[Code of Federal Regulations]
[Title 25, Volume 1]
[Revised as of April 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 25CFR1200]

[Page 1214-1215]
 
                            TITLE 25--INDIANS
 
    CHAPTER VII--OFFICE OF THE SPECIAL TRUSTEE FOR AMERICAN INDIANS, 
                       DEPARTMENT OF THE INTERIOR
 
PART 1200_AMERICAN INDIAN TRUST FUND MANAGEMENT REFORM ACT--Table of 
Contents
 
              Subpart B_Withdrawing Tribal Funds From Trust
 
Sec.  1200.14  What must the Tribal Management Plan contain?

    The Tribal Management Plan required by Sec.  1200.13 must include 
each of the following:
    (a) Tribal investment goals and the strategy for achieving them.
    (b) A description of the protection against the substantial loss of 
principal, as set forth in Sec.  1200.16.
    (c) A copy of the tribe's ordinances and procedures for managing or 
overseeing the management of the funds to be withdrawn. These must 
include adequate protections against fraud, abuse, and violations of the 
management plan.
    (d) A description of the tribe's previous experience managing or 
overseeing the management of invested funds. This should include factual 
data of past performance of tribally-managed funds (i.e., audited 
reports) and the identity and qualifications of the tribe's investment 
officer.
    (e) A description of the capability of all of the individuals or 
investment institutions that will be involved in managing and investing 
the funds for the tribe. Provide copies of State or Federal security 
applications for account executive(s).
    (1) Investment entities named must submit:
    (i) Ownership information (including Central Registry Depository 
(CRD) numbers);
    (ii) Asset size and capitalization;
    (iii) Assets under management;
    (iv) Performance statistics on managed accounts for the past 5 
years; and
    (v) Any adverse actions by licensing and/or regulatory bodies within 
the past 5 years.
    (2) In addition, we may ask about:
    (i) Soft dollar arrangements;

[[Page 1215]]

    (ii) Affiliation with broker dealers, banks, insurance and/or 
investment companies;
    (iii) Research done in house;
    (iv) Recent changes in active portfolio managers; and
    (v) Any other information necessary to make an adequate evaluation 
of the proposed plan.
    (f) A description of how the plan will ensure that the fund manager 
will comply with any conditions established in judgment fund plans or 
settlement acts.
    (g) Proof of liability insurance of the investment firm.
    (h) Proof of liability insurance that protects against fraud for 
those Tribal Council members with authority to disburse funds. In many 
tribes the chairperson, and the comptroller and/or the tribal treasurer, 
for example, would be the positions having this authority.
    (i) A plan for custodianship of investment securities that includes:
    (1) Name of persons in the tribe who can direct the custodian;
    (2) Name of the custodian;
    (3) Copy of intended custodian agreement;
    (4) Size of custodian operation;
    (5) Disclosure of any security lending provisions; and
    (6) Insurance coverage.
    (j) A tribal council agreement to provide an annual audit and report 
on performance of withdrawn funds to the tribal membership. The 
agreement must include a description of the steps (including audit 
performance and reporting) the tribe will take to ensure its membership 
that the tribe is continuing to comply with the terms of the plan 
submitted and approved pursuant to judgment fund limitations (if any) 
and/or the terms of the Act.
    (k) The proposed date for transfer of funds.
    (l) A statement as to whether the tribe chooses to receive the 
withdrawal as a cash balance transfer, as a transfer of marketable 
investments that we own for the tribe, or as a combination of the two.
    (1) A cash balance transfer may require us to sell bonds, notes, or 
other investments that we purchased when investing the tribe's monies.
    (2) We cannot transfer non-marketable securities to a tribe. We can 
only purchase and hold them and must sell them back to the U.S. 
Treasury.
    (3) If we sell a tribe's security at a loss (i.e., when market value 
is less than book value or carrying value) we will first notify the 
tribe. The tribe must instruct us to proceed with the sale and must 
agree not to hold us responsible for the loss before we will make the 
sale.
    (4) If the tribe asks us to transfer marketable securities, upon 
proper instructions from the new tribal custodian, we will order our 
custodian to physically transfer the proper security to the new 
custodian on the agreed upon date.
    (m) Agreement that judgment award funds will have segregated 
accounts.
    (n) A description of the procedures for amending or revising the 
plan.

[61 FR 67932, Dec. 26, 1996, as amended at 71 FR 15339, Mar. 28, 2006]