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tribe when consented to by the tribe and authorized by Congress. Tribal funds so transferred may be loaned or used in the operation of tribal enterprises in accordance with the regulations in this part governing the use of tribal credit funds and the operation of corporate and tribal enterprises.

No carrying charge shall be paid to the United States on tribal funds.

§ 21.19 Corporate and tribal enterprises. A corporate enterprise is a business operated by a corporation. A tribal enterprise is a business operated by an unincorporated tribe. Applications for loans and requests to use tribal funds for the operation of corporate and tribal enterprises must be approved by the Commissioner of Indian Affairs. The application or request shall set forth the use to be made of the funds, proposed management and operating plans, schedule of advances and repayments, regulations governing the enterprise, how title to purchases shall be taken, and plans for disposal of the property.

PART 22-ORGANIZATION OF INDIAN COOPERATIVE ASSOCIATIONS [REVISED]

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AUTHORITY: §§ 22.1 to 22.6, inclusive, issued under sec. 9, 49 Stat. 1968; 25 U.S.C. 509. 57 Stat. 459.

SOURCE: $ 22.1 to 22.6, inclusive, contained in Regulations, Assistant Secretary of the Interior, April 13, 1944, 9 F.R. 4569.

§ 22.1 Eligibility. Under the Oklahoma Indian Welfare Act approved June 26, 1936 (49 Stat. 1967; 25 U.S.C. 501509), the Secretary of the Interior may issue charters to cooperative associations organized under the act and in accordance with his regulations. Under authority contained in the act of July 12, 1943 (57 Stat. 451), the Secretary of the Interior is authorized to make loans to Indian organizations. In order for Oklahoma cooperative associations to receive charters, and for these or other Indian cooperative associations to be eligible for loans under the provisions of Part 23 of this chapter, "Loans to Indian Cooperative Associations", or Part

24 of this chapter, "Loans to Indian Credit Associations", they must be organized in accordance with the regulations in this part. Cooperative associations whose members are also members of tribes incorporated under the act of June 18, 1934 (48 Stat. 988; 25 U.S.C. 479), and cooperative, associations whose members are also members of unincorporated tribes which are conducting operations with revolving credit funds shall be organized under the provisions of Part 21 of this chapter, "Loans to and by Indian Chartered Corporations and Unincorporated Tribes", and not under the regulations in this part unless specifically authorized to do so by the Secretary of the Interior.

§ 22.2 Purpose. Cooperative associations organized pursuant to this part shall promote the economic development of their members by providing the necessary economic and social facilities which the members as individuals cannot secure or maintain. They shall be organized for one or more of the following purposes: (a) credit administration; (b) production; (c) marketing; (d) consumers' protection; and (e) land management.

§ 22.3 Requirements for organization. A cooperative organized under the Oklahoma Indian Welfare Act, and all credit associations must have at least ten members. All other cooperatives must have at least five members. The members must reside in convenient proximity to each other and desire to act together for their mutual economic development. All members shall be Indians as defined in the Indian Reorganization Act of June 18, 1934 (48 Stat. 988, 25 U.S.C. 479).

§ 22.4 Articles of Association. The articles of cooperative associations and credit associations shall be approved by the Secretary of the Interior. All articles shall include provisions relating to: (a) Name; (b) purpose; (c) powers; (d) principal place of business; (e) term for which organized; (f) eligibility for membership; (g) voting; (h) application of income; (i) management; (j) interest of members in the association; (k) procedure for amendments; (1) dissolution. The articles must show that each member will have but one vote; that voting by proxy will not be permitted; that capital invested in the enterprise shall be entitled to a limited return only; and that profits or refunds will be distributed on a patronage basis.

$22.5 Bylaws. The bylaws of cooperative associations and credit associations shall be approved by the Secretary of the Interior. All bylaws shall include provisions relating to: (a) Time, place, and manner of holding, calling, adjourning, and postponing meetings of members and directors; (b) quorums; (c) the number of officers and directors, titles, tenure of office, powers, duties, manner of election, filling of vacanies, and removal of officers and directors; (d) manner in which members may be expelled from or restored to membership, or withdraw from membership, and the liquidation or restoration of the interests of members in such cases; (e) creation of reserves and operating funds; (f) manner of making and recording receipts and disbursements and of keeping all accounts, records, books, and minutes. The bylaws must provide that no officer or director may be employed as a paid manager of the association. If the association is organized with capital stock, the manner of issuing such stock and the manner of transferring, retiring, and evidencing ownership thereof shall be specified.

§ 22.6 Charter. The Secretary of the Interior will, in his discretion, execute a charter of incorporation for cooperative associations organized under the Oklahoma Indian Welfare Act of June 26, 1936 (49 Stat. 1967; 25 U.S.C. 504, 509). Such certificate together with the approved articles dealt with in § 22.4 shall constitute the charter of the association.

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AUTHORITY: §§ 23.1 to 23.18, inclusive, issued under sec. 9, 49 Stat. 1968; 25 U.S.C. 509. 57 Stat. 459.

SOURCE: $§ 23.1 to 23.18, inclusive, contained in Regulations, Assistant Secretary of the Interior, April 13, 1944, 9 F.R. 4570.

§ 23.1 Eligibility. To be eligible for a loan under the regulations in this part, a cooperative association must be organized in accordance with the provisions of Part 22 of this chapter, "Regulations for Organization of Indian Cooperative Associations." Cooperatives organized for credit administration may receive loans under the provisions of Part 24 of this chapter, "Regulations for Loans to Indian Credit Associations" and not under the regulations in this part.

§ 23.2 Purpose. Funds may be loaned to a cooperative to promote the economic development of its members.

§ 23.3 Application for loan. Applications shall be prepared on forms approved by the Secretary of the Interior, and unless otherwise authorized by the Commissioner of Indian Affairs, shall include signed agricultural, commercial, or industrial plans. The superintendent of the Agency or his authorized representative shall be responsible for explaining the nature of all instruments signed, responsibility for care of the property, and the necessity for carrying out the provisions of the loan agreement. Unless otherwise authorized by the Commissioner, all applications shall be approved by the Commissioner.

§ 23.4 Security. The association shall offer the United States all possible security up to an adequate amount. Upon approval of the application the association must give the United States the security required by the Commissioner of Indian Affairs before any advance of funds shall be made. Securing instruments shall be filed in accordance with instructions of the Commissioner.

§ 23.5 Interest. Associations shall be charged interest at the rate of three percent per annum from the date the money is advanced until repaid, which shall be figured on the basis of 360 days per annum.

§ 23.6 Maturity. Twenty years shall be the maximum time for which a loan may be made to a cooperative.

§ 23.7 Commitment order. Upon approval of the application for the loan, a commitment order covering the terms

and conditions of making the loan and advances thereunder shall be submitted to the association through the superintendent, and shall be effective when the association delivers the required copies to the superintendent with its unconditional acceptance written on the original copy. Such delivery must be made within ninety days of the approval of the application.

§ 23.8 Loan agreement contract. The approved application, supporting papers, commitment order, and note or notes, constitute the loan agreement contract.

§ 23.9 Modification of loan agreement. Modifications of the loan agreement shall be handled through the same channels as the original agreement, except that the credit agent may approve modifications where the amount involved does not exceed $1,000 on applications originally approved by the Commissioner of Indian Affairs. Loan agreements shall not be permitted to remain in default; either payment must be made, a formal extension granted in the form of a modification, or action taken under the provisions of § 23.13.

§ 23.10 Depository. All advances shall be deposited immediately upon receipt in depositories approved by the Commissioner of Indian Affairs, and must be evidenced by promissory note or notes, the original of which only shall be signed.

§ 23.11 Bonding of officers. Each officer of the association authorized to handle funds shall furnish a bond satisfactory to the Commissioner of Indian Affairs, except that when funds are handled in a manner similar to the handling of individual Indian moneys by a bonded Government disbursing officer, a bond shall not be required.

Credit

§ 23.12 Limitations of use. funds may be used only for the purposes set forth in the association's loan agreement with the United States.

§ 23.13 Penalties on default. Failure on the part of the association to use or repay the funds loaned in keeping with the loan agreement as originally approved or as amended, or any improper use of funds loaned to the association, shall be grounds for any one or all of the following steps to be taken by the Commissioner of Indian Affairs, with or without recourse to legal proceedings: (a) Declare the entire amount advanced im

mediately due and payable; (b) discontinue any further advances of funds contemplated by the loan agreement; (c) prevent further disbursements of credit funds under the control of the association; (d) withdraw any unobligated funds from the association; (e) take possession of any and all collateral or security; (f) take possession of the assets of the association and exercise or arrange for the exercise of its powers until the association's indebtedness to the United States shall be repaid, or until the Commissioner shall receive acceptable assurance of its repayment and of compliance with the loan agreement.

§ 23.14 Restrictions on approval. The Commissioner of Indian Affairs shall not approve, nor authorize the approval of a loan to an association: (a) For the development of commercial enterprises unless such enterprises are to be conducted on a cash basis, except when authorized in the loan agreement; (b) which is indebted to the United States for loans from "industry among Indians" or "tribal industrial assistance" funds, or which has livestock or crops of the same class as that upon which a lien exists, or the title to which is affected, because of existing debts or obligations from any source, unless plans of repayment acceptable to the Commissioner or his authorized representative are presented in the application; (c) for the production of crops, unless the loan will be repaid within one year; except for crops from which no income will be received the first year; maturity dates shall be fixed at the time when the crops are to be harvested and available for sale; (d) for less than $25.00; (e) for the purchase of land, except sites necessary for the operation of the association.

§ 23.15 Records. The association must keep records, files, and accounts and make signed reports as directed by the Commissioner of Indian Affairs.

§ 23.16 Title to property. All property purchased with credit funds shall be purchased in the name of the United States in trust for the association, and all buildings, fences, and other permanent improvements constructed wholly or in part with credit funds shall not be considered a part of the realty until the loan with which they were purchased is repaid in full, unless otherwise specified in the association's loan agreement.

§ 23.17 Property identification. All livestock and issue thereof and all major articles of equipment purchased with credit funds, and trust property given as security for loans of credit funds, except as otherwise authorized by the Commissioner of Indian Affairs, shall be branded or marked with the letters "ID" to make identification permanently possible, and certificates showing compliance with this requirement shall be filed.

§ 23.18 Bills of sale. The association must obtain bills of sale on a form approved by the Commissioner of Indian Affairs for all livestock purchased with credit funds, title to which is taken in the name of the United States. This form also may be used for machinery, equipment, and other purchases, title to which is taken in the name of the United States, but receipted invoices on the vendor's stationery will be accepted in lieu thereof. Receipted invoices or appropriate bills of sale, which shall be filed in accordance with instructions of the Commissioner, must be obtained on purchases of all items costing twentyfive dollars or more.

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24.9 Modification of loan agreement. [Revised]

AUTHORITY: §§ 24.1 to 24.9, appearing in this Supplement, issued under sec. 9, 49 Stat. 1968, 25 U.S.C. 509; 57 Stat. 459.

SOURCE: §§ 24.1 to 24.9, appearing in this Supplement, contained in Regulations, Assistant Secretary of the Interior, Apr. 13, 1944, 9 FR. 4571.

§ 24.1 Eligible borrowers. To be eligible for a loan a credit association operating in the State of Oklahoma must be organized under the Oklahoma Indian Welfare Act approved June 26, 1936 (49 Stat. 1967, 25 U.S.C. 501-509). Credit associations operating in other states shall have a form of organization approved by the Secretary of the Interior. All credit associations shall be organized in accordance with the provisions of Part 22 of this chapter, "Regulations for Organization of Indian Cooperative

Associations." The name of the association shall include the words "Indian Credit Association" and its articles of association shall provide as its purpose the following: "To carry on the business of borrowing money from the United States and relending it to its members." In order to obtain a loan a credit association must agree to follow the rules and regulations in this part, those in Part 25 of this chapter, "Loans by Indian Credit Associations," and such conditions as are agreed upon and set forth in the loan agreement between the association and the United States. The association must also agree in requesting funds to be reloaned, to accept such provisions, in addition to said regulations, as in the opinion of the Commissioner are necessary to insure fulfillment of the loan agreement between the United States and the association; and to require its borrowers to conform to applicable rules and regulations. The association may adopt such additional rules and regulations as it deems advisable, which are not inconsistent with the terms and conditions of the loan agreement with the United States and the regulations in this part.

§ 24.2 Purpose. Funds may be loaned to an association to promote the economic development of the association and its members. The association may make loans to qualified members under the regulations in Part 25 of this chapter, "Loans by Indian Credit Associations."

§ 24.5 Annual carrying charge. The annual carrying charge by the United States shall be one percent per annum from the date the money is advanced until repaid, which shall be figured on the basis of 360 days per annum.

$24.9 Modification of loan agreement. Modifications of the loan agreement shall be handled through the same channels as the original agreement, except that the Commissioner of Indian Affairs may approve modifications when the amount of the loan is not increased. When the amount of the loan is increased. modifications must be approved by the Secretary of the Interior.

PART 25-LOANS BY INDIAN CREDIT ASSOCIATIONS

CODIFICATION: The title of this part was amended to read as set forth above, by Regulation, Assistant Secretary of the Interior, Apr. 13, 1944, 9 F.R. 4571.

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§ 25.7 Applications requiring approval of the Commissioner of Indian Affairs. Applications of the following character shall require prior approval of the Commissioner of Indian Affairs; (a) Applications of Government employees; (b) applications of individuals who will have an aggregate indebtedness to the association exceeding $3,000; (c) applications for loans for the purchase of livestock, machinery, and equipment with maturities exceeding six years; (d) applications for enterprises which are not conducted on lands within the boundaries of the reservation, except enterprises operated in the State of Oklahoma.

§ 25.25 Fees. Inspection fees may be charged a borrower when a physical inspection is necessary, but in no case may the fees exceed one percent of the loan, and in no event may they exceed five dollars.

Fees for the preparation of applications, and for assistance with the clerical work and maintenance of the records of the association may also be charged, when authorized in the loan agreement of the association with the United States, or when authorized by the Commissioner of Indian Affairs.

The total fees charged may not exceed one percent of the total amount of the loan, except on short-time loans to be repaid within one year, in which cases the Commissioner may approve fees up to

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STATES TO INDIVIDUAL INDIANS CODIFICATION: The title of the regulations in Part 26 was amended to read as set forth above by Regulations, Assistant Secretary of the Interior, Apr. 13, 1944, 9 F.R. 4572. Sec.

26.1 Eligibility. [Revised]

26.6 Restrictions on approval. [Amended] 26.7 Applications requiring approval of the Commissioner of Indian Affairs. [Revised]

AUTHORITY: $§ 26.1 to 26.7, appearing in this Supplement, issued under sec. 9, 49 Stat. 1968; 25 U.S.C. 509, 57 Stat. 459.

SOURCE: §§ 26.1 to 26.7, appearing in this Supplement, contained in Regulations, Assistant Secretary of the Interior, Apr. 13, 1944, 9 F.R. 4572.

§ 26.1 Eligibility. To be eligible for a loan an individual must be an Indian as determined by the official tribal rolls; or an Indian descendant of such an enrolled Indian; or an Indian as defined in the Indian Reorganization Act of June 18, 1934 (48 Stat. 988, 25 U.S.C. 479); and must be of not less than one quarter degree of Indian blood. Individuals who are members of any Indian tribe whose affairs are administered by any Indian agency in the State of Oklahoma must also be domiciled in and a resident of the State of Oklahoma. Members of unincorporated tribes are eligible for loans under the regulations in this part when such tribes are not conducting credit operations under Part 21 of this chapter, "Loans to and by Indian Chartered Corporations and Unincorporated Tribes", and have either declined to conduct such operations or are, in the judgment of the Secretary of the Interior, incapable, at the time, of conducting such operations. Members of incorporated tribes are not eligible for loans under this part. Any applicant who resides in the territory of an Indian credit association conducting operations with revolving credit funds to be eligible must show that the credit association has rejected his application and the reasons for the rejection.

§ 26.6 Restrictions on approval. * (a) Except when authorized in the loan agreement, for the development of commercial enterprises unless such enter

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