subsection (a)(1) of this section.
(e) Dividend adjustment
(1) The cash payment made pursuant to subsection (a) of this section
or the principal amount of a note issued pursuant to subsection (d) of
this section to a dissenting shareholder shall be reduced by the amount
of dividends paid to such shareholder with respect to his or her
Settlement Common Stock after the date of the vote described in
subsection (a)(1) of this section.
(2) Upon receipt of a cash payment pursuant to subsection (a) of
this section or a note pursuant to subsection (d) of this section, a
dissenting shareholder shall no longer have an interest in the shares of
Settlement Common Stock or in the Native Corporation.
(Pub. L. 92-203, Sec. 38, as added Pub. L. 100-241, Sec. 9, Feb. 3,
1988, 101 Stat. 1802.)
Section Referred to in Other Sections
This section is referred to in sections 1629b, 1629c of this title.
