therein to a third party without the consent of the lender. (m) Sales and exchanges. The lender, with the approval of the Commissioner or his authorized representative, may grant borrowers permission to sell or exchange cattle for which repayment has not been made, provided the interests of the lender in the loan will not be jeopardized. Such sales shall be for the account of the borrower. (n) Repayments. Repayments shall be made to an authorized representative of the lender, who shall issue receipts for all repayments. When it is impracticable for borrowers to repay their loans in cattle because of the death of the cattle or for some other cause, the lender may accept from borrowers, their heirs, successors, or assigns, cash in lieu thereof for the purchase of suitable replacements. (0) Number loaned. Not less than 10 head of beef cattle of breeding quality, nor more than 50 head, may be loaned to any one individual borrower or family group. (p) Preference. Preference shall be given to applicants in the following order: (1) Applicants who have herds of less than 50 head of beef breeding cattle who are equipped to handle up to 50 head. Loans to this group in sufficient numbers to bring their herds up to 50 head of breeding cattle shall receive priority. (2) Applicants who have not previously participated in the program, but who are equipped to handle a beef cattle enterprise. (3) Applicants who have 50 head or more but less than 100 head of beef breeding cattle. This group of applicants shall not receive loans until all applicants having less than 50 head of breeding cattle who are equipped to handle a 50-head breeding unit, have received loans. (q) Restrictions. Loans to applicants owning 100 head or more shall not be approved without the consent of the Commissioner. Applicants who do not maintain or increase their herds after having participated in the program shall not receive loans of additional cattle until such time as all other applications have been considered, and then only upon a showing that they will improve their management practices, which showing shall be satisfactory to the Commissioner or his authorized representative. (r) Dairy cattle. Applicants for dairy cattle to supply milk for home consumption shall receive preference over applications for dairy cattle to undertake commercial dairy operations. Dairy cattle may be loaned in units of less than 10 head. Not more than 15 head of dairy cattle may be loaned to any one individual or family group without the consent of the Commissioner. (s) Loans to 4-H Club members. Indian boys and girls enrolled in 4-H Club work may receive loans of cattle for use in connection with their club projects, in numbers and under such conditions as the Commissioner or his authorized representative may approve. [12 F. R. 3954, as amended at 13 F. R. 2376] 27.19 27.20 Records and reports. Audits. Business practices. 27.21 Pure food laws. AUTHORITY: §§ 27.1 to 27.21 issued under sec. 3, 49 Stat. 655. SOURCE: §§ 27.1 to 27.21 contained in rules and regulations governing the loaning of funds to the Chippewa Indian Cooperative Marketing Association, July 17, 1936. § 27.1 Authorization. Under the provisions of an act approved August 15, 1935 (49 Stat. 654), the sum of $100,000 now on deposit to the credit of the Chippewa Indians in Minnesota, or so much thereof as may be necessary, may be withdrawn from the Treasury of the United States and loaned to the Chippewa Indian Cooperative Marketing Association. (a) Purchase of land for building sites and such other purposes as are necessary for the economic conduct of the business of the association. Abstracts of titles to all land must be furnished the Commissioner of Indian Affairs for examination and approval prior to the purchase; (b) Improvements on lands, the title to which lands must be in the name of the association, or the Chippewa Indians in Minnesota, or held in trust by the Government for the Chippewa Indians in Minnesota; (c) Machinery and equipment necessary for the proper conduct of its business; (d) Office supplies, stationery, equipment, and such materials as may be required for the conduct of a businesslike office; (e) Operating expenses of the association, including the salary of a manager and other employees, expenses incidental to truck operation, containers for commodities handled, transportation charges on commodities handled, the purchasing of products from Indians, the buying of supplies, insurance premiums, storage costs, lights, water, fuel, and repairs to equipment and machinery used in the business; (f) Compensation and expenses of attorneys, if reasonable in the opinion of the Commissioner of Indian Affairs; (g) Reasonable expenses of directors in conducting the business affairs of the association; (h) Costs incurred in the filing of papers and documents in connection with the affairs of the association; and (i) Payment of costs for technical and professional services in the improvement of processing and marketing methods of crops and commodities of Indians. § 27.3 Application. The application for a loan must be made out in quintuplicate by the association, and presented to the superintendent of the Consolidated Chippewa Agency who will review the application, attach his recommendations thereto, and forward all copies to the credit agent of the region who will in turn attach his recommendations and forward all copies to the Commissioner of Indian Affairs. The application shall contain: (a) A program showing the nature and extent of the enterprise to be undertaken; (b) A statement of the general plan of operation, the financial policy and business methods to be followed, copies of proposed marketing contracts between members and the association, and a statement of the proposed bookkeeping and accounting system accompanied by sample forms to be used in connection therewith; (c) A statement of provisions for establishing a reserve in accordance with Article X of the association's articles of incorporation; (d) A statement of how and when repayment will be made; (e) A statement of security or guarantee of repayment offered; (f) A copy of the resolution of the board of directors of the association, certified by the secretary, authorizing the filing of the application for loan; (g) A financial statement showing assets, liabilities and net worth of the association; (h) A statement showing that the provisions of Article IV, Section 3 of the association's bylaws regarding bonding of the officers or employees has been, or will be, complied with; (i) A statement showing the depository in which the association intends to place its funds, together with all information regarding the depository required by Article V, Section 4, of the bylaws; (j) Any other reasonable data which the Commissioner of Indian Affairs may require for making a sound appraisal of the application. ent. The superintendent will assign a contract number to the original and hold same for attachment to the first disbursement voucher, retain one copy of each for the agency files, and forward two copies of each to the credit agent of the region, who will forward one copy of each to the Commissioner of Indian Affairs. § 27.5 Promissory note. All advances made in accordance with the commitment order shall be evidenced by promissory note or notes. A record of all advances and repayments shall be kept on the back of the note or notes, and interest charged only on advances from date of the check evidencing the advance, until paid. § 27.6 Security. The association may be required to give security for loans in the form of liens or mortgages on improvements, equipment, inventories, commodities, accounts receivable, and such other forms of security as are available. Advances shall not be made to the cooperative association until the instruments covering the security as prescribed by the Secretary of the Interior have been duly executed and delivered by the association to the superintendent. The association shall pay all costs of filing or recording the securing instruments. § 27.7 Filing. A copy of the commitment order, and the properly executed note or notes, mortgage or mortgages and all accompanying papers shall be filed in an appropriate file in the agency office. § 27.8 Request for funds. When the commitment order, the note or notes, and accompanying papers have been filed in the agency office, the association's written order or orders shall serve as the superintendent's authority to request the Bureau for allotments and advances of funds and the authority for their expenditure. Requests for allotments and advances of funds shall be made in such amounts and at such times as are authorized by the commitment order and as the association may deem necessary to meet its requirements as set forth in the program submitted with the application. § 27.9 Advance of funds. Upon receipt of notice of allotment, authority for expenditure, advice that an accountable warrant has been issued by the Treasury Department, and the submission of a voucher in favor of the association on a form provided for the purpose, the superintendent will cause to be drawn by the appropriate regional disbursing officer an official check for the amount of the advance in favor of the bonded officer of the association for deposit in the approved depository. The original of the commitment order shall be attached to the first disbursement voucher and identified on subsequent vouchers by number, date, and amount. § 27.10 Repayments. Repayment of principal and interest shall be made to the superintendent of the Consolidated Chippewa Agency who shall issue an official receipt to the association and shall take the amount into his appropriation ledger under "Sundry Receipts." The remittance shall then be scheduled as a repayment to the fund "Chippewa in Minnesota Fund" and forwarded to the disbursing appropriate regional officer for deposit to the credit of the United States. § 27.11 Superintendent. The word "superintendent" wherever used in this part means the administrative officer in charge of the Consolidated Chippewa Agency. § 27.12 Modifications. The association shall follow the plan of operation as specified in the application for loan and must expend funds for approved purposes only. Modifications in the use of funds may be made only with the approval of the Secretary of the Interior. Requests for such modifications shall be made in writing through the superintendent and the credit agent. § 27.13 Default. Should it appear, and, after hearing conducted by one of his authorized representatives, should the Secretary of the Interior determine, that the association has used or is using funds for purposes other than those for which the funds were granted or has failed to conform to other terms set forth in the application for loan, the accompanying papers, and the commitment order, the Secretary of the Interior may, with or without recourse to law, do any one or more of the following: (a) declare the loan to the association immediately due and payable; (b) discontinue further advances of funds provided for in the commitment order; (c) require the return of any funds remaining in the account of the association; (d) take possession of any and all property given as security for the loan by the association; and (e) direct, or arrange for the direction of, the management of the association until such time as the association offers acceptable assurance that it will function in accordance with its obligations. § 27.14 Insurance. The Commissioner of Indian Affairs may require the association to insure against loss by fire, or any other cause, property purchased with funds borrowed from the "Chippewa in Minnesota Fund" and property accepted as security for the repayment of such funds. § 27.15 Interest. All advances of funds made to the Chippewa Indian Cooperative Marketing Association shall bear interest, payable annually at 4 percent per annum from the time made until paid. § 27.16 Maturity. No loan shall be made for a longer period than 10 years. § 27.17 Inspection of records. All records of the Chippewa Indian Cooperative Marketing Association shall be subject to inspection at all reasonable times by the Commissioner of Indian Affairs or his authorized representative or representatives. During § 27.18 Records and reports. the time the association is indebted to the "Chippewa in Minnesota Fund" it must keep records in a manner satisfactory to the Commissioner of Indian Affairs and make reports as directed by him. § 27.19 Audits. All reports of the auditor or auditors of the Chippewa Indian Cooperative Marketing Association accounts shall be submitted to the Commissioner of Indian Affairs, the credit agent, and the superintendent within 10 days after their completion. § 27.20 Business practices. Sound business practices are to observed in fixing the prices to be paid for commodities. § 27.21 Pure food laws. No advance of funds shall be made the association for the production or manufacture of food products unless such production and manufacture shall be in compliance with the pure food laws of the United States and of the State of Minnesota. CROSS REFERENCE: For regulations of the Food and Drug Administration, see 21 CFR Chapter I. 28.16 28.17 28.18 28.20 Maturity. Repayments. Deceased borrowers. Responsibility of superintendent. AUTHORITY: §§ 28.1 to 28.20 issued under sec. 3, 50 Stat. 872; 25 U. S. C. 532. SOURCE: §§ 28.1 to 28.20 appear at 12 F. R. 6735, except as noted following sections affected. § 28.1 Definitions. Wherever used in the regulations in this part the terms defined in this section shall have the meaning stated in this part. (a) "Commissioner" means the Commissioner of Indian Affairs. (b) "Superintendent" means the superintendent of the Klamath Indian Agency. (c) "District director" means the officer in charge of the district office of the Indian Service, under which the Klamath Indian Agency is placed for administrative purposes. The authority of the district director under this part may be delegated by him in writing to his subordinates in the district office. (d) "Klamath Tribes" means the Klamath and Modoc Tribes and Yahooskin Band of Snake Indians of the Klamath Reservation in Oregon. (e) "Business committee" means the Business Committee of the Klamath Tribes elected in accordance with the constitution and bylaws approved by the Commissioner. (f) "Board" means the Klamath loan board elected in accordance with the regulations in this part. (g) "Fund" means the reimbursable loan fund authorized by the acts of August 28, 1937, and August 7, 1939 (50 Stat. 872, 53 Stat. 1253; 25 U. S. C. 530-535, 542 (a)). (h) "Loan agreement" means the approved application, supporting papers, commitment order, and note or notes. (i) "Klamath General Council" means all enrolled members of the Klamath Tribes. The functions of the Klamath General Council as set forth in the regulations in this part may be exercised only at meetings of the council at which a quorum of at least 100 voting members is present. If the Klamath Tribes adopt a constitution and bylaws approved by the Secretary of the Interior or his authorized representative subsequent to promulgation of this regulation, the functions of the general council may be exercised at meetings held in accordance with such constitution and bylaws. [12 F. R. 6735, as amended at 13 F. R. 7802] § 28.2 The Purpose of regulations. purpose of the regulations in this part is to prescribe the terms and conditions of loans from the fund. § 28.3 Loan board. The fund shall be administered by a board of three adult enrolled members of the Klamath Tribes. (a) Election. Board members shall be elected by the Klamath General Council. The Commissioner may prescribe detailed election procedures which are not inconsistent with the provisions of this section. Only adult enrolled members, or minor enrolled members who are heads of families shall be entitled to vote. Voting shall be by secret ballot at a duly called general council meeting. The meinbers of the present board shall remain in office until their terms expire, unless suspended under the regulations in this part. In any election hereafter one new member shall be elected each year for a term of 3 years, or until his successor is elected. The candidate receiving the highest number of votes shall be deemed to have been elected. If a vacancy occurs, a successor shall be elected at the next regular or special meeting of the Klamath General Council at which the same procedure shall be followed as in the case of a regular election. The person so elected shall serve only for the unexpired term of the member whom he replaces. (b) Officers. Each year, within 30 days after the election of a new member, the board shall meet and elect from among its members, a chairman and a vice chairman. The board shall select and employ a secretary from within or without the membership of the board, provided that no member of the board shall hold office simultaneously as chairman or vice chairman and secretary. (c) Duties of officers. The chairman shall preside at meetings of the board, perform acts and other duties usually performed by a presiding officer, and sign papers as authorized or directed by the board. The vice chairman shall perform the duties of chairman during his absence, or as authorized by the board. The secretary shall keep a complete record of all meetings of the board, make reports, and perform such other duties as may be required by the board. (d) Meetings. The board shall establish definite times at which it will meet to consider applications or other business requiring action by the board, notices of which shall be posted at the loan board office, the Klamath Indian Agency office, and such other public places on the reservation as the board may deem advisable, or which may be designated by the business committee. (e) Quorum. Two members shall constitute a quorum. (f) Suspension. (1) The business committee may suspend a member of the board at any time for cause. Notice of such suspension, including a clear and concise statement of the charges resulting in suspension shall be forwarded to the suspended member by registered mail. The suspended member shall have 15 days from the date of receipt of the notice of suspension to request, by registered mail, a hearing before the general council. Upon receipt of such a request for hearing before the general council, it shall be granted as a matter of right. The hearing shall be held at the next regular or special meeting of the general council. The hearing shall consist of an oral or written statement of the charges against the member by a representative of the business committee, and an oral or written defense by the suspended member. A majority vote of the members present may uphold or reverse the action of the business committee. In the event the action of the business committee is upheld, the suspension shall operate as a removal of the suspended member from the board for the balance of his term. No member shall have authority to act for or on the board after receipt of a notice of suspension, and shall not be entitled to compensation for such period, unless the general council reverses the action of the |