View all text of Subchapter III [§ 151 - § 167]
§ 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
(b) Investment of collections from irrigation projects and power operations on irrigation projectsThe 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
1 So in original. Probably should be “earnings”.
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), 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.2
2 See References in Text note below.
(d) Trust responsibilities of Secretary of the InteriorThe 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.
(June 24, 1938, ch. 648, § 1, 52 Stat. 1037; Pub. L. 98–146, title I, Nov. 4, 1983, 97 Stat. 929; Pub. L. 101–644, title III, § 302, Nov. 29, 1990, 104 Stat. 4667; Pub. L. 103–412, title I, §§ 101, 103(b), (c), Oct. 25, 1994, 108 Stat. 4240, 4241.)