25 U.S.C. § 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 The Secretary of the Interior may choose to take common or community tribal trust funds out of the U.S. Treasury and deposit them in banks he picks. This applies to tribal funds the United States is not legally required to pay above-market interest on. The Secretary may also do this for money held in trust for individual Indians. But there is a rule: no individual Indian money may go into a bank until that bank agrees to pay a reasonable interest rate. This rate is subject to Federal Reserve Board rules for member banks, and FDIC Board of Directors rules for insured nonmember banks. The Secretary may waive the interest requirement for money payable on demand. No tribal or individual Indian money may go into a bank until the bank gives an acceptable bond or pledges collateral — U.S. public-debt obligations, or bonds/notes the U.S. fully guarantees for interest and principal. A bank does not need to post this bond or collateral if it is covered by section 12B of the Federal Reserve Act (deposit insurance) and the tribal or individual deposits are insured under that section. Nothing in this section, or in section 12B of the Federal Reserve Act, takes away an Indian's full FDIC protection on his own unrestricted funds at a bank. This is true even if he also has an interest in restricted Indian funds at the same bank, credited to a U.S. disbursing agent. For insurance-claim purposes, the unrestricted funds count as a separate and distinct basis for a claim. If the Secretary decides it is in the Indians' best interest, he may invest any tribe's or individual's trust funds in U.S. public-debt obligations, or in bonds/notes the U.S. fully guarantees. For the Osage Tribe of Indians and its individual members, this section applies only to depositing their funds in banks — not to the other provisions above. (b) Investment of collections from irrigation projects and power operations The Secretary may invest operation-and-maintenance money collected from Indian irrigation projects, and revenue collected from power operations on those projects, in: (1) U.S. public-debt obligations; (2) bonds or notes the U.S. fully guarantees; or (3) any other investment that is lawful for trust funds under U.S. authority or control. The Secretary may use the earnings from these investments to pay the project's operation and maintenance costs. (c) Investment of tribal trust funds in public debt obligations (1) Despite subsection (a), if a tribe (for its own trust funds) or an individual Indian (for their own trust funds) asks, the Secretary may invest that money in guaranteed or public-debt U.S. obligations, or in a mutual fund (an open-end diversified investment company), if all of these are true: (A) the fund's entire portfolio is U.S. public-debt obligations, U.S.-guaranteed bonds or notes, or a mix of both; (B) the trust funds to be invested are more than $50,000; (C) the fund is registered with the Securities and Exchange Commission; and (D) the Secretary is satisfied the fund protects the money's principal against loss. (2) Before granting such a request, the Secretary may require the tribe or individual to sign an agreement freeing the United States from any liability for the interest earned while the money is invested this way. (3) An investment made this way is treated the same as cash or a bank deposit under section 955 of this title. (d) Trust responsibilities of Secretary of the Interior The Secretary must properly carry out the United States' trust duties. This includes — but is not limited to — the following eight things: (1) providing adequate systems to account for and report trust fund balances; (2) providing adequate controls over money coming in and going out; (3) providing regular, timely reconciliations to make sure the accounts are accurate; (4) figuring out accurate cash balances; (5) giving account holders regular statements of how their account performed, with balances available every day; (6) setting up consistent, written policies and procedures for managing and accounting for trust funds; (7) providing enough staff, supervision, and training for trust fund management and accounting; and (8) properly managing the natural resources located within Indian reservations and trust lands.