Committee: Rules Author: Callie Catcher
Date: 12-03-04 Committee Date: 12-18-04 Sponsor:
An Act
Legislative Act 04-05
Title
AN ACT AMENDING LEGISLATIVE ACT 28-04, THE FISCAL POLICY AND
RESPONSIBILITY ACT AMENDMENTS OF 2004 AND DECLARING AN
EMERGENCY
Body
BE IT ENACTED BY THE CHEROKEE NATION:
Section 1. Title and Codification
This act shall be known as the "Fiscal Policy and Responsibility Act Amendments of 2004," and codified as (Title) (Section) of the Cherokee Nation Code Annotated.
Section 2. Purpose
The purpose of this Act is to amend the Fiscal Policy and Responsibility Act Amendments of 2004," which authorized a line of credit to be utilized in satisfying the permanent Cash Reserve required by Legislative Act 5-02, and to permanently provide for operating cash needs of the Nation. This amendment is necessary to eliminate Section 6.1.F of the Act, stating that a waiver of sovereign immunity is not associated with the line of credit. The authorized financial institution requires a limited waiver of sovereign immunity to execute the line of credit.
Section 3. Legislative History
A The Constitution and laws of the Cherokee Nation, including Title 62 of the Cherokee
Nation Code Annotated (CNCA) provides the requirements for appropriations, review and authorization for the use of all funds.
Section 7 of Article X of the Cherokee Constitution, and 62 CNCA � 61 contain the specific requirements for pledges of credit of the Cherokee Nation.
C. Legislative Act 5-02, dated January 29, 2002, the "Fiscal Policy and Responsibility Act
of 2002" provides in part for a permanent Cash Reserve to be maintained at 1.75% of total authorized appropriations in the annual comprehensive budget each year.
D. Legislative Act 28-04, dated July 12, 2004, the "Fiscal Policy and Responsibility
Amendments of 2004" amended LA 5-02, authorized the Principal Chief or his/her designee to negotiate and execute documents to secure a line of credit not to exceed $5,000,000, and contained other provisions related to same.
E. All other applicable resolutions, statutes and Court decisions are hereby acknowledged.
Section 4. Amendments
Legislative Act 28-04 is hereby amended as follows:
Section 6.1. Line of Credit Authorized
A. A line of credit to provide cash requirements for the Cash Reserve and/or cash flow
for operations is hereby authorized, not to exceed $5,000,000 at any given time.
B. Bank of America is the financial institution authorized from which to obtain such line
of credit.
C. The Principal Chief or his/her designee is authorized to negotiate and execute the line
of credit, including the interest rate applicable to same.
D. Any interest expense incurred under this line of credit must be provided for by
appropriations in the annual Comprehensive Budget of the Nation.
E. No additional budget authority is conferred or authorized by this Act. The use of the
line of credit is limited to expenditures authorized by the annual Comprehensive Budget.
F. In connection with the securing of the line of credit it is necessary and the Principal
Chief or his/her designee is hereby authorized to negotiate and execute one or more promissory note(s), pursuant to the terms of a loan agreement by and between the Cherokee Nation and Bank of America, N.A. to evidence the Nation's obligations pursuant to the line of credit.
G. The authorized term of the line of credit will not expire until and unless amended or
rescinded by Legislative Act; or, unless limited in the debt agreement executed by the Principal Chief or his/her designee.
H. In accordance with 62 CNCA � 72 the Controller is required to report in the monthly
financial report to the Council of the Cherokee Nation the status of the line of credit authorized herein.
Section 5. Provisions as cumulative
The provisions of this act shall be cumulative to existing law. Section 6. Severability
The provisions of this act are severable and if any part of provision hereof shall be held void the decision of the court so holding shall not affect or impair any of the remaining parts or provisions of this act.
Section 7. Emergency declared
It being immediately necessary for the welfare of the Cherokee Nation, the Council hereby declares that an emergency exists, by reason whereof this act shall take effect and be in full force after its passage and approval.
Section 8. Self-Help Contributions
To the extent that this Act involves programs or services to citizens of the Nation or others, self-help contributions shall be required, unless specifically prohibited by the funding agency, or a waiver is granted due to physical or mental incapacity of the participant to contribute.
Enacted by the Council of the Cherokee Nation on the 10th day of January, 2005
ATTEST:
Bill John Baker, Secretary
Council of the Cherokee Nation
Joe Grayson, President Council of the Cherokee Nation
Approved and signed by the Principal Chief this 17th day of JANUARY , 2005.
YEAS AND NAYS AS RECORDED:
Audra Smoke-Conner YEA Melvina Shotpouch YEA
Bill John Baker YEA Meredith A. Frailey YEA
Joe Crittenden YEA John F. Keener YEA
Jackie Bob Martin YEA Cara Cowan YEA
Phyllis Yargee YEA Buel Anglen YEA
David W. Thornton, Sr. YEA William G. Johnson YEA
Don Garvin YEA Charles "Chuck" Hoskin YEA
Linda Hughes-O'Leary YEA
Chad Smith, Principal Chief Cherokee Nation
ATTEST:
Callie Catcher, Secretary/Treasurer Cherokee Nation