Text: H.R.5277 — 103rd Congress (1993-1994)All Information (Except Text)

There is one version of the bill.

Text available as:

  • TXT
  • PDF (PDF provides a complete and accurate display of this text.) Tip?

Shown Here:
Introduced in House (10/07/1994)

 
[Congressional Bills 103th Congress]
[From the U.S. Government Printing Office]
[H.R. 5277 Introduced in House (IH)]

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, 
                       Finance 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 Representatives 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 Native 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 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 supply of Housing 
in Native American communities throughout the United States by creating 
the Native American Financial Services Organization. It is anticipated 
that when the Native American Financial Services Organization is no 
longer a Congressionally chartered body corporate, it will function as 
a tribal, State or District of Columbia 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 lending needs of 
        Native Americans by assisting in the establishment and 
        organization of Native American Financial Institutions, 
        developing and providing financial expertise and technical 
        assistance to Native American Financial Institutions, including 
        assistance on how to overcome barriers to lending on Native 
        American lands, and the past and present impact of 
        discrimination;
            (2) to promote access to mortgage credit in Native American 
        communities in the Nation by increasing the liquidity of 
        financing for housing and improving the distribution of 
        investment capital available 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 
        development for Native American individuals and families, 
        primarily through Native American Financial Institutions; and
            (4) to provide ongoing assistance to the secondary market 
        for residential mortgages and economic development loans for 
        Native American individuals and families, Native American 
        Financial Institutions, 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.
    (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 Development Financial 
Institutions Fund established by the Community Development Banking and 
Financial Institutions Act of 1994.
    (e) The term ``Indian Tribe'' means any Indian tribe, band, nation, 
or other organized group or community, including 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 merger 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 Institution'' means a 
person (other than an individual) that--
            (1) qualifies as a ``community development financial 
        institution'' under the Community Development Banking and 
        Financial Institutions Act of 1994;
            (2) satisfies the requirements established by the Community 
        Development Banking and Financial Institutions Act of 1994 and 
        the Fund for applicants for assistance from the Fund;
            (3) demonstrates a special interest and expertise in 
        serving the primary economic development and mortgage lending 
        needs of the Native American community; and
            (4) demonstrates that it has the endorsement of the Native 
        American community it intends to serve.
    (i) The term ``new corporation'' means the corporation formed 
according to section 501.
    (j) The term ``nonqualifying mortgage loan'' means a mortgage loan 
deemed by the Organization to be of such quality, type, class or 
principal amount as to not meet the purchase standards of the Federal 
National Mortgage Association or the Federal Home Loan Mortgage 
Corporation in effect on September 30, 1994.
    (k) The term ``Organization'' means the Native American Financial 
Services Organization.
    (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 purchase standards of the Federal 
National Mortgage Association 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 Financial Services Organization 
        (``Organization''). The Organization shall have existence as a 
        Congressionally chartered body corporate until the designated 
        merger date, at which time its charter shall terminate, 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 Directors shall determine the 
        policies that govern the operations and management of the 
        Organization. The principal office of the Organization shall be 
        in the District of Columbia. For purposes of venue, 
        Organization shall be considered a resident of the District of 
        Columbia.
            (3)(A) The Board of Directors of the Organization 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 
        Organization. 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 bylaws 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 President, 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 
        the class A stockholders, two will have two-year terms, two 
        will have three-year terms, and the remaining 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 expertise in one or more 
        of the following areas--Native American housing and economic 
        development programs, financing in Native American communities, 
        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 President of the United States, 
        but only for the unexpired portion of the term.
            (ii) Any elected directorship that becomes vacant shall be 
        filled by appointment by the Board of 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 Organization 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 Organization 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;
            (3) to make and perform contracts, agreements, and 
        commitments, including entering into a cooperative 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 Organization to release or 
        waive in whole or in part, in advance or otherwise, any claim, 
        demand, or right of, by, or against the Organization, provided 
        that such settlement, adjustment, compromise, release or waiver 
        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, allowed, and paid, and 
        appoint, employ, and fix and provide for the compensation and 
        benefits of officers, employees, attorneys, and agents as the 
        Board of Directors determines reasonable and not inconsistent 
        with the provisions of this section;
            (9) to incorporate a new corporation under State, District 
        of Columbia, or tribal law, as provided in section 501;
            (10) to adopt a plan of merger, as provided in section 502;
            (11) to consummate the merger of the Organization into the 
        new corporation, as provided in section 503; and
            (12) to have succession until the designated merger date or 
        any earlier date on which the Organization surrenders its 
        Federal charter.
    (c) Investment of Funds; Designation as Depositary, 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 required to meet current operating expenses shall 
be invested in obligations of, or obligations guaranteed by, the United 
States or any agency thereof, or in obligations, participations or 
other instruments that are lawful investments 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 Organization 
there is outstanding a designation by the Secretary of the Treasury as 
a general or other depositary of public money, may be designated by the 
Organization as a depositary or custodian or as a fiscal or other agent 
of the Organization, and is hereby authorized to act as such 
depositary, custodian, or agent.
    (d) Actions by and Against the Organization; Jurisdiction; Removal 
of Actions; Attachment or Execution Issued Against the Organization.--
Notwithstanding 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 Organization, without the giving of any bond or 
        security, to the district court of the United States for the 
        district 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 FUNCTIONS.

    (a) Technical Assistance and Services.--The Organization is 
authorized to--
            (1) assist the Fund in the establishment and organization 
        of Native American Financial Institutions;
            (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 assistance on 
        how to overcome barriers to primary mortgage lending on Native 
        American lands, including issues related to trust lands, 
        discrimination, high operating costs, and inapplicability of 
        standard underwriting criteria;
            (4) assist the Fund in providing mortgage underwriting 
        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 Corporation, 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 Organization from 
        Indian tribes, Native American organizations, and others;
            (7) assist the Fund in its operation as an information 
        clearinghouse, providing information on financial practices to 
        Native American Financial Institutions; and
            (8) assist the Fund in monitoring and reporting to the 
        Congress on the performance of Native American 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 that the combined purchases by the Federal 
National Mortgage Association and the Federal Home Loan Mortgage 
Corporation of residential one- to four-family Native American 
nonqualifying mortgage loans originated by Native American Financial 
Institutions and other lenders (1) in the second year following the 
establishment of the Organization total less than $20,000,000, unless 
it can be demonstrated to the Secretary of Housing and Urban 
Development 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 determined and published as a 
reasonable Native American mortgage purchase goal for such combined 
purchases by the Federal National Mortgage Association and the Federal 
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 Development 
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--
            (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 provided in section 303(b);
            (2) with respect to residential mortgage loans originated 
        by the Native American Financial Institutions which are 
        nonqualifying mortgage loans--
                    (A) purchase such nonqualifying mortgage loans from 
                the Native American Financial Institutions 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 within 
                        the time agreed;
                            (ii) the Native American Financial 
                        Institution selling the loan retains a 
                        participation 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 circumstances as 
                        the Organization may require, to repurchase or 
                        replace the mortgage 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 insured 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 security of, 
        and otherwise deal in (i) residential mortgages that are 
        secured by a subordinate lien against a one- or four-family 
        residence that is the principal residence of the mortgagor; and 
        (ii) residential mortgages 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, including 
        without limitation on the generality of the foregoing any 
        rights and remedies of the Organization 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 Congress 
        expressly in limitation of this sentence) which becomes 
        effective after the acquisition by the Organization of the 
        subject or property on, under, or with respect to which such 
        right or remedy arises or exists 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 
        Organization is authorized to conduct its business without 
        regard to any qualification or similar statute in the District 
        of Columbia, or any State or tribal jurisdiction.

SEC. 203. NATIVE AMERICAN LENDING SERVICES GRANT.

    To the extent funds are available as provided in section 602, and 
the Fund and the Organization enter into 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 Directors 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 subsection, the 
        independent public accountant shall determine and report on 
        whether the financial statements of the Organization (A) are 
        presented fairly in accordance with generally accepted 
        accounting principles, and (B) to the extent determined 
        necessary 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.--
            (1) Beginning after the first two years of the 
        Organization's operation, unless earlier required by any other 
        statute, grant or agreement, the programs, activities, 
        receipts, expenditures, and financial 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 representatives of 
        the General Accounting Office shall have access to all books, 
        accounts, financial records, reports, files and all other 
        papers, things, or property belonging to or in use by the 
        Organization and necessary to facilitate the audit, and they 
        shall be afforded 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 reports of the 
        auditor used in such an audit.
            (3) A report on each such audit shall be made by the 
        Comptroller General to the Congress.
            (4) The Organization shall reimburse the General Accounting 
        Office for the full cost of any such audit as billed therefor 
        by the Comptroller General.

SEC. 205. ANNUAL HOUSING AND ECONOMIC DEVELOPMENT 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 consist 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 appointed 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 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 Organization. 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 Organization 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 Organization 
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 authorized to issue class B 
stock evidencing capital contributions 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 Organization 
        shall be annually transferred to the general surplus account of 
        the Organization. At any time, funds in the general surplus 
        account may, in the discretion of the Board of Directors, be 
        transferred to reserves.
    (d) Capital Distributions.--
            (1) Except as provided in paragraph (2), the Organization 
        may make such capital distributions (as such term is defined in 
        section 1303 of the Federal 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 Soundness Act of 1992) of the Organization to an 
        amount less than the capital level for the Organization 
        established under section 401 without prior written approval of 
        the distribution by the Director of the Office of Federal 
        Housing Enterprise Oversight of the Department of Housing and 
        Urban Development.

SEC. 302. OBLIGATIONS AND SECURITIES OF THE ORGANIZATION.

    (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 obligations having maturities and bearing such rate or 
rates of 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 offering 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 principal of or 
interest on such obligations be guaranteed by, the United States or any 
agency thereof, and the obligations shall so plainly state.
    (b) Resales of Qualifying Mortgage Loans.--The sale or other 
disposition by the Organization of qualifying mortgage loans under 
section 202(b)(1) shall be upon such terms and conditions relating to 
resale, repurchase, substitution, replacement or otherwise as the 
Organization 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 Mortgage 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 Treasury and shall have such 
maturities and shall bear such rate or rates of interest as may be 
determined by the Organization with the approval of the Secretary of 
the Treasury 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 prohibitions 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-acquired 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 district in which any of the property affected 
is located. Process 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 Restrictions, Prohibitions, 
Liens, or Charges.--The provisions of this section and of any 
restriction, prohibition, 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, including all 
        capital from any issuance of class B stock; and
            (2) the total liabilities of the Organization, including 
        all obligations issued or incurred by the Organization,
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 determination in accordance with the provisions 
of section 202(b), 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 Housing Enterprise 
Oversight of the Department of Housing and Urban Development with 
respect to all matters relating to the financial safety and soundness 
of the Organization.
    (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 adequately capitalized and operating safely as a 
Congressionally chartered body corporate.
    (d) Powers of Director of OFHEO.--The Director 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 Director of the 
        Office of Federal Housing Enterprise Oversight annual reports 
        of the financial condition and operations of the Organization 
        which shall be in such form, contain such information, and be 
        submitted 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 Community 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 report 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 Housing 
        Enterprise Oversight shall assess and collect from the 
        Organization such amounts as are necessary 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 examinations and 
        overhead expenses.
            (2) Annual assessments imposed by the Director shall be--
                    (A) imposed prior to October 1 of each year;
                    (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 section 1316(f) of the 
                Housing and Community Development Act of 1992; and
                    (D) available, to the extent provided in 
                appropriations Acts, for carrying out the Director'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 Development shall have general regulatory power 
over the Organization and shall make such rules and regulations 
applicable to the Organization as determined necessary or appropriate 
by the Secretary of Housing and Urban Development to ensure that the 
purposes of this Act are accomplished.

SEC. 501. FORMATION OF NEW CORPORATION.

    (a) In General.--In order to continue the accomplishment 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 enactment of this Act, cause the formation of a new 
corporation under the laws of any Tribe, any State of the United States 
or the District of Columbia.
    (b) Powers of New Corporation Not Prescribed.--Except as provided 
in this section, the new corporation may have whatever corporate powers 
and attributes permitted under the laws of the jurisdiction of its 
incorporation which the Board of Directors shall determine, 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 Treasury 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 specific calendar date and 
        time of day at which the merger of the Organization into the 
        new corporation shall be effective.
            (2) The Board of Directors may change the designated merger 
        plan by adopting an amended plan of merger.
            (3) Except as provided in paragraph (4), the designated 
        merger date in the merger plan or any amended merger plan shall 
        be not later than eleven years after the date of enactment of 
        this Act.
            (4) The Board of Directors may adopt an amended plan of 
        merger that designates a date later than eleven years after the 
        date of enactment of this Act if the Board of Directors submits 
        to both the Secretary of Housing and Urban Development and the 
        Secretary of the Treasury a report--
                    (A) stating that an orderly merger of the 
                Organization into the new corporation is not feasible 
                before the last date designated by the Board of 
                Directors;
                    (B) explaining why an orderly merger of the 
                Organization into the new corporation is not feasible 
                before the last date designated by the Board of 
                Directors;
                    (C) describing the steps that have been taken to 
                consummate an orderly merger of the Organization into 
                the new corporation not later than eleven years after 
                the date of enactment of this Act; and
                    (D) describing the steps that will be taken to 
                consummate an orderly and timely merger of the 
                Organization into the new corporation.
            (5) In no case shall any date designated by the Board of 
        Directors in an amended merger plan be later than 23 years 
        after the date of enactment of this Act.
            (6) In no case shall the consummation of an orderly and 
        timely merger of the Organization into the new corporation 
        occur later than thirteen years after the date of enactment of 
        this Act.
    (c) Governmental Approvals of Merger Plan Requried.--The merger 
plan or any amended merger plan shall not be effective until it has 
been approved by both the Secretary of Housing and Urban development 
and the Secretary of the Treasury.
    (d) Revision of Disapproved Merger Plan Required.--If either the 
Secretary of Housing and Urban Development or the Secretary of the 
Treasury, or both, disapprove the merger plan or any amended merger 
plan, the disapproving Secretary or Secretaries shall so notify the 
Organization and indicate the reasons for that disapproval, and the 
Organization shall submit to the Secretary or Secretaries an amended 
merger plan responsive to such reasons within thirty days from the date 
of notification of disapproval.
    (e) No Stockholder Approval of Merger Plan Required.--No approval 
or consent of the stockholders of the Organization shall be required to 
accomplish the merger of the Organization into the new corporation.

SEC. 503. CONSUMMATION OF MERGER.

    The Board of Directors shall cause the merger of the Organization 
into the new corporation to be accomplished according to the merger 
plan approved by the Secretary of Housing and Urban Development and the 
Secretary of the Treasury and all applicable requirements of the law of 
the jurisdiction of incorporation of the new corporation.

SEC. 504. TRANSITION.

    (a) Continuation of Rights, Duties, and Restrictions.--Except as 
provided in this section, the Organization shall, during the transition 
period, continue to have all of the rights, privileges, duties, and 
obligations, and be subject to all of the limitations and restrictions, 
set forth in this Act.
    (b) Collateralization of Outstanding Obligations.--The Organization 
shall provide for all debt obligations of the Organization which are 
outstanding on the day before the designated merger date to be secured 
as to principal and interest by obligations of the United States held 
in trust for the holders of such obligations. The collateralization and 
the trust shall be subject to such requirements, terms and conditions 
as the Secretary of the Treasury deems necessary or appropriate.
    (c) Issuance of New Obligations During Transition Period.--As 
needed to carry out the purposes for which it was formed, the 
Organization may, during the transition period, continue to issue 
obligations under section 303, provided that any new obligation issued 
during the transition period shall mature before the designated merger 
date.

SEC. 505. EFFECT OF MERGER.

    (a) Transfer of Assets and Liabilities.--
            (1) At the designated merger date, all property, real, 
        personal, and mixed, and all debts due on whatever account, and 
        all other choses in action and all and every other interest of 
        or belonging to or due to the Organization shall be transferred 
        to and vested in the new corporation without further act or 
        deed, and title to any property, whether real, personal, or 
        mixed, shall not in any way be impaired by reason of the 
        merger.
            (2) At the designated merger date, the new corporation 
        shall be responsible and liable for all obligations and 
        liabilities of the Organization and neither the rights of 
        creditors nor any liens upon the property of the Organization 
        shall be impaired by the merger.
    (b) Termination of the Organization and Its Federal Charter.--At 
the designated merger date, the surviving corporation of the merger 
shall be the new corporation, the Federal charter of the Organization 
shall terminate, and the separate existence of the Organization shall 
terminate.
    (c) References to the Organization in Acts of Congress.--From and 
after the designated merger date, any reference to the Organization in 
any Act of Congress or in any rule or regulation promulgated under any 
Act of Congress shall not be deemed to refer to the new corporation.
    (d) Savings Clause.--
            (1) The merger of the Organization into the new corporation 
        shall not abate any proceeding commenced by or against the 
        Organization before the designated merger date, except that the 
        new corporation shall be substituted for the Organization as a 
        party to any such proceeding as of the designated merger date.
            (2) All contracts and agreements to which the Organization 
        is a party and which are in effect on the day before the 
        designated merger date shall continue in effect according to 
        their terms, except that the new corporation shall be 
        substituted for the Organization as a party to those contracts 
        and agreements as of the designated merger date.
            (3) Nothing in this Act affects the trust responsibility of 
        the United States or any legal obligation or remedy arising 
        therefrom.

SEC. 601. AUTHORIZATION OF APPROPRIATIONS FOR NATIVE AMERICAN FINANCIAL 
              INSTITUTIONS.

    There is authorized to be appropriated, without fiscal year 
limitation, to the Fund $20,000,000 to provide financial assistance to 
Native American Financial Institutions. To the extent that a Native 
American Financial Institution receives a portion of such 
appropriation, such monies shall not be considered as matching funds 
required of the Native American Financial Institution under the 
Community Development Banking and Financial Institutions Act.

SEC. 602. AUTHORIZATION OF APPROPRIATIONS FOR ORGANIZATION.

    The Secretary of Housing and Urban Development is authorized, to 
the extent and in the amounts provided in advance in appropriation 
Acts, to provide up to $10,000,000 to the Fund for the funding of a 
cooperative agreement to be entered into by the Fund and the 
Organization for the technical assistance and other services to be 
provided by the Organization to the Native American Financial 
Institutions.
                                 <all>
HR 5277 IH----2
HR 5277 IH----3