25 U.S.C. § 2214 — Establishing fair market value

Page 462 TITLE 25—INDIANS § 2214 1 See References in Text note below. tional interest under section 2212 of this title may, as a tenant in common with the other own- ers of the trust or restricted lands, lease the in- terest, sell the resources, consent to the grant- ing of rights-of-way, or engage in any other transaction affecting the trust or restricted land authorized by law. (b) Application of revenue from acquired inter- ests to land consolidation program (1) In general The Secretary shall have a lien on any rev- enue accruing to an interest described in sub- section (a) until the Secretary provides for the removal of the lien under paragraph (3), (4), or (5). (2) Requirements (A) In general Until the Secretary removes a lien from an interest in land under paragraph (1)— (i) any lease, resource sale contract, right-of-way, or other document evidenc- ing a transaction affecting the interest shall contain a clause providing that all revenue derived from the interest shall be paid to the Secretary; and (ii) any revenue derived from any inter- est acquired by the Secretary in accord- ance with section 2212 of this title shall be deposited in the fund created under section 2215 of this title. (B) Approval of transactions Notwithstanding section 5123 of this title, or any other provision of law, until the Sec- retary removes a lien from an interest in land under paragraph (1), the Secretary may approve a transaction covered under this section on behalf of an Indian tribe. (3) Removal of liens after findings The Secretary may remove a lien referred to in paragraph (1) if the Secretary makes a find- ing that— (A) the costs of administering the interest from which revenue accrues under the lien will equal or exceed the projected revenues for the parcel of land involved; (B) in the discretion of the Secretary, it will take an unreasonable period of time for the parcel of land to generate revenue that equals the purchase price paid for the inter- est; or (C) a subsequent decrease in the value of land or commodities associated with the parcel of land make it likely that the inter- est will be unable to generate revenue that equals the purchase price paid for the inter- est in a reasonable time. (4) Removal of liens upon payment into the ac- quisition fund The Secretary shall remove a lien referred to in paragraph (1) upon payment of an amount equal to the purchase price of that in- terest in land into the Acquisition Fund cre- ated under section 2215 1 of this title, except where the tribe with jurisdiction over such in- terest in land authorizes the Secretary to con- tinue the lien in order to generate additional acquisition funds. (5) Other removal of liens The Secretary may, in consultation with tribal governments and other entities de- scribed in section 2212(b)(3) of this title, peri- odically remove liens referred to in paragraph (1) from interests in land acquired by the Sec- retary. (c) Tribe not treated as party to lease; no effect on tribal sovereignty, immunity (1) In general Paragraph (2) shall apply with respect to any undivided interest in allotted land held by the Secretary in trust for a tribe if a lease or agreement under subsection (a) is otherwise applicable to such undivided interest by rea- son of this section even though the Indian tribe did not consent to the lease or agree- ment. (2) Application of lease The lease or agreement described in para- graph (1) shall apply to the portion of the un- divided interest in allotted land described in such paragraph (including entitlement of the Indian tribe to payment under the lease or agreement), and the Indian tribe shall not be treated as being a party to the lease or agree- ment. Nothing in this section (or in the lease or agreement) shall be construed to affect the sovereignty of the Indian tribe. (Pub. L. 97–459, title II, § 214, as added Pub. L. 106–462, title I, § 103(6), Nov. 7, 2000, 114 Stat. 2000; amended Pub. L. 108–374, § 6(a)(6), Oct. 27, 2004, 118 Stat. 1801.) Editorial Notes REFERENCES IN TEXT Section 2215 of this title, referred to in the original in subsec. (b)(4), probably should have been ‘‘section 216’’, meaning section 216 of Pub. L. 97–459, which is classi- fied to section 2215 of this title and relates to the estab- lishment of an Acquisition Fund. Pub. L. 97–459 does not contain a section 2215. AMENDMENTS 2004—Subsec. (b). Pub. L. 108–374 added subsec. (b) and struck out heading and text of former subsec. (b) which related to conditions applicable to the administration by Indian tribes of acquired fractional interests in trust or restricted lands. § 2214. Establishing fair market value For purposes of this chapter, the Secretary may develop a system for establishing the fair market value of various types of lands and im- provements. Such a system may include deter- minations of fair market value based on appro- priate geographic units as determined by the Secretary. Such a system may govern the amounts offered for the purchase of interests in trust or restricted land under this chapter. (Pub. L. 97–459, title II, § 215, as added Pub. L. 106–462, title I, § 103(6), Nov. 7, 2000, 114 Stat. 2002; amended Pub. L. 108–374, § 6(a)(7), Oct. 27, 2004, 118 Stat. 1802; Pub. L. 109–157, § 6, Dec. 30, 2005, 119 Stat. 2952.) Page 463 TITLE 25—INDIANS § 2216 Editorial Notes REFERENCES IN TEXT This chapter, referred to in text, was in the original ‘‘this Act’’, which was translated as reading ‘‘this title’’, meaning title II of Pub. L. 97–459, to reflect the probable intent of Congress. AMENDMENTS 2005—Pub. L. 109–157 substituted ‘‘Such a system may govern the amounts offered for the purchase of inter- ests in trust or restricted land under this chapter.’’ for ‘‘Such system may govern the amounts offered for the purchase of interests in trust or restricted lands under this chapter.’’ 2004—Pub. L. 108–374, which directed substitution of ‘‘this Act’’ for ‘‘section 2212 of this title’’ in last sen- tence, was executed by substituting ‘‘this chapter’’ for ‘‘section 213’’, meaning section 213 of Pub. L. 97–459, which is classified to section 2212 of this title, to reflect the probable intent of Congress. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2005 AMENDMENT Amendment by Pub. L. 109–157 effective as if included in Pub. L. 108–374, see section 9 of Pub. L. 109–157, set out as a note under section 5107 of this title. § 2215. Acquisition Fund (a) In general The Secretary shall establish an Acquisition Fund to— (1) disburse appropriations authorized to ac- complish the purposes of section 2212 of this title; and (2) collect all revenues received from the lease, permit, or sale of resources from inter- ests acquired under section 2212 of this title or paid by Indian landowners under section 2212 of this title. (b) Deposits; use (1) In general All proceeds from leases, permits, or re- source sales derived from an interest in trust or restricted lands described in subsection (a)(2) shall— (A) be deposited in the Acquisition Fund; (B) as specified in advance in appropria- tions Acts, be available for the purpose of acquiring additional fractional interests in trust or restricted lands; and (C) be used to acquire undivided interests on the reservation from which the income was derived. (2) Use of funds The Secretary may use the revenue depos- ited in the Acquisition Fund under paragraph (1) to acquire some or all of the undivided in- terests in any parcels of land in accordance with section 2204 of this title. (Pub. L. 97–459, title II, § 216, as added Pub. L. 106–462, title I, § 103(6), Nov. 7, 2000, 114 Stat. 2002; amended Pub. L. 108–374, § 6(a)(8), Oct. 27, 2004, 118 Stat. 1802.) Editorial Notes AMENDMENTS 2004—Subsec. (a)(2). Pub. L. 108–374, § 6(a)(8)(A), added par. (2) and struck out former par. (2) which read as fol- lows: ‘‘collect all revenues received from the lease, per- mit, or sale of resources from interests in trust or re- stricted lands transferred to Indian tribes by the Sec- retary under section 2212 of this title or paid by Indian landowners under section 2212(c) of this title.’’ Subsec. (b)(1). Pub. L. 108–374, § 6(a)(8)(B)(i), sub- stituted ‘‘All’’ for ‘‘Subject to paragraph (2), all’’ in in- troductory provisions and added subpar. (C). Subsec. (b)(2). Pub. L. 108–374, § 6(a)(8)(B)(ii), added par. (2) and struck out heading and text of former par. (2). Text read as follows: ‘‘With respect to the deposit of proceeds derived from an interest under paragraph (1), the aggregate amount deposited under that para- graph shall not exceed the purchase price of that inter- est under section 2212 of this title.’’ § 2216. Trust and restricted land transactions (a) Policy It is the policy of the United States to encour- age and assist the consolidation of land owner- ship through transactions— (1) involving individual Indians; (2) between Indians and the tribal govern- ment that exercises jurisdiction over the land; or (3) between individuals who own an interest in trust and restricted land who wish to con- vey that interest to an Indian or the tribal government that exercises jurisdiction over the parcel of land involved; in a manner consistent with the policy of main- taining the trust status of allotted lands. Noth- ing in this section shall be construed to apply to or to authorize the sale of trust or restricted lands to a person who is not an Indian. (b) Sales, exchanges and gift deeds between Indi- ans and between Indians and Indian tribes (1) In general (A) Estimate of value Notwithstanding any other provision of law and only after the Indian selling, ex- changing, or conveying by gift deed for no or nominal consideration an interest in land, has been provided with an estimate of the value of the interest of the Indian pursuant to this section— (i) the sale or exchange or conveyance of an interest in trust or restricted land may be made for an amount that is less than the fair market value of that interest; and (ii) the approval of a transaction that is in compliance with this section shall not constitute a breach of trust by the Sec- retary. (B) Waiver of requirement The requirement for an estimate of value under subparagraph (A) may be waived in writing by an owner of a trust or restricted interest in land either selling, exchanging, or conveying by gift deed for no or nominal consideration such interest— (i) to an Indian person who is the owner’s spouse, brother, sister, lineal ancestor, lin- eal descendant, or collateral heir; or (ii) to an Indian co-owner or to the tribe with jurisdiction over the subject parcel of land, where the grantor owns a fractional interest that represents 5 percent or less of the parcel. (2) Limitation For a period of 5 years after the Secretary approves a conveyance pursuant to this sub-