Page:United States Statutes at Large Volume 101 Part 3.djvu/507

 PUBLIC LAW 100-241—FEB. 3, 1988

101 STAT. 1805

SETTLEMENT TRUST OPTION

39. (a) CONVEYANCE OF CORPORATE ASSETS.—(1)(A) A Native Corporation may convey assets (including stock or beneficial interests therein) to a Settlement Trust in accordance with the laws of the State (except to the extent that such laws are inconsistent with this section and section 36). "(B) The approval of the shareholders of the corporation in the form of a resolution shall be required to convey all or substantially all of the assets of the corporation to a Settlement Trust. A conveyance in violation of this clause shall be void ab initio and shall not be given effect by any court. "(2) No subsurface estate in land shall be conveyed to a Settlement Trust. A conveyance of title to, or any other interest in, subsurface estate in violation of this subparagraph shall be void ab initio and shall not be given effect by any court. "(3) Conveyances made pursuant to this subsection— "(A) shall be subject to applicable laws respecting fraudulent conveyance and creditors rights; and "(B) shall give rise to dissenters rights to the extent provided under the laws of the State only if the rights of beneficiaries in the Settlement Trust receiving a conveyance are inalienable. "(4) The provisions of this subsection shall not prohibit a Native Corporation from engaging in any conveyance, reorganization, or transaction not otherwise prohibited under the laws of the State or the United States. "SEC.

43 USC I629e.

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"(b) AUTHORITY AND LIMITATIONS OF A SETTLEMENT TRUST.—(1)

The purpose of a Settlement Trust shall be to promote the health, education, and welfare of its beneficiaries and preserve the heritage and culture of Natives. A Settlement Trust shall not— "(A) operate as a business; "(B) alienate land or any interest in land received from the settlor Native Corporation (except if the recipient of the land is the settlor corporation); or "(C) discriminate in favor of a group of individuals composed Discrimination, only or principally of employees, officers, or directors of the prohibition, settlor Native Corporation. An alienation of land or an interest in land in violation of this paragraph shall be void ab initio and shall not be given effect by any court. "(2) A Native Corporation that has established a Settlement Trust shall have exclusive authority to— "(A) appoint the trustees of the trust, and "(B) remove the trustees of the trust for cause. Only a natural person shall be appointed a trustee of a Settlement Trust. An appointment or removal of a trustee in violation of this paragraph shall be void ab initio and shall not be given effect by any court. "(3) A Native Corporation that has established a Settlement Trust may expand the class of beneficiaries to include holders of Settlement Common Stock issued after the establishment of the trust without compensation to the original beneficiaries. "(4) A Settlement Trust shall not be held to violate any laws against perpetuities. "(c) SAVINGS.—(1) The provisions of this Act shall continue to apply to any land or interest in land received from the Federal Government pursuant to this Act and later conveyed to a Settle-

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